zulily, inc.

CIK:0001478484|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014	Jun. 28, 2015	Jun. 29, 2014
Income Statement [Abstract]
NET SALES	$ 297,561	$ 285,013	$ 604,177	$ 522,894
COST OF SALES	205,072	204,057	419,462	378,203
GROSS PROFIT	92,489	80,956	184,715	144,691
OPERATING EXPENSES:
Marketing	26,896	24,282	56,482	47,367
Selling, general and administrative	60,308	48,999	127,401	92,599
TOTAL OPERATING EXPENSES	87,204	73,281	183,883	139,966
INCOME FROM OPERATIONS	5,285	7,675	832	4,725
INTEREST INCOME (EXPENSE)—Net	162	92	332	145
OTHER INCOME (EXPENSE)—Net	8	(11)	(55)	(64)
NET INCOME BEFORE PROVISION FOR INCOME TAXES	5,455	7,756	1,109	4,806
PROVISION (BENEFIT) FOR INCOME TAXES	1,915	0	55	0
NET INCOME	3,540	7,756	1,054	4,806
Net income attributable to Class A and Class B common stockholders	$ 3,540	$ 7,756	$ 1,054	$ 4,806
Net income per share attributable to Class A and Class B common stockholders:
Basic (in dollars per share)	$ 0.03	$ 0.06	$ 0.01	$ 0.04
Diluted (in dollars per share)	$ 0.03	$ 0.06	$ 0.01	$ 0.04
Weighted average shares outstanding used to compute net income attributable to Class A and Class B common stockholders:
Basic (in shares)	123,651,423	124,423,877	124,264,774	124,177,090
Diluted (in shares)	125,977,444	133,066,635	127,027,000	133,101,806

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 28, 2015	Jun. 29, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,054	$ 4,806
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	8,927	5,518
Stock-based compensation	8,762	6,831
Excess tax benefit from stock-based compensation	129	0
Deferred income taxes	49	0
Loss on disposal of assets	274	121
Other	349	0
Changes in operating assets and liabilities:
Accounts receivable	(2,339)	(3,757)
Inventories	(2,568)	(5,649)
Prepaid expenses and other assets	(981)	(1,517)
Accounts payable	(36,133)	2,497
Accrued expenses and other liabilities	2,903	6,031
Deferred revenue	6,365	24,390
Net cash (used in) provided by operating activities	(13,209)	39,271
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(19,540)	(37,537)
Purchases of short-term and other investments	(163,560)	(59,996)
Proceeds from maturity and sale of short-term and other investments	263,500	25,000
Net cash provided by (used in) investing activities	80,400	(72,533)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	4,059	1,526
Excess tax benefit from stock-based compensation	(129)	0
Payments of deferred offering costs	0	(385)
Debt issuance costs	0	(409)
Repurchase of Class A common stock	(31,315)	0
Net cash (used in) provided by financing activities	(27,385)	732
Effect of exchange rate changes on cash and cash equivalents	(32)	(2)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	39,774	(32,532)
CASH AND CASH EQUIVALENTS—Beginning of period	242,292	290,089
CASH AND CASH EQUIVALENTS—End of period	282,066	257,557
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:
Payable for capital purchases	558	1,851
Stock-based compensation capitalized	$ 193	$ 16

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 28, 2015	Dec. 28, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 282,066	$ 242,292
Short-term investments	31,533	131,528
Accounts receivable	10,678	8,342
Inventories	19,934	17,373
Prepaid expenses and other current assets	9,243	8,165
Deferred income taxes — Net	4,449	4,449
Total current assets	357,903	412,149
PROPERTY AND EQUIPMENT — Net	89,571	78,898
OTHER NON-CURRENT ASSETS	1,002	1,331
Total assets	448,476	492,378
CURRENT LIABILITIES:
Accounts payable	73,380	109,267
Accrued expenses	34,241	39,474
Deferred revenue	50,603	44,243
Total current liabilities	158,224	192,984
DEFERRED INCOME TAXES — Net	5,190	5,012
OTHER NON-CURRENT LIABILITIES	26,546	18,419
Total liabilities	$ 189,960	$ 216,415
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $0.0001 par value—2,000,000 shares authorized as of June 28, 2015 and December 28, 2014; zero shares issued and outstanding as of June 28, 2015 and December 28, 2014	$ 0	$ 0
Treasury stock, at cost—2,263,189 shares and zero shares as of June 28, 2015 and December 28, 2014, respectively	(31,315)	0
Additional paid-in capital	319,083	306,197
Accumulated other comprehensive loss	(75)	(3)
Accumulated deficit	(29,190)	(30,244)
Total stockholders’ equity	258,516	275,963
Total liabilities and stockholders' equity	448,476	492,378
Class A Common Stock [Member]
STOCKHOLDERS’ EQUITY
Common stock	7	6
Class B Common Stock [Member]
STOCKHOLDERS’ EQUITY
Common stock	$ 6	$ 7