x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Texas | 75-2508900 | |
(State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
600 S. Royal Lane, Suite 200, Coppell, Texas | 75019 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging Growth Company ¨ |
Part I – FINANCIAL INFORMATION | |
Part II – OTHER INFORMATION | |
ASSETS | June 30, 2017 (unaudited) | December 31, 2016 | |||||
Cash and cash equivalents | $ | 35,561 | $ | 28,687 | |||
Restricted cash | 1,514 | 1,510 | |||||
Accounts receivable, net of allowance of $507 and $463 in 2017 and 2016, respectively | 405 | 298 | |||||
Income tax receivable | 3 | 1,587 | |||||
Inventories, net | 10,868 | 11,961 | |||||
Prepaid expenses and other current assets, net | 2,659 | 3,483 | |||||
Deferred commissions | 3,233 | 3,229 | |||||
Total current assets | 54,243 | 50,755 | |||||
Property and equipment, net | 3,234 | 3,611 | |||||
Construction in progress | 1,294 | 1,012 | |||||
Long-term restricted cash | 6,776 | 6,429 | |||||
Other assets | 3,617 | 4,013 | |||||
Long-term deferred tax assets, net | 5,595 | 5,368 | |||||
Total assets | $ | 74,759 | $ | 71,188 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current portion of capital leases | $ | 392 | $ | 357 | |||
Accounts payable | 6,130 | 5,223 | |||||
Accrued expenses | 5,139 | 5,605 | |||||
Commissions and incentives payable | 9,679 | 8,799 | |||||
Taxes payable | 1,528 | 1,040 | |||||
Current notes payable | 843 | 801 | |||||
Deferred revenue | 8,326 | 8,156 | |||||
Total current liabilities | 32,037 | 29,981 | |||||
Capital leases, excluding current portion | 182 | 261 | |||||
Long-term deferred tax liabilities | 30 | 29 | |||||
Long-term notes payable | 286 | 567 | |||||
Other long-term liabilities | 1,413 | 1,465 | |||||
Total liabilities | 33,948 | 32,303 | |||||
Commitments and contingencies | |||||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding | — | — | |||||
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,753,789 shares issued and 2,711,372 shares outstanding as of June 30, 2017 and 2,758,275 shares issued and 2,688,790 shares outstanding as of December 31, 2016 | — | — | |||||
Additional paid-in capital | 35,293 | 38,190 | |||||
Retained earnings | 7,202 | 7,331 | |||||
Accumulated other comprehensive income | 3,482 | 1,834 | |||||
Treasury stock, at average cost, 42,417 shares as of June 30, 2017 and 69,485 shares as of December 31, 2016, respectively | (5,166 | ) | (8,470 | ) | |||
Total shareholders’ equity | 40,811 | 38,885 | |||||
Total liabilities and shareholders’ equity | $ | 74,759 | $ | 71,188 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net sales | $ | 47,686 | $ | 48,810 | $ | 88,327 | $ | 89,518 | |||||||
Cost of sales | 8,786 | 10,100 | 17,548 | 18,489 | |||||||||||
Gross profit | 38,900 | 38,710 | 70,779 | 71,029 | |||||||||||
Operating expenses: | |||||||||||||||
Commissions and incentives | 18,994 | 20,417 | 36,075 | 36,034 | |||||||||||
Selling and administrative expenses | 9,978 | 9,730 | 18,632 | 18,322 | |||||||||||
Depreciation and amortization expense | 453 | 477 | 955 | 920 | |||||||||||
Other operating costs | 6,656 | 8,198 | 14,332 | 15,329 | |||||||||||
Total operating expenses | 36,081 | 38,822 | 69,994 | 70,605 | |||||||||||
Income (loss) from operations | 2,819 | (112 | ) | 785 | 424 | ||||||||||
Interest income | 19 | 23 | 48 | 11 | |||||||||||
Other income (expense), net | (9 | ) | (1,037 | ) | 32 | (703 | ) | ||||||||
Income (loss) before income taxes | 2,829 | (1,126 | ) | 865 | (268 | ) | |||||||||
Income tax provision | (1,034 | ) | (206 | ) | (317 | ) | (472 | ) | |||||||
Net income (loss) | $ | 1,795 | $ | (1,332 | ) | $ | 548 | $ | (740 | ) | |||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | 0.66 | $ | (0.49 | ) | $ | 0.20 | $ | (0.27 | ) | |||||
Diluted | $ | 0.65 | $ | (0.49 | ) | $ | 0.19 | $ | (0.27 | ) | |||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 2,711 | 2,707 | 2,706 | 2,701 | |||||||||||
Diluted | 2,778 | 2,707 | 2,775 | 2,701 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 1,795 | $ | (1,332 | ) | $ | 548 | $ | (740 | ) | |||||
Foreign currency translations | (731 | ) | 917 | 1,648 | 1,504 | ||||||||||
Comprehensive income (loss) | $ | 1,064 | $ | (415 | ) | $ | 2,196 | $ | 764 |
ASSETS | September 30, 2016 (unaudited) | December 31, 2015 | ||||||
Cash and cash equivalents | $ | 38,311 | $ | 31,994 | ||||
Restricted cash | 1,513 | 1,511 | ||||||
Accounts receivable, net of allowance of $456 and $261 in 2016 and 2015, respectively | 72 | 369 | ||||||
Income tax receivable | 16 | 4 | ||||||
Inventories, net | 10,394 | 9,199 | ||||||
Prepaid expenses and other current assets | 2,919 | 2,905 | ||||||
Deferred commissions | 3,742 | 3,443 | ||||||
Deferred tax assets, net | 27 | 460 | ||||||
Total current assets | 56,994 | 49,885 | ||||||
Property and equipment, net | 3,670 | 3,848 | ||||||
Construction in progress | 926 | 839 | ||||||
Long-term restricted cash | 7,040 | 6,586 | ||||||
Other assets | 4,451 | 3,759 | ||||||
Long-term deferred tax assets, net | 4,708 | 3,725 | ||||||
Total assets | $ | 77,789 | $ | 68,642 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current portion of capital leases | $ | 379 | $ | 447 | ||||
Accounts payable | 5,188 | 2,683 | ||||||
Accrued expenses | 5,112 | 6,221 | ||||||
Commissions and incentives payable | 11,277 | 6,818 | ||||||
Taxes payable | 538 | 736 | ||||||
Current deferred tax liability | 85 | 84 | ||||||
Current notes payable | 805 | 713 | ||||||
Deferred revenue | 9,640 | 8,677 | ||||||
Total current liabilities | 33,024 | 26,379 | ||||||
Capital leases, excluding current portion | 346 | 612 | ||||||
Long-term deferred tax liabilities | 26 | 24 | ||||||
Long-term notes payable | 706 | 1,069 | ||||||
Other long-term liabilities | 1,648 | 1,994 | ||||||
Total liabilities | 35,750 | 30,078 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding | — | — | ||||||
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,764,963 shares issued and 2,686,868 shares outstanding as of September 30, 2016 and 2,773,972 shares issued and 2,682,078 shares outstanding as of December 31, 2015 | — | — | ||||||
Additional paid-in capital | 39,164 | 40,494 | ||||||
Retained earnings | 8,798 | 8,589 | ||||||
Accumulated other comprehensive income | 3,597 | 686 | ||||||
Treasury stock, at average cost, 78,095 shares as of September 30, 2016 and 91,894 shares as of December 31, 2015, respectively | (9,520 | ) | (11,205 | ) | ||||
Total shareholders’ equity | 42,039 | 38,564 | ||||||
Total liabilities and shareholders’ equity | $ | 77,789 | $ | 68,642 |
Common stock Par value | Additional paid in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock | Total shareholders’ equity | ||||||||||||||||||
Balance at December 31, 2016 | $ | — | $ | 38,190 | $ | 7,331 | $ | 1,834 | $ | (8,470 | ) | $ | 38,885 | ||||||||||
Net income | — | — | 548 | — | — | 548 | |||||||||||||||||
Declared dividends | — | — | (677 | ) | — | — | (677 | ) | |||||||||||||||
Charge related to stock-based compensation | — | 143 | — | — | — | 143 | |||||||||||||||||
Issuance of unrestricted shares | — | (1,228 | ) | — | — | 1,473 | 245 | ||||||||||||||||
Stock option exercises | — | (1,748 | ) | — | — | 1,831 | 83 | ||||||||||||||||
Repurchase of common stock | — | (64 | ) | — | — | — | (64 | ) | |||||||||||||||
Foreign currency translations | — | — | — | 1,648 | — | 1,648 | |||||||||||||||||
Balance at June 30, 2017 | $ | — | $ | 35,293 | $ | 7,202 | $ | 3,482 | $ | (5,166 | ) | $ | 40,811 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net sales | $ | 48,146 | $ | 43,860 | $ | 137,664 | $ | 134,956 | ||||||||
Cost of sales | 9,736 | 8,253 | 28,225 | 25,076 | ||||||||||||
Gross profit | 38,410 | 35,607 | 109,439 | 109,880 | ||||||||||||
Operating expenses: | ||||||||||||||||
Commissions and incentives | 19,985 | 17,867 | 56,019 | 54,296 | ||||||||||||
Selling and administrative expenses | 9,877 | 9,001 | 28,199 | 26,412 | ||||||||||||
Depreciation and amortization expense | 507 | 433 | 1,427 | 1,324 | ||||||||||||
Other operating costs | 7,534 | 6,072 | 22,863 | 18,493 | ||||||||||||
Total operating expenses | 37,903 | 33,373 | 108,508 | 100,525 | ||||||||||||
Income from operations | 507 | 2,234 | 931 | 9,355 | ||||||||||||
Interest income (expense) | (16 | ) | 93 | (5 | ) | 154 | ||||||||||
Other income (expense), net | 232 | (2,418 | ) | (471 | ) | (3,802 | ) | |||||||||
Income (loss) before income taxes | 723 | (91 | ) | 455 | 5,707 | |||||||||||
Benefit (provision) for income taxes | 562 | 159 | 90 | (1,397 | ) | |||||||||||
Net income | $ | 1,285 | $ | 68 | $ | 545 | $ | 4,310 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 0.47 | $ | 0.03 | $ | 0.20 | $ | 1.61 | ||||||||
Diluted | $ | 0.46 | $ | 0.03 | $ | 0.19 | $ | 1.58 | ||||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 2,706 | 2,681 | 2,703 | 2,679 | ||||||||||||
Diluted | 2,818 | 2,721 | 2,812 | 2,727 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income | $ | 1,285 | $ | 68 | $ | 545 | $ | 4,310 | ||||||||
Foreign currency translations | 1,407 | 464 | 2,911 | 432 | ||||||||||||
Comprehensive income | $ | 2,692 | $ | 532 | $ | 3,456 | $ | 4,742 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 548 | $ | (740 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 955 | 920 | |||||
Provision for inventory losses | 202 | 157 | |||||
Provision for doubtful accounts | 73 | 422 | |||||
Loss on disposal of assets | — | 3 | |||||
Stock-based compensation expense | 388 | 360 | |||||
Deferred income taxes | (191 | ) | (166 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (169 | ) | (167 | ) | |||
Income tax receivable | 1,590 | (8 | ) | ||||
Inventories | 1,155 | (2,412 | ) | ||||
Prepaid expenses and other current assets | 1,207 | 590 | |||||
Other assets | 561 | 400 | |||||
Deferred commissions | 51 | (674 | ) | ||||
Accounts payable | 882 | 3,704 | |||||
Accrued expenses and other liabilities | (701 | ) | (934 | ) | |||
Taxes payable | 493 | 469 | |||||
Commissions and incentives payable | 730 | 1,832 | |||||
Deferred revenue | 57 | 1,814 | |||||
Change in restricted cash | (19 | ) | — | ||||
Net cash provided by operating activities | 7,812 | 5,570 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisition of property and equipment | (680 | ) | (1,408 | ) | |||
Net cash used in investing activities | (680 | ) | (1,408 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from stock options exercised | 83 | 11 | |||||
Repurchase of common stock | (64 | ) | — | ||||
Payment of cash dividends | (677 | ) | — | ||||
Repayment of capital lease obligations | (778 | ) | (723 | ) | |||
Net cash used in financing activities | (1,436 | ) | (712 | ) | |||
Effect of currency exchange rate changes on cash and cash equivalents | 1,178 | 1,477 | |||||
Net increase in cash and cash equivalents | 6,874 | 4,927 | |||||
Cash and cash equivalents at the beginning of the period | 28,687 | 31,994 | |||||
Cash and cash equivalents at the end of the period | $ | 35,561 | $ | 36,921 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Income taxes paid | $ | 479 | $ | 1,519 | |||
Interest paid on capital leases and financing arrangements | $ | 37 | $ | 63 | |||
Assets acquired through financing arrangements | $ | 130 | $ | 409 |
Common stock Par value | Additional paid in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock | Total shareholders’ equity | |||||||||||||||||||
Balance at December 31, 2015 | $ | — | $ | 40,494 | $ | 8,589 | $ | 686 | $ | (11,205 | ) | $ | 38,564 | |||||||||||
Net income | — | — | 545 | — | — | 545 | ||||||||||||||||||
Declared dividends | — | — | (336 | ) | — | — | (336 | ) | ||||||||||||||||
Charge related to stock-based compensation | — | (356 | ) | — | — | 830 | 474 | |||||||||||||||||
Stock option exercises | — | (815 | ) | — | — | 855 | 40 | |||||||||||||||||
Repurchase of common stock | — | (159 | ) | — | — | — | (159 | ) | ||||||||||||||||
Foreign currency translations | — | — | — | 2,911 | — | 2,911 | ||||||||||||||||||
Balance at September 30, 2016 | $ | — | $ | 39,164 | $ | 8,798 | $ | 3,597 | $ | (9,520 | ) | $ | 42,039 |
Nine months ended September 30, | ||||||||
2016 | 2015 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 545 | $ | 4,310 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,427 | 1,324 | ||||||
Provision for inventory losses | 208 | 434 | ||||||
Provision for doubtful accounts | 516 | 275 | ||||||
Loss on disposal of assets | 415 | 28 | ||||||
Stock-based compensation expense | 474 | 450 | ||||||
Tax benefit from exercise of stock options | — | (16 | ) | |||||
Deferred income taxes | (401 | ) | 6 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (213 | ) | (77 | ) | ||||
Income tax receivable | (11 | ) | (16 | ) | ||||
Inventories | (903 | ) | (1,730 | ) | ||||
Prepaid expenses and other current assets | 306 | 655 | ||||||
Other assets | (183 | ) | (138 | ) | ||||
Deferred commissions | (171 | ) | 230 | |||||
Accounts payable | 2,457 | 116 | ||||||
Accrued expenses and other liabilities | (1,771 | ) | 633 | |||||
Taxes payable | (376 | ) | (637 | ) | ||||
Commissions and incentives payable | 4,184 | 2,174 | ||||||
Deferred revenue | 664 | (210 | ) | |||||
Change in restricted cash | (17 | ) | 26 | |||||
Net cash provided by operating activities | 7,150 | 7,837 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Acquisition of property and equipment | (1,676 | ) | (1,583 | ) | ||||
Net cash used in investing activities | (1,676 | ) | (1,583 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from stock options exercised | 40 | 30 | ||||||
Repurchase of common stock | (159 | ) | — | |||||
Payment of cash dividends | (336 | ) | — | |||||
Tax benefit from exercise of stock options | — | 16 | ||||||
Proceeds from note payable | — | 1,148 | ||||||
Repayment of capital lease obligations | (1,136 | ) | (1,276 | ) | ||||
Net cash used in financing activities | (1,591 | ) | (82 | ) | ||||
Effect of currency exchange rate changes on cash and cash equivalents | 2,434 | 1,121 | ||||||
Net increase in cash and cash equivalents | 6,317 | 7,293 | ||||||
Cash and cash equivalents at the beginning of the period | 31,994 | 27,999 | ||||||
Cash and cash equivalents at the end of the period | $ | 38,311 | $ | 35,292 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Income taxes paid | $ | 1,830 | $ | 4,394 | ||||
Interest paid on capital leases and financing arrangements | $ | 90 | $ | 69 | ||||
Assets acquired through financing arrangements | $ | 529 | $ | 671 |
Loyalty program | (in thousands) | ||
Loyalty deferred revenue as of January 1, 2016 | $ | 8,073 | |
Loyalty points forfeited or expired | (6,963 | ) | |
Loyalty points used | (15,451 | ) | |
Loyalty points vested | 20,085 | ||
Loyalty points unvested | 1,289 | ||
Loyalty deferred revenue as of December 31, 2016 | $ | 7,033 |
Loyalty deferred revenue as of January 1, 2017 | $ | 7,033 | |
Loyalty points forfeited or expired | (3,370 | ) | |
Loyalty points used | (6,957 | ) | |
Loyalty points vested | 7,585 | ||
Loyalty points unvested | 1,916 | ||
Loyalty deferred revenue as of June 30, 2017 | $ | 6,207 |
Loyalty program | (in thousands) | |||
Loyalty deferred revenue as of January 1, 2015 | $ | 9,703 | ||
Loyalty points forfeited or expired | (8,801 | ) | ||
Loyalty points used | (15,077 | ) | ||
Loyalty points vested | 20,403 | |||
Loyalty points unvested | 1,845 | |||
Loyalty deferred revenue as of December 31, 2015 | $ | 8,073 |
Loyalty deferred revenue as of January 1, 2016 | $ | 8,073 | ||
Loyalty points forfeited or expired | (5,334 | ) | ||
Loyalty points used | (11,879 | ) | ||
Loyalty points vested | 15,556 | |||
Loyalty points unvested | 1,559 | |||
Loyalty deferred revenue as of September 30, 2016 | $ | 7,975 |
Sales reserve as of January 1, 2016 | $ | 147 | ||
Provision related to sales made in current period | 1,026 | |||
Adjustment related to sales made in prior periods | 7 | |||
Actual returns or credits related to current period | (872 | ) | ||
Actual returns or credits related to prior periods | (145 | ) | ||
Sales reserve as of September 30, 2016 | $ | 163 |
Sales reserve as of January 1, 2017 | $ | 129 | |
Provision related to sales made in current period | 591 | ||
Adjustment related to sales made in prior periods | 3 | ||
Actual returns or credits related to current period | (457 | ) | |
Actual returns or credits related to prior periods | (132 | ) | |
Sales reserve as of June 30, 2017 | $ | 134 |
June 30, 2017 | December 31, 2016 | ||||||
Raw materials | $ | 267 | $ | 239 | |||
Finished goods | 11,021 | 12,103 | |||||
Inventory reserves for obsolescence | (420 | ) | (381 | ) | |||
Total | $ | 10,868 | $ | 11,961 |
September 30, 2016 | December 31, 2015 | |||||||
Raw materials | $ | 537 | $ | 1,187 | ||||
Finished goods | 10,581 | 9,277 | ||||||
Inventory reserves for obsolescence | (724 | ) | (1,265 | ) | ||||
Total | $ | 10,394 | $ | 9,199 |
Three months ending September 30 | Nine months ending September 30 | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Total gross compensation expense | $ | 115 | $ | 149 | $ | 474 | $ | 450 | ||||||||
Total tax benefit associated with compensation expense | 15 | 38 | 62 | 111 | ||||||||||||
Total net compensation expense | $ | 100 | $ | 111 | $ | 412 | $ | 339 |
Three months ending June 30 | Six months ending June 30 | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Total gross compensation expense | $ | 67 | $ | 141 | $ | 143 | $ | 360 | |||||||
Total tax benefit associated with compensation expense | 15 | 28 | 28 | 47 | |||||||||||
Total net compensation expense | $ | 52 | $ | 113 | $ | 115 | $ | 313 |
Three months | Year ending December 31, | |||||||||||||||
ending December 31, 2016 | 2017 | 2018 | 2019 | |||||||||||||
Total gross unrecognized compensation expense | $ | 106 | $ | 297 | $ | 91 | $ | 29 | ||||||||
Tax benefit associated with unrecognized compensation expense | 14 | 33 | 7 | — | ||||||||||||
Total net unrecognized compensation expense | $ | 92 | $ | 264 | $ | 84 | $ | 29 |
Six months ending December 31, 2017 | Year ending December 31, | ||||||||||||||
2018 | 2019 | 2020 | |||||||||||||
Total gross unrecognized compensation expense | $ | 103 | $ | 122 | $ | 38 | $ | — | |||||||
Tax benefit associated with unrecognized compensation expense | 17 | 20 | 3 | — | |||||||||||
Total net unrecognized compensation expense | $ | 86 | $ | 102 | $ | 35 | $ | — |
Foreign Currency Translation | Pension Postretirement Benefit Obligation | Accumulated Other Comprehensive Income, Net | ||||||||||
Balance as of December 31, 2015 | $ | 358 | $ | 328 | $ | 686 | ||||||
Current-period change 1 | 2,911 | — | 2,911 | |||||||||
Balance as of September 30, 2016 | $ | 3,269 | $ | 328 | $ | 3,597 |
Foreign Currency Translation and Remeasurement(2) | Pension Postretirement Benefit Obligation | Accumulated Other Comprehensive Income, Net | |||||||||
Balance as of December 31, 2016 | $ | 1,534 | $ | 300 | $ | 1,834 | |||||
Current-period change (1) | 1,648 | — | 1,648 | ||||||||
Balance as of June 30, 2017 | $ | 3,182 | $ | 300 | $ | 3,482 |
September 30, 2016 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Money Market Funds – Fidelity, US | $ | 1,012 | $ | — | $ | — | $ | 1,012 | ||||||||
Interest bearing deposits – various banks | 22,534 | — | — | 22,534 | ||||||||||||
Total assets | $ | 23,546 | $ | — | $ | — | $ | 23,546 | ||||||||
Amounts included in: | ||||||||||||||||
Cash and cash equivalents | $ | 16,993 | $ | — | $ | — | $ | 16,993 | ||||||||
Restricted cash | 740 | — | — | 740 | ||||||||||||
Long-term restricted cash | 5,813 | — | — | 5,813 | ||||||||||||
Total | $ | 23,546 | $ | — | $ | — | $ | 23,546 |
June 30, 2017 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money Market Funds – Fidelity, US | $ | 202 | $ | — | $ | — | $ | 202 | |||||||
Interest bearing deposits – various banks | 24,547 | — | — | 24,547 | |||||||||||
Total assets | $ | 24,749 | $ | — | $ | — | $ | 24,749 | |||||||
Amounts included in: | |||||||||||||||
Cash and cash equivalents | $ | 18,412 | $ | — | $ | — | $ | 18,412 | |||||||
Restricted cash | 741 | — | — | 741 | |||||||||||
Long-term restricted cash | 5,596 | — | — | 5,596 | |||||||||||
Total | $ | 24,749 | $ | — | $ | — | $ | 24,749 |
December 31, 2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money Market Funds – Fidelity, US | $ | 12 | $ | — | $ | — | $ | 12 | |||||||
Interest bearing deposits – various banks | 19,357 | — | — | 19,357 | |||||||||||
Total assets | $ | 19,369 | $ | — | $ | — | $ | 19,369 | |||||||
Amounts included in: | |||||||||||||||
Cash and cash equivalents | $ | 13,326 | $ | — | $ | — | $ | 13,326 | |||||||
Restricted cash | 737 | — | — | 737 | |||||||||||
Long-term restricted cash | 5,306 | — | — | 5,306 | |||||||||||
Total | $ | 19,369 | $ | — | $ | — | $ | 19,369 |
December 31, 2015 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Money Market Funds – Fidelity, US | $ | 319 | $ | — | $ | — | $ | 319 | ||||||||
Interest bearing deposits – various banks | 14,134 | — | — | 14,134 | ||||||||||||
Total assets | $ | 14,453 | $ | — | $ | — | $ | 14,453 | ||||||||
Amounts included in: | ||||||||||||||||
Cash and cash equivalents | $ | 8,281 | $ | — | $ | — | $ | 8,281 | ||||||||
Restricted cash | 737 | — | — | 737 | ||||||||||||
Long-term restricted cash | 5,435 | — | �� | 5,435 | ||||||||||||
Total | $ | 14,453 | $ | — | $ | — | $ | 14,453 |
Three months | Nine months | |||||||||||||||||||||||||||||||
Region | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||
Americas | $ | 19.0 | 39.4 | % | $ | 17.8 | 40.6 | % | $ | 54.0 | 39.2 | % | $ | 54.7 | 40.5 | % | ||||||||||||||||
Asia/Pacific | 25.5 | 52.9 | % | 22.0 | 50.1 | % | 73.2 | 53.2 | % | 68.3 | 50.6 | % | ||||||||||||||||||||
EMEA | 3.6 | 7.7 | % | 4.1 | 9.3 | % | 10.5 | 7.6 | % | 12.0 | 8.9 | % | ||||||||||||||||||||
Totals | $ | 48.1 | 100.0 | % | $ | 43.9 | 100.00 | % | $ | 137.7 | 100.0 | % | $ | 135.0 | 100.0 | % |
Three months | Nine months | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Consolidated product sales | $ | 39.8 | $ | 35.3 | $ | 113.6 | $ | 105.8 | ||||||||
Consolidated pack sales | 6.9 | 7.1 | 20.2 | 24.9 | ||||||||||||
Consolidated other, including freight | 1.4 | 1.5 | 3.9 | 4.3 | ||||||||||||
Consolidated total net sales | $ | 48.1 | $ | 43.9 | $ | 137.7 | $ | 135.0 |
Three months | Six months | ||||||||||||||||||||||||||
Region | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
Americas | $ | 19.5 | 40.9 | % | $ | 19.0 | 38.9 | % | $ | 35.0 | 39.6 | % | $ | 35.0 | 39.1 | % | |||||||||||
Asia/Pacific | 24.7 | 51.8 | % | 26.3 | 53.9 | % | 46.6 | 52.8 | % | 47.7 | 53.3 | % | |||||||||||||||
EMEA | 3.5 | 7.3 | % | 3.5 | 7.2 | % | 6.7 | 7.6 | % | 6.8 | 7.6 | % | |||||||||||||||
Totals | $ | 47.7 | 100.0 | % | $ | 48.8 | 100.0 | % | $ | 88.3 | 100.0 | % | $ | 89.5 | 100.0 | % |
Three months | Six Months | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Consolidated product sales | $ | 40.3 | $ | 40.1 | $ | 74.1 | $ | 73.8 | |||||||
Consolidated pack sales | 6.0 | 7.5 | 11.7 | 13.2 | |||||||||||
Consolidated other, including freight | 1.4 | 1.2 | 2.5 | 2.5 | |||||||||||
Consolidated total net sales | $ | 47.7 | $ | 48.8 | $ | 88.3 | $ | 89.5 |
Region | June 30, 2017 | December 31, 2016 | |||||
Americas | $ | 3.1 | $ | 3.1 | |||
Asia/Pacific | 1.4 | 1.4 | |||||
EMEA | — | 0.1 | |||||
Total | $ | 4.5 | $ | 4.6 |
Region | September 30, 2016 | December 31, 2015 | ||||||
Americas | $ | 3.3 | $ | 3.5 | ||||
Asia/Pacific | 1.2 | 1.1 | ||||||
EMEA | 0.1 | 0.1 | ||||||
Total | $ | 4.6 | $ | 4.7 |
Region | June 30, 2017 | December 31, 2016 | |||||
Americas | $ | 4.1 | $ | 4.8 | |||
Asia/Pacific | 4.9 | 4.2 | |||||
EMEA | 1.9 | 3.0 | |||||
Total | $ | 10.9 | $ | 12.0 |
Region | September 30, 2016 | December 31, 2015 | ||||||
Americas | $ | 4.3 | $ | 3.4 | ||||
Asia/Pacific | 4.3 | 4.3 | ||||||
EMEA | 1.8 | 1.5 | ||||||
Total | $ | 10.4 | $ | 9.2 |
2016 | 2015 | Change from 2015 to 2016 | ||||||||||||||||||||||
Total dollars | % of net sales | Total dollars | % of net sales | Dollar | Percentage | |||||||||||||||||||
Net sales | $ | 48,146 | 100.0 | % | $ | 43,860 | 100.0 | % | $ | 4,286 | 9.8 | % | ||||||||||||
Cost of sales | 9,736 | 20.2 | % | 8,253 | 18.8 | % | 1,483 | 18.0 | % | |||||||||||||||
Gross profit | 38,410 | 79.8 | % | 35,607 | 81.2 | % | 2,803 | 7.9 | % | |||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Commissions and incentives | 19,985 | 41.5 | % | 17,867 | 40.7 | % | 2,118 | 11.9 | % | |||||||||||||||
Selling and administrative expenses | 9,877 | 20.5 | % | 9,001 | 20.5 | % | 876 | 9.7 | % | |||||||||||||||
Depreciation and amortization expense | 507 | 1.1 | % | 433 | 1.0 | % | 74 | 17.1 | % | |||||||||||||||
Other operating costs | 7,534 | 15.6 | % | 6,072 | 13.9 | % | 1,462 | 24.1 | % | |||||||||||||||
Total operating expenses | 37,903 | 78.7 | % | 33,373 | 76.1 | % | 4,530 | 13.6 | % | |||||||||||||||
Income from operations | 507 | 1.1 | % | 2,234 | 5.1 | % | (1,727 | ) | (77.3 | )% | ||||||||||||||
Interest income (expense) | (16 | ) | — | % | 93 | 0.2 | % | (109 | ) | (117.2 | )% | |||||||||||||
Other income (expense), net | 232 | 0.5 | % | (2,418 | ) | (5.5 | )% | 2,650 | 109.6 | % | ||||||||||||||
Income (loss) before income taxes | 723 | 1.5 | % | (91 | ) | (0.2 | )% | 814 | 894.5 | % | ||||||||||||||
Benefit for income taxes | 562 | 1.2 | % | 159 | 0.4 | % | 403 | 253.5 | % | |||||||||||||||
Net income | $ | 1,285 | 2.7 | % | $ | 68 | 0.2 | % | $ | 1,217 | 1789.7 | % |
2017 | 2016 | Change from 2017 to 2016 | ||||||||||||||||||
Total dollars | % of net sales | Total dollars | % of net sales | Dollar | Percentage | |||||||||||||||
Net sales | $ | 47,686 | 100.0 | % | $ | 48,810 | 100.0 | % | $ | (1,124 | ) | (2.3 | )% | |||||||
Cost of sales | 8,786 | 18.4 | % | 10,100 | 20.7 | % | (1,314 | ) | (13.0 | )% | ||||||||||
Gross profit | 38,900 | 81.6 | % | 38,710 | 79.3 | % | 190 | 0.5 | % | |||||||||||
Operating expenses: | ||||||||||||||||||||
Commissions and incentives | 18,994 | 39.8 | % | 20,417 | 41.8 | % | (1,423 | ) | (7.0 | )% | ||||||||||
Selling and administrative expenses | 9,978 | 20.9 | % | 9,730 | 19.9 | % | 248 | 2.5 | % | |||||||||||
Depreciation and amortization expense | 453 | 0.9 | % | 477 | 1.0 | % | (24 | ) | (5.0 | )% | ||||||||||
Other operating costs | 6,656 | 14.0 | % | 8,198 | 16.8 | % | (1,542 | ) | (18.8 | )% | ||||||||||
Total operating expenses | 36,081 | 75.7 | % | 38,822 | 79.5 | % | (2,741 | ) | (7.1 | )% | ||||||||||
Income (loss) from operations | 2,819 | 5.9 | % | (112 | ) | (0.2 | )% | 2,931 | 2,617.0 | % | ||||||||||
Interest income | 19 | — | % | 23 | — | % | (4 | ) | (17.4 | )% | ||||||||||
Other income (expense), net | (9 | ) | — | % | (1,037 | ) | (2.1 | )% | 1,028 | 99.1 | % | |||||||||
Income (loss) before income taxes | 2,829 | 5.9 | % | (1,126 | ) | (2.3 | )% | 3,955 | 351.2 | % | ||||||||||
Provision for income taxes | (1,034 | ) | (2.2 | )% | (206 | ) | (0.4 | )% | (828 | ) | (401.9 | )% | ||||||||
Net income (loss) | $ | 1,795 | 3.8 | % | $ | (1,332 | ) | (2.7 | )% | $ | 3,127 | 234.8 | % |
2016 | 2015 | Change from 2015 to 2016 | ||||||||||||||||||||||
Total dollars | % of net sales | Total dollars | % of net sales | Dollar | Percentage | |||||||||||||||||||
Net sales | $ | 137,664 | 100.0 | % | $ | 134,956 | 100.0 | % | $ | 2,708 | 2.0 | % | ||||||||||||
Cost of sales | 28,225 | 20.5 | % | 25,076 | 18.6 | % | 3,149 | 12.6 | % | |||||||||||||||
Gross profit | 109,439 | 79.5 | % | 109,880 | 81.4 | % | (441 | ) | (0.4 | )% | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Commissions and incentives | 56,019 | 40.7 | % | 54,296 | 40.2 | % | 1,723 | 3.2 | % | |||||||||||||||
Selling and administrative expenses | 28,199 | 20.5 | % | 26,412 | 19.6 | % | 1,787 | 6.8 | % | |||||||||||||||
Depreciation and amortization expense | 1,427 | 1.0 | % | 1,324 | 1.0 | % | 103 | 7.8 | % | |||||||||||||||
Other operating costs | 22,863 | 16.6 | % | 18,493 | 13.7 | % | 4,370 | 23.6 | % | |||||||||||||||
Total operating expenses | 108,508 | 78.8 | % | 100,525 | 74.5 | % | 7,983 | 7.9 | % | |||||||||||||||
Income from operations | 931 | 0.7 | % | 9,355 | 6.9 | % | (8,424 | ) | (90.0 | )% | ||||||||||||||
Interest income (expense) | (5 | ) | — | % | 154 | 0.1 | % | (159 | ) | (103.2 | )% | |||||||||||||
Other expense, net | (471 | ) | (0.3 | )% | (3,802 | ) | (2.8 | )% | 3,331 | 87.6 | % | |||||||||||||
Income before income taxes | 455 | 0.3 | % | 5,707 | 4.2 | % | (5,252 | ) | (92.0 | )% | ||||||||||||||
Benefit (provision) for income taxes | 90 | 0.1 | % | (1,397 | ) | (1.0 | )% | 1,487 | 106.4 | % | ||||||||||||||
Net income | $ | 545 | 0.4 | % | $ | 4,310 | 3.2 | % | $ | (3,765 | ) | (87.4 | )% |
2017 | 2016 | Change from 2017 to 2016 | ||||||||||||||||||
Total dollars | % of net sales | Total dollars | % of net sales | Dollar | Percentage | |||||||||||||||
Net sales | $ | 88,327 | 100.0 | % | $ | 89,518 | 100.0 | % | $ | (1,191 | ) | (1.3 | )% | |||||||
Cost of sales | 17,548 | 19.9 | % | 18,489 | 20.7 | % | (941 | ) | (5.1 | )% | ||||||||||
Gross profit | 70,779 | 80.1 | % | 71,029 | 79.3 | % | (250 | ) | (0.4 | )% | ||||||||||
Operating expenses: | ||||||||||||||||||||
Commissions and incentives | 36,075 | 40.8 | % | 36,034 | 40.3 | % | 41 | 0.1 | % | |||||||||||
Selling and administrative expenses | 18,632 | 21.1 | % | 18,322 | 20.5 | % | 310 | 1.7 | % | |||||||||||
Depreciation and amortization expense | 955 | 1.1 | % | 920 | 1.0 | % | 35 | 3.8 | % | |||||||||||
Other operating costs | 14,332 | 16.2 | % | 15,329 | 17.1 | % | (997 | ) | (6.5 | )% | ||||||||||
Total operating expenses | 69,994 | 79.2 | % | 70,605 | 78.9 | % | (611 | ) | (0.9 | )% | ||||||||||
Income (loss) from operations | 785 | 0.9 | % | 424 | 0.5 | % | 361 | 85.1 | % | |||||||||||
Interest income (expense) | 48 | 0.1 | % | 11 | — | % | 37 | 336.4 | % | |||||||||||
Other income (expense), net | 32 | — | % | (703 | ) | (0.8 | )% | 735 | 104.6 | % | ||||||||||
Income (loss) before income taxes | 865 | 1.0 | % | (268 | ) | (0.3 | )% | 1,133 | 422.8 | % | ||||||||||
Provision for income taxes | (317 | ) | (0.4 | )% | (472 | ) | (0.5 | )% | 155 | 32.8 | % | |||||||||
Net income (loss) | $ | 548 | 0.6 | % | $ | (740 | ) | (0.8 | )% | $ | 1,288 | 174.1 | % |
Three-month period ended (in millions, except percentages) | September 30, 2016 | September 30, 2015 | Change | |||||||||||||||||
GAAP Measure: Total $ | Non-GAAP Measure: Constant $ | GAAP Measure: Total $ | Dollar | Percent | ||||||||||||||||
Net Sales | $ | 48.1 | $ | 46.9 | $ | 43.9 | $ | 3.0 | 6.8 | % | ||||||||||
Product | 39.8 | 38.8 | 35.3 | 3.5 | 9.9 | % | ||||||||||||||
Pack | 6.9 | 6.7 | 7.1 | (0.4 | ) | (5.6 | )% | |||||||||||||
Other | 1.4 | 1.4 | 1.5 | (0.1 | ) | (6.7 | )% | |||||||||||||
Gross Profit | 38.4 | 37.4 | 35.6 | 1.8 | 5.1 | % | ||||||||||||||
Income from Operations | 0.5 | 0.2 | 2.2 | (2.0 | ) | (90.9 | )% |
Three-month period ended (in millions, except percentages) | June 30, 2017 | June 30, 2016 | Constant $ Change | |||||||||||||||
GAAP Measure: Total $ | Non-GAAP Measure: Constant $ | GAAP Measure: Total $ | Dollar | Percent | ||||||||||||||
Net sales | $ | 47.7 | $ | 47.1 | $ | 48.8 | $ | (1.7 | ) | (3.5 | )% | |||||||
Product | 40.3 | 39.8 | 40.1 | (0.3 | ) | (0.7 | )% | |||||||||||
Pack | 6.0 | 5.9 | 7.5 | (1.6 | ) | (21.3 | )% | |||||||||||
Other | 1.4 | 1.4 | 1.2 | 0.2 | 16.7 | % | ||||||||||||
Gross profit | 38.9 | 38.4 | 38.7 | (0.3 | ) | (0.8 | )% | |||||||||||
Income (loss) from operations | 2.8 | 2.5 | (0.1 | ) | 2.6 | (2,600.0 | )% |
Nine-month period ended (in millions, except percentages) | September 30, 2016 | September 30, 2015 | Change | |||||||||||||||||
GAAP Measure: Total $ | Non-GAAP Measure: Constant $ | GAAP Measure: Total $ | Dollar | Percent | ||||||||||||||||
Net Sales | $ | 137.7 | $ | 139.9 | $ | 135.0 | $ | 4.9 | 3.6 | % | ||||||||||
Product | 113.6 | 115.3 | 105.8 | 9.5 | 9.0 | % | ||||||||||||||
Pack | 20.2 | 20.7 | 24.9 | (4.2 | ) | (16.9 | )% | |||||||||||||
Other | 3.9 | 3.9 | 4.3 | (0.4 | ) | (9.3 | )% | |||||||||||||
Gross Profit | 109.4 | 110.9 | 109.9 | 1.0 | 0.9 | % | ||||||||||||||
Income from Operations | 0.9 | 1.0 | 9.4 | (8.4 | ) | (89.4 | )% |
Six-month period ended (in millions, except percentages) | June 30, 2017 | June 30, 2016 | Constant $ Change | ||||||||||||||
GAAP Measure: Total $ | Non-GAAP Measure: Constant $ | GAAP Measure: Total $ | Dollar | Percent | |||||||||||||
Net sales | 88.3 | $ | 86.8 | $ | 89.5 | $ | (2.7 | ) | (3.0 | )% | |||||||
Product | 74.1 | 72.9 | 73.8 | (0.9 | ) | (1.2 | )% | ||||||||||
Pack | 11.7 | 11.4 | 13.2 | (1.8 | ) | (13.6 | )% | ||||||||||
Other | 2.5 | 2.5 | 2.5 | — | — | % | |||||||||||
Gross profit | 70.8 | 69.6 | 71.0 | (1.4 | ) | (2.0 | )% | ||||||||||
Income from operations | 0.8 | 0.2 | 0.4 | (0.2 | ) | (50.0 | )% |
Region | Three months ended September 30, 2016 | Three months ended September 30, 2015 | ||||||||||||||
Americas | $ | 19.0 | 39.5 | % | $ | 17.8 | 40.6 | % | ||||||||
Asia/Pacific | 25.5 | 53.0 | % | 22.0 | 50.1 | % | ||||||||||
EMEA | 3.6 | 7.5 | % | 4.1 | 9.3 | % | ||||||||||
Total | $ | 48.1 | 100.0 | % | $ | 43.9 | 100.0 | % |
Region | Three Months Ended June 30, 2017 | Three Months Ended June 30, 2016 | |||||||||||
Americas | $ | 19.5 | 40.9 | % | $ | 19.0 | 38.9 | % | |||||
Asia/Pacific | 24.7 | 51.8 | % | 26.3 | 53.9 | % | |||||||
EMEA | 3.5 | 7.3 | % | 3.5 | 7.2 | % | |||||||
Total | $ | 47.7 | 100.0 | % | $ | 48.8 | 100.0 | % |
Region | Nine months ended September 30, 2016 | Nine months ended September 30, 2015 | ||||||||||||||
Americas | $ | 54.0 | 39.2 | % | $ | 54.7 | 40.5 | % | ||||||||
Asia/Pacific | 73.2 | 53.2 | % | 68.3 | 50.6 | % | ||||||||||
EMEA | 10.5 | 7.6 | % | 12.0 | 8.9 | % | ||||||||||
Total | $ | 137.7 | 100.0 | % | $ | 135.0 | 100.0 | % |
Region | Six Months Ended June 30, 2017 | Six Months Ended June 30, 2016 | |||||||||||
Americas | $ | 35.0 | 39.6 | % | $ | 35.0 | 39.1 | % | |||||
Asia/Pacific | 46.6 | 52.8 | % | 47.7 | 53.3 | % | |||||||
EMEA | 6.7 | 7.6 | % | 6.8 | 7.6 | % | |||||||
Total | $ | 88.3 | 100.0 | % | $ | 89.5 | 100.0 | % |
Three Months Ended June 30, | Change | |||||||||||||
2017 | 2016 | Dollar | Percentage | |||||||||||
Consolidated product sales | $ | 40.3 | $ | 40.1 | $ | 0.2 | 0.5 | % | ||||||
Consolidated pack sales | 6.0 | 7.5 | (1.5 | ) | (20.0 | )% | ||||||||
Consolidated other, including freight | 1.4 | 1.2 | 0.2 | 16.7 | % | |||||||||
Total consolidated net sales | $ | 47.7 | $ | 48.8 | $ | (1.1 | ) | (2.3 | )% |
Three Months Ended September 30 | Change | |||||||||||||||
2016 | 2015 | Dollar | Percentage | |||||||||||||
Consolidated product sales | $ | 39.8 | $ | 35.3 | $ | 4.5 | 12.7 | % | ||||||||
Consolidated pack sales | 6.9 | 7.1 | (0.2 | ) | (2.8 | )% | ||||||||||
Consolidated other, including freight | 1.4 | 1.5 | (0.1 | ) | (6.7 | )% | ||||||||||
Total consolidated net sales | $ | 48.1 | $ | 43.9 | $ | 4.2 | 9.6 | % |
Nine Months Ended September 30 | Change | |||||||||||||||
2016 | 2015 | Dollar | Percentage | |||||||||||||
Consolidated product sales | $ | 113.6 | $ | 105.8 | $ | 7.8 | 7.4 | % | ||||||||
Consolidated pack sales | 20.2 | 24.9 | (4.7 | ) | (18.9 | )% | ||||||||||
Consolidated other, including freight | 3.9 | 4.3 | (0.4 | ) | (9.3 | )% | ||||||||||
Total consolidated net sales | $ | 137.7 | $ | 135.0 | $ | 2.7 | 2.0 | % |
Six Months Ended June 30, | Change | |||||||||||||
2017 | 2016 | Dollar | Percentage | |||||||||||
Consolidated product sales | $ | 74.1 | $ | 73.8 | $ | 0.3 | 0.4 | % | ||||||
Consolidated pack sales | 11.7 | 13.2 | (1.5 | ) | (11.4 | )% | ||||||||
Consolidated other, including freight | 2.5 | 2.5 | — | — | % | |||||||||
Total consolidated net sales | $ | 88.3 | $ | 89.5 | $ | (1.2 | ) | (1.3 | )% |
Three Months Ended June 30, | Change | |||||||||||||
2017 | 2016 | Dollar | Percentage | |||||||||||
New | $ | 2.6 | $ | 3.0 | $ | (0.4 | ) | (13.3 | )% | |||||
Continuing | 3.4 | 4.5 | (1.1 | ) | (24.4 | )% | ||||||||
Total | $ | 6.0 | $ | 7.5 | $ | (1.5 | ) | (20.0 | )% |
Six Months Ended June 30, | Change | |||||||||||||
2017 | 2016 | Dollar | Percentage | |||||||||||
New | $ | 4.8 | $ | 5.2 | $ | (0.4 | ) | (7.7 | )% | |||||
Continuing | 6.9 | 8.0 | (1.1 | ) | (13.8 | )% | ||||||||
Total | $ | 11.7 | $ | 13.2 | $ | (1.5 | ) | (11.4 | )% |
Three Months Ended September 30 | Change | |||||||||||||||
2016 | 2015 | Dollar | Percentage | |||||||||||||
New | $ | 3.6 | $ | 2.4 | $ | 1.2 | 50.0 | % | ||||||||
Continuing | 3.3 | 4.7 | (1.4 | ) | (29.8 | )% | ||||||||||
Total | $ | 6.9 | $ | 7.1 | $ | (0.2 | ) | (2.8 | )% |
Nine Months Ended September 30 | Change | |||||||||||||||
2016 | 2015 | Dollar | Percentage | |||||||||||||
New | $ | 8.9 | $ | 6.7 | $ | 2.2 | 32.8 | % | ||||||||
Continuing | 11.3 | 18.2 | (6.9 | ) | (37.9 | )% | ||||||||||
Total | $ | 20.2 | $ | 24.9 | $ | (4.7 | ) | (18.9 | )% |
2016 | 2015 | |||||||||||||||
New | 99,000 | 44.8 | % | 97,000 | 43.9 | % | ||||||||||
Continuing | 122,000 | 55.2 | % | 124,000 | 56.1 | % | ||||||||||
Total | 221,000 | 100.0 | % | 221,000 | 100.0 | % |
2017 | 2016 | ||||||||||
New | 100,000 | 45.9 | % | 97,000 | 43.7 | % | |||||
Continuing | 118,000 | 54.1 | % | 125,000 | 56.3 | % | |||||
Total | 218,000 | 100.0 | % | 222,000 | 100.0 | % |
Country | 2016 | 2015 | ||||||
Australia | 30.0 | % | 30.0 | % | ||||
Canada | 26.5 | % | 26.5 | % | ||||
Cyprus | 12.5 | % | 12.5 | % | ||||
Colombia(1) | 25.0 | % | — | % | ||||
Denmark | 22.0 | % | 23.5 | % | ||||
Gibraltar | 10.0 | % | 10.0 | % | ||||
Hong Kong | 16.5 | % | 16.5 | % | ||||
Japan | 35.4 | % | 35.4 | % | ||||
Mexico | 30.0 | % | 30.0 | % | ||||
Norway | 25.0 | % | 27.0 | % | ||||
Republic of Korea | 22.0 | % | 22.0 | % | ||||
Singapore | 17.0 | % | 17.0 | % | ||||
South Africa | 28.0 | % | 28.0 | % | ||||
Sweden | 22.0 | % | 22.0 | % | ||||
Switzerland | 16.2 | % | 16.2 | % | ||||
Taiwan | 17.0 | % | 17.0 | % | ||||
United Kingdom | 20.0 | % | 20.0 | % | ||||
United States | 37.5 | % | 37.5 | % |
Country | 2017 | 2016 | |||
Australia | 30.0 | % | 30.0 | % | |
Canada | 26.5 | % | 26.5 | % | |
China | 25.0 | % | 25.0 | % | |
Colombia | 34.0 | % | 25.0 | % | |
Cyprus | 12.5 | % | 12.5 | % | |
Denmark | 22.0 | % | 22.0 | % | |
Gibraltar | 10.0 | % | 10.0 | % | |
Hong Kong | 16.5 | % | 16.5 | % | |
Japan | 34.8 | % | 35.4 | % | |
Mexico | 30.0 | % | 30.0 | % | |
Norway | 24.0 | % | 25.0 | % | |
Republic of Korea | 22.0 | % | 22.0 | % | |
Russia(1) | 20.0 | % | — | % | |
Singapore | 17.0 | % | 17.0 | % | |
South Africa | 28.0 | % | 28.0 | % | |
Sweden | 22.0 | % | 22.0 | % | |
Switzerland | 16.2 | % | 16.2 | % | |
Taiwan | 17.0 | % | 17.0 | % | |
Ukraine(2) | 18.0 | % | 18.0 | % | |
United Kingdom | 20.0 | % | 20.0 | % | |
United States | 37.5 | % | 37.5 | % |
Country | September 30, 2016 | December 31, 2015 | ||||||
Mexico | $ | 2.3 | $ | 2.5 | ||||
Sweden | 0.1 | 0.1 | ||||||
Switzerland | 0.1 | 1.0 | ||||||
Taiwan | 1.2 | 1.2 | ||||||
Ukraine | 0.1 | 0.1 | ||||||
United States | 4.1 | 4.0 | ||||||
Other Jurisdictions | 0.1 | 0.1 | ||||||
Total | $ | 8.0 | $ | 9.0 |
Country | June 30, 2017 | December 31, 2016 | |||||
Colombia | $ | 0.3 | $ | 0.3 | |||
Mexico | 2.8 | 2.4 | |||||
Sweden | 0.1 | 0.1 | |||||
Switzerland | — | 0.1 | |||||
Taiwan | 0.8 | 1.3 | |||||
Ukraine | 0.1 | 0.1 | |||||
United States | 4.1 | 4.1 | |||||
Other Jurisdictions | 0.1 | 0.1 | |||||
Total | $ | 8.3 | $ | 8.5 |
Provided by/(Used in): | 2016 | 2015 | ||||||
Operating activities | $ | 7.2 | $ | 7.8 | ||||
Investing activities | $ | (1.7 | ) | $ | (1.6 | ) | ||
Financing activities | $ | (1.6 | ) | $ | (0.1 | ) |
Provided by/(Used in): | 2017 | 2016 | |||||
Operating activities | $ | 7.8 | $ | 5.6 | |||
Investing activities | $ | (0.7 | ) | $ | (1.4 | ) | |
Financing activities | $ | (1.4 | ) | $ | (0.7 | ) |
Commitments and obligations | Remaining 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | ||||||||||||||||||||
Capital lease obligations | $ | 218 | $ | 236 | $ | 78 | $ | 40 | $ | 28 | $ | 7 | $ | 607 | |||||||||||||
Purchase obligations (1)(2) | 2,670 | 5,675 | 5,675 | 4,675 | — | — | 18,695 | ||||||||||||||||||||
Operating leases | 1,680 | 1,809 | 876 | 141 | 20 | 13 | 4,539 | ||||||||||||||||||||
Note payable and other financing arrangements | 518 | 641 | — | — | — | — | 1,159 | ||||||||||||||||||||
Employment agreements | 495 | 495 | — | — | — | — | 990 | ||||||||||||||||||||
Royalty agreement | 30 | 59 | 59 | 59 | 6 | — | 213 | ||||||||||||||||||||
Tax liability (3) | 605 | — | — | — | — | 161 | 766 | ||||||||||||||||||||
Other obligations (4) | 350 | 23 | 141 | 87 | 38 | 967 | 1,606 | ||||||||||||||||||||
Total commitments and obligations | $ | 6,566 | $ | 8,938 | $ | 6,829 | $ | 5,002 | $ | 92 | $ | 1,148 | $ | 28,575 |
Commitments and obligations | Remaining 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | |||||||||||||||||||||
Capital lease obligations | $ | 121 | $ | 371 | $ | 206 | $ | 52 | $ | 12 | $ | — | $ | 762 | ||||||||||||||
Operating leases | 1,131 | 2,431 | 1,715 | 865 | 128 | — | 6,270 | |||||||||||||||||||||
Employment agreements | 690 | 230 | — | — | — | — | 920 | |||||||||||||||||||||
Royalty agreement | 15 | 59 | 59 | 59 | 59 | 6 | 257 | |||||||||||||||||||||
Tax liability (3) | — | 562 | — | — | — | 154 | 716 | |||||||||||||||||||||
Notes payable and other financing arrangements | 283 | 708 | 579 | — | — | — | 1,570 | |||||||||||||||||||||
Other obligations(4) | 351 | 196 | 58 | 58 | 116 | 874 | 1,653 | |||||||||||||||||||||
Total commitments and obligations(1)(2) | $ | 2,591 | $ | 4,557 | $ | 2,617 | $ | 1,034 | $ | 315 | $ | 1,034 | $ | 12,148 |
Estimated useful life | Net carrying value at | 2017 | ||||
Office furniture and equipment | 5 to 7 years | $ | ||||
Computer hardware and software | 3 to 5 years | |||||
Leasehold improvements (1) | ||||||
Total net carrying value at 2017 | $ |
Loyalty program | (in thousands) | ||
Loyalty deferred revenue as of January 1, 2016 | $ | 8,073 | |
Loyalty points forfeited or expired | (6,963 | ) | |
Loyalty points used | (15,451 | ) | |
Loyalty points vested | 20,085 | ||
Loyalty points unvested | 1,289 | ||
Loyalty deferred revenue as of December 31, 2016 | $ | 7,033 |
Loyalty deferred revenue as of January 1, 2017 | $ | 7,033 | |
Loyalty points forfeited or expired | (3,370 | ) | |
Loyalty points used | (6,957 | ) | |
Loyalty points vested | 7,585 | ||
Loyalty points unvested | 1,916 | ||
Loyalty deferred revenue as of June 30, 2017 | $ | 6,207 |
Loyalty program | (in thousands) | |||
Loyalty deferred revenue as of January 1, 2015 | $ | 9,703 | ||
Loyalty points forfeited or expired | (8,801 | ) | ||
Loyalty points used | (15,077 | ) | ||
Loyalty points vested | 20,403 | |||
Loyalty points unvested | 1,845 | |||
Loyalty deferred revenue as of December 31, 2015 | $ | 8,073 |
Loyalty deferred revenue as of January 1, 2016 | $ | 8,073 | ||
Loyalty points forfeited or expired | (5,334 | ) | ||
Loyalty points used | (11,879 | ) | ||
Loyalty points vested | 15,556 | |||
Loyalty points unvested | 1,559 | |||
Loyalty deferred revenue as of September 30, 2016 | $ | 7,975 |
June 2016 Grant | ||||
Estimated fair value per share of options granted: | $ | 12.18 | ||
Assumptions: | ||||
Annualized dividend yield | — | % | ||
Risk-free rate of return | 1.1 | % | ||
Common stock price volatility | 73.5 | % | ||
Expected average life of stock options (in years) | 4.5 |
June 2017 Grant | |||
Estimated fair value per share of options granted: | $ | 5.87 | |
Assumptions: | |||
Annualized dividend yield | 3.5 | % | |
Risk-free rate of return | 1.7 | % | |
Common stock price volatility | 64.4 | % | |
Expected average life of stock options (in years) | 4.5 |
Nine months ended September 30, 2016 | As of September 30, 2016 | |||||||||||||||
Country (foreign currency name) | Low | High | Average | Spot | ||||||||||||
Australia (Australian Dollar) | 0.68691 | 0.78026 | 0.74201 | 0.76743 | ||||||||||||
Canada (Canadian Dollar) | 0.68483 | 0.79791 | 0.75723 | 0.76383 | ||||||||||||
Colombia (Peso) | 0.00029 | 0.00036 | 0.00033 | 0.00035 | ||||||||||||
Czech Republic (Koruna) | 0.03980 | 0.04271 | 0.04130 | 0.04155 | ||||||||||||
Denmark (Kroner) | 0.14414 | 0.15513 | 0.14988 | 0.15059 | ||||||||||||
Hong Kong (Hong Kong Dollar) | 0.12785 | 0.12903 | 0.12881 | 0.12896 | ||||||||||||
Japan (Yen) | 0.00825 | 0.00999 | 0.00923 | 0.00987 | ||||||||||||
Mexico (Peso) | 0.05044 | 0.05824 | 0.05478 | 0.05156 | ||||||||||||
New Zealand (New Zealand Dollar) | 0.63880 | 0.74437 | 0.69259 | 0.72778 | ||||||||||||
Norway (Krone) | 0.11191 | 0.12447 | 0.11909 | 0.12442 | ||||||||||||
Republic of Korea (Won) | 0.00081 | 0.00092 | 0.00086 | 0.00091 | ||||||||||||
Singapore (Singapore Dollar) | 0.69341 | 0.74766 | 0.72966 | 0.73417 | ||||||||||||
South Africa (Rand) | 0.05949 | 0.07523 | 0.06706 | 0.07282 | ||||||||||||
Sweden (Krona) | 0.11550 | 0.12544 | 0.11920 | 0.11676 | ||||||||||||
Switzerland (Franc) | 0.97787 | 1.05040 | 1.02078 | 1.03153 | ||||||||||||
Taiwan (New Taiwan Dollar) | 0.02968 | 0.03218 | 0.03090 | 0.03188 | ||||||||||||
United Kingdom (British Pound) | 1.29057 | 1.48192 | 1.39404 | 1.30081 | ||||||||||||
Various countries (1) (Euro) | 1.07517 | 1.15428 | 1.11616 | 1.12231 |
Six months ended June 30, 2017 | As of June 30, 2017 | |||||||||||
Country (foreign currency name) | Low | High | Average | Spot | ||||||||
Australia (Australian Dollar) | 0.72066 | 0.77228 | 0.75408 | 0.76640 | ||||||||
Canada (Canadian Dollar) | 0.72759 | 0.76839 | 0.74946 | 0.76785 | ||||||||
China (Renminbi) | 0.14383 | 0.14742 | 0.14545 | 0.14742 | ||||||||
Colombia (Peso) | 0.00033 | 0.00036 | 0.00034 | 0.00033 | ||||||||
Czech Republic (Koruna) | 0.03863 | 0.04345 | 0.04044 | 0.04345 | ||||||||
Denmark (Kroner) | 0.14032 | 0.15343 | 0.14556 | 0.15343 | ||||||||
Hong Kong (Hong Kong Dollar) | 0.12813 | 0.12896 | 0.12865 | 0.12813 | ||||||||
Japan (Yen) | 0.00850 | 0.00922 | 0.00890 | 0.00890 | ||||||||
Mexico (Peso) | 0.04562 | 0.05593 | 0.05162 | 0.05584 | ||||||||
New Zealand (New Zealand Dollar) | 0.68445 | 0.73257 | 0.70789 | 0.73040 | ||||||||
Norway (Krone) | 0.11542 | 0.12213 | 0.11803 | 0.11902 | ||||||||
Republic of Korea (Won) | 0.00083 | 0.00091 | 0.00088 | 0.00088 | ||||||||
Singapore (Singapore Dollar) | 0.69018 | 0.72560 | 0.71207 | 0.72447 | ||||||||
South Africa (Rand) | 0.07210 | 0.08044 | 0.07580 | 0.07717 | ||||||||
Sweden (Krona) | 0.10943 | 0.11752 | 0.11283 | 0.11752 | ||||||||
Switzerland (Franc) | 0.97481 | 1.04402 | 1.00554 | 1.04402 | ||||||||
Taiwan (New Taiwan Dollar) | 0.03084 | 0.03401 | 0.03264 | 0.03289 | ||||||||
United Kingdom (British Pound) | 1.20519 | 1.30427 | 1.25854 | 1.29707 | ||||||||
Various countries (1) (Euro) | 1.04322 | 1.14106 | 1.08243 | 1.14106 |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced programs(a) | Dollar value of shares that may yet be purchased (b) (in thousands) | ||||||||||
April 1, 2017 - April 30, 2017 | — | $ | — | — | $ | — | ||||||||
May 1, 2017 - May 31, 2017 | — | $ | — | — | $ | — | ||||||||
June 1, 2017 - June 30, 2017 | 4,486 | $ | 14.28 | 4,486 | $ | 19,665 | ||||||||
Total | 4,486 | 4,486 |
Period | Total number of shares purchased | Average price paid per share | Dollar value of shares that may yet be purchased (a) (in thousands) | |||||||||
July 2016 | — | $ | — | $ | 20,000 | |||||||
August 2016 | 1,756 | $ | 16.92 | 19,970 | ||||||||
September 2016 | 7,253 | $ | 17.69 | 19,841 | ||||||||
Total | 9,009 |
MANNATECH, INCORPORATED | ||
Dated: | By: | /s/ Alfredo Bala |
Alfredo Bala | ||
Chief Executive Officer | ||
(principal executive officer) |
Dated: | By: | /s/ David A. Johnson |
David A. Johnson | ||
Chief Financial Officer | ||
(principal financial officer) |
Incorporated by Reference | ||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit (s) | Filing Date | |||||
Amended and Restated Articles of Incorporation of Mannatech, dated May 19, 1998. | S-1 | 333-63133 | 3.1 | October 28, 1998 | ||||||
Certificate of Amendment to the Amended and Restated Articles of Incorporation of Mannatech, dated January 13, 2012. | 8-K | 000-24657 | 3.1 | January 17, 2012 | ||||||
Fifth Amended and Restated Bylaws of Mannatech, dated August 25, 2014. | 8-K | 000-24657 | 3.1 | August 27, 2014 | ||||||
Specimen Certificate representing Mannatech’s common stock, par value $0.0001 per share. | S-1 | 333-63133 | 4.1 | October 28, 1998 | ||||||
10.1 | Mannatech, Incorporated 2017 Stock Incentive Plan | * | * | * | * | |||||
10.2 | Form of Performance Stock Unit Award Agreement | * | * | * | * | |||||
10.3 | Form of Stock Option Award Agreement | * | * | * | * | |||||
10.4 | Form of Restricted Stock Unit Award Agreement | * | * | * | * | |||||
10.5 | Form of Stock Appreciation Rights Award Agreement | * | * | * | * | |||||
10.6 | Form of Restricted Stock Award Agreement | * | * | * | * | |||||
10.7 | Form of Performance Stock Award Agreement | * | * | * | * | |||||
31.1* | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer of Mannatech. | * | * | * | * | |||||
31.2* | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of the Chief Financial Officer of Mannatech. | * | * | * | * | |||||
32.1* | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer of Mannatech. | * | * | * | * | |||||
32.2* | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Financial Officer of Mannatech. | * | * | * | * | |||||
101.INS* | XBRL Instance Document | * | * | * | * | |||||
101.SCH* | XBRL Taxonomy Extension Schema Document | * | * | * | * | |||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | * | * | * | * | |||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | * | * | * | * | |||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | * | * | * | * | |||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | * | * | * | * |
Incorporated by Reference | |||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit (s) | Filing Date |
3.1 | Amended and Restated Articles of Incorporation of Mannatech, dated May 19, 1998. | S-1 | 333-63133 | 3.1 | October 28, 1998 |
3.2 | Certificate of Amendment to the Amended and Restated Articles of Incorporation of Mannatech, dated January 13, 2012. | 8-K | 000-24657 | 3.1 | January 17, 2012 |
3.3 | Fifth Amended and Restated Bylaws of Mannatech, dated August 25, 2014. | 8-K | 000-24657 | 3.1 | August 27, 2014 |
4.1 | Specimen Certificate representing Mannatech’s common stock, par value $0.0001 per share. | S-1 | 333-63133 | 4.1 | October 28, 1998 |
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer of Mannatech. | * | * | * | * | |
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of the Chief Financial Officer of Mannatech. | * | * | * | * | |
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer of Mannatech. | * | * | * | * | |
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Financial Officer of Mannatech. | * | * | * | * | |
101.INS* | XBRL Instance Document | * | * | * | * |
101.SCH* | XBRL Taxonomy Extension Schema Document | * | * | * | * |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | * | * | * | * |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | * | * | * | * |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | * | * | * | * |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | * | * | * | * |
* | Filed herewith. |
1. | I have reviewed this quarterly report on Form 10-Q of Mannatech, Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Alfredo Bala |
Alfredo Bala |
Chief Executive Officer |
(principal executive officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Mannatech, Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ David A. Johnson |
David A. Johnson |
Chief Financial Officer |
(principal financial officer) |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Alfredo Bala |
Alfredo Bala |
Chief Executive Officer |
(principal executive officer) |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ David A. Johnson |
David A. Johnson |
Chief Financial Officer |
(principal financial officer) |