Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 12, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ZAGG Inc | ||
Entity Central Index Key | 0001296205 | ||
Trading Symbol | zagg | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 239,702,802 | ||
Entity Common Stock, Shares Outstanding | 28,932,923 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 15,793 | $ 24,989 |
Accounts receivable, net of allowances of $885 and $734 | 156,667 | 123,220 |
Income tax receivable | 375 | 0 |
Inventories | 82,919 | 75,046 |
Prepaid expenses and other current assets | 5,473 | 4,547 |
Total current assets | 261,227 | 227,802 |
Property and equipment, net of accumulated depreciation of $11,844 and $12,540 | 16,118 | 13,444 |
Intangible assets, net of accumulated amortization of $78,627 and $66,639 | 52,054 | 39,244 |
Deferred income tax assets | 19,403 | 24,403 |
Goodwill | 27,638 | 12,272 |
Other assets | 1,571 | 3,426 |
Total assets | 378,011 | 320,591 |
Current liabilities: | ||
Accounts payable | 80,908 | 96,472 |
Income tax payable | 0 | 2,052 |
Sales returns liability | 54,432 | 34,536 |
Accrued wages and wage related expenses | 6,624 | 5,652 |
Accrued liabilities | 13,723 | 8,168 |
Deferred revenue | 0 | 315 |
Line of credit | 0 | 23,475 |
Current portion of long-term debt, net of deferred loan costs of $0 and $141 | 0 | 13,922 |
Total current liabilities | 155,687 | 184,592 |
Line of credit | 58,363 | 0 |
Other long-term liabilities | 5,470 | 0 |
Total liabilities | 219,520 | 184,592 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity | ||
Common stock, $0.001 par value; 100,000 shares authorized; 34,457 and 34,104 shares issued | 34 | 34 |
Treasury stock, 6,983 and 6,065 common shares, at cost | (49,733) | (37,637) |
Additional paid-in capital | 96,486 | 96,145 |
Accumulated other comprehensive loss | (1,410) | (348) |
Retained earnings | 113,114 | 77,805 |
Total stockholders' equity | 158,491 | 135,999 |
Total liabilities and stockholders' equity | $ 378,011 | $ 320,591 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 885 | $ 734 |
Accumulated depreciation on property and equipment | 11,844 | 12,540 |
Accumulated amortization on intangible assets | 78,627 | 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) | 34,457,000 | 34,104,000 |
Treasury stock (in shares) | 6,983,000 | 6,065,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 538,231 | $ 519,495 | $ 401,857 |
Cost of sales | 352,358 | 350,497 | 274,255 |
Gross profit | 185,873 | 168,998 | 127,602 |
Operating expenses: | |||
Advertising and marketing | 11,994 | 11,101 | 12,440 |
Selling, general and administrative | 108,623 | 105,398 | 96,229 |
(Gain) loss on disputed mophie purchase price | 0 | (6,967) | 24,317 |
Transaction costs | 1,678 | 725 | 2,591 |
Impairment of intangible asset | 0 | 1,959 | 0 |
Amortization of long-lived intangibles | 11,882 | 12,047 | 13,385 |
Total operating expenses | 134,177 | 124,263 | 148,962 |
Income (loss) from operations | 51,696 | 44,735 | (21,360) |
Other income (expense): | |||
Interest expense | (1,684) | (2,081) | (1,851) |
Other income (expense) | (483) | 698 | (348) |
Total other expense | (2,167) | (1,383) | (2,199) |
Total | 49,529 | 43,352 | (23,559) |
Income tax (provision) benefit | (10,340) | (28,252) | 7,972 |
Net income (loss) | $ 39,189 | $ 15,100 | $ (15,587) |
Earnings (loss) per share attributable to stockholders: | |||
Basic earnings (loss) per share (in usd per share) | $ 1.40 | $ 0.54 | $ (0.56) |
Diluted earnings (loss) per share (in usd per share) | $ 1.38 | $ 0.53 | $ (0.56) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 39,189 | $ 15,100 | $ (15,587) |
Other comprehensive gain (loss), net of tax: | |||
Foreign currency translation (loss) gain | (1,062) | 1,766 | (517) |
Total other comprehensive (loss) income | (1,062) | 1,766 | (517) |
Comprehensive income (loss) | $ 38,127 | $ 16,866 | $ (16,104) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Retained Earnings |
Balances at Dec. 31, 2015 | $ 130,517 | $ 33 | $ 88,983 | $ (1,597) | $ (35,194) | $ 78,292 |
Balances (in shares) at Dec. 31, 2015 | 33,219 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (15,587) | (15,587) | ||||
Other comprehensive income | (517) | (517) | ||||
Purchase of shares of treasury stock | (951) | (951) | ||||
Option exercises | 0 | $ 0 | ||||
Option exercises (in shares) | 21 | |||||
Warrant exercises | 54 | $ 0 | 54 | |||
Warrant exercises (in shares) | 7 | |||||
Restricted stock release | 1 | $ 1 | ||||
Restricted stock release (in shares) | 589 | |||||
Employee stock purchase plan release (in shares) | 4 | |||||
Stock-based compensation expense | 3,830 | 3,830 | ||||
Payment of withholding taxes on restricted stock units | (630) | (630) | ||||
Excess tax benefit (shortfall) related to share-based payments | 545 | 545 | ||||
Balances at Dec. 31, 2016 | 117,262 | $ 34 | 92,782 | (2,114) | (36,145) | 62,705 |
Balances (in shares) at Dec. 31, 2016 | 33,840 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 15,100 | 15,100 | ||||
Other comprehensive income | 1,766 | 1,766 | ||||
Purchase of shares of treasury stock | (1,492) | (1,492) | ||||
Restricted stock release | 0 | $ 0 | ||||
Restricted stock release (in shares) | 262 | |||||
Employee stock purchase plan release | 29 | 29 | ||||
Employee stock purchase plan release (in shares) | 2 | |||||
Stock-based compensation expense | 3,602 | 3,602 | ||||
Payment of withholding taxes on restricted stock units | (268) | (268) | ||||
Balances at Dec. 31, 2017 | 135,999 | $ 34 | 96,145 | (348) | (37,637) | 77,805 |
Balances (in shares) at Dec. 31, 2017 | 34,104 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 39,189 | 39,189 | ||||
Other comprehensive income | (1,062) | (1,062) | ||||
Purchase of shares of treasury stock | (12,096) | (12,096) | ||||
Restricted stock release | $ 0 | |||||
Restricted stock release (in shares) | 351 | |||||
Employee stock purchase plan release | 54 | 54 | ||||
Employee stock purchase plan release (in shares) | 2 | |||||
Stock-based compensation expense | 3,009 | 3,009 | ||||
Payment of withholding taxes on restricted stock units | (2,722) | (2,722) | ||||
Balances at Dec. 31, 2018 | 158,491 | $ 34 | $ 96,486 | $ (1,410) | $ (49,733) | $ 113,114 |
Balances (in shares) at Dec. 31, 2018 | 34,457 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting change | $ 5,250 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Treasury stock purchased (in shares) | 918 | 234 | 152 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 39,189 | $ 15,100 | $ (15,587) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Stock-based compensation | 3,009 | 3,602 | 3,830 |
Excess tax costs (benefits) related to share-based payments | 0 | 0 | (641) |
Depreciation and amortization | 18,288 | 21,889 | 22,271 |
Loss on disposal of property and equipment | 38 | 34 | 0 |
Deferred income taxes | 4,992 | 14,168 | (7,972) |
Revaluation of deferred income taxes from U.S. tax reform | 0 | 11,806 | 0 |
Amortization of deferred loan costs | 191 | 263 | 202 |
Gains (Losses) on Restructuring of Debt | 243 | 0 | 0 |
Impairment of intangible asset | 0 | 1,959 | 0 |
(Gain) loss on disputed mophie purchase price | 0 | (6,967) | 24,317 |
Changes in operating assets and liabilities (net of amounts acquired): | |||
Accounts receivable, net | (33,119) | (38,093) | (11,587) |
Inventories | (3,405) | (906) | (2,198) |
Prepaid expenses and other current assets | 1,192 | (1,113) | 422 |
Other assets | 1,805 | (928) | (330) |
Accounts payable | (18,714) | 10,677 | 14,094 |
Income taxes (payable) receivable | (3,827) | 4,866 | 9,994 |
Accrued liabilities | 747 | (4,505) | 2,836 |
Accrued wages and wage related expenses | 990 | (517) | 1,819 |
Deferred revenue | 0 | 42 | 246 |
Sales returns liability | 13,889 | 3,719 | (9,037) |
Other | 350 | (1,022) | 0 |
Net cash provided by operating activities | 25,858 | 34,074 | 32,679 |
Cash flows from investing activities: | |||
Purchase of property and equipment (net of business acquired) | (7,243) | (5,766) | (8,633) |
Proceeds from disposal of equipment | 25 | 29 | 0 |
Net cash used in investing activities | (40,020) | (5,737) | (83,376) |
Cash flows from financing activities: | |||
Payment of debt issuance costs | (463) | (157) | (1,144) |
Proceeds from revolving credit facility | 358,980 | 434,826 | 336,391 |
Payments on revolving credit facility | (336,071) | (442,659) | (305,084) |
Proceeds from term loan facility | 0 | 0 | 25,000 |
Payments on term loan facility | (2,084) | (6,250) | (4,688) |
Purchase of treasury stock | (12,096) | (1,492) | (951) |
Payment of withholdings tax on restricted stock units | (2,722) | (268) | (630) |
Proceeds from issuance of stock under employee stock purchase plan and exercise of warrants | 54 | 29 | 54 |
Excess tax costs related to share-based payments | 0 | 0 | 641 |
Net cash provided by (used in) financing activities | 5,598 | (15,971) | 49,589 |
Effect of foreign currency exchange rates on cash and cash equivalents | (632) | 1,019 | (290) |
Net (decrease) increase in cash and cash equivalents | (9,196) | 13,385 | (1,398) |
Cash and cash equivalents at beginning of the period | 24,989 | 11,604 | 13,002 |
Cash and cash equivalents at end of the period | 15,793 | 24,989 | 11,604 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the period for interest | 1,674 | 1,776 | 1,497 |
Cash paid (refunded) during the period for taxes, net | 9,123 | (2,174) | (9,521) |
Supplemental schedule of noncash investing and financing activities: | |||
Purchase of property and equipment financed through accounts payable | 517 | 492 | 758 |
Purchase of mophie financed through contingent payments | 0 | 0 | 12,139 |
Modification of debt that resulted in payment of existing term loan balance | 11,991 | 0 | 0 |
Purchase of Gear4 through contingent payments and common stock | 9,355 | 0 | 0 |
Mophie | |||
Cash flows from investing activities: | |||
Purchase of mophie, BRAVEN, and Gear4 | 0 | 0 | (74,743) |
BRAVEN | |||
Cash flows from investing activities: | |||
Purchase of mophie, BRAVEN, and Gear4 | (4,451) | 0 | 0 |
Gear4 | |||
Cash flows from investing activities: | |||
Purchase of mophie, BRAVEN, and Gear4 | $ (28,351) | $ 0 | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company ZAGG Inc and its subsidiaries (the “Company”) are innovation leaders in mobile tech accessories for smartphones and tablets. For over 10 years, the Company 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, audio, mobile keyboards, protective cases, and other mobile accessories sold under the ZAGG, InvisibleShield, mophie, IFROGZ, BRAVEN, Gear4, and HALO brands. In June 2011, the Company acquired IFROGZ, an audio company, which expanded its product lines beyond screen protection and keyboards. In March 2016, the Company acquired mophie inc. (“mophie”), a leader in the power management and power case categories. This acquisition further diversified the Company's product lines into key growth product categories. The results of operations of mophie are included in the Company's results of operations beginning on March 3, 2016. In July 2018, the Company acquired BRAVEN Audio (“BRAVEN”), a rugged Bluetooth speakers and earbuds provider, which offers a high quality audio experience for outdoor adventurers. This new product line and brand enables the Company to reach new markets and customer demographics. The results of operations of BRAVEN are included in the Company's results of operations beginning on July 20, 2018. On November 30, 2018, the Company acquired Gear4 HK Limited (“Gear4”), one of the top selling smartphone case brands in the United Kingdom, for its stylish phone cases which are designed with D3O technology. D3O technology can provide incredible protection to smartphones and other electronic devices by using shock absorbing materials. The Company believe this acquisition will expand its product offering to better meet the needs of its smartphone consumers for innovative case protection. The results of operations of Gear4 are included in the Company's results of operations beginning on December 1, 2018. In January 2019, the Company acquired Halo2Cloud, LLC (“HALO”), a leading direct-to-consumer accessories company with an extensive IP portfolio. HALO designs, develops and markets innovative technology products to make consumers' lives easier. This acquisition will enable the Company to enter new distribution channels, and to leverage new technology to enter into new consumer markets. The results of operations of HALO are not included in the Company's results of operations as the acquisition is a subsequent event to the consolidated financial statements. Use of estimates The preparation of consolidated financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods, with related disclosures of these amounts in the notes to the financial statements. Actual results could differ from those estimates. Significant items subject to such estimates include the valuation of inventory obsolescence, variable consideration related to revenue recognition, and the fair value estimates of assets acquired and liabilities assumed in business combinations. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate an adjustment is necessary. Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Cash equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Amounts receivable from credit card processors are also considered cash equivalents because they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. Amounts receivable from credit card processors as of December 31, 2018 and 2017 totaled $83 and $116, respectively. Cash equivalents as of December 31, 2018 and 2017 consisted primarily of money market fund investments and amounts receivable from credit card processors. Fair value measurements The Company measures at fair value certain financial and non-financial assets by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1 — Quoted market prices in active markets for identical assets or liabilities; Level 2 — Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions. Accounts receivable The Company sells its products to end users through indirect distribution channels and other resellers who are extended credit terms after an analysis of their financial condition and credit worthiness. Credit terms to distributors and resellers, when extended, are based on evaluation of the customers’ financial condition. Accounts receivable are recorded at invoiced amounts and do not bear interest. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. Management regularly evaluates the allowance for doubtful accounts considering historical losses adjusted to take into account current market conditions, customers’ financial condition, receivables in dispute, receivables aging, and current payment patterns. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Payments subsequently received on written-off receivables are credited to bad debt expense in the period of recovery. The following summarizes the activity in the Company’s allowance for doubtful accounts for the years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 734 $ 824 $ 568 Additions charged to expense 312 339 599 Assumed in acquisition of mophie — — 91 Write-offs charged against the allowance (151) (444) (430) Foreign currency translation (loss) gain (10) 15 (4) Balance at end of year $ 885 $ 734 $ 824 Inventories Inventories, consisting primarily of finished goods and raw materials, are valued at the lower of cost, determined on a first in, first out basis, or net realizable value. Management performs periodic assessments to estimate realizable values and to determine existence of obsolete, slow moving, and non-saleable inventories, and records necessary write-downs in cost of sales to reduce such inventories to estimated net realizable value. Once established, the original cost of the inventory less the related inventory write down represents the new cost basis of such products. Property and equipment Property and equipment are recorded at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the useful life of the asset or the term of the lease. Major additions and improvements are capitalized, while costs for minor replacements, maintenance and repairs that do not increase the useful life of an asset are expensed as incurred. Upon retirement or other disposition of property and equipment, the cost and related accumulated depreciation or amortization are removed from the accounts. The resulting gain or loss is reflected in selling, general and administrative expense in the consolidated statements of operations. Goodwill At least annually or when events and circumstances warrant an evaluation, the Company performs its impairment assessment of goodwill. This assessment permits an entity to initially perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the quantitative goodwill impairment test. If an entity concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it would not need to perform the impairment test for the reporting unit. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the impairment analysis is performed, which incorporates a fair-value based approach. The Company determines the fair value of its reporting units based on discounted cash flows and market approach analyses as considered necessary. The Company considers factors such as the economy, reduced expectations for future cash flows coupled with a decline in the market price of its stock and market capitalization for a sustained period as indicators for potential goodwill impairment. If the reporting unit’s carrying amount exceeds its fair value, the Company will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Intangible assets Intangible assets include internet addresses, intellectual property, and acquired intangibles in connection with the acquisitions of IFROGZ, mophie, BRAVEN and Gear4, which include customer relationships, trade names, patents and technology, non-compete agreements, and other miscellaneous intangible assets. Long-lived intangible assets are amortized over their estimated economic lives, using a straight-line or accelerated method consistent with the underlying expected future cash flows related to the specific intangible asset. Amortization expense is recorded within cost of sales or operating expense depending on the underlying intangible assets. Impairment of long-lived assets Long-lived assets, such as property and equipment and amortizing intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate over the remaining life in measuring whether the assets are recoverable. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. For the years ended December 31, 2018 and 2016, no impairment of long-lived assets were indicated and thus, no impairment charge was recorded. For the year ended December 31, 2017, the Company recognized an impairment charge of $1,959. Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Revenue recognition The Company adopted Accounting Standards Code 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. Revenue is measured based on the amount of consideration that is expected to be received by the Company for providing goods or services under a contract with a customer, which is initially estimated with pricing specified in the contract and adjusted primarily for sales returns, discounts and other credits at contract inception then updated each reporting period. The Company recognizes revenue when persuasive evidence of a contract with a customer exists and a performance obligation is identified and satisfied as the customer obtains control of the goods or services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. The Company typically only charges sales taxes in transactions with customers on the Company's web sites. When the Company performs shipping and handling activities after the customer obtains control of the goods, the Company accounts for the costs as fulfillment costs, as allowed as an accounting policy election under Topic 606. For those instances where shipping occurs before the customer obtains control of the goods, the shipping costs are accounted for as fulfillment activities, as required by Topic 606. Allowance for sales returns, warranties, and other credits The Company's return policy allows end users and certain retailers rights to return purchased products. In addition, the Company generally provides the ultimate consumer a warranty for each product. Due to such policies, the Company’s contracts give rise to several types of variable consideration under Topic 606, including sales returns, warranty, 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. The Company estimates these amounts based on the expected amount to be provided to customers and reduces revenue accordingly for each transaction. The Company estimates a reserve for sales returns, warranties, and other credits, and records the respective estimated reserve amounts as a sales return liability in the consolidated balance sheets, including a right to return asset included in prepaid expenses and other current assets in the consolidated balance sheets 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, warranty claims, and other credits. The following summarizes the activity in the Company’s sales return, warranty, and other credits liability for the years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 34,536 $ 30,720 $ 10,196 Cumulative effect of adoption of Topic 606 5,250 — — Additions charged to sales 149,930 90,018 92,868 Assumed in acquisition of mophie — — 29,584 Sales returns and warranty claims charged against reserve (135,963) (86,299) (101,928) Assumed in acquisition of Gear4 846 — — Foreign currency translation loss (167) 97 — Balance at end of year $ 54,432 $ 34,536 $ 30,720 Income taxes The Company recognizes deferred income tax assets or liabilities for expected future tax consequences of events that have been recognized in the financial statements or tax returns. Under this method, deferred income tax assets or liabilities are determined based upon the difference between the financial statement and income tax bases of assets and liabilities using enacted tax rates expected to apply when differences are expected to be settled or realized. Deferred income tax assets are reviewed for recoverability and valuation allowances are provided when it is more likely than not that a deferred tax asset will not be realizable in the future. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records estimated interest and penalties related to unrecognized tax benefits, if any, as a component of income tax provision. The Company has foreign subsidiaries that conduct or support its business outside the U.S. The Company’s intention before enactment of the Tax Cut and Jobs Act of 2017 (the “Tax Act”) was to permanently reinvest these earnings, thereby indefinitely postponing their remittance to the U.S. Internal Revenue Service. This will continue to be the Company’s intention. Foreign earnings will be taxed according to regulatory calculations in the period earned or eligible for a 100% dividends received deduction. One of the measures in the Tax Act was a mandatory deemed repatriation tax on the historical earnings and profits of certain U.S.-owned foreign corporations. The Company recognized and remitted the tax associated with the undistributed earnings and profits in the 2017 tax year of $368 (net of $221 of foreign tax credit). Stock-based compensation The Company recognizes stock-based compensation expense in its consolidated financial statements for restricted stock units granted to employees and directors. Equity-classified awards are measured at the grant date fair value of the award. The fair value of restricted stock units is measured on the grant date based on the quoted closing market price of the Company’s common stock. The Company recognizes compensation expense on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. For those performance-based awards, the Company recognizes compensation expense on a straight-line basis based on management estimates of the extent to which the performance criteria are probable to be achieved. No compensation expense is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. Advertising and marketing General advertising is expensed as incurred. Advertising allowances provided to retailers are recorded as an expense at the time of the related sale if the Company receives an identifiable benefit in exchange for the consideration and has evidence of fair value for the advertising; otherwise, the allowance is recorded as a reduction of revenue. Advertising expenses for the years ended December 31, 2018, 2017, and 2016 were $11,994, $11,101, and $12,440, respectively. Foreign currency translation and transactions The Company’s primary operations are at the parent level which uses U.S. dollars (“USD”) as its functional currency. The Euro is the functional currency of the Company’s subsidiary in Ireland, while the Renminbi is the functional currency of the Company’s subsidiary in China. Accordingly, assets and liabilities for these subsidiaries are translated into USD using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the periods. Gains and losses from these translations are recorded as a component of stockholders’ equity. Gains and losses resulting from foreign currency transactions are included as a component of other (expense) income in the consolidated statements of operations and totaled $(360), $590, and $(144) for the years ended December 31, 2018, 2017, and 2016, respectively. Earnings (loss) per share Basic earnings (loss) per common share excludes dilution and is computed by dividing net income (loss) attributable to stockholders 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 restricted stock units or other common stock equivalents were released, exercised or otherwise converted into common stock. The dilutive effect of 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 years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Net (loss) income $ 39,189 $ 15,100 $ (15,587) Weighted average shares outstanding: Basic 28,064 27,996 28,006 Dilutive effect of restricted stock units 436 411 — Diluted weighted average shares outstanding 28,500 28,407 28,006 Earnings (loss) per share: Basic $ 1.40 $ 0.54 $ (0.56) Dilutive $ 1.38 $ 0.53 $ (0.56) For the years ended December 31, 2018, 2017, and 2016, restricted stock units to purchase 144, 19, and 815 shares of common stock, respectively, were not considered in calculating diluted earnings (loss) per share because the effect would be anti-dilutive. Business combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over these fair values is recorded as goodwill. The Company has engaged an independent third-party valuation firm to assist in determining the fair values of certain assets acquired and liabilities assumed. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. The significant purchased classes of intangible assets recorded by the Company include customer relationships, trade names, patents and technology, non-compete agreements, and other miscellaneous intangible assets. The fair values assigned to the identified intangible assets are discussed in Note 6 to the consolidated financial statements. Significant estimates in valuing certain intangible assets include but are not limited to: future expected cash flows related to each individual asset, market position of the trade names and assumptions about cash flow savings from the trade names, determination of useful lives, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and thus, actual results may differ from estimates. Segment reporting The Company is in the process of consolidating a number of processes and functions from the acquired businesses, including the merging of several of the recently acquired entities' enterprise resource planning (“ERP”) systems into the Company’s ERP system. In addition, global functional teams are directly managed by an executive from the corporate headquarters. These merged functional areas include the following: sales, marketing, product management, product development, operations, customer service, accounting, finance, legal, human resources, and IT. As the Company has continued to evolve as a mobile lifestyle company, the information regularly reviewed by the chief operating decision maker is at the consolidated level for all types of products and services generated by the Company, including relevant sales and budget reviews. Management has evaluated its reportable segments and concluded that the Company is a single reportable segment. 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 liabilities, both reported as current liabilities. Recent accounting pronouncements Adopted accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“Topic 606”). Topic 606 includes a five-step process by which entities recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services. Topic 606 also requires enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 on January 1, 2018, using the modified retrospective approach, with the cumulative effect of initially adopting the new standard recognized in retained earnings at the date of adoption. Therefore, the prior period comparative information was not adjusted and continues to be reported under ASC Topic 605, “Revenue Recognition” (“Topic 605”). See Note 2 for further details. Issued accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“Topic 842”), which modifies the accounting for leases, intending to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. Topic 842 will require entities to recognize a liability for their lease obligations and a corresponding recognition of right-of-use (“ROU”) assets over the lease term. Lease obligations are to be measured at their present value and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For financing leases, the leased asset is depreciated on a straight-line basis and depreciation expense is recorded separately from the interest expense in the statements of operations, resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. Topic 842 requires that assets and liabilities be presented or disclosed separately, and requires additional disclosure of certain qualitative and quantitative information related to these lease agreements. Topic 842 is effective for annual and interim periods beginning after December 15, 2018. In addition, in July 2018, the FASB issued ASU No. 2018-11 “Targeted Improvements” to provide an additional transition method whereby entities are allowed to initially apply Topic 842 by adjusting equity at the adoption date as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. The Company plans to adopt the standard using the modified retrospective approach beginning January 1, 2019. The Company expects to elect the package of practical expedients upon adoption, which allows for the application of the standard solely to the transition period in 2019 but does not require application to prior fiscal comparative periods presented. In preparation for adoption of Topic 842, the Company has been updating the accounting policy, and implementing internal controls and key functionality to enable the preparation of financial information. The Company expects that Topic 842 will have a material impact on its consolidated balance sheets due to recognition of additional lease liabilities based on the present value of the remaining minimum rental payments for lease components, with corresponding ROU assets, for its operating leases. The financial impact has an estimated range of approximately $10,000 to $15,000 upon the adoption of Topic 842. The Company does not expect the adoption to have a material impact on the consolidated statement of operations or the beginning balance of retained earnings. In addition, the Company currently expects to elect, as an accounting policy, not to recognize lease liabilities and ROU assets for short-term leases that have a lease term of 12 months or less. Adoption of Topic 842 will also expand the Company's disclosure related to its leasing activities. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Adoption of Topic 606 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 sales return liability of $5,250 for the recognition of the sales returns liability on a gross basis and for the change in estimating refund liabilities under Topic 606; an increase in accrued liabilities of $314; 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 consolidated balance sheet as of December 31, 2018 are as follows: Reported as of December 31, 2018 Adjustments as of December 31, 2018 Balances Without Adoption of Topic 606 as of December 31, 2018 Consolidated balance sheet changes: Accounts receivable, net of allowances $ 156,667 $ (49) $ 156,618 Prepaid expenses and other current assets 5,473 (999) 4,474 Sales returns liability 54,432 (9,159) 45,273 Accrued liabilities 13,723 (96) 13,627 Deferred revenue — 96 96 Retained earnings 113,114 8,111 121,225 The accounts that changed under Topic 606 for the consolidated statement of operations for the year ended December 31, 2018 are as follows: Reported for the Year Ended December 31, 2018 Adjustments for the Year Ended December 31, 2018 Amounts Without Adoption of Topic 606 for the Year Ended December 31, 2018 Consolidated statement of operations changes: Net sales $ 538,231 $ 8,127 $ 546,358 Cost of sales 352,358 16 352,374 Performance Obligations The Company’s revenue is derived from sales of device accessories, including screen protection, power cases, power management, wireless charging, personal audio, mobile keyboards and protective cases; through its indirect channel, including retailers, distributors, and franchisees; and through its direct channel, including websites, www.ZAGG.com , www.mophie.com , and www.Gear4.com , corporate-owned and franchise-owned mall kiosks, cellphone repair stores, and Company-branded stores. Such sales mostly contain promises to transfer manufactured products to customers, and in limited arrangement to provide services to customers, in which judgment is required to determine whether such promises are considered distinct performance obligations and should be accounted separately or combined into a single performance obligation. The majority of the products sold by the Company are considered distinct on their own and accounted for separately. Warranties provided to customers are considered as assurance-type warranties under Topic 606 due to the fact that such warranties primarily provide exchange of products for repair and do not offer additional services to the customers and consequently, they are not accounted in separate performance obligations but combined with the promised products sold into a single performance obligation. Revenue Recognition When determining the transaction price, or in other words, the amount of revenue to be recognized, transaction price is based on the observable standalone selling prices charged to customers that are mutually agreed upon by both parties before any orders are authorized, reduced by estimated sales returns and discounts, which are considered as variable consideration under Topic 606. To estimate the amount of variable consideration for revenue adjustment, the Company uses the expected value method with inputs from a portfolio of data where significant judgment is applied. As concluded above, majority of products sold or services provided is either determined as a separate performance obligation or to be combined into a single performance obligation and therefore, no allocation of revenue across several performance obligations is required. For substantially all of the Company's sales, the performance obligations are satisfied and revenues are recognized at a point in time when control of the products is transferred to customers, which generally occurs upon delivery to customers or to shipping carriers. Specifically, the Company's standard shipping terms for product sales are free on board (“FOB”) shipping point at which the Company recognizes revenues when the products are shipped. However, for certain customers, the contractual shipping terms are FOB destination in which revenues are recognized when the products are delivered as control is transferred to customers at such point. The payment terms for the Company's customers vary by sales channels in which the products are sold. For products sold through the Company's direct channel, customers typically pay in full at a point of sale. For products sold through indirect channel and franchisees, customers are extended credit that have terms which are less than six months. Promotional products given to customers or potential customers are recognized as a cost of sales. Cash incentives provided to the Company's customers are recognized as a reduction of the related sale price and, therefore are a reduction in revenues. 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. The percentage of net sales related to the Company’s key product lines for the years ended December 31, 2018, 2017, and 2016, was approximately as follows: For the Years Ended December 31, 2018 2017 2016 Screen protection 57% 48% 54% Power management 26% 26% 15% Power cases 6% 15% 15% Audio 5% 5% 6% Keyboards 5% 5% 9% Other 1% 1% 1% The percentage of net sales related to the Company’s key distribution channels for the years ended December 31, 2018, 2017, and 2016, was approximately as follows: For the Years Ended December 31, 2018 2017 2016 Indirect channel 88% 89% 87% Website 8% 8% 9% Franchisees 4% 3% 4% The percentage of net sales related to the Company’s key geographic regions for the years ended December 31, 2018, 2017, and 2016, was approximately as follows: For the Years Ended December 31, 2018 2017 2016 United States 84% 84% 88% Europe 9% 9% 7% Other 7% 7% 5% Contract Balances Timing of revenue recognition may differ from timing of invoicing to customers or timing of consideration received. The following table provides information about receivables, right of return assets, contract liabilities, refund liabilities, and warranty liabilities from the Company's contracts with customers as of December 31, 2018: December 31, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 156,667 Right of return assets, which are included in prepaid expenses and other current assets 999 Refund liabilities, which are included in sales return liability 49,786 Warranty liabilities, which are included in sales return liability 4,646 Contract liabilities, which are included in accrued liabilities 96 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 refund liabilities is the expected amount of estimated sales returns, discounts and other credits from sales that have occurred. The current balance of warranty liabilities is the expected amount of warranty claim returns from sales that have occurred. 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, revenue is deferred and will be recognized when the transfer of control has been completed. The following summarizes the activities in the Company’s warranty liabilities for the year ended December 31, 2018: Balance at beginning of year $ 4,189 Additions 14,292 Warranty claims charged (13,836) Foreign currency translation gain 1 Balance at end of year $ 4,646 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, the standard shipping terms are FOB shipping point under which revenue is recorded when the product is shipped, net of estimated returns and discounts. Shipping and handling costs are included in cost of sales; and • 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 the Company recognizes revenue at the amount to which it has the right to invoice for services performed. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventory consisted of the following components as of December 31, 2018 and 2017: December 31, 2018 2017 Finished goods $ 81,397 $ 74,734 Raw materials 1,522 312 Total inventories $ 82,919 $ 75,046 Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers as of December 31, 2018 and 2017 of $382 and $1,906, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment, net consisted of the following as of December 31, 2018 and 2017: December 31, Useful Lives 2018 2017 Computer equipment and software 3 to 5 years $ 2,180 $ 2,163 Equipment and molds 3 to 10 years 13,662 12,395 Furniture and fixtures 7 years 1,904 1,824 Automobiles 5 years 85 126 Building and improvements 40 years 2,486 3,332 Leasehold improvements 1 to 5 years 7,320 5,819 Land 325 325 Property and equipment, gross 27,962 25,984 Less accumulated depreciation and amortization (11,844) (12,540) Property and equipment, net $ 16,118 $ 13,444 For the years ended December 31, 2018, 2017, and 2016, depreciation expenses were $6,293, $9,727, and $8,776, respectively, which were included as a component of selling, general and administrative expense in the consolidated statements of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill During the year ended December 31, 2018, goodwill increased in connection with the BRAVEN and Gear4 acquisitions. The following table summarizes the changes in goodwill during 2018: Balance as of December 31, 2017 $ 12,272 Increase in connection with BRAVEN acquisition 298 Increase in connection with Gear4 acquisition 15,068 Balance as of December 31, 2018 $ 27,638 There was no change in goodwill during the year ended December 31, 2017. The Company noted no impairment of goodwill for the years ended December 31, 2018 and 2017. Long-lived Intangibles The following tables reflect the gross carrying amount and accumulated amortization of the Company's long-lived intangible assets, net for the years ended December 31, 2018 and 2017: For the Year Ended December 31, 2018 Gross Carrying Amount Acquisitions Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 49,700 $ 11,186 $ (45,326) $ 15,560 7.6 years Trade names 31,269 12,518 (16,799) 26,988 9.9 years Patents and technology 18,451 872 (10,600) 8,723 8.0 years Non-compete agreements 5,896 — (5,118) 778 4.9 years Other 567 222 (784) 5 1.8 years Total amortizable assets $ 105,883 $ 24,798 $ (78,627) $ 52,054 8.3 years For the Year Ended December 31, 2017 Gross Carrying Amount Impairments Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 49,700 $ — $ (40,441) $ 9,259 7.5 years Trade names 31,269 — (13,415) 17,854 9.8 years Patents and technology 21,228 (2,777) (7,470) 10,981 8.8 years Non-compete agreements 5,896 — (4,759) 1,137 4.9 years Other 567 — (554) 13 2.4 years Total amortizable assets $ 108,660 $ (2,777) $ (66,639) $ 39,244 8.2 years On April 11, 2017, the Company received a final court order stating that the claims of one of its patents were either unpatentable or cancelled. 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, the Company recorded an impairment loss 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 cancelled patent to $0. Customer relationships, trade names, and other intangibles are amortized on an accelerated basis consistent with their expected future cash flows over their estimated useful lives, which results in accelerated amortization. The remaining long-lived intangible assets are amortized using the straight-line method over their estimated useful life. For the years ended December 31, 2018, 2017, and 2016, amortization expenses were $11,988, $12,159, and $13,495, respectively, which were primarily recorded as a component of operating expenses; however, amortization expenses related to acquired technology for the years ended December 31, 2018, 2017, and 2016 of $106, $112, and $110, respectively, were recorded as a component of cost of sales in the consolidated statements of operations. Estimated future amortization expense for long-lived intangibles is as follows: 2019 $ 13,395 2020 10,447 2021 7,534 2022 5,748 2023 4,773 Thereafter 10,157 Total $ 52,054 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisition of Gear4 On November 30, 2018 (the “Gear4 Acquisition Date”), Patriot Corporation Unlimited Company, an entity registered and incorporated in Ireland and a wholly-owned subsidiary of the Company, entered into a share purchase agreement (the “Purchase Agreement”) with STRAX Holding GmbH, an entity registered and incorporated in Germany (“STRAX”), and Gear4 HK Limited, an entity registered and incorporated in Hong Kong and a wholly-owned subsidiary of STRAX (“Gear4”), to acquire from STRAX all of the issued and outstanding equity securities of Gear4 (the “Gear4 Acquisition”). With its expansive global distribution channels, the Company believes that the Gear4 Acquisition will strengthen its case product profile to drive increased sales and profitability. The purchase consideration for the Gear4 Acquisition was $32,200 in cash, 638 shares of the Company's common stock valued at $6,001, and contingent consideration estimated at $1,629 (the “Gear4 Earnout Consideration”). The initial purchase price was subject to adjustment based on the results of Gear4's net sales as defined in the Purchase Agreement for the year ended December 31, 2018. The Gear4 Earnout Consideration is recorded in other long-term liabilities in the consolidated balance sheets. As agreed in the Purchase Agreement, cash consideration of $1,725 and 225 shares of the Company's common stock valued at $2,116 was retained by the Company and will be held by the Company for 18 months following the Gear4 Acquisition Date as security for STRAX's indemnification obligations. The $3,841 retained by the Company that is due to STRAX is recorded in other long-term liabilities in the consolidated balance sheets. The following summarizes the components of the purchase consideration for Gear4: Cash consideration $ 32,200 Company common stock 6,001 Contingent consideration 1,629 Total purchase price $ 39,830 STRAX is also entitled to the Gear4 Earnout Consideration from the Company if the Gear4 net sales as reported in audited financial statements for the year ended December 31, 2019, reported under U.S. GAAP, exceeds certain targets. Specifically, if the Gear4's net sales as reported under U.S. GAAP for the year ended December 31, 2019 are equal to or exceed $60,000 but less than $90,000, STRAX is entitled to $5,000. If the Gear4's net sales for the year ended December 31, 2019 are equal to or exceed $90,000, STRAX is entitled to $10,000. The maximum amount to be paid out under the Gear4 Earnout Consideration would be $10,000. The total purchase price of $39,830 was allocated to identifiable assets acquired and liabilities assumed based on their respective fair values. The excess of the purchase price over the fair value of the tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. The following table summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the Gear4 Acquisition Date: Cash $ 2,124 Accounts receivable (gross contractual receivables of $203) 104 Prepaids and other current assets 671 Inventory 2,831 Inventory step-up 96 Property and equipment 1,427 Amortizable identifiable intangible assets 23,024 Goodwill 15,068 Accounts payable (2,584) Accrued liabilities (773) Sales return liability (932) Taxes payable (1,226) Total $ 39,830 Identifiable Intangible Assets Classes of acquired intangible assets include trade names, customer relationships, and backlog. The fair value of the identifiable intangible assets was determined using the income valuation method. For assets valued under the income approach, the estimate of the present value of expected future cash flows for each identifiable asset was based on discount rates which incorporate a risk premium to take into account the risks inherent in those expected cash flows. The expected cash flows were estimated using available historical data adjusted based on the Company’s historical experience and the expectations of market participants. The amounts assigned to each class of intangible asset and the related weighted average amortization periods are as follows: Intangible Asset Class Weighted Average Amortization Period Trade names $ 11,617 10 years Customer relationships 11,186 8 years Backlog 221 1 month Total $ 23,024 Goodwill Goodwill represents the excess of the Gear4 purchase price over the fair value of the assets acquired and liabilities assumed. The Company believes that the primary factors supporting the amount of the goodwill recognized are the significant growth opportunities and expected synergies of the combined entity. Results of Operations The results of operations of Gear4 were included in the Company's results of operations beginning on December 1, 2018. For Gear4's results of operations from December 1, 2018 through December 31, 2018, Gear4 generated net sales of $2,955 and had a net income before tax of $1,814. Pro Forma Results of Operations (unaudited) The following unaudited pro-forma results of operations for the years ended December 31, 2018, and 2017 give pro forma effect as if the acquisition of Gear4 and the related borrowings used to finance the acquisition had occurred on January 1, 2017, after giving effect to certain adjustments including the amortization of intangible assets, interest expense, tax adjustments, specific transaction related expenses incurred prior to the execution date, and assumes the purchase price was allocated to the assets purchased and liabilities assumed based on their fair market values at the date of purchase. For the Years Ended December 31, 2018 2017 Net sales $ 568,802 $ 544,097 Net income $ 35,218 $ 24,745 Basic earnings per share $ 1.25 $ 0.88 Diluted earnings per share $ 1.24 $ 0.87 The unaudited pro forma information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have occurred had the transaction been consummated as of January 1, 2017. Furthermore, such unaudited pro forma information is not necessarily indicative of future operating results of the combined companies, due to changes in operating activities following the purchase, and should not be construed as representative of the operating results of the combined companies for any future dates or periods. For the years ended December 31, 2018 and 2017, pro forma net income includes pro forma amortization expense of $2,956 and $4,217, respectively. In addition, the Company included interest from the amended credit facility and amortization of debt issuance costs for the years ended December 31, 2018 and 2017 of $1,588 and $1,732, respectively. Pro forma net income for the year ended December 31, 2018 was adjusted to exclude non-recurring items including acquisition-related costs of $595 and the expensing of the fair value adjustment to inventory of $16. Pro forma net income for the year ended December 31, 2017 was adjusted to include acquisition-related costs of $595 and amortization related to the fair value adjustment to inventory of $96. The unaudited pro forma results do not reflect events that either have occurred or may occur after the Gear4 Acquisition, including, but not limited to, the anticipated realization of ongoing savings from operating synergies in subsequent periods. As part of the Gear4 Acquisition, the Company incurred legal, accounting, investment banking and other due diligence fees that were expensed when incurred. Total fees incurred related to the Gear4 Acquisition for the year ended December 31, 2018 was $595 which was included as a component of operating expenses on the consolidated statements of operations. In connection with the Gear4 Acquisition, the Company amended its existing credit facility to fund the transaction. See Note 9 for detail of the amendment. Acquisition of BRAVEN On July 20, 2018 (the “BRAVEN Acquisition Date”), ZAGG Amplified, Inc., a Delaware corporation and wholly-owned subsidiary of the Company, completed its acquisition (the “BRAVEN Acquisition”) of BRAVEN Audio (“BRAVEN”) pursuant to the terms of an asset purchase agreement with Incipio LLC. In connection with the BRAVEN Acquisition, the Company acquired accounts receivable, inventory, property and equipment, intellectual property, a product and engineering team, and certain other assets as well as assumed certain liabilities for cash consideration of $4,451. BRAVEN products include rugged Bluetooth speakers and earbuds, which are expected to expand the Company's product profile and markets. The purchase price of $4,451 was allocated to identifiable assets acquired and liabilities assumed based on their respective fair values. The excess of the purchase price over the fair value of the tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. The following table summarizes the fair values of the identifiable assets acquired and liabilities assumed as of BRAVEN Acquisition Date: Accounts receivable (gross contractual receivables of $650) $ 650 Inventory 2,141 Inventory step-up 179 Property and equipment 368 Amortizable identifiable intangible assets 1,774 Goodwill 298 Accounts payable (959) Total $ 4,451 Identifiable Intangible Assets Classes of acquired intangible assets include patents and technology, trade names, and backlog. The fair value of the identifiable intangible assets was determined using various valuation methods, including the income approach. For assets valued under the income approach, the estimate of the present value of expected future cash flows for each identifiable asset was based on discount rates which incorporate a risk premium to take into account the risks inherent in those expected cash flows. The expected cash flows were estimated using available historical data adjusted based on the Company’s historical experience and the expectations of market participants. The amounts assigned to each class of intangible asset and the related weighted average amortization periods are as follows: Intangible Asset Class Weighted Average Amortization Period Patents and technology $ 872 3.1 years Trade names 901 10 years Backlog 1 6 months Total $ 1,774 Goodwill Goodwill represents the excess of the BRAVEN purchase price over the fair value of the assets acquired and liabilities assumed. The Company believes that the primary factors supporting the amount of the goodwill recognized are the engineering team, significant growth opportunities, and expected synergies of the combined entity. Results of Operations The results of operations of BRAVEN were included in the Company's results of operations beginning on July 20, 2018. For BRAVEN's results of operations from July 20, 2018 through December 31, 2018, BRAVEN generated net sales of $2,421 and had a net loss before tax of $2,788. As part of the BRAVEN Acquisition, the Company incurred legal, accounting, and other due diligence fees that were expensed when incurred. Total fees related to the BRAVEN acquisition for the year ended December 31, 2018 was $60, which was included as a component of operating expenses on the consolidated statements of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income (loss) from operations before taxes for the years ended December 31, 2018, 2017, and 2016, consisted of the following: For the Years Ended December 31, 2018 2017 2016 U.S. operations $ 44,236 $ 37,850 $ (22,220) Foreign operations 5,293 5,502 (1,339) Total $ 49,529 $ 43,352 $ (23,559) Income tax (provision) benefit components for the years ended December 31, 2018, 2017, and 2016, consisted of the following: For the Years Ended December 31, 2018 2017 2016 Current (provision) benefit: Federal $ (1,922) $ (779) $ (89) State (2,810) (532) 138 Foreign (617) (786) (31) Total current (provision) benefit (5,349) (2,097) 18 Deferred (provision) benefit: Federal (5,296) (25,919) 7,612 State 184 (345) 342 Foreign 121 109 — Total deferred (provision) benefit (4,991) (26,155) 7,954 Total (provision) benefit $ (10,340) $ (28,252) $ 7,972 The following is a reconciliation of the income taxes computed using the federal statutory rate to the provision for income taxes for the years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Tax at statutory rate (21% for 2018, 35% for 2017 and 2016) $ (10,401) $ (15,173) $ 8,246 State tax, net of federal tax benefit (2,830) (1,217) 1,041 Non-deductible expense and other (300) (830) 333 Restricted stock awards 833 (831) — Foreign tax rate differential 615 1,248 (491) GILTI (299) — — Mandatory repatriation of foreign earnings — (547) — Return to provision adjustment 778 (212) (36) Reserve related to unrecognized tax benefits 598 107 (452) Interest and penalties (6) (1) (14) Effect of federal rate change — (11,806) — Effect of state rate changes, net of federal tax benefit 732 1,010 (655) Change in valuation allowance (60) — — Total reconciliation amount $ (10,340) $ (28,252) $ 7,972 The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of December 31, 2018 and 2017, are as follows: December 31, 2018 2017 Deferred tax assets: Allowance for doubtful accounts $ 141 $ 146 Property and equipment 145 396 Deferred revenue — 11 Inventories 4,672 7,265 Stock-based compensation 562 790 Sales returns accrual 5,058 4,343 Acquisition costs, net of amortization 107 116 Intangible assets 4,087 2,230 Goodwill 926 1,009 HzO investment 1,048 1,007 Capital loss carry-over 191 184 Net operating loss carryforward 19 3,338 Federal and state credit carryforwards 2,070 3,440 Other liabilities 1,894 1,586 Total gross deferred tax assets 20,920 25,861 Valuation allowance (1,517) (1,458) Total deferred tax assets $ 19,403 $ 24,403 The Company recorded a full valuation allowance against a deferred tax asset generated by capital losses on its investment in HzO. HzO is a development stage enterprise and given current operations and uncertainty of future profitability, management has determined that it is more likely than not that the deferred tax asset will not be realizable. Given this, a full valuation allowance at December 31, 2018 and 2017 of $1,048 and $1,007, respectively, has been recorded against this deferred tax asset. In addition, at December 31, 2018 and 2017, the Company recorded a full valuation allowance against deferred tax assets resulting from capital loss carry-overs of $191 and $184, respectively, as the Company determined that it was unlikely the capital loss carry-overs would be utilized. Additionally, a valuation allowance of $278 and $267 as of December 31, 2018 and 2017, respectively, were recorded on California research and development credit carryforwards that were added upon the acquisition of mophie for the year ended December 31, 2017. As of December 31, 2018, the Company had federal net operating loss carryforward of approximately $90, which may be used to offset future taxable income. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating our ability to recover our deferred tax assets, the Company considers all available positive and negative evidence, including but not limited to scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. The assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. Additionally, we consider historical performance in our evaluation of the realizability of deferred tax assets, specifically, three years of cumulative operating income. Weighing both the positive and negative evidence, management concludes no additional valuation allowance needs to be recorded at December 31, 2018. Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize its deferred tax assets. Moreover, historical data provides evidence of sustained profitability. The Company has not recognized a deferred tax liability for the undistributed earnings of its foreign operations that arose in 2018 and prior years as the Company considers these earnings to be permanently reinvested. Cash held by foreign entities that is considered permanently re-invested totaled $14,271 as of December 31, 2018. There were earnings and profits that resided in the Company’s foreign operations that were repatriated under recent U.S. tax reform; the impact of this repatriation was included in the provision and U.S. tax return for the year ended December 31, 2017. The Company considers these funds permanently re-invested. The Company recognizes the impact of a tax position in the financial statements if that position is more likely than not of being sustained upon audit, based on the technical merits of the position. As of December 31, 2018 and 2017, the Company recorded a tax contingency of $1,398 and $2,278, respectively. The tax contingencies are primarily related to the Company's global tax strategy, certain transactions in foreign jurisdictions in prior periods, and research and development credits taken for federal and state purposes. Another component of the tax contingency relates to the mophie acquisition which relate to research and development credits taken for federal and state purposes. The tax contingencies, on a gross basis, are reconciled in the table below: December 31, 2018 2017 Unrecognized tax benefits, as of January 1 $ 2,278 $ 2,230 Gross increases (decreases) – tax positions in current period 27 444 Gross increases (decreases) – prior year tax positions — 58 Gross increases (decreases) – lapse of statute (907) (454) Total benefit $ 1,398 $ 2,278 As of December 31, 2018, the Company's liability related to unrecognized tax benefits was $1,398 of which $1,398 would impact the Company’s effective tax rate if recognized. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSAt December 31, 2018 and 2017, the Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, and a line of credit. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximates fair value due to the short-term maturities of these financial instruments. The carrying value of the debt balances approximate fair value because the variable interest rates reflect current market rates. |
Debt and Line of Credit
Debt and Line of Credit | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT AND LINE OF CREDIT | DEBT AND LINE OF CREDIT Long-term debt, net as of December 31, 2018 and 2017, was as follows: December 31, 2018 2017 Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate 2016 Credit and Security Agreement 2016 Revolver $ — $ 23,475 3.30 % 2016 Term Loan, net of deferred loan costs of $0 and $141 — 13,922 3.38 % 2018 Credit and Security Agreement 2018 Revolver 58,363 4.03 % — Total debt outstanding 58,363 37,397 Current portion of total debt outstanding, net of deferred loan costs of $0 and $141 — 37,397 Total long-term debt outstanding $ 58,363 $ — 2018 Credit and Security Agreement On April 12, 2018, the Company entered into an amended and restated credit and security agreement (the “2018 Credit and Security Agreement”) with KeyBank National Association (“KeyBank”), 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, which was subsequently amended by a first amendment agreement dated as of November 28, 2018 (as amended, the “2018 Credit and Security Agreement”). The 2018 Credit and Security Agreement consists of an $125,000 (“Maximum Revolver Amount”) secured revolving credit facility (the “2018 Revolver”), which is not subject to borrowing base limitations. In addition, at the Company’s option, up to $40,000 of the 2018 Revolver may be made available for the issuance of letters of credit. Proceeds from the 2018 Revolver were used to fully retire the 2016 Term Loan and thus, the 2018 Revolver is the only credit instrument effective April 12, 2018. As of December 31, 2018, no letters of credit were issued and $40,000 was available to be issued for letters of credit. The 2018 Revolver initially bears interest at an annual rate, at the Company’s option, of (i) the base rate (as defined in the 2018 Credit and Security Agreement) plus a margin of 0.250% to 1.375% based on the prior quarter-end Leverage Ratio or (ii) the Eurodollar Rate (as defined in the 2018 Credit and Security Agreement) plus a margin of 1.250% to 2.375% based on the prior quarter-end Leverage Ratio. The 2018 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 2018 Credit and Security Agreement) that can fluctuate between 0.175% and 0.275% based on the Leverage Ratio (as defined in the 2018 Credit and Security Agreement). The commitment fee is calculated monthly using the Maximum Revolving Amount (as defined in the 2018 Credit and Security Agreement) at the end of each calendar month, minus the Revolving Credit Exposure (exclusive of the Swing Line Exposure) (each as defined in the 2018 Credit and Security 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 2018 Credit and Security Agreement contains customary representations and warranties and restrictive covenants. The 2018 Credit and Security 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 2018 Credit and Security Agreement also includes financial maintenance covenants that require compliance with a Leverage Ratio and a Fixed Charge Coverage Ratio (both defined in the 2018 Credit and Security Agreement), tested at the end of each fiscal quarter commencing with the three months ended June 30, 2018. The 2018 Credit and Security Agreement also contains customary events of default. If an event of default occurs, the lenders under the 2018 Credit and Security 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 2018 Credit and Security Agreement, the lockbox arrangement requirement in the 2016 Credit and Security Agreement was terminated and thus, the Company now has full control of cash upon receipt from customers. With the lockbox arrangement in the 2016 Credit and Security Agreement, amounts outstanding under the 2016 Revolver were classified as a current liability because cash receipts were required to be automatically swept against the 2016 Revolver. As the 2018 Credit and Security Agreement does not have a lockbox arrangement and the 2018 Revolver does not mature until 2023, the 2018 Revolver is classified as a noncurrent liability. The Company incurred a loss of $243 of deferred loan costs written off for the retirement of the 2016 Credit and Security Agreement as of the 2018 Credit and Security Agreement effective date. In conjunction with the $521 previously capitalized deferred loan cost carried over from the 2016 Credit and Security Agreement, the Company capitalized $294 debt issuance costs for the 2018 Credit and Security Agreement and $170 debt issuance costs for the First Amendment, totaling a new beginning balance of $985 for deferred loan costs, with $865 remaining as of December 31, 2018 to be amortized which is included in other assets in the condensed consolidated balance sheets. The weighted average interest rate of the secured revolving credit facilities were approximately 4.03% and 3.30% per annum as of December 31, 2018 and December 31, 2017, respectively. The weighted average interest rate of the 2016 Term Loan was 3.38% and the effective rate was 3.01% as of December 31, 2017. Contractual future payments under the 2018 Credit and Security Agreement are $58,363 from the 2018 Revolver, which will be due in 2023. 2016 Credit and Security Agreement On March 3, 2016, the Company entered into a credit and security agreement (the “2016 Credit and Security Agreement”) with KeyBank as the administrative agent, with KeyBanc Capital Markets Inc., JP Morgan Chase Bank, N.A. (“JP Morgan”) and ZB, N.A., dba Zions First National Bank (“Zions”) as lenders. The 2016 Credit and Security Agreement provided an $85,000 revolving credit commitment (“2016 Revolver”). All borrowings under the 2016 Revolver were subject to a borrowing base limit, which was calculated from outstanding accounts receivable and inventory, and reported to the administrative agent at least monthly. Interest on the 2016 Revolver accrued at the base rate plus 0.5% or the London Interbank Offered Rate (“LIBOR”) plus 1.5%. The 2016 Revolver was subject to an unused line fee calculated as 0.2% multiplied by the average unused amount of the 2016 Revolver. The 2016 Credit and Security Agreement also provided (1) a $25,000 term loan commitment (“2016 Term Loan”), with interest accrued at the base rate plus 1.00% or at a rate of LIBOR plus 2.00%; (2) letters of credit with a fronting fee of 0.125% (paid per annum) for all issued and outstanding letters of credit; and (3) a lockbox and cash collateral account that was maintained with KeyBank. As of December 31, 2017, the effective rate on the 2016 Term Loan was 3.01%. In connection with the establishment of the 2016 Credit and Security Agreement, the Company incurred and capitalized $1,144 of direct costs; $884 of the costs were related to the 2016 Revolver and as such were reflected as a component of other assets, and $260 was reflected as an offset to long-term debt in the consolidated balance sheet. For the year ended December 31, 2017, the Company amortized $263 of these loan costs, which were included as a component of interest expense in the consolidated statements of operations. On July 17, 2017, the Company, KeyBank, JP Morgan, and Zions (collectively, the “Lenders”), and KeyBank, as the administrative agent for the Lenders, entered into a third amendment agreement (the “Amendment”), which amended the 2016 Credit and Security Agreement to increase the revolving amount, expand Permitted Foreign Subsidiary Loans, Guaranties and Investments, increase the letter of credit commitment and the borrowing base, as defined in the Amendment. In connection with the Amendment, the Company also entered into replacement revolving credit notes with each of the Lenders. As consideration for entering into the Amendment, the Company agreed to pay the administrative agent and the Lenders total amendment and arrangement fees of $145, pursuant to the terms of an administrative agent fee letter and a closing fee letter entered into with KeyBank. The changes to the 2016 Credit and Security Agreement described above were made to support core-business opportunities. Effective September 4, 2017, the Company directed KeyBank to establish an irrevocable standby letter of credit (“Letter of Credit”) to support purchases of inventory from a key supplier. The 2016 Credit and Security Agreement required that the face value of the Letter of Credit reduced the borrowing base under the 2016 Revolver. From September 4, 2017, through September 17, 2017, the face value amount of the Letter of Credit was $10,000. From September 18, 2017, through February 28, 2018 (the end of the contractual period), the face value was increased to $25,000. The Company agreed to pay interest at an annual rate of 1.625% calculated on the face value amount and paid quarterly, which interest was classified in interest expense on the consolidated statement of operations. Fees incurred associated with setting up the Letter of Credit for the year ended December 31, 2017 was $157 and interest incurred for the available balance on the Letter of Credit for the year ended December 31, 2017 was $147. No draws on the Letter of Credit occurred as of December 31, 2017. For the years ended December 31, 2017 and 2016, $129 and $65, respectively, in unused line fees had been incurred and were included as a component of interest expense in the consolidated statements of operations. The 2016 Credit and Security Agreement was extinguished in connection with the 2018 Credit and Security Agreement (as described above). |
Restricted Stock
Restricted Stock | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
RESTRICTED STOCK | RESTRICTED STOCK Equity Incentive Award Plans In January 2013, our board of directors adopted and in June 2013, our shareholders approved the ZAGG Inc 2013 Equity Incentive Award Plan (the “2013 Plan”). In April 2017, the compensation committee of our board of directors adopted, and in June 2017, our shareholders approved an amendment and restatement of the 2013 Plan (the “Amended Plan”). The Amended Plan is an “omnibus plan” under which stock options, stock appreciation rights, performance share awards, restricted stock, and restricted stock units can be awarded. The Amended Plan’s initial share reservation is 5,000 shares. The term of the plan is for 10 years from the date of original adoption of the 2013 Plan. As of December 31, 2018, there were approximately 2,361 shares available for grant under the Amended Plan. Restricted Stock The fair value of the restricted stock awards granted is based on the closing share price of the Company’s common stock on the date of grant. The restricted stock awards vest on a straight-line basis over a three-year vesting term for employees and a nine-month vesting term for annual director grants, depending on the terms of the individual grant. A summary of the status of the Company’s restricted stock awards as of December 31, 2018, and changes during the year ended December 31, 2018, is presented below: Restricted Stock (in thousands) Weighted-Average Grant Date Fair Value (per share) Outstanding as of December 31, 2017 1,034 $ 8.29 Granted 454 11.96 Vested (509) 8.28 Forfeited (158) 7.45 Outstanding as of December 31, 2018 821 $ 10.49 The grant of restricted stock awards with respective weighted-average fair value per share for the years ended December 31, 2018, 2017, and 2016, is summarized as follows: For the Years Ended December 31, 2018 2017 2016 Granted 454 604 1,071 Weighted average fair value per share $ 11.96 $ 8.26 $ 7.85 As part of the 454, 604, and 1,071 restricted stock awards granted during the years ended December 31, 2018, 2017, and 2016, the Company granted 182, 409, and 531 restricted stock awards, respectively, to certain executives and employees of the Company where vesting is linked to specific performance criterion. These performance-based restricted stock awards 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 awards is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. For the performance-based awards, the Company recognizes compensation expense on a straight-line basis when management estimates the performance criteria are probable to be achieved. The following is stock-based compensation expenses related to restricted stock awards and tax benefits recorded for the years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Stock-based compensation expense related to restricted stock awards (1) $ 3,009 $ 3,602 $ 3,830 Tax benefit recognized on stock-based compensation expense $ 813 $ 1,378 $ 1,465 Tax benefit realized from vested restricted stock units $ 2,212 $ 962 $ 2,119 (1) Stock-based compensation expenses are included as a component of selling, general, and administrative expense on the consolidated statements of operations. Certain employees of the Company elected to receive a net amount of shares upon the vesting of restricted stock award 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 $2,722, $268, and $630, during the years ended December 31, 2018, 2017, and 2016, respectively, as a reduction to additional paid-in capital. As of December 31, 2018, there was $6,090 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the Amended Plan, which is expected to be recognized over a weighted-average period of approximately 1.3 years. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 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. The Company’s board of directors also authorized the use of Rule 10b5-1 plans during the years ended December 31, 2018 and 2017. As of December 31, 2018 and 2017, a total of $5,462 and $17,558 remained authorized under the stock repurchase program, respectively. On March 11, 2019, the Company's board of directors authorized the cancellation of the 2015 stock repurchase program, and authorized a new stock repurchase program that grants the repurchase of up to $20,000 of the Company's outstanding common stock. The Company repurchased shares for the years ended December 31, 2018 and 2017, presented as follows: For the Years Ended December 31, 2018 2017 Shares repurchased 918 234 Cash consideration paid $ 12,096 $ 1,492 Commissions to brokers included in cash consideration paid $ 34 $ 9 Weighted average price per share repurchased $ 13.18 $ 6.35 The consideration paid has been recorded within stockholders’ equity in the consolidated balance sheets. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2018 | |
Defined Contribution Plan [Abstract] | |
DEFINED CONTRIBUTION PLAN | DEFINED CONTRIBUTION PLANThe Company offers a 401(k) plan for full-time employees that is effective on the first day of employment. The Company matches participant contributions of 100% up to 5% of an employees’ salary that is immediately vested. Costs recognized for the years ended December 31, 2018, 2017, and 2016, related to the employer 401(k) match, totaled $1,556, $1,298, and $941, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office and warehouse space, a retail store, and other miscellaneous equipment and service items under operating leases that expire through 2026. Future minimum rental payments required under the operating leases at December 31, 2018 are as follows: 2019 $ 3,198 2020 2,842 2021 2,457 2022 2,517 2023 1,976 Thereafter 2,098 Total $ 15,088 Certain of the Company's leases contain free rent provisions, leasehold improvement incentives and options for renewal. Rent expenses, including the free rent provisions and leasehold improvement incentives, are recognized on a basis which approximates straight line over the lease term. For the years ended December 31, 2018, 2017, and 2016, rent expenses were $3,217, $2,847, and $3,190, respectively, which were recorded as a component of selling, general and administrative expense on the consolidated statements 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, the Company 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; PowerCore Case for iPhone 7 (4.7 inch), 95% Extra Battery; and 2400mAh MFI Certified Rubber-Feel Premium Rechargeable Extended Battery Case for iPhone 5s, 5. The complaint filed by the Company 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. Best Case and Accessories, Inc. v. Zagg, Inc. United States District Court for the Eastern District of New York, Case No. 1:18-CV-04048-LDH-RML (the “BCA Lawsuit”). On July 13, 2018, Best Case and Accessories, Inc. ( “ Best Case ” ) filed a complaint against the Company. The Company had previously sent a letter to Best Case alleging that it was using product packaging and display trade dress that is confusingly similar to the Company’s trade dress. In the complaint, Best Case alleges that it does not infringe the Company’s trade dress and that the Company tortuously interfered with Best Case's business relationships, which the Company disputes. On February 8, 2019, the Company filed a Complaint for trade dress infringement against Best Case in the United States District Court for the District of Utah, Case No. 2:19-CV-00090-PMW, in order to respond to the allegations and defend against the claims. This matter is not expected to have a material adverse effect on the Company’s financial position, results of operations, or liquidity. SEC Investigation The Company previously disclosed an investigation by the SEC related to 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. On March 7, 2019, the Staff of the SEC informed the Company that, after additional consideration and analysis, it has decided to terminate the investigation and dismiss the matter. 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 December 31, 2018, in the 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 | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2018, 2017, and 2016. As of December 31, 2018 and 2017, two separate customers exceeded 10% of the balance of accounts receivable, as follows: December 31, 2018 2017 Superior 50% 31% Best Buy 15% 18% No other customer account balances were more than 10% of accounts receivable as of December 31, 2018 or 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 Supplier The Company does not directly manufacture any of its products, rather the Company employs various third-party manufacturing partners in the U.S. and Asia to perform these services on its 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. The Company has endeavored to use common components and readily available raw materials in the design of its products that can be sourced from multiple sub-suppliers. However, raw film used in its InvisibleShield Film and ISOD products has been produced by a single supplier for the last 10 years. The Company's film supplier has contractually agreed to not sell the raw materials to any of its competitors. Below is a high-level summary by product category of the manufacturing sources used by the Company: • Screen Protection – The screen protection product line is comprised of InvisibleShield Glass products (approximately 86% of 2018 screen protection sales or 49% of net sales), InvisibleShield Film products (approximately 9% of 2018 screen protection sales or 5% of net sales), and ISOD film blanks (approximately 5% of 2018 screen protection sales or 3% of net sales). The 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. The InvisibleShield Film and ISOD products are sourced through the Company's third-party logistics partner, who purchases the raw film inventory from a single supplier (as discussed above). The VisionGuard raw materials are provided to the Company's manufacturers through an exclusive licensing agreement with a third-party partner. • Protective Cases – The protective case product line consists of (1) ZAGG cases designed to protect device-specific mobile devices, and (2) Gear4 cases featuring D3O technology designed to protect smartphones and tablets. The Company’s protective cases are sourced from factories in Asia with expertise in case protection manufacturing, each of which uses a number of sub-suppliers for raw materials and other components. For Gear4, the D3O raw materials are provided to the manufacturers through an exclusive licensing agreement with a third-party partner who is the sole manufacturer of D3O materials. • Power Management – The power management product line consists of power products that are designed to provide on-the-go power for tablets, smartphones, smartwatches, cameras, and virtually all other electronic mobile devices. With the addition of HALO, the Company's power management product line includes power stations, wireless charging, car and wall chargers, portable power, power wallets, and more. The 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. • Audio – The audio product line consists of earbuds, headphones, and speakers that are designed to be compatible with virtually all electronic mobile devices. The 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. • Keyboards – The 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. The 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. The Company's 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 product specifications, (2) appropriate quality is maintained for the finished goods and for all sub-components, and (3) the supplier can meet the Company's supply needs. Concentration of Sales For the year ended December 31, 2018, Superior and Best Buy accounted for 10% or greater than 10% of net sales. For the year ended December 31, 2017, Superior accounted for over 10% of net sales. For the year ended December 31, 2016, Superior, Best Buy, and GENCO accounted for over 10% of net sales. The amount of net sales for each of these customers are outlined as follows: For the Years Ended December 31, 2018 2017 2016 Superior 23% 30% 27% Best Buy 10% 9% 11% GENCO 4% 8% 11% For the years ended December 31, 2018, 2017, and 2016, no other customers accounted for 10% or greater than 10% of net sales. Although the Company has contracts in place governing the relationships with its retail distribution customers (“retailers”), the contracts are not long-term and all the retailers generally purchase from the Company on a purchase order basis. As a result, these retailers generally may, with little or no notice or penalty, cease ordering and selling the Company’s products, or materially reduce their orders. If any of these retailers cease selling the Company’s products, slow their rate of purchase of its products, or decrease the number of products they purchase, the Company’s results of operations could be adversely affected. As of December 31, 2018 and 2017, net assets located overseas in international locations totaled $45,387 and $16,249, respectively. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly financial information is presented in the following summary for the years ended December 31, 2018 and 2017: For the Year Ended December 31, 2018 First Second Third Fourth Year Net sales $ 112,066 $ 118,565 $ 141,087 $ 166,513 $ 538,231 Income from operations 7,919 5,193 18,256 20,328 51,696 Net income 7,029 3,215 14,626 14,319 39,189 Earnings per share: (1) Basic $ 0.25 $ 0.11 $ 0.52 $ 0.52 $ 1.40 Diluted $ 0.24 $ 0.11 $ 0.51 $ 0.52 $ 1.38 Weighted average common shares: Basic 28,209 28,299 28,241 27,687 28,064 Diluted 28,693 28,666 28,563 28,258 28,500 For the Year Ended December 31, 2017 First Second Third Fourth Year Net sales $ 92,946 $ 115,227 $ 134,398 $ 176,924 $ 519,495 (Loss) income from operations (6,649) 5,497 15,935 29,952 44,735 Net (loss) income (6,138) 3,403 9,776 8,059 15,100 (Loss) earnings per share: (1) Basic $ (0.22) $ 0.12 $ 0.35 $ 0.29 $ 0.54 Diluted $ (0.22) $ 0.12 $ 0.34 $ 0.28 $ 0.53 Weighted average common shares: Basic 28,059 27,963 27,969 27,969 27,996 Diluted 28,059 28,213 28,381 28,781 28,407 (1) The earnings per share calculations for each of the quarters were based upon the weighted average number of shares outstanding during each period, and the sum of the quarters may not be equal to the full year earnings per common share amounts. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On January 3, 2019, the Company entered into a membership interest purchase agreement to acquire HALO for a total purchase consideration of approximately $43,000. The total purchase consideration included a combination of cash and shares of Company common stock. HALO is a leading direct-to-consumer mobile accessories company with an extensive intellectual property portfolio that specializes in wireless charging, car and wall chargers, portable power, power wallets, and other accessories. The Company acquired HALO to expand its product portfolio and to enter into new distribution channels. Due to the fact that the Company has not completed the audit of HALO's 2018 financial statements, nor has the Company obtained all of the information necessary to conclude on the fair values of the identifiable assets acquired and liabilities assumed as part of the HALO acquisition, the Company has not disclosed pro forma information and/or nonrecurring adjustments under ASC 805, Business Combinations. The Company expects to furnish preliminary information in the financial statements for the quarter ended March 31, 2019. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods, with related disclosures of these amounts in the notes to the financial statements. Actual results could differ from those estimates. Significant items subject to such estimates include the valuation of inventory obsolescence, variable consideration related to revenue recognition, and the fair value estimates of assets acquired and liabilities assumed in business combinations. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate an adjustment is necessary. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Cash equivalents | Cash equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. Amounts receivable from credit card processors are also considered cash equivalents because they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. Amounts receivable from credit card processors as of December 31, 2018 and 2017 totaled $83 and $116, respectively. Cash equivalents as of December 31, 2018 and 2017 consisted primarily of money market fund investments and amounts receivable from credit card processors. |
Fair value measurements | Fair value measurements The Company measures at fair value certain financial and non-financial assets by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1 — Quoted market prices in active markets for identical assets or liabilities; Level 2 — Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions. |
Accounts receivable | Accounts receivable The Company sells its products to end users through indirect distribution channels and other resellers who are extended credit terms after an analysis of their financial condition and credit worthiness. Credit terms to distributors and resellers, when extended, are based on evaluation of the customers’ financial condition. Accounts receivable are recorded at invoiced amounts and do not bear interest. |
Inventories | Inventories Inventories, consisting primarily of finished goods and raw materials, are valued at the lower of cost, determined on a first in, first out basis, or net realizable value. Management performs periodic assessments to estimate realizable values and to determine existence of obsolete, slow moving, and non-saleable inventories, and records necessary write-downs in cost of sales to reduce such inventories to estimated net realizable value. Once established, the original cost of the inventory less the related inventory write down represents the new cost basis of such products. |
Property and equipment | Property and equipment Property and equipment are recorded at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the useful life of the asset or the term of the lease. Major additions and improvements are capitalized, while costs for minor replacements, maintenance and repairs that do not increase the useful life of an asset are expensed as incurred. Upon retirement or other disposition of property and equipment, the cost and related accumulated depreciation or amortization are removed from the accounts. The resulting gain or loss is reflected in selling, general and administrative expense in the consolidated statements of operations. |
Goodwill | Goodwill At least annually or when events and circumstances warrant an evaluation, the Company performs its impairment assessment of goodwill. This assessment permits an entity to initially perform a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the quantitative goodwill impairment test. If an entity concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it would not need to perform the impairment test for the reporting unit. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the impairment analysis is performed, which incorporates a fair-value based approach. The Company determines the fair value of its reporting units based on discounted cash flows and market approach analyses as considered necessary. The Company considers factors such as the economy, reduced expectations for future cash flows coupled with a decline in the market price of its stock and market capitalization for a sustained period as indicators for potential goodwill impairment. If the reporting unit’s carrying amount exceeds its fair value, the Company will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. |
Intangibles assets | Intangible assets Intangible assets include internet addresses, intellectual property, and acquired intangibles in connection with the acquisitions of IFROGZ, mophie, BRAVEN and Gear4, which include customer relationships, trade names, patents and technology, non-compete agreements, and other miscellaneous intangible assets. Long-lived intangible assets are amortized over their estimated economic lives, using a straight-line or accelerated method consistent with the underlying expected future cash flows related to the specific intangible asset. Amortization expense is recorded within cost of sales or operating expense depending on the underlying intangible assets. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, such as property and equipment and amortizing intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, recoverability of long-lived assets is measured by comparison of its carrying amount to the undiscounted cash flows that the asset or asset group is expected to generate over the remaining life in measuring whether the assets are recoverable. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. For the years ended December 31, 2018 and 2016, no impairment of long-lived assets were indicated and thus, no impairment charge was recorded. For the year ended December 31, 2017, the Company recognized an impairment charge of $1,959. |
Contingencies | Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Revenue recognition | Revenue recognition The Company adopted Accounting Standards Code 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. Revenue is measured based on the amount of consideration that is expected to be received by the Company for providing goods or services under a contract with a customer, which is initially estimated with pricing specified in the contract and adjusted primarily for sales returns, discounts and other credits at contract inception then updated each reporting period. The Company recognizes revenue when persuasive evidence of a contract with a customer exists and a performance obligation is identified and satisfied as the customer obtains control of the goods or services. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. The Company typically only charges sales taxes in transactions with customers on the Company's web sites. When the Company performs shipping and handling activities after the customer obtains control of the goods, the Company accounts for the costs as fulfillment costs, as allowed as an accounting policy election under Topic 606. For those instances where shipping occurs before the customer obtains control of the goods, the shipping costs are accounted for as fulfillment activities, as required by Topic 606. |
Allowance for sales returns, warranty, and other credits | Allowance for sales returns, warranties, and other credits The Company's return policy allows end users and certain retailers rights to return purchased products. In addition, the Company generally provides the ultimate consumer a warranty for each product. Due to such policies, the Company’s contracts give rise to several types of variable consideration under Topic 606, including sales returns, warranty, 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. The Company estimates these amounts based on the expected amount to be provided to customers and reduces revenue accordingly for each transaction. |
Income taxes | Income taxes The Company recognizes deferred income tax assets or liabilities for expected future tax consequences of events that have been recognized in the financial statements or tax returns. Under this method, deferred income tax assets or liabilities are determined based upon the difference between the financial statement and income tax bases of assets and liabilities using enacted tax rates expected to apply when differences are expected to be settled or realized. Deferred income tax assets are reviewed for recoverability and valuation allowances are provided when it is more likely than not that a deferred tax asset will not be realizable in the future. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records estimated interest and penalties related to unrecognized tax benefits, if any, as a component of income tax provision. The Company has foreign subsidiaries that conduct or support its business outside the U.S. The Company’s intention before enactment of the Tax Cut and Jobs Act of 2017 (the “Tax Act”) was to permanently reinvest these earnings, thereby indefinitely postponing their remittance to the U.S. Internal Revenue Service. This will continue to be the Company’s intention. Foreign earnings will be taxed according to regulatory calculations in the period earned or eligible for a 100% dividends received deduction. One of the measures in the Tax Act was a mandatory deemed repatriation tax on the historical earnings and profits of certain U.S.-owned foreign corporations. The Company recognized and remitted the tax associated with the undistributed earnings and profits in the 2017 tax year of $368 (net of $221 of foreign tax credit). |
Stock-based compensation | Stock-based compensation The Company recognizes stock-based compensation expense in its consolidated financial statements for restricted stock units granted to employees and directors. Equity-classified awards are measured at the grant date fair value of the award. The fair value of restricted stock units is measured on the grant date based on the quoted closing market price of the Company’s common stock. The Company recognizes compensation expense on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. For those performance-based awards, the Company recognizes compensation expense on a straight-line basis based on management estimates of the extent to which the performance criteria are probable to be achieved. No compensation expense is ultimately recognized for awards for which employees do not render the requisite service and are forfeited. |
Advertising and marketing | Advertising and marketingGeneral advertising is expensed as incurred. Advertising allowances provided to retailers are recorded as an expense at the time of the related sale if the Company receives an identifiable benefit in exchange for the consideration and has evidence of fair value for the advertising; otherwise, the allowance is recorded as a reduction of revenue. |
Foreign currency translation and transactions | Foreign currency translation and transactionsThe Company’s primary operations are at the parent level which uses U.S. dollars (“USD”) as its functional currency. The Euro is the functional currency of the Company’s subsidiary in Ireland, while the Renminbi is the functional currency of the Company’s subsidiary in China. Accordingly, assets and liabilities for these subsidiaries are translated into USD using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the periods. Gains and losses from these translations are recorded as a component of stockholders’ equity. |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per common share excludes dilution and is computed by dividing net income (loss) attributable to stockholders 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 restricted stock units or other common stock equivalents were released, exercised or otherwise converted into common stock. The dilutive effect of common stock equivalents is calculated using the treasury stock method. |
Business combinations | Business combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase price over these fair values is recorded as goodwill. The Company has engaged an independent third-party valuation firm to assist in determining the fair values of certain assets acquired and liabilities assumed. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. The significant purchased classes of intangible assets recorded by the Company include customer relationships, trade names, patents and technology, non-compete agreements, and other miscellaneous intangible assets. The fair values assigned to the identified intangible assets are discussed in Note 6 to the consolidated financial statements. Significant estimates in valuing certain intangible assets include but are not limited to: future expected cash flows related to each individual asset, market position of the trade names and assumptions about cash flow savings from the trade names, determination of useful lives, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and thus, actual results may differ from estimates. Segment reporting The Company is in the process of consolidating a number of processes and functions from the acquired businesses, including the merging of several of the recently acquired entities' enterprise resource planning (“ERP”) systems into the Company’s ERP system. In addition, global functional teams are directly managed by an executive from the corporate headquarters. These merged functional areas include the following: sales, marketing, product management, product development, operations, customer service, accounting, finance, legal, human resources, and IT. As the Company has continued to evolve as a mobile lifestyle company, the information regularly reviewed by the chief operating decision maker is at the consolidated level for all types of products and services generated by the Company, including relevant sales and budget reviews. Management has evaluated its reportable segments and concluded that the Company is a single reportable segment. 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 liabilities, both reported as current liabilities. |
Recent accounting pronouncements | Recent accounting pronouncements Adopted accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (“Topic 606”). Topic 606 includes a five-step process by which entities recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services. Topic 606 also requires enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 on January 1, 2018, using the modified retrospective approach, with the cumulative effect of initially adopting the new standard recognized in retained earnings at the date of adoption. Therefore, the prior period comparative information was not adjusted and continues to be reported under ASC Topic 605, “Revenue Recognition” (“Topic 605”). See Note 2 for further details. Issued accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“Topic 842”), which modifies the accounting for leases, intending to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. Topic 842 will require entities to recognize a liability for their lease obligations and a corresponding recognition of right-of-use (“ROU”) assets over the lease term. Lease obligations are to be measured at their present value and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For financing leases, the leased asset is depreciated on a straight-line basis and depreciation expense is recorded separately from the interest expense in the statements of operations, resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. Topic 842 requires that assets and liabilities be presented or disclosed separately, and requires additional disclosure of certain qualitative and quantitative information related to these lease agreements. Topic 842 is effective for annual and interim periods beginning after December 15, 2018. In addition, in July 2018, the FASB issued ASU No. 2018-11 “Targeted Improvements” to provide an additional transition method whereby entities are allowed to initially apply Topic 842 by adjusting equity at the adoption date as compared to the beginning of the earliest period presented, and recognize a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. The Company plans to adopt the standard using the modified retrospective approach beginning January 1, 2019. The Company expects to elect the package of practical expedients upon adoption, which allows for the application of the standard solely to the transition period in 2019 but does not require application to prior fiscal comparative periods presented. In preparation for adoption of Topic 842, the Company has been updating the accounting policy, and implementing internal controls and key functionality to enable the preparation of financial information. The Company expects that Topic 842 will have a material impact on its consolidated balance sheets due to recognition of additional lease liabilities based on the present value of the remaining minimum rental payments for lease components, with corresponding ROU assets, for its operating leases. The financial impact has an estimated range of approximately $10,000 to $15,000 upon the adoption of Topic 842. The Company does not expect the adoption to have a material impact on the consolidated statement of operations or the beginning balance of retained earnings. In addition, the Company currently expects to elect, as an accounting policy, not to recognize lease liabilities and ROU assets for short-term leases that have a lease term of 12 months or less. Adoption of Topic 842 will also expand the Company's disclosure related to its leasing activities. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of allowance for doubtful accounts activity | The following summarizes the activity in the Company’s allowance for doubtful accounts for the years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 734 $ 824 $ 568 Additions charged to expense 312 339 599 Assumed in acquisition of mophie — — 91 Write-offs charged against the allowance (151) (444) (430) Foreign currency translation (loss) gain (10) 15 (4) Balance at end of year $ 885 $ 734 $ 824 |
Schedule of sales return, warranty, and other credits liability | The following summarizes the activity in the Company’s sales return, warranty, and other credits liability for the years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Balance at beginning of year $ 34,536 $ 30,720 $ 10,196 Cumulative effect of adoption of Topic 606 5,250 — — Additions charged to sales 149,930 90,018 92,868 Assumed in acquisition of mophie — — 29,584 Sales returns and warranty claims charged against reserve (135,963) (86,299) (101,928) Assumed in acquisition of Gear4 846 — — Foreign currency translation loss (167) 97 — Balance at end of year $ 54,432 $ 34,536 $ 30,720 |
Schedule of reconciliation of numerator and denominator used to calculate basic earnings per share and diluted earnings 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 years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Net (loss) income $ 39,189 $ 15,100 $ (15,587) Weighted average shares outstanding: Basic 28,064 27,996 28,006 Dilutive effect of restricted stock units 436 411 — Diluted weighted average shares outstanding 28,500 28,407 28,006 Earnings (loss) per share: Basic $ 1.40 $ 0.54 $ (0.56) Dilutive $ 1.38 $ 0.53 $ (0.56) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The accounts that changed under Topic 606 for the consolidated balance sheet as of December 31, 2018 are as follows: Reported as of December 31, 2018 Adjustments as of December 31, 2018 Balances Without Adoption of Topic 606 as of December 31, 2018 Consolidated balance sheet changes: Accounts receivable, net of allowances $ 156,667 $ (49) $ 156,618 Prepaid expenses and other current assets 5,473 (999) 4,474 Sales returns liability 54,432 (9,159) 45,273 Accrued liabilities 13,723 (96) 13,627 Deferred revenue — 96 96 Retained earnings 113,114 8,111 121,225 The accounts that changed under Topic 606 for the consolidated statement of operations for the year ended December 31, 2018 are as follows: Reported for the Year Ended December 31, 2018 Adjustments for the Year Ended December 31, 2018 Amounts Without Adoption of Topic 606 for the Year Ended December 31, 2018 Consolidated statement of operations changes: Net sales $ 538,231 $ 8,127 $ 546,358 Cost of sales 352,358 16 352,374 |
Schedule of Net Sales Related to Key Product Lines, Distribution Channels, and Geographic Regions | The percentage of net sales related to the Company’s key product lines for the years ended December 31, 2018, 2017, and 2016, was approximately as follows: For the Years Ended December 31, 2018 2017 2016 Screen protection 57% 48% 54% Power management 26% 26% 15% Power cases 6% 15% 15% Audio 5% 5% 6% Keyboards 5% 5% 9% Other 1% 1% 1% The percentage of net sales related to the Company’s key distribution channels for the years ended December 31, 2018, 2017, and 2016, was approximately as follows: For the Years Ended December 31, 2018 2017 2016 Indirect channel 88% 89% 87% Website 8% 8% 9% Franchisees 4% 3% 4% The percentage of net sales related to the Company’s key geographic regions for the years ended December 31, 2018, 2017, and 2016, was approximately as follows: For the Years Ended December 31, 2018 2017 2016 United States 84% 84% 88% Europe 9% 9% 7% Other 7% 7% 5% |
Schedule of Receivables, Right of Return Assets, Contract Liabilities, Refund Liabilities, and Warranty Liabilities | The following table provides information about receivables, right of return assets, contract liabilities, refund liabilities, and warranty liabilities from the Company's contracts with customers as of December 31, 2018: December 31, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 156,667 Right of return assets, which are included in prepaid expenses and other current assets 999 Refund liabilities, which are included in sales return liability 49,786 Warranty liabilities, which are included in sales return liability 4,646 Contract liabilities, which are included in accrued liabilities 96 |
Schedule of Warrant Liabilities Activity | The following summarizes the activities in the Company’s warranty liabilities for the year ended December 31, 2018: Balance at beginning of year $ 4,189 Additions 14,292 Warranty claims charged (13,836) Foreign currency translation gain 1 Balance at end of year $ 4,646 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventory consisted of the following components as of December 31, 2018 and 2017: December 31, 2018 2017 Finished goods $ 81,397 $ 74,734 Raw materials 1,522 312 Total inventories $ 82,919 $ 75,046 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Property and equipment, net consisted of the following as of December 31, 2018 and 2017: December 31, Useful Lives 2018 2017 Computer equipment and software 3 to 5 years $ 2,180 $ 2,163 Equipment and molds 3 to 10 years 13,662 12,395 Furniture and fixtures 7 years 1,904 1,824 Automobiles 5 years 85 126 Building and improvements 40 years 2,486 3,332 Leasehold improvements 1 to 5 years 7,320 5,819 Land 325 325 Property and equipment, gross 27,962 25,984 Less accumulated depreciation and amortization (11,844) (12,540) Property and equipment, net $ 16,118 $ 13,444 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table summarizes the changes in goodwill during 2018: Balance as of December 31, 2017 $ 12,272 Increase in connection with BRAVEN acquisition 298 Increase in connection with Gear4 acquisition 15,068 Balance as of December 31, 2018 $ 27,638 |
Schedule of long-lived intangibles | The following tables reflect the gross carrying amount and accumulated amortization of the Company's long-lived intangible assets, net for the years ended December 31, 2018 and 2017: For the Year Ended December 31, 2018 Gross Carrying Amount Acquisitions Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 49,700 $ 11,186 $ (45,326) $ 15,560 7.6 years Trade names 31,269 12,518 (16,799) 26,988 9.9 years Patents and technology 18,451 872 (10,600) 8,723 8.0 years Non-compete agreements 5,896 — (5,118) 778 4.9 years Other 567 222 (784) 5 1.8 years Total amortizable assets $ 105,883 $ 24,798 $ (78,627) $ 52,054 8.3 years For the Year Ended December 31, 2017 Gross Carrying Amount Impairments Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 49,700 $ — $ (40,441) $ 9,259 7.5 years Trade names 31,269 — (13,415) 17,854 9.8 years Patents and technology 21,228 (2,777) (7,470) 10,981 8.8 years Non-compete agreements 5,896 — (4,759) 1,137 4.9 years Other 567 — (554) 13 2.4 years Total amortizable assets $ 108,660 $ (2,777) $ (66,639) $ 39,244 8.2 years |
Schedule of estimated future amortization expense for long-lived intangibles | Estimated future amortization expense for long-lived intangibles is as follows: 2019 $ 13,395 2020 10,447 2021 7,534 2022 5,748 2023 4,773 Thereafter 10,157 Total $ 52,054 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Summary of purchase consideration | The following summarizes the components of the purchase consideration for Gear4: Cash consideration $ 32,200 Company common stock 6,001 Contingent consideration 1,629 Total purchase price $ 39,830 |
Schedule of identifiable assets acquired and liabilities assumed | The following table summarizes the fair values of the identifiable assets acquired and liabilities assumed as of the Gear4 Acquisition Date: Cash $ 2,124 Accounts receivable (gross contractual receivables of $203) 104 Prepaids and other current assets 671 Inventory 2,831 Inventory step-up 96 Property and equipment 1,427 Amortizable identifiable intangible assets 23,024 Goodwill 15,068 Accounts payable (2,584) Accrued liabilities (773) Sales return liability (932) Taxes payable (1,226) Total $ 39,830 |
Summary of intangible asset class and related preliminary weighted average amortization periods | The amounts assigned to each class of intangible asset and the related weighted average amortization periods are as follows: Intangible Asset Class Weighted Average Amortization Period Trade names $ 11,617 10 years Customer relationships 11,186 8 years Backlog 221 1 month Total $ 23,024 |
Summary of unaudited pro-forma results of operations | For the Years Ended December 31, 2018 2017 Net sales $ 568,802 $ 544,097 Net income $ 35,218 $ 24,745 Basic earnings per share $ 1.25 $ 0.88 Diluted earnings per share $ 1.24 $ 0.87 |
Summary of assets acquired and liabilities assumed purchase price allocation | The following table summarizes the fair values of the identifiable assets acquired and liabilities assumed as of BRAVEN Acquisition Date: Accounts receivable (gross contractual receivables of $650) $ 650 Inventory 2,141 Inventory step-up 179 Property and equipment 368 Amortizable identifiable intangible assets 1,774 Goodwill 298 Accounts payable (959) Total $ 4,451 |
Summary of intangible asset class and related weighted average amortization periods | The amounts assigned to each class of intangible asset and the related weighted average amortization periods are as follows: Intangible Asset Class Weighted Average Amortization Period Patents and technology $ 872 3.1 years Trade names 901 10 years Backlog 1 6 months Total $ 1,774 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of income (loss) from continuing operations before taxes | Income (loss) from operations before taxes for the years ended December 31, 2018, 2017, and 2016, consisted of the following: For the Years Ended December 31, 2018 2017 2016 U.S. operations $ 44,236 $ 37,850 $ (22,220) Foreign operations 5,293 5,502 (1,339) Total $ 49,529 $ 43,352 $ (23,559) |
Summary of income tax benefit (provision) | Income tax (provision) benefit components for the years ended December 31, 2018, 2017, and 2016, consisted of the following: For the Years Ended December 31, 2018 2017 2016 Current (provision) benefit: Federal $ (1,922) $ (779) $ (89) State (2,810) (532) 138 Foreign (617) (786) (31) Total current (provision) benefit (5,349) (2,097) 18 Deferred (provision) benefit: Federal (5,296) (25,919) 7,612 State 184 (345) 342 Foreign 121 109 — Total deferred (provision) benefit (4,991) (26,155) 7,954 Total (provision) benefit $ (10,340) $ (28,252) $ 7,972 |
Schedule of effective income tax rate reconciliation | The following is a reconciliation of the income taxes computed using the federal statutory rate to the provision for income taxes for the years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Tax at statutory rate (21% for 2018, 35% for 2017 and 2016) $ (10,401) $ (15,173) $ 8,246 State tax, net of federal tax benefit (2,830) (1,217) 1,041 Non-deductible expense and other (300) (830) 333 Restricted stock awards 833 (831) — Foreign tax rate differential 615 1,248 (491) GILTI (299) — — Mandatory repatriation of foreign earnings — (547) — Return to provision adjustment 778 (212) (36) Reserve related to unrecognized tax benefits 598 107 (452) Interest and penalties (6) (1) (14) Effect of federal rate change — (11,806) — Effect of state rate changes, net of federal tax benefit 732 1,010 (655) Change in valuation allowance (60) — — Total reconciliation amount $ (10,340) $ (28,252) $ 7,972 |
Summary of deferred tax assets and liabilities | The tax effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities as of December 31, 2018 and 2017, are as follows: December 31, 2018 2017 Deferred tax assets: Allowance for doubtful accounts $ 141 $ 146 Property and equipment 145 396 Deferred revenue — 11 Inventories 4,672 7,265 Stock-based compensation 562 790 Sales returns accrual 5,058 4,343 Acquisition costs, net of amortization 107 116 Intangible assets 4,087 2,230 Goodwill 926 1,009 HzO investment 1,048 1,007 Capital loss carry-over 191 184 Net operating loss carryforward 19 3,338 Federal and state credit carryforwards 2,070 3,440 Other liabilities 1,894 1,586 Total gross deferred tax assets 20,920 25,861 Valuation allowance (1,517) (1,458) Total deferred tax assets $ 19,403 $ 24,403 |
Schedule of unrecognized tax benefits | The tax contingencies, on a gross basis, are reconciled in the table below: December 31, 2018 2017 Unrecognized tax benefits, as of January 1 $ 2,278 $ 2,230 Gross increases (decreases) – tax positions in current period 27 444 Gross increases (decreases) – prior year tax positions — 58 Gross increases (decreases) – lapse of statute (907) (454) Total benefit $ 1,398 $ 2,278 |
Debt and Line of Credit (Tables
Debt and Line of Credit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt, net as of December 31, 2018 and 2017, was as follows: December 31, 2018 2017 Amount Weighted-Average Interest Rate Amount Weighted-Average Interest Rate 2016 Credit and Security Agreement 2016 Revolver $ — $ 23,475 3.30 % 2016 Term Loan, net of deferred loan costs of $0 and $141 — 13,922 3.38 % 2018 Credit and Security Agreement 2018 Revolver 58,363 4.03 % — Total debt outstanding 58,363 37,397 Current portion of total debt outstanding, net of deferred loan costs of $0 and $141 — 37,397 Total long-term debt outstanding $ 58,363 $ — |
Restricted Stock (Tables)
Restricted Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of restricted stock activity | A summary of the status of the Company’s restricted stock awards as of December 31, 2018, and changes during the year ended December 31, 2018, is presented below: Restricted Stock (in thousands) Weighted-Average Grant Date Fair Value (per share) Outstanding as of December 31, 2017 1,034 $ 8.29 Granted 454 11.96 Vested (509) 8.28 Forfeited (158) 7.45 Outstanding as of December 31, 2018 821 $ 10.49 The grant of restricted stock awards with respective weighted-average fair value per share for the years ended December 31, 2018, 2017, and 2016, is summarized as follows: For the Years Ended December 31, 2018 2017 2016 Granted 454 604 1,071 Weighted average fair value per share $ 11.96 $ 8.26 $ 7.85 |
Schedule of restricted stock and tax benefits | The following is stock-based compensation expenses related to restricted stock awards and tax benefits recorded for the years ended December 31, 2018, 2017, and 2016: For the Years Ended December 31, 2018 2017 2016 Stock-based compensation expense related to restricted stock awards (1) $ 3,009 $ 3,602 $ 3,830 Tax benefit recognized on stock-based compensation expense $ 813 $ 1,378 $ 1,465 Tax benefit realized from vested restricted stock units $ 2,212 $ 962 $ 2,119 (1) Stock-based compensation expenses are included as a component of selling, general, and administrative expense on the consolidated statements of operations. |
Treasury Stock (Tables)
Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Treasury Stock | The Company repurchased shares for the years ended December 31, 2018 and 2017, presented as follows: For the Years Ended December 31, 2018 2017 Shares repurchased 918 234 Cash consideration paid $ 12,096 $ 1,492 Commissions to brokers included in cash consideration paid $ 34 $ 9 Weighted average price per share repurchased $ 13.18 $ 6.35 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 are as follows: 2019 $ 3,198 2020 2,842 2021 2,457 2022 2,517 2023 1,976 Thereafter 2,098 Total $ 15,088 |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of concentration risk by accounts receivable | As of December 31, 2018 and 2017, two separate customers exceeded 10% of the balance of accounts receivable, as follows: December 31, 2018 2017 Superior 50% 31% Best Buy 15% 18% |
Schedules of concentration of accounts receivable and sales | The amount of net sales for each of these customers are outlined as follows: For the Years Ended December 31, 2018 2017 2016 Superior 23% 30% 27% Best Buy 10% 9% 11% GENCO 4% 8% 11% |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information | Quarterly financial information is presented in the following summary for the years ended December 31, 2018 and 2017: For the Year Ended December 31, 2018 First Second Third Fourth Year Net sales $ 112,066 $ 118,565 $ 141,087 $ 166,513 $ 538,231 Income from operations 7,919 5,193 18,256 20,328 51,696 Net income 7,029 3,215 14,626 14,319 39,189 Earnings per share: (1) Basic $ 0.25 $ 0.11 $ 0.52 $ 0.52 $ 1.40 Diluted $ 0.24 $ 0.11 $ 0.51 $ 0.52 $ 1.38 Weighted average common shares: Basic 28,209 28,299 28,241 27,687 28,064 Diluted 28,693 28,666 28,563 28,258 28,500 For the Year Ended December 31, 2017 First Second Third Fourth Year Net sales $ 92,946 $ 115,227 $ 134,398 $ 176,924 $ 519,495 (Loss) income from operations (6,649) 5,497 15,935 29,952 44,735 Net (loss) income (6,138) 3,403 9,776 8,059 15,100 (Loss) earnings per share: (1) Basic $ (0.22) $ 0.12 $ 0.35 $ 0.29 $ 0.54 Diluted $ (0.22) $ 0.12 $ 0.34 $ 0.28 $ 0.53 Weighted average common shares: Basic 28,059 27,963 27,969 27,969 27,996 Diluted 28,059 28,213 28,381 28,781 28,407 (1) The earnings per share calculations for each of the quarters were based upon the weighted average number of shares outstanding during each period, and the sum of the quarters may not be equal to the full year earnings per common share amounts. |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amounts receivable from credit card processors | $ 83 | $ 116 | |||
Impairment of intangible asset | $ 0 | 1,959 | $ 0 | ||
Percentage of Likelihood of realization, more than | 50.00% | ||||
Tax associated with undistributed earnings | $ 368 | ||||
Foreign tax credit | 221 | ||||
Advertising and marketing | 11,994 | 11,101 | 12,440 | ||
Foreign currency transaction gain (loss) | $ (360) | $ 590 | $ (144) | ||
Antidilutive securities excluded from calculation of diluted earnings per share (in shares) | 144 | 19 | 815 | ||
Reclassification of accrued liabilities | $ 13,723 | $ 8,168 | |||
Reclassification of sales returns liability | $ 54,432 | 34,536 | $ 30,720 | $ 10,196 | |
Minimum | Scenario, Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease liabilities | $ 10,000 | ||||
Right-of-use assets | 10,000 | ||||
Maximum | Scenario, Forecast | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Lease liabilities | 15,000 | ||||
Right-of-use assets | $ 15,000 | ||||
Restatement Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification of accrued liabilities | (2,347) | ||||
Reclassification of sales returns liability | $ 2,347 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts [Roll Forward] | |||
Balance at beginning of year | $ 734 | $ 824 | $ 568 |
Additions charged to expense | 312 | 339 | 599 |
Assumed in acquisition of mophie | 0 | 0 | 91 |
Write-offs charged against the allowance | (151) | (444) | (430) |
Foreign currency translation gain (loss) | (10) | 15 | (4) |
Balance at end of year | $ 885 | $ 734 | $ 824 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Sales Return, Waranty, and Other Credits Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 | Jan. 01, 2016 | |
Sales Return and Warranty Liability [Roll Forward] | ||||||
Balance at beginning of year | $ 34,536 | $ 30,720 | $ 10,196 | |||
Cumulative effect of accounting change | 5,250 | $ (3,880) | $ 0 | $ 0 | ||
Additions charged to sales | 149,930 | 90,018 | 92,868 | |||
Sales returns and warranty claims charged against reserve | (135,963) | (86,299) | (101,928) | |||
Foreign currency translation loss | (167) | 97 | 0 | |||
Balance at end of year | 54,432 | 34,536 | 30,720 | |||
Mophie Inc | ||||||
Sales Return and Warranty Liability [Roll Forward] | ||||||
Assumed in acquisition | 0 | 0 | 29,584 | |||
Gear4 | ||||||
Sales Return and Warranty Liability [Roll Forward] | ||||||
Assumed in acquisition | $ 846 | $ 0 | $ 0 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Reconciliation of Basic and Dilutive Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||||||||||
Net income (loss) | $ 39,189 | $ 15,100 | $ (15,587) | ||||||||
Weighted average shares outstanding: | |||||||||||
Basic (in shares) | 27,687 | 28,241 | 28,299 | 28,209 | 27,969 | 27,969 | 27,963 | 28,059 | 28,064 | 27,996 | 28,006 |
Dilutive effect of stock options, restricted stock, and warrants (in shares) | 436 | 411 | 0 | ||||||||
Diluted (in shares) | 28,258 | 28,563 | 28,666 | 28,693 | 28,781 | 28,381 | 28,213 | 28,059 | 28,500 | 28,407 | 28,006 |
Earnings Per Share [Abstract] | |||||||||||
Basic (in usd per share) | $ 0.52 | $ 0.52 | $ 0.11 | $ 0.25 | $ 0.29 | $ 0.35 | $ 0.12 | $ (0.22) | $ 1.40 | $ 0.54 | $ (0.56) |
Dilutive (in usd per share) | $ 0.52 | $ 0.51 | $ 0.11 | $ 0.24 | $ 0.28 | $ 0.34 | $ 0.12 | $ (0.22) | $ 1.38 | $ 0.53 | $ (0.56) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounts receivable, net of allowances | $ 156,667 | $ 123,220 | |||
Prepaid expenses and other current assets | 5,473 | 4,547 | |||
Sales returns liability | 54,432 | 34,536 | $ 30,720 | $ 10,196 | |
Accrued liabilities | 13,723 | 8,168 | |||
Deferred revenue | 0 | (315) | |||
Retained Earnings (Accumulated Deficit) | (113,114) | $ (77,805) | |||
Adjustments | Topic 606 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounts receivable, net of allowances | (49) | $ 115 | |||
Prepaid expenses and other current assets | (999) | 1,255 | |||
Sales returns liability | (9,159) | 5,250 | |||
Accrued liabilities | (96) | 314 | |||
Deferred revenue | (96) | 314 | |||
Retained Earnings (Accumulated Deficit) | $ (8,111) | $ 3,880 |
Revenue - Changes Under Topic 6
Revenue - Changes Under Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2015 | |
Consolidated balance sheet changes: | |||||||||||||
Accounts receivable, net of allowances | $ 156,667 | $ 123,220 | $ 156,667 | $ 123,220 | |||||||||
Prepaid expenses and other current assets | 5,473 | 4,547 | 5,473 | 4,547 | |||||||||
Sales returns liability | 54,432 | 34,536 | 54,432 | 34,536 | $ 30,720 | $ 10,196 | |||||||
Accrued liabilities | 13,723 | 8,168 | 13,723 | 8,168 | |||||||||
Deferred revenue | 0 | 315 | 0 | 315 | |||||||||
Retained earnings | 113,114 | 77,805 | 113,114 | 77,805 | |||||||||
Consolidated statement of operations changes: | |||||||||||||
Net sales | 166,513 | $ 141,087 | $ 118,565 | $ 112,066 | $ 176,924 | $ 134,398 | $ 115,227 | $ 92,946 | 538,231 | 519,495 | 401,857 | ||
Cost of sales | 352,358 | $ 350,497 | $ 274,255 | ||||||||||
Adjustments | Topic 606 | |||||||||||||
Consolidated balance sheet changes: | |||||||||||||
Accounts receivable, net of allowances | (49) | (49) | $ 115 | ||||||||||
Prepaid expenses and other current assets | (999) | (999) | 1,255 | ||||||||||
Sales returns liability | (9,159) | (9,159) | 5,250 | ||||||||||
Accrued liabilities | (96) | (96) | 314 | ||||||||||
Deferred revenue | 96 | 96 | (314) | ||||||||||
Retained earnings | 8,111 | 8,111 | $ (3,880) | ||||||||||
Consolidated statement of operations changes: | |||||||||||||
Net sales | 8,127 | ||||||||||||
Cost of sales | 16 | ||||||||||||
Balances Without Adoption of Topic 606 | |||||||||||||
Consolidated balance sheet changes: | |||||||||||||
Accounts receivable, net of allowances | 156,618 | 156,618 | |||||||||||
Prepaid expenses and other current assets | 4,474 | 4,474 | |||||||||||
Sales returns liability | 45,273 | 45,273 | |||||||||||
Accrued liabilities | 13,627 | 13,627 | |||||||||||
Deferred revenue | 96 | 96 | |||||||||||
Retained earnings | $ 121,225 | 121,225 | |||||||||||
Consolidated statement of operations changes: | |||||||||||||
Net sales | 546,358 | ||||||||||||
Cost of sales | $ 352,374 |
Revenue - Net Sales Related to
Revenue - Net Sales Related to Key Product Lines, Distribution Channels, and Geographic Regions (Details) - Net Sales | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Product Concentration Risk | Screen protection | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 57.00% | 48.00% | 54.00% |
Product Concentration Risk | Power management | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 26.00% | 26.00% | 15.00% |
Product Concentration Risk | Power cases | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 6.00% | 15.00% | 15.00% |
Product Concentration Risk | Audio | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 5.00% | 5.00% | 6.00% |
Product Concentration Risk | Keyboards | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 5.00% | 5.00% | 9.00% |
Product Concentration Risk | Other | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 1.00% | 1.00% | 1.00% |
Distribution Channel Concentration Risk | Indirect channel | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 88.00% | 89.00% | 87.00% |
Distribution Channel Concentration Risk | Website | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 8.00% | 8.00% | 9.00% |
Distribution Channel Concentration Risk | Franchisees | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 4.00% | 3.00% | 4.00% |
Geographic Concentration Risk | United States | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 84.00% | 84.00% | 88.00% |
Geographic Concentration Risk | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 9.00% | 9.00% | 7.00% |
Geographic Concentration Risk | Other | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 7.00% | 7.00% | 5.00% |
Revenue - Receivables, Right of
Revenue - Receivables, Right of Return Assets, Contract Liabilities, Refund Liabilities, and Warranty Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, which comprises the balance in accounts receivable, net of allowances | $ 156,667 | $ 123,220 |
Right of return assets, which are included in prepaid expenses and other current assets | 999 | |
Refund liabilities, which are included in sales return liability | 49,786 | |
Warranty liabilities, which are included in sales return liability | 4,646 | |
Contract liabilities, which are included in accrued liabilities | $ 96 |
Revenue - Warrant Liabilities A
Revenue - Warrant Liabilities Activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance at beginning of year | $ 4,189 |
Additions | 14,292 |
Warranty claims charged | (13,836) |
Foreign currency translation gain | 1 |
Balance at end of year | $ 4,646 |
Inventories - Components Of Inv
Inventories - Components Of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 81,397 | $ 74,734 |
Raw materials | 1,522 | 312 |
Total inventories | $ 82,919 | $ 75,046 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventory deposits with third-party manufacturers | $ 382 | $ 1,906 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 27,962 | $ 25,984 | |
Less accumulated depreciation and amortization | (11,844) | (12,540) | |
Property and equipment, net | 16,118 | 13,444 | |
Depreciation | 6,293 | 9,727 | $ 8,776 |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 2,180 | 2,163 | |
Computer equipment and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 3 years | ||
Computer equipment and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Equipment and molds | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 13,662 | 12,395 | |
Equipment and molds | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 3 years | ||
Equipment and molds | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 10 years | ||
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,904 | 1,824 | |
Useful Lives | 7 years | ||
Automobiles | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 85 | 126 | |
Useful Lives | 5 years | ||
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 2,486 | 3,332 | |
Useful Lives | 40 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 7,320 | 5,819 | |
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 1 year | ||
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Lives | 5 years | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 325 | $ 325 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 12,272,000 | |
Increase due to acquisitions | $ 0 | |
Ending Balance | 27,638,000 | $ 12,272,000 |
BRAVEN | ||
Goodwill [Roll Forward] | ||
Increase due to acquisitions | 298,000 | |
Gear4 | ||
Goodwill [Roll Forward] | ||
Increase due to acquisitions | $ 15,068,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Increase in goodwill | $ 0 | ||
Goodwill | $ 27,638,000 | 12,272,000 | |
Goodwill, impairment | 0 | 0 | |
Impairments on cancelled patent | 2,777,000 | ||
Impairment of intangible asset | 0 | 1,959,000 | $ 0 |
Net carrying value | 52,054,000 | 39,244,000 | |
Impairment of intangible asset | 11,882,000 | 12,047,000 | 13,385,000 |
Canceled Patent | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairments on cancelled patent | 2,777,000 | ||
Write-off of accumulated amortization on intangible assets | 818,000 | ||
Impairment of intangible asset | 1,959,000 | ||
Net carrying value | 0 | ||
Operating Expense | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible asset | 11,988,000 | 12,159,000 | 13,495,000 |
Cost of Sales | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of intangible asset | $ 106,000 | $ 112,000 | $ 110,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Long-lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 105,883 | $ 108,660 |
Acquisitions | 24,798 | |
Impairments | (2,777) | |
Accumulated Amortization | (78,627) | (66,639) |
Net Carrying Amount | $ 52,054 | $ 39,244 |
Weighted Average Amortization Period | 8 years 3 months 18 days | 8 years 2 months 12 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 49,700 | $ 49,700 |
Acquisitions | 11,186 | |
Impairments | 0 | |
Accumulated Amortization | (45,326) | (40,441) |
Net Carrying Amount | $ 15,560 | $ 9,259 |
Weighted Average Amortization Period | 7 years 7 months 6 days | 7 years 6 months |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 31,269 | $ 31,269 |
Acquisitions | 12,518 | |
Impairments | 0 | |
Accumulated Amortization | (16,799) | (13,415) |
Net Carrying Amount | $ 26,988 | $ 17,854 |
Weighted Average Amortization Period | 9 years 10 months 24 days | 9 years 9 months 18 days |
Patents and technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 18,451 | $ 21,228 |
Acquisitions | 872 | |
Impairments | (2,777) | |
Accumulated Amortization | (10,600) | (7,470) |
Net Carrying Amount | $ 8,723 | $ 10,981 |
Weighted Average Amortization Period | 8 years | 8 years 9 months 18 days |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,896 | $ 5,896 |
Acquisitions | 0 | |
Impairments | 0 | |
Accumulated Amortization | (5,118) | (4,759) |
Net Carrying Amount | $ 778 | $ 1,137 |
Weighted Average Amortization Period | 4 years 10 months 24 days | 4 years 10 months 24 days |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 567 | $ 567 |
Acquisitions | 222 | |
Impairments | 0 | |
Accumulated Amortization | (784) | (554) |
Net Carrying Amount | $ 5 | $ 13 |
Weighted Average Amortization Period | 1 year 9 months 18 days | 2 years 4 months 24 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 | $ 13,395 | |
2020 | 10,447 | |
2021 | 7,534 | |
2022 | 5,748 | |
2023 | 4,773 | |
Thereafter | 10,157 | |
Total | $ 52,054 | $ 39,244 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 20, 2018 |
Aquisitions (Textual) | |||||
Net income (loss) | $ 39,189 | $ 15,100 | $ (15,587) | ||
Transaction costs | 1,678 | 725 | $ 2,591 | ||
Gear4 | |||||
Aquisitions (Textual) | |||||
Pro forma net sales | 2,955 | ||||
Pro forma net loss before tax | 1,814 | ||||
Pro forma net loss amortization expense | 2,956 | 4,217 | |||
Amortization of debt issuance cost | 1,588 | 1,732 | |||
Transaction costs | 595 | ||||
Recognized assets acquired and liabilities assumed, net | $ 39,830 | ||||
BRAVEN | |||||
Aquisitions (Textual) | |||||
Pro forma net sales | 2,421 | ||||
Pro forma net loss before tax | (2,788) | ||||
Transaction costs | 60 | ||||
Recognized assets acquired and liabilities assumed, net | $ 4,451 | ||||
Net purchase price | $ 4,451 | ||||
Acquisition-related Costs | Gear4 | |||||
Aquisitions (Textual) | |||||
Net income (loss) | 595 | (595) | |||
Fair Value Adjustment to Inventory | Gear4 | |||||
Aquisitions (Textual) | |||||
Net income (loss) | (16) | $ 96 | |||
Earnout Consideration | Gear4 | |||||
Aquisitions (Textual) | |||||
Cash consideration | $ 32,200 | ||||
Shares included in total consideration | 638 | ||||
Common stock value | $ 6,001 | ||||
Contingent payments | 1,629 | ||||
Purchase price | 39,830 | ||||
Third Party Indemnification Liability | Gear4 | |||||
Aquisitions (Textual) | |||||
Cash consideration | $ 1,725 | ||||
Shares included in total consideration | 225 | ||||
Common stock value | $ 2,116 | ||||
Earnout period for indemnification liability | 18 months | ||||
Business combination, liabilities due | $ 3,841 | ||||
Net sales target between $60,000 and $90,000 | |||||
Aquisitions (Textual) | |||||
Contingent payments | 5,000 | ||||
Net Sales target exceeding $90,000 | |||||
Aquisitions (Textual) | |||||
Contingent payments | 10,000 | ||||
Net sales target for earnout consideration | 90,000 | ||||
Minimum | Net sales target between $60,000 and $90,000 | |||||
Aquisitions (Textual) | |||||
Net sales target for earnout consideration | 60,000 | ||||
Maximum | |||||
Aquisitions (Textual) | |||||
Maximum payment under earnout consideration | 10,000 | ||||
Maximum | Net sales target between $60,000 and $90,000 | |||||
Aquisitions (Textual) | |||||
Net sales target for earnout consideration | $ 90,000 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Nov. 30, 2018 | Jul. 20, 2018 | Dec. 31, 2017 | Mar. 03, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 27,638 | $ 12,272 | |||
Gear4 | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 2,124 | ||||
Accounts receivable | 104 | ||||
Prepaids and other current assets | 671 | ||||
Inventory | 2,831 | ||||
Inventory step-up | 96 | ||||
Property and equipment | 1,427 | ||||
Amortizable identifiable intangible assets | 23,024 | ||||
Goodwill | 15,068 | ||||
Accounts payable | (2,584) | ||||
Accrued liabilities | (773) | ||||
Sales return liability | (932) | ||||
Taxes payable | (1,226) | ||||
Total | $ 39,830 | ||||
Business Acquisitions [Parenthetical] [Abstract] | |||||
Gross contractual receivables | $ 203 | ||||
BRAVEN | |||||
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 650 | ||||
Inventory | 2,141 | ||||
Inventory step-up | 179 | ||||
Property and equipment | 368 | ||||
Amortizable identifiable intangible assets | 1,774 | ||||
Goodwill | 298 | ||||
Accounts payable | (959) | ||||
Total | 4,451 | ||||
Business Acquisitions [Parenthetical] [Abstract] | |||||
Gross contractual receivables | $ 650 |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Nov. 30, 2018 | Jul. 20, 2018 |
Gear4 | ||
Business Acquisition [Line Items] | ||
Intangible Asset Class | $ 23,024 | |
Gear4 | Trade names | ||
Business Acquisition [Line Items] | ||
Intangible Asset Class | $ 11,617 | |
Weighted Average Amortization Period | 10 years | |
Gear4 | Customer relationships | ||
Business Acquisition [Line Items] | ||
Intangible Asset Class | $ 11,186 | |
Weighted Average Amortization Period | 8 years | |
Gear4 | Backlog | ||
Business Acquisition [Line Items] | ||
Intangible Asset Class | $ 221 | |
Weighted Average Amortization Period | 1 month | |
BRAVEN | ||
Business Acquisition [Line Items] | ||
Intangible Asset Class | $ 1,774 | |
BRAVEN | Trade names | ||
Business Acquisition [Line Items] | ||
Intangible Asset Class | $ 901 | |
Weighted Average Amortization Period | 10 years | |
BRAVEN | Backlog | ||
Business Acquisition [Line Items] | ||
Intangible Asset Class | $ 1 | |
Weighted Average Amortization Period | 6 months | |
BRAVEN | Patents and technology | ||
Business Acquisition [Line Items] | ||
Intangible Asset Class | $ 872 | |
Weighted Average Amortization Period | 3 years 1 month 6 days |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Results of Operations (Details) - Gear4 - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Net sales | $ 568,802 | $ 544,097 |
Net income | $ 35,218 | $ 24,745 |
Basic earnings per share (in usd per share) | $ 1.25 | $ 0.88 |
Diluted earnings per share (in usd per share) | $ 1.24 | $ 0.87 |
Income Taxes - Income (Loss) Fr
Income Taxes - Income (Loss) From Continuing Operations Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. operations | $ 44,236 | $ 37,850 | $ (22,220) |
Foreign operations | 5,293 | 5,502 | (1,339) |
Total | $ 49,529 | $ 43,352 | $ (23,559) |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current benefit (provision): | |||
Federal | $ (1,922) | $ (779) | $ (89) |
State | (2,810) | (532) | 138 |
Foreign | (617) | (786) | (31) |
Total current (provision) benefit | (5,349) | (2,097) | 18 |
Deferred (provision) benefit: | |||
Federal | (5,296) | (25,919) | 7,612 |
State | 184 | (345) | 342 |
Foreign | 121 | 109 | 0 |
Total deferred (provision) benefit | (4,991) | (26,155) | 7,954 |
Total reconciliation amount | $ (10,340) | $ (28,252) | $ 7,972 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate (21% for 2018, 35% for 2017 and 2016) | $ (10,401) | $ (15,173) | $ 8,246 |
State tax, net of federal tax benefit | (2,830) | (1,217) | 1,041 |
Non-deductible expense and other | (300) | (830) | 333 |
Restricted stock awards | 833 | (831) | 0 |
Foreign tax rate differential | 615 | 1,248 | (491) |
GILTI | (299) | 0 | 0 |
Mandatory repatriation of foreign earnings | 0 | (547) | 0 |
Return to provision adjustment | 778 | (212) | (36) |
Reserve related to unrecognized tax benefits | 598 | 107 | (452) |
Interest and penalties | (6) | (1) | (14) |
Effect of federal rate change | 0 | (11,806) | 0 |
Effect of state rate changes, net of federal tax benefit | 732 | 1,010 | (655) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (60) | 0 | 0 |
Total reconciliation amount | $ (10,340) | $ (28,252) | $ 7,972 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 141 | $ 146 |
Property and equipment | 145 | 396 |
Deferred revenue | 0 | 11 |
Inventories | 4,672 | 7,265 |
Stock-based compensation | 562 | 790 |
Sales returns accrual | 5,058 | 4,343 |
Acquisition costs, net of amortization | 107 | 116 |
Intangible assets | 4,087 | 2,230 |
Goodwill | 926 | 1,009 |
HzO investment | 1,048 | 1,007 |
Capital loss carry-over | 191 | 184 |
Net operating loss carryforward | 19 | 3,338 |
Federal and state credit carryforwards | 2,070 | 3,440 |
Other liabilities | 1,894 | 1,586 |
Total gross deferred tax assets | 20,920 | 25,861 |
Valuation allowance | (1,517) | (1,458) |
Total deferred tax assets | $ 19,403 | $ 24,403 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes Textual [Abstract] | |||
Deferred tax assets, valuation allowance | $ 1,517 | $ 1,458 | |
Federal net operating loss carryforwards | 90 | ||
Cash held by foreign entities considered permanently reinvested | 14,271 | ||
Tax contingency | 1,398 | 2,278 | |
Unrecognized tax benefits | 1,398 | 2,278 | $ 2,230 |
Unrecognized tax benefits that would impact effective tax rate | 1,398 | ||
HzO, Inc | |||
Income Taxes Textual [Abstract] | |||
Deferred tax assets, valuation allowance | 1,048 | 1,007 | |
Capital Loss Carryforward | |||
Income Taxes Textual [Abstract] | |||
Tax credit carryforward, valuation allowance | 191 | 184 | |
Research Tax Credit Carryforward | |||
Income Taxes Textual [Abstract] | |||
Tax credit carryforward, valuation allowance | $ 278 | $ 267 |
Income Taxes - Tax Contingencie
Income Taxes - Tax Contingencies Reconciled (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, as of January 1 | $ 2,278 | $ 2,230 |
Gross increases (decreases) – tax positions in current period | 27 | 444 |
Gross decreases - prior year tax positions | 0 | |
Gross increases – prior year tax positions | 58 | |
Gross increases (decreases) – lapse of statute | (907) | (454) |
Total benefit | $ 1,398 | $ 2,278 |
Debt and Line of Credit - Sched
Debt and Line of Credit - Schedule of long term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt, net of deferred loan costs of $0 and $141 | $ 0 | $ 13,922 |
Long-term Debt | 58,363 | 37,397 |
Current portion of total debt outstanding, net of deferred loan costs | 0 | 37,397 |
Total long-term debt outstanding | 58,363 | 0 |
Debt issuance costs, net | 0 | 141 |
Line of Credit | Credit And Security Agreement 2016 | ||
Debt Instrument [Line Items] | ||
Line of credit facility, outstanding balance | 0 | $ 23,475 |
Weighted-Average Interest Rate | 3.30% | |
Line of Credit | Term Loan, 2016 | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt, net of deferred loan costs of $0 and $141 | 0 | $ 13,922 |
Weighted-Average Interest Rate | 3.38% | |
Line of Credit | Credit And Security Agreement 2018 | ||
Debt Instrument [Line Items] | ||
Line of credit facility, outstanding balance | $ 58,363 | $ 0 |
Weighted-Average Interest Rate | 4.03% |
Debt and Line of Credit - Narra
Debt and Line of Credit - Narrative (Details) - USD ($) | Apr. 12, 2018 | Jul. 17, 2017 | Mar. 03, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 18, 2017 | Sep. 17, 2017 |
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Incurred and capitalized direct cost | $ 463,000 | $ 157,000 | $ 1,144,000 | |||||
Deferred loan costs, current | 0 | 141,000 | ||||||
Credit And Security Agreement 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Incurred and capitalized direct cost | $ 1,144,000 | |||||||
Cost related to line of credit | 884,000 | |||||||
Cost related to long-term debt | 260,000 | |||||||
Amortization of capitalization costs | 263,000 | |||||||
Amendment and arrangement fees | $ 145,000 | |||||||
Line of credit facility, commitment fee amount | $ 129,000 | $ 65,000 | ||||||
Line of Credit | Credit And Security Agreement 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 85,000,000 | |||||||
LossOnDeferredDebtIssuanceCostsWithDebtModification | $ 243,000 | |||||||
Write off of deferred debt issuance cost | 521,000 | |||||||
Incurred and capitalized direct cost | 170,000 | |||||||
Deferred loan costs, current | 985,000 | 865,000 | ||||||
Weighted-Average Interest Rate | 3.30% | |||||||
Line of credit facility, outstanding balance | 0 | $ 23,475,000 | ||||||
Line of credit fee percentage | 0.20% | |||||||
Effective interest rate | 3.01% | |||||||
Line of Credit | Credit And Security Agreement 2018 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 125,000,000 | 40,000,000 | ||||||
Incurred and capitalized direct cost | $ 294,000 | |||||||
Weighted-Average Interest Rate | 4.03% | |||||||
Line of credit facility, outstanding balance | $ 58,363,000 | $ 0 | ||||||
Line of Credit | Term Loan, 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Weighted-Average Interest Rate | 3.38% | |||||||
Line of Credit | Minimum | Credit And Security Agreement 2018 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 0.175% | |||||||
Line of Credit | Maximum | Credit And Security Agreement 2018 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 0.275% | |||||||
Line of Credit | Base Rate | Credit And Security Agreement 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 0.50% | |||||||
Line of Credit | Base Rate | Minimum | Credit And Security Agreement 2018 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 0.25% | |||||||
Line of Credit | Base Rate | Maximum | Credit And Security Agreement 2018 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 1.375% | |||||||
Line of Credit | Eurodollar | Minimum | Credit And Security Agreement 2018 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 1.25% | |||||||
Line of Credit | Eurodollar | Maximum | Credit And Security Agreement 2018 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 2.375% | |||||||
Line of Credit | London Interbank Offered Rate (LIBOR) | Credit And Security Agreement 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 1.50% | |||||||
Term Loan | Credit And Security Agreement 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | |||||||
Effective interest rate | 3.01% | |||||||
Term Loan | Base Rate | Credit And Security Agreement 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 1.00% | |||||||
Term Loan | London Interbank Offered Rate (LIBOR) | Credit And Security Agreement 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Interest rate, stated percentage | 2.00% | |||||||
Letter of Credit | Credit And Security Agreement 2016 | ||||||||
Line of Credit Facility and Term Loan [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | |||||||
Fronting fee | 0.125% | |||||||
Letters of credit outstanding amount | $ 10,000,000 | |||||||
Term loan, interest rate (as a percent) | 1.625% | |||||||
Line of credit facility, commitment fee amount | $ 157,000 | |||||||
Increase in accrued interest | $ 147,000 |
Restricted Stock - Changes in R
Restricted Stock - Changes in Restricted Stock (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted-Average Grant Date Fair Value (per share) | |||
Granted (in usd per share) | $ 11.96 | $ 8.26 | $ 7.85 |
Restricted stock | |||
Restricted Stock [Roll Forward] | |||
Beginning balance (in shares) | 1,034 | ||
Granted (in shares) | 454 | 604 | 1,071 |
Vested (in shares) | (509) | ||
Forfeited (in shares) | (158) | ||
Ending balance (in shares) | 821 | 1,034 | |
Weighted-Average Grant Date Fair Value (per share) | |||
Beginning balance (in usd per share) | $ 8.29 | ||
Granted (in usd per share) | 11.96 | ||
Vested (in usd per share) | 8.28 | ||
Forfeited (in usd per share) | 7.45 | ||
Ending balance (in usd per share) | $ 10.49 | $ 8.29 |
Restricted Stock - Narrative (D
Restricted Stock - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options Warrants And Restricted Stock Textual [Abstract] | ||||
Payment of withholding taxes on restricted stock units | $ (2,722) | $ (268) | $ (630) | |
Restricted stock | ||||
Stock Options Warrants And Restricted Stock Textual [Abstract] | ||||
Restricted stock granted | 454 | 604 | 1,071 | |
Payment of withholding taxes on restricted stock units | $ 2,722 | $ 268 | $ 630 | |
Total unrecognized compensation cost related to nonvested restricted stock awards granted | $ 6,090 | |||
Weighted average period for recognition | 1 year 3 months 18 days | |||
2013 Plan | ||||
Stock Options Warrants And Restricted Stock Textual [Abstract] | ||||
Issuance of common stock to directors, employees, consultants and advisors (in shares) | 5,000 | |||
Term of the plan | 10 years | |||
Number of shares available for grant (in shares) | 2,361 | |||
Certain executives and employees | Restricted stock | ||||
Stock Options Warrants And Restricted Stock Textual [Abstract] | ||||
Restricted stock granted | 182 | 409 | 531 |
Restricted Stock - Summary of R
Restricted Stock - Summary of Restricted Stock and Tax Benefits (Details) - Restricted stock - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense related to restricted stock awards | $ 3,009 | $ 3,602 | $ 3,830 |
Tax benefit recognized on stock-based compensation expense | 813 | 1,378 | 1,465 |
Tax benefit realized from vested restricted stock units | $ 2,212 | $ 962 | $ 2,119 |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 11, 2019 | Dec. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of repurchase of shares authorized by board of directors | $ 20,000 | ||||
Remaining authorized repurchase amount | $ 5,462 | $ 17,558 | |||
Schedule of Treasury Stock (Textual) | |||||
Shares repurchased (in shares) | 918 | 234 | 152 | ||
Purchase of treasury stock | $ 12,096 | $ 1,492 | $ 951 | ||
Commissions to brokers included in cash consideration paid | $ 34 | $ 9 | |||
Weighted average price per share of stock repurchase (in usd per share) | $ 13.18 | $ 6.35 | |||
Subsequent Event | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of repurchase of shares authorized by board of directors | $ 20,000 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan (Textual) | |||
Percentage of employees salary matches participant contributions | 100.00% | ||
Percentage of maximum employees salary | 5.00% | ||
Costs recognized related to employer | $ 1,556 | $ 1,298 | $ 941 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 3,198 |
2020 | 2,842 |
2021 | 2,457 |
2022 | 2,517 |
2023 | 1,976 |
Thereafter | 2,098 |
Total | $ 15,088 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental payment of leases | $ 3,217 | $ 2,847 | $ 3,190 |
Concentrations - Concentration
Concentrations - Concentration Risk Percentage (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable | Superior | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 50.00% | 31.00% | |
Accounts Receivable | Best Buy | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | 18.00% | |
Sales Revenue, Net | Superior | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 23.00% | 30.00% | 27.00% |
Sales Revenue, Net | Best Buy | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 9.00% | 11.00% |
Sales Revenue, Net | GENCO | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 4.00% | 8.00% | 11.00% |
Concentrations - Narrative (Det
Concentrations - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | |
International Locations | ||
Concentrations (Textual) | ||
Net assets located overseas | $ | $ 45,387 | $ 16,249 |
Customer Concentration Risk | Accounts Receivable | ||
Concentrations (Textual) | ||
Number of customers | Customer | 2 | |
Concentration risk, percentage | 10.00% | |
InvisibleShield Glass Products | Product Concentration Risk | Sales Revenue, Net | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 49.00% | |
InvisibleShield Glass Products | Product Concentration Risk | Screen Protection Sales Revenue, Net | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 86.00% | |
InvisibleShield Film products | Product Concentration Risk | Sales Revenue, Net | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 5.00% | |
InvisibleShield Film products | Product Concentration Risk | Screen Protection Sales Revenue, Net | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 9.00% | |
ISOD Film Blanks | Product Concentration Risk | Sales Revenue, Net | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 3.00% | |
ISOD Film Blanks | Product Concentration Risk | Screen Protection Sales Revenue, Net | ||
Concentrations (Textual) | ||
Concentration risk, percentage | 5.00% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 166,513 | $ 141,087 | $ 118,565 | $ 112,066 | $ 176,924 | $ 134,398 | $ 115,227 | $ 92,946 | $ 538,231 | $ 519,495 | $ 401,857 |
Income (loss) from operations | 20,328 | 18,256 | 5,193 | 7,919 | 29,952 | 15,935 | 5,497 | (6,649) | 51,696 | 44,735 | $ (21,360) |
Net income (loss) | $ 14,319 | $ 14,626 | $ 3,215 | $ 7,029 | $ 8,059 | $ 9,776 | $ 3,403 | $ (6,138) | $ 39,189 | $ 15,100 | |
(Loss) earnings per share | |||||||||||
Basic (in usd per share) | $ 0.52 | $ 0.52 | $ 0.11 | $ 0.25 | $ 0.29 | $ 0.35 | $ 0.12 | $ (0.22) | $ 1.40 | $ 0.54 | $ (0.56) |
Dilutive (in usd per share) | $ 0.52 | $ 0.51 | $ 0.11 | $ 0.24 | $ 0.28 | $ 0.34 | $ 0.12 | $ (0.22) | $ 1.38 | $ 0.53 | $ (0.56) |
Weighted average common shares: | |||||||||||
Basic (in shares) | 27,687 | 28,241 | 28,299 | 28,209 | 27,969 | 27,969 | 27,963 | 28,059 | 28,064 | 27,996 | 28,006 |
Diluted (in shares) | 28,258 | 28,563 | 28,666 | 28,693 | 28,781 | 28,381 | 28,213 | 28,059 | 28,500 | 28,407 | 28,006 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Thousands | Jan. 03, 2019USD ($) |
HALO | Subsequent Event | |
Subsequent Event [Line Items] | |
Cash consideration | $ 43,000 |
Uncategorized Items - zagg-2018
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 132,119,000 |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 73,925,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,880,000) |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 34,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 34,104,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (348,000) |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (37,637,000) |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 96,145,000 |