ZAGG Inc Reports Financial Results For Fourth Quarter And Full Year 2012

  • Net sales of $87.5 million for the fourth quarter and net sales of $264.4 million for the full year 2012
  • Adjusted EBITDA of $20.9 million for the fourth quarter and Adjusted EBITDA of $62.6 million for the full year 2012
  • GAAP diluted EPS of $0.01 for the fourth quarter and pro forma diluted EPS of $0.37 and GAAP diluted EPS of $0.46 for the full year 2012 and pro forma diluted EPS of $1.14
  • Net sales guidance of $313.0 million - $318.0 million and adjusted EBITDA of $69.0 million - $71.0 million for the full year 2013

SALT LAKE CITY, Feb. 26, 2013 (GLOBE NEWSWIRE) -- ZAGG Inc (Nasdaq:ZAGG) ( ), a market leader in innovative mobile device accessories and technologies, today announced financial results for the fourth quarter and full year ended December 31, 2012.

Fourth Quarter Highlights (fourth quarter 2012 versus fourth quarter 2011)
  • Net sales increased 30% to $87.5 million
  • Gross margins of 44.1%
  • Operating income of $5.3 million; excluding a non-cash impairment charge of $11.5 million, operating income was up 17% to $16.8 million
  • Adjusted EBITDA increase of 12% to $20.9 million
  • Generated over $2.0 million in operating cash flow
  • Ending cash and cash equivalents balance of $20.2 million
  • Keyboard sales increased 164% representing 28% of net sales
  • invisibleSHIELD sales represented 43% of net sales

"We are very pleased with our record fourth quarter revenue and Adjusted EBITDA, as we experienced strong sales volume in all product categories during the 2012 holiday season. This quarter we successfully refinanced our debt, substantially lowering our interest expense for 2013 and beyond. We will be using some of our cash from operations to pay down debt as well as to purchase our stock opportunistically in the open market," said Brandon O'Brien, ZAGG CFO. "Gross margins in the quarter were impacted by airfreight charges linked to the iPhone 5 and iPad mini launches, as well as airfreight charges to meet certain urgent needs of some retail partners. Another impact on gross margins was the product mix. Though sales in all product categories increased year-over-year, sales of keyboards increased significantly faster than invisibleSHIELDs, our highest margin product," continued Mr. O'Brien. "We made an important brand strategy change during the fourth quarter by placing greater emphasis on the promotion of our core brands, ZAGG and iFrogz. As a result of this adjustment in brand focus and our lower stock price during the fourth quarter, we incurred a non-cash charge of $11.5 million against one of the secondary brands and goodwill associated with the iFrogz acquisition. With the launch of mobile gaming products later this year and growth from the existing iFrogz branded products, we look for continued expansion from iFrogz in 2013."

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