Fenix Parts, Inc.

CIK:0001615153|SEC Filings

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net revenues	$ 34,075	$ 32,182
Cost of goods sold	20,543	17,082
Gross profit	13,532	15,100
Selling, general and administrative expenses	12,839	12,364
Outside service and professional fees	2,732	2,185
Depreciation and amortization	1,098	1,207
Change in fair value of contingent consideration	(221)	(4,005)
Change in indemnification receivables	(35)	2,089
Goodwill impairment	37,068	45,300
Operating loss	(39,949)	(44,040)
Interest expense	(657)	(255)
Other income, net	63	92
Loss before income tax benefit	(40,543)	(44,203)
Income tax benefit	1,102	2,841
Net loss	(39,441)	(41,362)
Foreign currency translation adjustment	95	1,626
Net comprehensive loss	$ (39,346)	$ (39,736)
Loss per share available to common shareholders:
Earnings/(loss) per share, Diluted (in dollars per share)	$ (1.86)	$ (1.99)
Weighted average common shares outstanding:
Weighted average common shares outstanding, Basic (in dollars per share)	20,124,099	19,664,345

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net loss	$ (39,441,000)	$ (41,362,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	1,336,000	1,471,000
Share-based compensation expense	381,000	1,258,000
Interest paid in kind	133,000	0
Deferred income taxes	(943,000)	(2,622,000)
Deferral of warranty sales	231,000	0
Non-cash rent	215,000	235,000
Change in reserve for uncertain tax positions	35,000	(2,231,000)
Change in indemnification receivables	(35,000)	2,089,000
Amortization of inventory fair value mark-up	0	885,000
Retrospective inventory opening balance sheet adjustment	0	(2,221,000)
Change in estimate of retail inventory	0	(1,777,000)
Other operating expenses and adjustments	(221,000)	(4,005,000)
Goodwill impairment	37,068,000	45,300,000
Change in operating assets and liabilities
Accounts receivable	318,000	(585,000)
Inventories	(107,000)	(892,000)
Prepaid expenses and other current assets	(235,000)	(126,000)
Accounts payable	(351,000)	425,000
Accrued expenses	1,610,000	2,374,000
Other current liabilities	(51,000)	885,000
Net cash used in operating activities	(57,000)	(899,000)
Cash flows from investing activities
Capital expenditures	(16,000)	(233,000)
Proceeds from Sale of Property, Plant, and Equipment	58,000	0
Net cash provided by (used) in investing activities	42,000	(233,000)
Cash flows from financing activities
Proceeds from issuances of unregistered common stock	250,000	0
Proceeds from Stock Plans	107,000	0
Borrowings on revolving credit line	0	500,000
Net cash provided by financing activities	357,000	500,000
Effect of foreign exchange fluctuations on cash and cash equivalents	0	27,000
Increase (decrease) in cash and cash equivalents	342,000	(605,000)
Cash and cash equivalents, beginning of period	738,000	2,827,000
Cash and cash equivalents, end of period	1,080,000	2,222,000
Supplemental cash flow disclosures:
Cash paid for interest	337,000	271,000
Noncash transactions:
Additional purchase consideration included in current liabilities	$ 0	$ 394,000

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,080	$ 738
Accounts receivable, net	6,887	7,203
Inventories	32,703	32,568
Prepaid expenses and other current assets	671	435
Total current assets	41,341	40,944
PROPERTY AND EQUIPMENT
Property and equipment, net	9,636	10,089
OTHER NON-CURRENT ASSETS
Goodwill	0	37,027
Intangible assets, net	31,412	32,211
Indemnification receivables	2,043	2,009
Other non-current assets	3,068	3,117
TOTAL ASSETS	87,500	125,397
CURRENT LIABILITIES
Accounts payable	4,610	4,955
Accrued expenses	6,361	4,800
Current portion of debt under Credit Facility	21,255	21,094
Contingent consideration liabilities	6,963	7,156
Other current liabilities	2,232	1,899
Total current liabilities	41,421	39,904
NON-CURRENT LIABILITIES
Deferred income tax liabilities	7,227	8,170
Reserve for uncertain tax positions	2,215	2,180
Other non-current liabilities	4,723	4,514
Total non-current liabilities	14,165	14,864
TOTAL LIABILITIES	55,586	54,768
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY (DEFICIT)
Common stock, $0.001 par value; 30,000,000 shares authorized; 20,130,274 and 20,038,489 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	20	20
Additional paid-in capital	139,824	139,193
Accumulated other comprehensive loss	(3,233)	(3,328)
Accumulated deficit	(113,097)	(73,656)
Total Fenix Parts, Inc. shareholders’ equity before noncontrolling interest	23,514	62,229
Noncontrolling interest	8,400	8,400
Total shareholders’ equity	31,914	70,629
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 87,500	$ 125,397