Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ZAGG INC | |
Entity Central Index Key | 1,296,205 | |
Trading Symbol | ZAGG | |
Amendment Flag | false | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,158,918 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 18,582 | $ 24,989 |
Accounts receivable, net of allowances of $431 and $734 | 83,990 | 123,220 |
Inventories | 69,662 | 75,046 |
Income tax receivable | 1,285 | 0 |
Prepaid expenses and other current assets | 5,463 | 4,547 |
Total current assets | 178,982 | 227,802 |
Property and equipment, net of accumulated depreciation of $14,212 and $12,540 | 12,532 | 13,444 |
Goodwill | 12,272 | 12,272 |
Intangible assets, net of accumulated amortization of $72,253 and $66,639 | 33,630 | 39,244 |
Deferred income tax assets | 23,914 | 24,403 |
Other assets | 3,846 | 3,426 |
Total assets | 265,176 | 320,591 |
Current liabilities: | ||
Accounts payable | 60,372 | 96,472 |
Income tax payable | 0 | 2,052 |
Accrued liabilities | 6,838 | 8,168 |
Sales returns liability | 34,620 | 34,536 |
Accrued wages and wage related expenses | 5,836 | 5,652 |
Deferred revenue | 0 | 315 |
Current portion of line of credit | 0 | 23,475 |
Current portion of long-term debt, net of deferred loan costs of $141 | 0 | 13,922 |
Total current liabilities | 107,666 | 184,592 |
Non-current portion of line of credit | 20,000 | 0 |
Total liabilities | 127,666 | 184,592 |
Stockholders' equity: | ||
Common stock, $0.001 par value; 100,000 shares authorized; 34,423 and 34,104 shares issued | 34 | 34 |
Additional paid-in capital | 94,977 | 96,145 |
Accumulated other comprehensive loss | (1,028) | (348) |
Treasury stock, 6,247 and 6,065 common shares at cost | (40,643) | (37,637) |
Retained earnings | 84,170 | 77,805 |
Total stockholders' equity | 137,510 | 135,999 |
Total liabilities and stockholders' equity | $ 265,176 | $ 320,591 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 431 | $ 734 |
Accumulated depreciation | 14,212 | 12,540 |
Accumulated amortization on intangible assets | 72,253 | 66,639 |
Deferred loan costs, current | $ 0 | $ 141 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 34,423,000 | 34,104,000 |
Treasury stock, common shares (in shares) | 6,247,000 | 6,065,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 118,565 | $ 115,227 | $ 230,631 | $ 208,173 |
Cost of sales | 80,908 | 79,403 | 155,381 | 143,743 |
Gross profit | 37,657 | 35,824 | 75,250 | 64,430 |
Operating expenses: | ||||
Advertising and marketing | 2,638 | 2,070 | 5,233 | 5,076 |
Selling, general and administrative | 27,035 | 24,952 | 51,342 | 52,006 |
Transaction costs | 18 | 300 | 18 | 515 |
Impairment of intangible asset | 0 | 0 | 0 | 1,959 |
Amortization of intangible assets | 2,773 | 3,005 | 5,545 | 6,026 |
Total operating expenses | 32,464 | 30,327 | 62,138 | 65,582 |
Income (loss) from operations | 5,193 | 5,497 | 13,112 | (1,152) |
Other income (expense): | ||||
Interest expense | (346) | (619) | (846) | (1,110) |
Other (expense) income | (681) | 67 | (186) | 48 |
Total other expense | (1,027) | (552) | (1,032) | (1,062) |
Income (loss) before provision for income taxes | 4,166 | 4,945 | 12,080 | (2,214) |
Income tax provision | (951) | (1,542) | (1,835) | (521) |
Net income (loss) | $ 3,215 | $ 3,403 | $ 10,245 | $ (2,735) |
Earnings (loss) per share attributable to stockholders: | ||||
Basic earnings (loss) per share (in usd per share) | $ 0.11 | $ 0.12 | $ 0.36 | $ (0.10) |
Diluted earnings (loss) per share (in usd per share) | $ 0.11 | $ 0.12 | $ 0.36 | $ (0.10) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 3,215 | $ 3,403 | $ 10,245 | $ (2,735) |
Other comprehensive (loss) gain, net of tax | ||||
Foreign currency translation (loss) | (970) | 556 | (680) | 844 |
Total other comprehensive (loss) | (970) | 556 | (680) | 844 |
Total comprehensive income (loss) | $ 2,245 | $ 3,959 | $ 9,565 | $ (1,891) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 10,245 | $ (2,735) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Stock-based compensation | 1,408 | 1,636 |
Depreciation and amortization | 9,230 | 11,022 |
Deferred income tax expense | 481 | 1,040 |
Loss on disposal of property and equipment | 9 | 13 |
Loss on deferred loan costs with debt modification | 243 | 0 |
Amortization of deferred loan costs | 106 | 120 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 37,318 | 11,350 |
Inventories | 5,080 | 8,130 |
Prepaid expenses and other current assets | 503 | (298) |
Other assets | (563) | 912 |
Accounts payable | (34,480) | (23,116) |
Income tax (payable) receivable | (3,512) | 1,622 |
Accrued liabilities | (1,404) | 1,073 |
Sales returns liability | (5,092) | (625) |
Accrued wages and wage related expenses | 153 | (1,083) |
Deferred revenue | 0 | (64) |
Other | 232 | 0 |
Net cash provided by operating activities | 19,957 | 10,956 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,701) | (3,065) |
Proceeds from disposal of equipment | 26 | 31 |
Net cash used in investing activities | (2,675) | (3,034) |
Cash flows from financing activities: | ||
Payments of deferred loan costs | (294) | 0 |
Proceeds from revolving credit facility | 198,761 | 205,897 |
Payments on revolving credit facility | (214,215) | (206,521) |
Payments on term loan facility | (2,084) | (3,125) |
Purchase of treasury stock | (3,006) | (1,492) |
Payment of withholdings on restricted stock units | (2,610) | (240) |
Proceeds from issuance of stock under employee stock purchase plan | 55 | 29 |
Net cash used in financing activities | (23,393) | (5,452) |
Effect of foreign currency exchange rates on cash equivalents | (296) | 256 |
Net (decrease) increase in cash and cash equivalents | (6,407) | 2,726 |
Cash and cash equivalents at beginning of the period | 24,989 | 11,604 |
Cash and cash equivalents at end of the period | 18,582 | 14,330 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 926 | 953 |
Cash paid during the period for taxes, net | 4,683 | (2,322) |
Supplemental schedule of non-cash investing and financing activities: | ||
Purchase of fixed assets financed through accounts payable | 541 | 560 |
Withholdings tax on restricted stock units recorded in accrued wages and wage | 21 | 0 |
Modification of debt that resulted in payment of existing term loan balance | $ 11,991 | $ 0 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | NATURE OF OPERATIONS AND BASIS OF PRESENTATION ZAGG Inc and its subsidiaries (“we,” “us,” “our,” “ZAGG,” or the “Company”) are innovation leaders in mobile tech accessories for smartphones and tablets. For over 10 years, ZAGG has developed creative product solutions that enhance and protect mobile devices for consumers around the world. The Company has an award-winning product portfolio that includes screen protection, power cases, power management, wireless charging, personal audio, mobile keyboards, and cases, sold under the ZAGG®, InvisibleShield®, mophie®, and IFROGZ® brands. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the financial position, the results of operations, and cash flows of the Company for the periods presented. The Company suggests that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s 2017 Annual Report on Form 10-K. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant Accounting Policies The Company’s significant accounting policies are described in Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these consolidated financial statements. Adoption of ASC Topic 606, "Revenue from Contracts with Customers" The Company adopted ASC Topic 606, "Revenue from Contracts with Customers" ("Topic 606") with a date of initial application of January 1, 2018. As a result of this adoption, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 on January 1, 2018, using the modified retrospective approach, with the cumulative effect of adopting the new standard being recognized in retained earnings at January 1, 2018. Therefore, the prior period comparative information has not been adjusted and continues to be reported under Topic 605. The adoption of Topic 606 resulted in an increase in accounts receivable of $115; an increase in prepaid expenses and other current assets of $1,255 for the recognition of the right of return assets; an increase in accrued liabilities of $314; an increase in sales return liability of $5,250 for the recognition of the sales return liability on a gross basis and for the change in estimating refund liabilities under Topic 606; a decrease in deferred revenue of $314; and a decrease of $3,880 in retained earnings as a cumulative effect of adoption. The largest driver of changes for the adoption of Topic 606 was the change in estimate for price concessions offered to end customers. Under Topic 605, price concessions to end customers were recognized when such incentives were explicitly offered to the end customer, whereas under Topic 606 such incentives are estimated and recorded at the time of the sale of products to the Company’s customers. The accounts that changed under Topic 606 for the condensed consolidated balance sheet as of June 30, 2018 have been outlined as follows: Reported as of June 30, 2018 Adjustments as of June 30, 2018 Balances Without Adoption of Topic 606 as of June 30, 2018 Condensed consolidated balance sheet changes: Accounts receivable, net of allowances $ 83,990 $ (384) $ 83,606 Prepaid expenses and other current assets 5,463 (1,140) 4,323 Accrued liabilities 6,838 (164) 6,674 Sales returns liability 34,620 (3,748) 30,872 Deferred revenue — 164 164 Retained earnings 84,170 2,224 86,394 The accounts that changed under Topic 606 for the condensed consolidated statement of operations for the three months ended June 30, 2018 have been outlined as follows: Reported for the Three Months Ended June 30, 2018 Adjustments for the Three Months Ended June 30, 2018 Amounts Without Adoption of Topic 606 for the Three Months Ended June 30, 2018 Condensed consolidated statements of operations changes: Net sales $ 118,565 $ 661 $ 119,226 Cost of sales 80,908 (114) 80,794 The accounts that changed under Topic 606 for the condensed consolidated statement of operations for the six months ended June 30, 2018 have been outlined as follows: Reported for the Six Months Ended June 30, 2018 Adjustments for the Six Months Ended June 30, 2018 Amounts Without Adoption of Topic 606 for the Six Months Ended June 30, 2018 Condensed consolidated statements of operations changes: Net sales $ 230,631 $ 2,050 $ 232,681 Cost of sales 155,381 (174) 155,207 Revenue recognition accounting policy The Company’s revenue is derived from (1) sales of our products through our indirect channel, including retailers and distributors; (2) sales of our products through our direct channel, including www.ZAGG.com and www.mophie.com (The URLs are included here as inactive textual references and information contained on, or accessible through, our websites is not a part of, and is not incorporated by reference into, this report) and our corporate-owned ZAGG-branded store; and (3) from franchise fees derived from the on-boarding of new franchisees and the sales of our products to franchisees. The Company’s revenue is measured based on the amount of consideration we expect to receive, reduced by estimates for sales returns, discounts, and other credits. The observable standalone selling prices of products sold are based on the prices charged to customers and are mutually agreed upon by both parties before any orders are authorized. For substantially all of our sales, revenue is recognized at a point in time when control of the goods is transferred to the customer, which generally occurs upon delivery to the carrier or the customer. For franchise fees, revenue is derived from the sale of licenses, training, equipment and marketing, among other items. We recognize revenue for performance obligations on a straight-line basis over the franchise term. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales returns, discounts and other credits The nature of our contracts gives rise to several types of variable consideration, including sales returns, discounts, and other credits. Certain customers receive credit-based incentives or credits, which are accounted for as variable consideration in the form of credit memos off future purchases from the Company. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue accordingly on the invoice date. We estimate a reserve for sales returns, discounts, and other credits, and record the respective estimated reserve amounts, including a right to return asset when a product is expected to be returned and resold. Historical experience, actual claims, and customer return rights are the key factors used in determining the estimated sales returns, discounts, and other credits. Contract balances The following table provides information about receivables, right of return assets, contract liabilities, refund liabilities, and warranty liabilities from contracts with customers as of June 30, 2018: June 30, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 83,990 Right of return assets, which are included in prepaid expenses and other current assets 1,140 Contract liabilities, which are included in accrued liabilities 164 Refund liabilities, which are included in sales return liability 30,633 Warranty liabilities, which are included in sales return liability 3,987 The current balance of the right of return assets is the estimated amount of inventory to be returned that is expected to be resold. The current balance of contract liabilities primarily relates to the advance consideration received from customers for products for which transfer of control has not yet occurred, and therefore recognition of revenue is deferred until the transfer of control. The current balance of refund liabilities is the expected amount of sales returns, discounts and other credits from sales that have occurred. Practical expedients and policy elections The Company applies the following practical expedients in its application of Topic 606: • The Company does not adjust the transaction price for significant financing components for periods less than one year. • The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general, and administrative expenses. • The Company recognizes the cost for shipping and handling as a fulfillment activity after control over products have transferred to the customer. For product sales, our standard shipping terms are FOB shipping point, and we record revenue when the product is shipped, net of estimated returns and discounts. Shipping and handling costs are included in cost of sales. • The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Disaggregation of revenue from contracts with customers In the following tables, revenue from contracts with customers are disaggregated by key product lines, key distribution channels, and key geographic regions. These are disclosed below. The percentage of net sales related to our key product lines for the three and six months ended June 30, 2018 and 2017, was approximately as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Screen Protection 54 % 51 % 52 % 49 % Power Management 27 % 17 % 30 % 17 % Power Cases 7 % 19 % 6 % 21 % Keyboards 7 % 5 % 6 % 6 % Audio 4 % 7 % 5 % 6 % Other 1 % 1 % 1 % 1 % The percentage of net sales related to our key distribution channels for the three and six months ended June 30, 2018 and 2017, was approximately as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Indirect channel 88 % 89 % 88 % 88 % Website 8 % 7 % 8 % 9 % Franchisees 4 % 4 % 4 % 3 % The percentage of net sales related to our key geographic regions for the three and six months ended June 30, 2018 and 2017, was approximately as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 United States 85 % 87 % 83 % 86 % Europe 10 % 8 % 10 % 8 % Other 5 % 5 % 7 % 6 % Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. A number of other significant changes to lease accounting have been effected through the issuance of this standard. The requirements of the new standard for leases shall be recognized and measured at the beginning of the earliest comparative period presented. When adopted, the Company will be required to adjust equity at the beginning of the earliest comparative period presented, and the other comparative amounts disclosed for each prior period presented in the financial statements, as if the requirements of the new standard had always been applied. The new standard also contains practical expedients which the Company may elect to follow. The new standard is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements, including whether to elect the practical expedients outlined in the new standard. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on reported results of operations. A reclassification has been made with a $2,347 reduction to accrued liabilities and a $2,347 increase to sales returns liability. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES At June 30, 2018 and December 31, 2017, inventories consisted of the following: June 30, 2018 December 31, 2017 Finished goods $ 69,410 $ 74,734 Raw materials 252 312 Total inventories $ 69,662 $ 75,046 Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers at June 30, 2018 and December 31, 2017, of $1,783 and $1,906, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS There were no additions to and no impairments of intangible assets for the three and six months ended June 30, 2018. There were also no additions to intangible assets for the three and six months ended June 30, 2017. Additionally, there were no impairments to intangible assets for the three months ended June 30, 2017. The following table summarizes the impairments of gross intangible assets for the six months ended June 30, 2017: December 31, 2016 $ 108,659 Impairment loss on patent (2,777) June 30, 2017 $ 105,882 On April 11, 2017, the Company received a final court order stating that the claims of one of its patents were either not patentable or canceled. Accordingly, management determined that the patent’s carrying value was not recoverable through future cash flows and was impaired as of March 31, 2017. Consequently, for the six months ended June 30, 2017, the Company recorded an impairment loss to intangible assets consisting of a reduction of gross carrying amount of $2,777, accumulated amortization of $818, and net carrying value of $1,959 to reduce the net carrying value of the canceled patent to $0. Intangible assets, net of accumulated amortization as of June 30, 2018 and December 31, 2017, were as follows: June 30, 2018 December 31, 2017 Customer relationships $ 6,921 $ 9,259 Trade names 16,256 17,854 Patents and technology 9,486 10,981 Non-compete agreements 958 1,137 Other 9 13 Total intangible assets, net of accumulated amortization $ 33,630 $ 39,244 The total weighted average useful lives of intangible assets as of June 30, 2018 and December 31, 2017, was 8.1 years and 8.2 years, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESFor interim periods, the tax provision is determined utilizing an estimate of the Company’s annual effective tax rate adjusted for discrete items, if any. The Company's effective tax rate for the three and six months ended June 30, 2018 was 23% and 15%, respectively. The Company’s effective tax rate for the three and six months ended June 30, 2017 was 31% and (24)%, respectively. The change in the effective tax rate for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 was due to several factors including but not limited to a change in the federal statutory rate from 35% to 21% and an increase to income in foreign jurisdictions. The change in the effective tax rate for the six months ended June 30, 2018 compared to the six months ended June 30, 2017 was due to several factors including but not limited to a change in the federal statutory rate from 35% to 21%, a change to book income in the second quarter of 2018 compared to a book loss in the second quarter of 2017, and an increase to income from foreign jurisdictions. The Company’s effective tax rate will generally differ from the U.S. Federal statutory rate of 21%, due to state taxes, permanent items, the Company’s global tax strategy, and the inclusion of global intangible low taxed income and the corresponding foreign tax credit. |
Debt and Line of Credit
Debt and Line of Credit | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT AND LINE OF CREDIT | DEBT AND LINE OF CREDIT Long-term debt, net as of June 30, 2018 and December 31, 2017, was as follows: June 30, 2018 December 31, 2017 Line of credit $ 20,000 $ 23,475 Long-term debt, net of deferred loan costs of $0 and $141 — 13,922 Total debt outstanding 20,000 37,397 Current portion of total debt outstanding, net of deferred loan costs of $0 and $141 — 37,397 Total long-term debt outstanding $ 20,000 $ — On April 12, 2018, the Company entered into an Amended and Restated Credit and Security Agreement (the “New Credit Agreement”) with KeyBank National Association, as Administrative Agent, Swing Line Lender and Issuing Lender, KeyBanc Capital Markets Inc., as Sole Lead Arranger and Sole Book Runner, and other members of the lender group. The New Credit Agreement consists of an $85,000 secured revolving credit facility (the “Revolver”), which is not subject to borrowing base limitations. In addition, at the Company’s option, up to $40,000 of the Revolver may be made available for the issuance of letters of credit. Proceeds from the Revolver were used to fully retire the term loan and thus the Revolver is the only credit instrument effective April 12, 2018. The Company had a loss of $243 of deferred loan costs that were written off as of the New Credit Agreement effective date, and the Company carried over $522 of previously capitalized deferred loan costs with the modification of the existing debt. The Company capitalized $294 in additional debt issuance costs, for a new beginning balance of $815 of deferred loan costs, with $780 remaining to be amortized which is included in other assets in the condensed consolidated balance sheet. The Revolver initially bears interest at an annual rate, at the Company’s option, of (i) the Base Rate (as defined in the Credit Agreement) plus a margin of 0.25% to 1.375% based on the prior quarter-end Leverage Ratio or (ii) the Eurodollar Rate (as defined in the Credit Agreement) plus a margin of 1.25% to 2.375% based on the prior quarter-end Leverage Ratio. The Revolver matures April 11, 2023, subject to early termination in the event of default. In addition, the Company is required to pay a monthly Applicable Commitment Fee Rate (as defined in the New Credit Agreement) that can fluctuate between 0.175% and 0.275% based on the Leverage Ratio (as defined in the New Credit Agreement). The commitment fee is calculated monthly using the Maximum Revolving Amount (as defined in the New Credit Agreement) at the end of each calendar month, minus the Revolving Credit Exposure (exclusive of the Swing Line Exposure) (each as defined in the New Credit Agreement) at the end of such day, multiplied by the Applicable Commitment Fee Rate in effect on such day divided by three hundred sixty (360). The monthly commitment fee is payable quarterly in arrears, commencing on July 1, 2018 and continuing on each regularly scheduled payment date thereafter. The New Credit Agreement contains customary representations and warranties and restrictive covenants. The New Credit Agreement also contains affirmative and negative covenants requiring, among other things, the Company to meet certain financial ratio tests and to provide certain information to the lenders. The New Credit Agreement also includes financial maintenance covenants that require compliance with a Leverage Ratio and a Fixed Charge Coverage Ratio (each as defined in the New Credit Agreement), tested at the end of each fiscal quarter commencing with the three months ended June 30, 2018. The New Credit Agreement also contains customary events of default. If an event of default occurs, the lenders under the Credit Agreement would be entitled to take various actions, including the acceleration of amounts due thereunder and all other actions permitted to be taken by a secured creditor. As part of the New Credit Agreement, the lockbox arrangement requirement in the prior agreement was terminated and thus the Company now has full dominion of cash upon receipt from customers. Because of the lockbox arrangement in the prior agreement, amounts outstanding under the Revolver were classified as a current liability because cash receipts were required to be automatically swept against the Revolver. Because the New Credit Agreement does not have a lockbox arrangement and the Revolver does not mature until 2023, the Revolver is classified as a non-current liability. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION During the three and six months ended June 30, 2018, the Company granted 197 and 278 restricted stock units, respectively. During the three and six months ended June 30, 2017, the Company granted 123 and 434 restricted stock units, respectively. During the three and six months ended June 30, 2018, the restricted stock units granted were estimated to have a weighted-average fair value per share of $11.65 and $12.48, respectively. During the three and six months ended June 30, 2017, the restricted stock units granted were estimated to have a weighted-average fair value per share of $6.35 and $6.57, respectively. The fair value of the restricted stock units granted is based on the closing share price of the Company’s common stock on the date of grant. The restricted stock units vest annually on a straight-line basis over a nine-month (annual board of directors’ grant) to a three-year vesting term, depending on the terms of the individual grant. As part of the 278 and 434 restricted stock units granted during the six months ended June 30, 2018 and 2017, the Company granted 167 and 372 restricted stock units, respectively, to certain executives and employees of the Company where vesting is linked to specific performance criterion. These performance-based restricted stock units only vest upon the (1) Company’s achievement of specified thresholds of net sales, Adjusted EBITDA, or specific goals for the individual executive, and (2) continued employment through the applicable vesting date. The estimated fair value of the restricted stock units is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. During the three and six months ended June 30, 2018, the Company recorded stock-based compensation expense related to restricted stock units of $807 and $1,408, respectively. During the three and six months ended June 30, 2017, the Company recorded stock-based compensation expense related to restricted stock units of $966 and $1,636, respectively. Stock-based compensation expense related to restricted stock is included as a component of selling, general, and administrative expense on the condensed consolidated statement of operations. During the six months ended June 30, 2018 and 2017, certain ZAGG employees elected to receive a net amount of shares upon the vesting of restricted stock unit grants in exchange for the Company paying up to the maximum statutory withholding amount of the employees’ tax liabilities for the fair value of the award on the vesting date. This resulted in the Company recording $2,631 and $240 reflected as a reduction of additional paid-in capital, respectively. Of the $2,631 recorded as a reduction of additional paid-in capital,$21 was included in accrued wages and wage related expenses as of June 30, 2018. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHAREBasic earnings (loss) per common share excludes dilution and is computed by dividing net earnings (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share reflects the potential dilution that could occur if stock options and restricted stock, or other common stock equivalents were exercised or converted into common stock. The dilutive effect of stock options or other common stock equivalents is calculated using the treasury stock method. The following is a reconciliation of the numerator and denominator used to calculate basic earnings (loss) per share and diluted earnings (loss) per share for the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net income (loss) $ 3,215 $ 3,403 $ 10,245 $ (2,735) Weighted average shares outstanding: Basic 28,299 27,963 28,254 28,010 Dilutive effect of restricted stock units 367 250 425 — Diluted 28,666 28,213 28,679 28,010 Earnings (loss) per share: Basic $ 0.11 $ 0.12 $ 0.36 $ (0.10) Diluted $ 0.11 $ 0.12 $ 0.36 $ (0.10) For the three and six months ended June 30, 2018, 114 restricted stock units were used to purchase shares of common stock that were not considered in calculating diluted earnings per share, respectively, as their effect would have been anti-dilutive. For the three and six months ended June 30, 2017, 0 and 980 restricted stock units were used to purchase shares of common stock that were not considered in calculating diluted earnings (loss) per share, respectively, as their effect would have been anti-dilutive. |
Treasury Stock
Treasury Stock | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
TREASURY STOCK | TREASURY STOCK During the fourth quarter of 2015, the Company’s board of directors authorized the repurchase of up to $20,000 of the Company’s outstanding common stock with no expiration date. As of June 30, 2018 and December 31, 2017, a total of $14,552 and $17,558 remained authorized under the stock repurchase program, respectively. For the three and six months ended June 30, 2018, the Company repurchased 182 shares of the Company's common stock. Cash consideration paid for the noted share repurchases was $3,006, which included commissions paid to brokers of $7. For the three and six months ended June 30, 2018, the weighted average price per share repurchased was $16.49. The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheet. For the three months ended June 30, 2017, no share repurchases occurred. For the six months ended June 30, 2017, the Company repurchased 234 shares of the Company's common stock. Cash consideration paid for the noted share repurchases was $1,492, which included commissions paid to brokers of $9. For the six months ended June 30, 2017, the weighted average price per share was $6.35. The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office and warehouse space, office equipment, and a retail store location under operating leases that expire through 2025. Future minimum rental payments required under the operating leases at June 30, 2018, were as follows: Remaining 2018 $ 1,075 2019 2,880 2020 2,744 2021 2,448 2022 2,508 Thereafter 4,053 Total operating lease commitments $ 15,708 For the three and six months ended June 30, 2018, rent expense was $818 and $1,546, respectively. For the three and six months ended June 30, 2017, rent expense was $758 and $1,443, respectively. Rent expense was recognized on a basis which approximates straight-line over the lease term and was recorded as a component of selling, general and administrative expense on the condensed consolidated statement of operations. Commercial Litigation ZAGG Inc and mophie, Inc. v. Anker Technology Co. Ltd. and Fantasia Trading LLC , United States District Court for the Central District of California, Case No. 8:17-CV-2193-DOC-DFM (the “Anker Lawsuit”). On December 15, 2017, ZAGG and mophie filed the Anker Lawsuit alleging that Anker Technology Co. Ltd. (“Anker”) and Fantasia Trading LLC (“Fantasia”) infringe U.S. Patent Nos. 8,971,039, 9,077,013, 9,088,028, 9,088,029, 9,172,070, and 9,406,913 in connection with protective battery cases for smartphones. The Anker products accused of infringement include Anker’s Ultra Slim Extended Battery Case for iPhone 6 / 6s (4.7 inch) with 2850mAh capacity; Premium Extended Battery Case for iPhone 6 / 6s (4.7 inch) with 3100mAh Capacity; PowerCore Case for iPhone 7 (4.7 inch), 80% Extra Battery; and PowerCore Case for iPhone 7 (4.7 inch), 95% Extra Battery. The complaint filed by ZAGG and mophie seeks monetary damages and an injunction against Anker. On March 12, 2018, Anker and Fantasia filed answers and counterclaims in the lawsuit. In their answers, Anker and Fantasia denied infringement of any valid claim and asserted counterclaims for non-infringement and invalidity of the patents at issue. The Company disputes Anker’s contentions and will defend the claims and otherwise respond to the allegations. The matter is scheduled for trial in November 2019. This matter is not expected to have a material adverse effect on the Company’s financial position, results of operations, or liquidity. SEC Investigation In the fourth quarter of 2012, the Company received requests to provide documentation and information to the staff of the SEC in connection with an investigation being conducted by the SEC's Salt Lake City office. The Company believes the investigation includes a review of the facts and circumstances surrounding former Chief Executive Officer Robert Pedersen's pledge and subsequent sale of Company shares and the fact that such pledges and sales were not disclosed in the Company's 2011 10-K filed on March 15, 2012, or 2012 Proxy filed on April 27, 2012. The Company responded to these requests and is cooperating with the staff although there has been no resolution to date. Other Litigation The Company is not a party to any other material litigation or claims at this time. While the Company currently believes that the amount of any ultimate probable loss for known matters would not be material to the Company’s financial condition, the outcome of these actions is inherently difficult to predict. In the event of an adverse outcome, the ultimate potential loss could have a material adverse effect on the Company’s financial condition or results of operations in a particular period. The Company establishes reserves when a particular contingency is probable and estimable. The Company has not accrued for any loss as of June 30, 2018, in the condensed consolidated financial statements as the Company does not consider a loss to be probable or estimable. The Company faces contingencies that are reasonably possible to occur; however, the reasonably possible exposure to losses cannot currently be estimated. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS | CONCENTRATIONS Concentration of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company places its cash with high credit quality financial institutions. The Company maintains its cash in bank deposit accounts, which, at times, exceed federally insured limits. The Company has not experienced any losses in cash accounts for the six months ended June 30, 2018 and 2017. At June 30, 2018 and December 31, 2017, two separate customers exceeded 10% of the balance of accounts receivable, as follows: June 30, 2018 December 31, 2017 Superior Communications, Inc. (“Superior”) 43 % 31 % Best Buy Co., Inc. (“Best Buy”) 14 % 18 % No other customer account balances were more than 10% of accounts receivable at June 30, 2018 or December 31, 2017. If one or more of the Company’s significant customers were to become insolvent or were otherwise unable to pay for the products provided, it would have a material adverse effect on the Company’s financial condition and results of operations. Concentration of suppliers We do not directly manufacture any of our products; rather, we employ various third party manufacturing partners in the United States and Asia to perform these services on our behalf. The services employed by these third parties include the selection of sub-suppliers that provide raw materials and other components used in the manufacturing process. We have endeavored to use common components and readily available raw materials in the design of our products that can be sourced from multiple sub-suppliers. However, raw film used in our InvisibleShield film and InvisibleShield On-Demand (“ISOD”) products has been produced by a single supplier for many years. Our film supplier has contractually agreed to not sell the raw materials to any of our competitors. Below is a high-level summary by product category of the manufacturing sources used by the Company: • Screen Protection – Our screen product line is comprised of sales of InvisibleShield glass products, InvisibleShield film products, and ISOD film blanks. InvisibleShield glass products are sourced from factories in Asia with protective glass expertise, each of which uses a number of sub-suppliers for raw materials and other components. Our InvisibleShield film and ISOD products are sourced through our third-party logistics partner, who purchases the raw film inventory from a single supplier (as discussed above). • Battery Cases and Power Management – Our battery case and power management product lines consists of power products that are designed to provide on-the-go power and wireless charging for tablets, smartphones, laptops, cameras, and virtually all other electronic mobile devices. Our power products are sourced from factories in Asia with battery expertise, each of which uses a number of sub-suppliers for raw materials and other components. • Keyboards – Our keyboard product line consists of (1) device specific keyboards designed to fit individual tablets produced by original equipment manufacturers and (2) keyboards that are designed to be device agnostic and can be used on virtually any mobile device. Our keyboard products are sourced from factories in Asia with keyboard expertise, each of which uses a number of sub-suppliers for raw materials and other components. • Audio – Our audio product line consists of earbuds and headphones that are designed to be compatible with virtually all electronic mobile devices. Our audio products are sourced from factories in Asia with audio expertise, each of which uses a number of sub-suppliers for raw materials and other components. Our product and operations teams work closely with suppliers from initial product development and throughout the manufacturing process to ensure that (1) the supplier understands, and will build according to, the product specifications, (2) appropriate quality is maintained for the finished goods and for all sub-components, and (3) the supplier can meet our supply needs. Concentration of net sales For the three and six months ended June 30, 2018, Superior and Best Buy accounted for over 10% of net sales, and for the three months ended June 30, 2017, Superior accounted for over 10% of net sales, while for the six months ended June 30, 2017, Superior and GENCO accounted for over 10% of net sales, as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Superior 34 % 31 % 31 % 29 % Best Buy 11 % 9 % 10 % 8 % GENCO 3 % 8 % 4 % 10 % For the three and six months ended June 30, 2018 and 2017, no other customers accounted for greater than 10% of net sales. Although we have contracts in place governing our relationships with our retail distribution customers (“retailers”), the contracts are not long-term and all our retailers generally purchase from us on a purchase order basis. As a result, these retailers generally may, with little or no notice or penalty, cease ordering and selling our products, or materially reduce their orders. If any of these retailers cease selling our products, slow their rate of purchase of our products, or decrease the number of products they purchase, our results of operations could be adversely affected. Concentration of region The percentage of net sales by geographic region for the three and six months ended June 30, 2018 and 2017, was approximately: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 United States 85 % 87 % 83 % 86 % Europe 10 % 8 % 10 % 8 % Other 5 % 5 % 7 % 6 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Acquisition of BRAVEN On July 20, 2018, the Company entered into and closed an asset purchase agreement to acquire the BRAVEN brand, inventory, intellectual property, accounts receivable, product and engineering team, and certain other assets and liabilities for $5,000. BRAVEN products that include rugged Bluetooth® speakers and earbuds. |
Nature of Operations and Basi18
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue recognition accounting policy The Company’s revenue is derived from (1) sales of our products through our indirect channel, including retailers and distributors; (2) sales of our products through our direct channel, including www.ZAGG.com and www.mophie.com (The URLs are included here as inactive textual references and information contained on, or accessible through, our websites is not a part of, and is not incorporated by reference into, this report) and our corporate-owned ZAGG-branded store; and (3) from franchise fees derived from the on-boarding of new franchisees and the sales of our products to franchisees. The Company’s revenue is measured based on the amount of consideration we expect to receive, reduced by estimates for sales returns, discounts, and other credits. The observable standalone selling prices of products sold are based on the prices charged to customers and are mutually agreed upon by both parties before any orders are authorized. For substantially all of our sales, revenue is recognized at a point in time when control of the goods is transferred to the customer, which generally occurs upon delivery to the carrier or the customer. For franchise fees, revenue is derived from the sale of licenses, training, equipment and marketing, among other items. We recognize revenue for performance obligations on a straight-line basis over the franchise term. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales returns, discounts and other credits The nature of our contracts gives rise to several types of variable consideration, including sales returns, discounts, and other credits. Certain customers receive credit-based incentives or credits, which are accounted for as variable consideration in the form of credit memos off future purchases from the Company. We estimate these amounts based on the expected amount to be provided to customers and reduce revenue accordingly on the invoice date. We estimate a reserve for sales returns, discounts, and other credits, and record the respective estimated reserve amounts, including a right to return asset when a product is expected to be returned and resold. Historical experience, actual claims, and customer return rights are the key factors used in determining the estimated sales returns, discounts, and other credits. Contract balances The following table provides information about receivables, right of return assets, contract liabilities, refund liabilities, and warranty liabilities from contracts with customers as of June 30, 2018: June 30, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 83,990 Right of return assets, which are included in prepaid expenses and other current assets 1,140 Contract liabilities, which are included in accrued liabilities 164 Refund liabilities, which are included in sales return liability 30,633 Warranty liabilities, which are included in sales return liability 3,987 The current balance of the right of return assets is the estimated amount of inventory to be returned that is expected to be resold. The current balance of contract liabilities primarily relates to the advance consideration received from customers for products for which transfer of control has not yet occurred, and therefore recognition of revenue is deferred until the transfer of control. The current balance of refund liabilities is the expected amount of sales returns, discounts and other credits from sales that have occurred. Practical expedients and policy elections The Company applies the following practical expedients in its application of Topic 606: • The Company does not adjust the transaction price for significant financing components for periods less than one year. • The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general, and administrative expenses. • The Company recognizes the cost for shipping and handling as a fulfillment activity after control over products have transferred to the customer. For product sales, our standard shipping terms are FOB shipping point, and we record revenue when the product is shipped, net of estimated returns and discounts. Shipping and handling costs are included in cost of sales. • The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. A number of other significant changes to lease accounting have been effected through the issuance of this standard. The requirements of the new standard for leases shall be recognized and measured at the beginning of the earliest comparative period presented. When adopted, the Company will be required to adjust equity at the beginning of the earliest comparative period presented, and the other comparative amounts disclosed for each prior period presented in the financial statements, as if the requirements of the new standard had always been applied. The new standard also contains practical expedients which the Company may elect to follow. The new standard is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements, including whether to elect the practical expedients outlined in the new standard. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on reported results of operations. A reclassification has been made with a $2,347 reduction to accrued liabilities and a $2,347 increase to sales returns liability. |
Nature of Operations and Basi19
Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The accounts that changed under Topic 606 for the condensed consolidated balance sheet as of June 30, 2018 have been outlined as follows: Reported as of June 30, 2018 Adjustments as of June 30, 2018 Balances Without Adoption of Topic 606 as of June 30, 2018 Condensed consolidated balance sheet changes: Accounts receivable, net of allowances $ 83,990 $ (384) $ 83,606 Prepaid expenses and other current assets 5,463 (1,140) 4,323 Accrued liabilities 6,838 (164) 6,674 Sales returns liability 34,620 (3,748) 30,872 Deferred revenue — 164 164 Retained earnings 84,170 2,224 86,394 The accounts that changed under Topic 606 for the condensed consolidated statement of operations for the three months ended June 30, 2018 have been outlined as follows: Reported for the Three Months Ended June 30, 2018 Adjustments for the Three Months Ended June 30, 2018 Amounts Without Adoption of Topic 606 for the Three Months Ended June 30, 2018 Condensed consolidated statements of operations changes: Net sales $ 118,565 $ 661 $ 119,226 Cost of sales 80,908 (114) 80,794 The accounts that changed under Topic 606 for the condensed consolidated statement of operations for the six months ended June 30, 2018 have been outlined as follows: Reported for the Six Months Ended June 30, 2018 Adjustments for the Six Months Ended June 30, 2018 Amounts Without Adoption of Topic 606 for the Six Months Ended June 30, 2018 Condensed consolidated statements of operations changes: Net sales $ 230,631 $ 2,050 $ 232,681 Cost of sales 155,381 (174) 155,207 |
Contract with Customer, Asset and Liability | The following table provides information about receivables, right of return assets, contract liabilities, refund liabilities, and warranty liabilities from contracts with customers as of June 30, 2018: June 30, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 83,990 Right of return assets, which are included in prepaid expenses and other current assets 1,140 Contract liabilities, which are included in accrued liabilities 164 Refund liabilities, which are included in sales return liability 30,633 Warranty liabilities, which are included in sales return liability 3,987 |
Disaggregation of Revenue | The percentage of net sales related to our key product lines for the three and six months ended June 30, 2018 and 2017, was approximately as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Screen Protection 54 % 51 % 52 % 49 % Power Management 27 % 17 % 30 % 17 % Power Cases 7 % 19 % 6 % 21 % Keyboards 7 % 5 % 6 % 6 % Audio 4 % 7 % 5 % 6 % Other 1 % 1 % 1 % 1 % The percentage of net sales related to our key distribution channels for the three and six months ended June 30, 2018 and 2017, was approximately as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Indirect channel 88 % 89 % 88 % 88 % Website 8 % 7 % 8 % 9 % Franchisees 4 % 4 % 4 % 3 % The percentage of net sales related to our key geographic regions for the three and six months ended June 30, 2018 and 2017, was approximately as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 United States 85 % 87 % 83 % 86 % Europe 10 % 8 % 10 % 8 % Other 5 % 5 % 7 % 6 % |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | At June 30, 2018 and December 31, 2017, inventories consisted of the following: June 30, 2018 December 31, 2017 Finished goods $ 69,410 $ 74,734 Raw materials 252 312 Total inventories $ 69,662 $ 75,046 Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers at June 30, 2018 and December 31, 2017, of $1,783 and $1,906, respectively. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Changes In Gross Long Lived Intangible Assets | The following table summarizes the impairments of gross intangible assets for the six months ended June 30, 2017: December 31, 2016 $ 108,659 Impairment loss on patent (2,777) June 30, 2017 $ 105,882 |
Schedule of long-lived intangible assets, net of amortization | Intangible assets, net of accumulated amortization as of June 30, 2018 and December 31, 2017, were as follows: June 30, 2018 December 31, 2017 Customer relationships $ 6,921 $ 9,259 Trade names 16,256 17,854 Patents and technology 9,486 10,981 Non-compete agreements 958 1,137 Other 9 13 Total intangible assets, net of accumulated amortization $ 33,630 $ 39,244 |
Debt and Line of Credit (Tables
Debt and Line of Credit (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, net | Long-term debt, net as of June 30, 2018 and December 31, 2017, was as follows: June 30, 2018 December 31, 2017 Line of credit $ 20,000 $ 23,475 Long-term debt, net of deferred loan costs of $0 and $141 — 13,922 Total debt outstanding 20,000 37,397 Current portion of total debt outstanding, net of deferred loan costs of $0 and $141 — 37,397 Total long-term debt outstanding $ 20,000 $ — |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerator and denominator used to calculate basic earnings (loss) per share and diluted earnings (loss) per share | The following is a reconciliation of the numerator and denominator used to calculate basic earnings (loss) per share and diluted earnings (loss) per share for the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net income (loss) $ 3,215 $ 3,403 $ 10,245 $ (2,735) Weighted average shares outstanding: Basic 28,299 27,963 28,254 28,010 Dilutive effect of restricted stock units 367 250 425 — Diluted 28,666 28,213 28,679 28,010 Earnings (loss) per share: Basic $ 0.11 $ 0.12 $ 0.36 $ (0.10) Diluted $ 0.11 $ 0.12 $ 0.36 $ (0.10) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments required under the operating leases | Future minimum rental payments required under the operating leases at June 30, 2018, were as follows: Remaining 2018 $ 1,075 2019 2,880 2020 2,744 2021 2,448 2022 2,508 Thereafter 4,053 Total operating lease commitments $ 15,708 |
Concentrations (Tables)
Concentrations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedules of concentration of accounts receivable and sales | At June 30, 2018 and December 31, 2017, two separate customers exceeded 10% of the balance of accounts receivable, as follows: June 30, 2018 December 31, 2017 Superior Communications, Inc. (“Superior”) 43 % 31 % Best Buy Co., Inc. (“Best Buy”) 14 % 18 % No other customer account balances were more than 10% of accounts receivable at June 30, 2018 or December 31, 2017. If one or more of the Company’s significant customers were to become insolvent or were otherwise unable to pay for the products provided, it would have a material adverse effect on the Company’s financial condition and results of operations. Concentration of suppliers We do not directly manufacture any of our products; rather, we employ various third party manufacturing partners in the United States and Asia to perform these services on our behalf. The services employed by these third parties include the selection of sub-suppliers that provide raw materials and other components used in the manufacturing process. We have endeavored to use common components and readily available raw materials in the design of our products that can be sourced from multiple sub-suppliers. However, raw film used in our InvisibleShield film and InvisibleShield On-Demand (“ISOD”) products has been produced by a single supplier for many years. Our film supplier has contractually agreed to not sell the raw materials to any of our competitors. Below is a high-level summary by product category of the manufacturing sources used by the Company: • Screen Protection – Our screen product line is comprised of sales of InvisibleShield glass products, InvisibleShield film products, and ISOD film blanks. InvisibleShield glass products are sourced from factories in Asia with protective glass expertise, each of which uses a number of sub-suppliers for raw materials and other components. Our InvisibleShield film and ISOD products are sourced through our third-party logistics partner, who purchases the raw film inventory from a single supplier (as discussed above). • Battery Cases and Power Management – Our battery case and power management product lines consists of power products that are designed to provide on-the-go power and wireless charging for tablets, smartphones, laptops, cameras, and virtually all other electronic mobile devices. Our power products are sourced from factories in Asia with battery expertise, each of which uses a number of sub-suppliers for raw materials and other components. • Keyboards – Our keyboard product line consists of (1) device specific keyboards designed to fit individual tablets produced by original equipment manufacturers and (2) keyboards that are designed to be device agnostic and can be used on virtually any mobile device. Our keyboard products are sourced from factories in Asia with keyboard expertise, each of which uses a number of sub-suppliers for raw materials and other components. • Audio – Our audio product line consists of earbuds and headphones that are designed to be compatible with virtually all electronic mobile devices. Our audio products are sourced from factories in Asia with audio expertise, each of which uses a number of sub-suppliers for raw materials and other components. Our product and operations teams work closely with suppliers from initial product development and throughout the manufacturing process to ensure that (1) the supplier understands, and will build according to, the product specifications, (2) appropriate quality is maintained for the finished goods and for all sub-components, and (3) the supplier can meet our supply needs. Concentration of net sales For the three and six months ended June 30, 2018, Superior and Best Buy accounted for over 10% of net sales, and for the three months ended June 30, 2017, Superior accounted for over 10% of net sales, while for the six months ended June 30, 2017, Superior and GENCO accounted for over 10% of net sales, as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Superior 34 % 31 % 31 % 29 % Best Buy 11 % 9 % 10 % 8 % GENCO 3 % 8 % 4 % 10 % |
Schedule of percentage of sales by geographic region | The percentage of net sales by geographic region for the three and six months ended June 30, 2018 and 2017, was approximately: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 United States 85 % 87 % 83 % 86 % Europe 10 % 8 % 10 % 8 % Other 5 % 5 % 7 % 6 % |
Nature of Operations and Basi26
Nature of Operations and Basis of Presentation - Adoption of ASC Topic 606, "Revenue from Contracts with Customers" Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net of allowances | $ 83,990 | $ 123,220 | |
Prepaid expenses and other current assets | 5,463 | $ 1,255 | 4,547 |
Accrued liabilities | 6,838 | 8,168 | |
Sales returns liability | 34,620 | 34,536 | |
Deferred revenue | 0 | (315) | |
Retained earnings | (84,170) | (77,805) | |
Refund liabilities, which are included in sales return liability | 30,633 | ||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net of allowances | (384) | 115 | |
Prepaid expenses and other current assets | (1,140) | 1,255 | |
Accrued liabilities | (164) | (314) | |
Sales returns liability | (3,748) | (5,250) | |
Deferred revenue | (164) | 314 | |
Retained earnings | $ (2,224) | $ 3,880 | |
Restatement Adjustment | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accrued liabilities | 2,347 | ||
Refund liabilities, which are included in sales return liability | $ 2,347 |
Nature of Operations and Basi27
Nature of Operations and Basis of Presentation - Accounts changed under Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Condensed Consolidated Balance Sheet changes | ||||||
Accounts receivable, net of allowances | $ 83,990 | $ 83,990 | $ 123,220 | |||
Prepaid expenses and other current assets | 5,463 | 5,463 | $ 1,255 | 4,547 | ||
Accrued liabilities | 6,838 | 6,838 | 8,168 | |||
Sales returns liability | 34,620 | 34,620 | 34,536 | |||
Deferred revenue | 0 | 0 | 315 | |||
Retained earnings | 84,170 | 84,170 | $ 77,805 | |||
Condensed Consolidated Statements of Operations changes | ||||||
Net sales | 118,565 | $ 115,227 | 230,631 | $ 208,173 | ||
Cost of sales | 80,908 | $ 79,403 | 155,381 | $ 143,743 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||||
Condensed Consolidated Balance Sheet changes | ||||||
Accounts receivable, net of allowances | 83,606 | 83,606 | ||||
Prepaid expenses and other current assets | 4,323 | 4,323 | ||||
Accrued liabilities | 6,674 | 6,674 | ||||
Sales returns liability | 30,872 | 30,872 | ||||
Deferred revenue | 164 | 164 | ||||
Retained earnings | 86,394 | 86,394 | ||||
Condensed Consolidated Statements of Operations changes | ||||||
Net sales | 119,226 | 232,681 | ||||
Cost of sales | 80,794 | 155,207 | ||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
Condensed Consolidated Balance Sheet changes | ||||||
Accounts receivable, net of allowances | (384) | (384) | 115 | |||
Prepaid expenses and other current assets | (1,140) | (1,140) | 1,255 | |||
Accrued liabilities | (164) | (164) | (314) | |||
Sales returns liability | (3,748) | (3,748) | (5,250) | |||
Deferred revenue | 164 | 164 | (314) | |||
Retained earnings | 2,224 | 2,224 | $ (3,880) | |||
Condensed Consolidated Statements of Operations changes | ||||||
Net sales | 661 | 2,050 | ||||
Cost of sales | $ (114) | $ (174) |
Nature of Operations and Basi28
Nature of Operations and Basis of Presentation - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Receivables, which comprises the balance in accounts receivable, net of allowances | $ 83,990 | $ 123,220 |
Right of return assets, which are included in prepaid expenses and other current assets | 1,140 | |
Contract liabilities, which are included in accrued liabilities | 164 | |
Refund liabilities, which are included in sales return liability | 30,633 | |
Warranty liabilities, which are included in sales return liability | $ 3,987 |
Nature of Operations and Basi29
Nature of Operations and Basis of Presentation - Percentage of Net Sales by Product (Details) - Product Concentration Risk - Revenue from Contract with Customer | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Screen Protection | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 54.00% | 51.00% | 52.00% | 49.00% |
Power Management | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 27.00% | 17.00% | 30.00% | 17.00% |
Power Cases | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 7.00% | 19.00% | 6.00% | 21.00% |
Keyboards | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 7.00% | 5.00% | 6.00% | 6.00% |
Audio | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 4.00% | 7.00% | 5.00% | 6.00% |
Other Products and Services | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 1.00% | 1.00% | 1.00% | 1.00% |
Nature of Operations and Basi30
Nature of Operations and Basis of Presentation - Percentage of Net Sales by Distribution Channel (Details) - Revenue from Contract with Customer - Distribution Channels | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Indirect channel | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 88.00% | 89.00% | 88.00% | 88.00% |
Website | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 8.00% | 7.00% | 8.00% | 9.00% |
Franchisees | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 4.00% | 4.00% | 4.00% | 3.00% |
Nature of Operations and Basi31
Nature of Operations and Basis of Presentation - Percentage of Net Sales by Key Geographic Regions (Details) - Revenue from Contract with Customer - Geographic Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
United States | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 85.00% | 87.00% | 83.00% | 86.00% |
Europe | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 10.00% | 8.00% | 10.00% | 8.00% |
Other | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 5.00% | 5.00% | 7.00% | 6.00% |
Inventories - Schedule Of Inven
Inventories - Schedule Of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 69,410 | $ 74,734 |
Raw materials | 252 | 312 |
Total inventories | $ 69,662 | $ 75,046 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventory deposits | $ 1,783 | $ 1,906 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Additions to long-lived intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Impairment of intangible assets | $ 0 | 0 | 2,777,000 | ||
Reduction of gross carrying amount | (2,777,000) | ||||
Weighted average useful lives of amortizable intangible assets | 8 years 1 month 6 days | 8 years 2 months 12 days | |||
Canceled Patent | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated amortization | 818,000 | ||||
Impairment of finite-lived intangible asset | 1,959,000 | ||||
Finite-lived intangible assets, net | $ 0 | $ 0 |
Intangible Assets - Changes in
Intangible Assets - Changes in Gross Long-lived Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Beginning balance | $ 108,659,000 | ||
Impairment loss on patent | $ 0 | $ 0 | (2,777,000) |
Ending balance | $ 105,882,000 | $ 105,882,000 |
Intangible Assets - Long-lived
Intangible Assets - Long-lived Intangible Assets, Net of Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets | $ 33,630 | $ 39,244 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets | 6,921 | 9,259 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets | 16,256 | 17,854 |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets | 9,486 | 10,981 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets | 958 | 1,137 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total amortizable intangible assets | $ 9 | $ 13 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 23.00% | 31.00% | 15.00% | (24.00%) |
Debt and Line of Credit - Long-
Debt and Line of Credit - Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Line of credit | $ 20,000 | |
Current portion of long-term debt, net of deferred loan costs of $141 | 0 | $ 13,922 |
Total debt outstanding | 20,000 | 37,397 |
Current portion of line of credit and long-term debt, net of deferred loan costs of $141 | 0 | (37,397) |
Total long-term debt outstanding | 20,000 | 0 |
Deferred loan costs, non-current | 0 | 141 |
Deferred loan costs | $ 0 | $ 141 |
Debt and Line of Credit - Narra
Debt and Line of Credit - Narrative (Details) - USD ($) | Apr. 12, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||||
Loss on deferred loan costs with debt modification | $ 243,000 | $ 0 | ||
Payment of deferred loan costs | 294,000 | $ 0 | ||
Deferred loan costs, current | $ 0 | $ 141,000 | ||
Security Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 85,000,000 | |||
Loss on deferred loan costs with debt modification | 243,000 | |||
Payment of deferred loan costs | 294,000 | |||
Capitalized deferred loan costs | 522,000 | |||
Deferred loan costs, current | 815,000 | |||
Security Agreement | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | |||
Minimum | Security Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, commitment fee percentage | 0.175% | |||
Minimum | Base Rate | Security Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, interest rate | 0.25% | |||
Minimum | Eurodollar | Security Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, interest rate | 1.25% | |||
Maximum | Security Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, commitment fee percentage | 0.275% | |||
Maximum | Base Rate | Security Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, interest rate | 1.375% | |||
Maximum | Eurodollar | Security Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, interest rate | 2.375% | |||
Other Assets | Security Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Deferred loan costs, current | $ 780,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value of restricted stock per share (in usd per share) | $ 11.65 | |||
Adjustments to additional paid-in capital | $ 2,631 | $ 240 | ||
Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted (in shares) | 197 | 123 | 278 | 434 |
Weighted-average fair value of restricted stock per share (in usd per share) | $ 6.35 | $ 12.48 | $ 6.57 | |
Maximum | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of restricted stock vested | 3 years | |||
Minimum | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of restricted stock vested | 9 months | |||
Selling, general, and administrative expense | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 807 | $ 966 | $ 1,408 | $ 1,636 |
Employees | Restricted stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted (in shares) | 167 | 372 |
Earnings (Loss) Per Share - Rec
Earnings (Loss) Per Share - Reconciliation of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 3,215 | $ 3,403 | $ 10,245 | $ (2,735) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 28,299 | 27,963 | 28,254 | 28,010 |
Dilutive effect of restricted stock units and warrants (in shares) | 367 | 250 | 425 | 0 |
Diluted (in shares) | 28,666 | 28,213 | 28,679 | 28,010 |
Earnings (loss) per share: | ||||
Basic (in usd per share) | $ 0.11 | $ 0.12 | $ 0.36 | $ (0.10) |
Diluted (in usd per share) | $ 0.11 | $ 0.12 | $ 0.36 | $ (0.10) |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Restricted stock (in shares) | 114 | 0 | 114 | 980 |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | |
Equity [Abstract] | |||||
Authorized stock repurchase amount | $ 20,000,000 | ||||
Remaining amount authorized under stock repurchase program | $ 14,552,000 | $ 14,552,000 | $ 17,558,000 | ||
Shares repurchased (in shares) | 182 | 182 | 234 | ||
Cash consideration paid for purchase of common stock | $ 3,006,000 | $ 3,006,000 | $ 1,492,000 | ||
Commissions paid to brokers | $ 7,000 | $ 7,000 | $ 9,000 | ||
Weighted average price per share (in dollars per share) | $ 16.49 | $ 16.49 | $ 6.35 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Payments (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2,018 | $ 1,075 |
2,019 | 2,880 |
2,020 | 2,744 |
2,021 | 2,448 |
2,022 | 2,508 |
Thereafter | 4,053 |
Total operating lease commitments | $ 15,708 |
Commitments and Contingencies45
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 818 | $ 758 | $ 1,546 | $ 1,443 |
Concentrations - Concentration
Concentrations - Concentration of Credit Risk and Concentration of Net Sales (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accounts Receivable | Superior | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 43.00% | 31.00% | |||
Accounts Receivable | Best Buy | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 14.00% | 18.00% | |||
Revenue from Contract with Customer | Superior | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 34.00% | 31.00% | 31.00% | 29.00% | |
Revenue from Contract with Customer | Best Buy | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.00% | 9.00% | 10.00% | 8.00% | |
Revenue from Contract with Customer | GENCO | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 3.00% | 8.00% | 4.00% | 10.00% |
Concentrations - Concentratio47
Concentrations - Concentration of Net Sales, By Geographical Region (Details) - Geographic Concentration Risk - Revenue from Contract with Customer | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
United States | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 85.00% | 87.00% | 83.00% | 86.00% |
Europe | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 10.00% | 8.00% | 10.00% | 8.00% |
Other | ||||
Concentration Risk [Line Items] | ||||
Percentage of sales | 5.00% | 5.00% | 7.00% | 6.00% |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ in Millions | Jul. 20, 2018USD ($) |
Braven | Subsequent Event | |
Subsequent Event [Line Items] | |
Assets acquired and liabilities assumed | $ 5 |