Skullcandy, Inc. Enters into Second Amendment of its Credit Agreement with Wells Fargo Bank, National Association
Apr 10 15
At the request of Skullcandy, Inc., on April 7, 2015, the company entered into a second amendment of its credit agreement with Wells Fargo Bank, National Association dated April 7, 2015, to increase the capital expenditures limit to $19,000,000 for fiscal year 2015, $23,000,000 for fiscal year 2016 and $15,000,000 for any fiscal year thereafter.
Skullcandy, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2014; Provides Earnings Guidance for the First Quarter of 2015; Revises Earnings Guidance for 2015
Mar 5 15
Skullcandy, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2014. For the quarter, the company reported net sales of $96,815,000 against $72,249,000 a year ago. Income from operations was $10,818,000 against $5,481,000 a year ago. Net income attributable to the company was $7,381,000 or $0.26 per basic and diluted share against $3,569,000 or $0.13 per diluted share a year ago.
For the year, the company reported net sales of $247,812,000 against $210,092,000 a year ago. Income from operations was $11,787,000 against loss from operations of $4,995,000 a year ago. Net income attributable to the company was $7,599,000 or $0.27 per basic and diluted share against net loss of $3,036,000 or $0.11 per diluted share a year ago. Net cash provided by operating activities was $7,147,000 against $23,456,000 a year ago. Purchase of property and equipment was $11,064,000 against $4,111,000 a year ago. EBITDA was $24.8 million. The vast majority of its $11 million in CapEx in 2014, it's tooling and IT. Total in-store CapEx was around $2 million to $3 million for all 2014.
For the first quarter of 2015, the company is currently forecasting a year-over-year net sales increase of 9% to 11% or $3.5 million to $4.3 million over the first quarter of 2014 levels to a range of $42.6 million to $43.4 million. It is important to note that this growth includes the anticipated negative effects which currency shifts could have on its international businesses, and that U.S. results will have no RadioShack revenues in the first quarter versus the $4.4 million of revenue from RadioShack that was recognized in first quarter of 2014. The company expects 2015 first quarter gross margin in a range of 42% to 43.5% versus the 2014 first quarter gross margin of 46.5%. This quarter's gross margin is decreasing versus 2014 for several key reasons. First, its high-growth though lower margin gaming product share of total revenue has increased significantly year-over-year. Second, the company expects up to 100 basis points of cost or approximately $0.01 of EPS to be spent on airfreight to continue to overcome the West Coast port slowdowns. This is a short-term issue. Third, the company has 2 product family licenses expiring in first quarter that will require the write-off of final unsold inventory and will cost it approximately 75 basis points of cost, rounding to another $0.01 of EPS. The company anticipates this being a one-time issue. Within other expense, currency shifts so far in 2015, driven mostly by the Canadian dollar, are assumed to have an impact of $0.02 on the first quarter EPS. This yields a first quarter GAAP diluted loss per share in the range of $0.12 to $0.14, which includes all items detailed above. The one-time items, currency effects and inventory write-offs have an EPS impact of $0.03 while the short-term airfreight issue has an impact of $0.01.
For full year 2015, the company is raising its net sales guidance to a range of $272.6 million to $277.5 million, representing year-over-year net sales growth of 10% to 12% or $24.8 million to $29.7 million. This is an increase in absolute dollar revenue estimate for 2015 as compared to its directional guidance on the third quarter call now taking into effect its strong finish to 2014. The company expects operating income for the year in a range of $15.7 million to $17.3 million. The company expects total depreciation and amortization for the year of $14 million, which includes the amortization of stock compensation expense. Total CapEx for the year is forecasted at $18 million. Over $10 million is planned for in-store fixtures as part of its strategy to win the in-store consumer experience and over $4 million is R&D and innovation investment. The company is modeling other expense for the year of $1.2 million. The company estimated tax rate of approximately 26% for the year 2015, which is a bit higher than its final 2014 rate due to the assumed rates of growth, U.S. versus international. While the rate will generally improve to the extent that its international operations contribute a larger share of earnings to the consolidated total, the exhaustion of certain NOLs in some foreign entities could offset this benefit and, therefore, increase the rate depending on where international growth occurs. Finally, the company is targeting GAAP net income of $0.36 to $0.40 per diluted share which, of course, includes the $0.04 impact of the first quarter expected headwind to EPS.
Skullcandy, Inc. to Report Q4, 2014 Results on Mar 05, 2015
Feb 20 15
Skullcandy, Inc. announced that they will report Q4, 2014 results at 4:30 PM, US Eastern Standard Time on Mar 05, 2015