Back to mobile site

Form 8-K MAD CATZ INTERACTIVE For: Nov 03

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/15/2026

1. AMAT
2. SPY
3. GLOB
4. RDDT
5. HTFL
6. SNDK
7. WDAY
8. ADYEN:NA
9. ADYYF
10. DGNX

November 3, 2016 4:18 PM EDT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 3, 2016

 

MAD CATZ INTERACTIVE, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

Canada

 

001-14944

 

N/A

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

10680 Treena Street, Suite 500

San Diego, California 92131

(Address of Principal Executive Offices)

 

(858) 790-5008

(Registrant’s telephone number, including area code)

 

Not applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14.a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

Item 2.02.

Results of Operations and Financial Condition

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

On November 3, 2016, the Company issued a press release announcing its financial results for its quarter ended September 30, 2016. A copy of the press release is attached hereto as Exhibit 99.1.

The information contained in this Current Report, including the exhibit, shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

Item 9.01.

Financial Statements and Exhibits

 

 

(d)

Exhibits.

 

99.1

  

Press Release, dated November 3, 2016, issued by Mad Catz Interactive, Inc., furnished pursuant to Item 2.02 of Form 8-K.

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: November 3, 2016

 

 

 

MAD CATZ INTERACTIVE, INC.

 

 

 

 

By:

    /s/ DAVID MCKEON

 

 

 

 

Name: David McKeon

 

 

 

 

Its: Chief Financial Officer

 

 

Exhibit 99.1

 

Mad Catz® Reports Fiscal 2017 Second Quarter

Financial Results

 

San Diego, CA – November 3, 2016 – Mad Catz Interactive, Inc. (“Mad Catz” or the “Company”) (NYSE MKT: MCZ), today announced financial results for the fiscal 2017 second quarter ended September 30, 2016.

 

Key Highlights of Fiscal 2017 Second Quarter and Subsequent:

•

Fiscal 2017 second quarter net sales decreased 62% to $14.9 million, driven primarily by a decrease in sales of Rock Band 4 products; by geography, the Company recorded a 63% decrease in net sales to the Americas, a 62% decrease in net sales to EMEA and a 44% decrease in net sales to APAC;  

•

Gross margin declined to 3.6% from 23.1% in the prior year quarter, driven primarily by charges of $2.2 million related to Rock Band 4 in connection with price reductions to retailers and write-downs of inventory and other assets, as well as product mix and increased freight costs;

•

Sold the Saitek simulation product line to Logitech for $13.0 million cash;

•

Total sales and marketing, general and administrative, and research and development expenses decreased 49% from the prior year period to $4.1 million as the Company continued to realize the benefits of restructuring activities undertaken during the fourth quarter of fiscal 2016 and from lower cooperative advertising costs as a result of lower Rock Band 4 sales;

•

Operating income, which included an $8.2 million gain on the Saitek sale, increased to $4.5 million from $0.9 million in the prior year;

•

Diluted net income per share was $0.06, compared to diluted net loss of ($0.02) in the prior year;

•

Net position of bank loans, less cash and restricted cash, was $9.2 million at September 30, 2016, compared to $9.4 million at June 30, 2016 and $12.7 million at September 30, 2015;

•

Sold no shares under the “At-the-Market” (“ATM”) equity offering program;

•

Completed the sale of the remaining Rock Band 4 inventory prior to the end of the wind-down period;

•

Shipped the new Tritton ARK™ 100 headsets, part of the Company’s new Tritton ARK Series line of innovative gaming headsets; and

•

Announced the details and shipment schedule of the Company’s entirely upgraded line of RAT mice, which include the RAT1, RAT4, RAT6, RAT8, RAT PRO S+ and RAT PRO X+.

 

1

 

Summary of Financials

 

(in thousands, except margins and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

 

 

 

 

Six Months Ended

September 30,

 

 

 

 

 

 

 

2016

 

 

2015

 

 

Change

 

 

2016

 

 

2015

 

 

Change

 

Net sales

 

$

14,867

 

 

$

38,918

 

 

 

(62

%)

 

$

25,655

 

 

$

51,892

 

 

 

(51

%)

     Gross profit

 

 

528

 

 

 

9,006

 

 

 

(94

%)

 

 

424

 

 

 

11,884

 

 

 

(96

%)

Net operating expenses

 

 

(3,950

)

 

 

8,147

 

 

 

(148

%)

 

 

654

 

 

 

14,787

 

 

 

(96

%)

Operating income (loss)

 

 

4,478

 

 

 

859

 

 

 

421

%

 

 

(230

)

 

 

(2,903

)

 

 

(92

%)

Net income (loss)

 

 

4,080

 

 

 

(1,611

)

 

 

(353

%)

 

 

(713

)

 

 

(5,576

)

 

 

(87

%)

Net loss per share, basic and diluted

 

$

0.06

 

 

$

(0.02

)

 

 

(353

%)

 

$

(0.01

)

 

$

(0.08

)

 

 

(87

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

3.6

%

 

 

23.1

%

 

(1,950) 

bps

 

 

1.7

%

 

 

22.9

%

 

(2,120) 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (loss) (1)

 

$

5,360

 

 

$

1,391

 

 

 

285

%

 

$

1,885

 

 

$

(1,674

)

 

 

(213

%)

 

(1)

Definitions, disclosures and reconciliations regarding non-GAAP financial information are included on page 8.

 

Commenting on the Company’s fiscal 2017 second quarter results, David McKeon, Chief Financial Officer of Mad Catz, said, “The fiscal 2017 second quarter marked a pivotal time for Mad Catz as we successfully sold our remaining Rock Band 4 inventory ahead of the wind-down period, completed the sale of our Saitek-branded product line to Logitech and continued to leverage the strategic initiatives implemented in the fiscal first quarter related to operational efficiencies and product execution. Although working capital constraints had some impact on our product launch timing and top line revenue in the quarter, we made significant improvements in working capital during the quarter and successfully brought a number of new Tritton and Mad Catz branded products to market ahead of the holiday season.”

 

“While we still have much work to accomplish in the quarters ahead, we are pleased with the improvements we are achieving across our business.  We remain confident that the benefits we are seeing on the back of our restructuring plan will positively impact our business in the coming quarters and help us achieve top and bottom line growth in our continuing product lines as well as added value for our shareholders.”

2

 

 

Summary of Key Sales Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

September 30,

 

 

 

 

 

 

Six Months Ended

September 30,

 

 

 

 

 

(in thousands)

 

2016

 

 

2015

 

 

Change

 

 

2016

 

 

2015

 

 

Change

 

Net Sales by Geography

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

9,934

 

 

$

27,027

 

 

 

(63

%)

 

$

15,260

 

 

$

32,002

 

 

 

(52

%)

EMEA

 

 

3,678

 

 

 

9,656

 

 

 

(62

%)

 

 

7,663

 

 

 

15,298

 

 

 

(50

%)

APAC

 

 

1,255

 

 

 

2,235

 

 

 

(44

%)

 

 

2,732

 

 

 

4,592

 

 

 

(41

%)

 

 

$

14,867

 

 

$

38,918

 

 

 

(62

%)

 

$

25,655

 

 

$

51,892

 

 

 

(51

%)

Sales by Platform as a % of Gross Sales (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consoles

 

 

44

%

 

 

18

%

 

 

 

 

 

 

44

%

 

 

24

%

 

 

 

 

Rock Band 4

 

 

30

%

 

 

62

%

 

 

 

 

 

 

24

%

 

 

46

%

 

 

 

 

Saitek

 

 

14

%

 

 

9

%

 

 

 

 

 

 

16

%

 

 

14

%

 

 

 

 

PC and Mac

 

 

10

%

 

 

8

%

 

 

 

 

 

 

13

%

 

 

11

%

 

 

 

 

Smart devices

 

 

2

%

 

 

3

%

 

 

 

 

 

 

3

%

 

 

5

%

 

 

 

 

 

 

 

100

%

 

 

100

%

 

 

 

 

 

 

100

%

 

 

100

%

 

 

 

 

Sales by Category as a % of Gross Sales (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Audio

 

 

40

%

 

 

17

%

 

 

 

 

 

 

38

%

 

 

22

%

 

 

 

 

Rock Band 4

 

 

30

%

 

 

62

%

 

 

 

 

 

 

24

%

 

 

46

%

 

 

 

 

Saitek

 

 

14

%

 

 

9

%

 

 

 

 

 

 

16

%

 

 

13

%

 

 

 

 

Mice and keyboards

 

 

9

%

 

 

7

%

 

 

 

 

 

 

12

%

 

 

10

%

 

 

 

 

Specialty controllers

 

 

5

%

 

 

2

%

 

 

 

 

 

 

7

%

 

 

3

%

 

 

 

 

Controllers

 

 

1

%

 

 

1

%

 

 

 

 

 

 

2

%

 

 

3

%

 

 

 

 

Accessories

 

 

1

%

 

 

1

%

 

 

 

 

 

 

1

%

 

 

2

%

 

 

 

 

Games and other

 

 

—

%

 

 

1

%

 

 

 

 

 

 

—

%

 

 

1

%

 

 

 

 

 

 

 

100

%

 

 

100

%

 

 

 

 

 

 

100

%

 

 

100

%

 

 

 

 

Sales by Brand as a % of Gross Sales (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tritton

 

 

39

%

 

 

15

%

 

 

 

 

 

 

36

%

 

 

20

%

 

 

 

 

Rock Band 4

 

 

30

%

 

 

62

%

 

 

 

 

 

 

24

%

 

 

46

%

 

 

 

 

Mad Catz

 

 

17

%

 

 

13

%

 

 

 

 

 

 

24

%

 

 

18

%

 

 

 

 

Saitek

 

 

14

%

 

 

9

%

 

 

 

 

 

 

16

%

 

 

13

%

 

 

 

 

All others

 

 

—

%

 

 

1

%

 

 

 

 

 

 

—

%

 

 

3

%

 

 

 

 

 

 

 

100

%

 

 

100

%

 

 

 

 

 

 

100

%

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Sales of products related to the Rock Band 4 video game and simulation products sold as part of the sale of Saitek assets are listed separately in each of the tables to provide comparable information for our ongoing product lines.

 

Karen McGinnis, President and Chief Executive Officer of Mad Catz, added, “The fiscal second quarter results show that our strategy is clearly working and that we continue to make solid progress against our operational objectives while positioning Mad Catz to leverage the opportunities ahead around console, PC and mobile gaming.  Our recent new product launches demonstrate the continued power of our innovation engine and reflect our ability to address profitable growth across our market opportunities.”

 

“As we enter the second half of fiscal 2017 and the holiday season, we will continue to focus on delivering shareholder value by efficiently bringing new products to market, supporting our

3

 

new product launches, further expanding our retail partner footprint and maintaining operational discipline and focused execution. We’ve got momentum, a winning product portfolio and an exceptional team to lead us along the way.”

 

Management Conference Call Webcast

The Company will host a conference call and simultaneous webcast on November 3, 2016, at 5:00 p.m. ET, which can be accessed by dialing (303) 223-4397. Following its completion, a replay of the call can be accessed for 30 days at the Company's Web site (www.madcatz.com, select “About Us/Investor Relations”) or via telephone at (800) 633-8284 (reservation #21820327) or, for International callers, at (402) 977-9140.

 

About Mad Catz

Mad Catz Interactive, Inc. (“Mad Catz”) (NYSE MKT: MCZ) is a global provider of innovative interactive entertainment products marketed under its Mad Catz® (gaming) and Tritton® (audio) brands.  Mad Catz products cater to gamers across multiple platforms including in-home gaming consoles, handheld gaming consoles, Windows® PC and Mac® computers, smart phones, tablets and other smart devices.  We distribute our products through many leading retailers around the globe. Headquartered in San Diego, California, Mad Catz maintains offices in Europe and Asia. For additional information about Mad Catz and its products, please visit the Company’s website at www.madcatz.com.

 

Social Media

      

 

Safe Harbor

Information in this press release that involves the Company's expectations business prospects, plans, intentions or strategies regarding its future are forward-looking statements that are not facts and that involve substantial risks and uncertainties. You can identify these statements by the use of words such as “seek,” "anticipate," "estimate," "expect," "believe," and “intend” and statements that an event or result “may,” “will,” “should,” “could” or “might” occur or be achieved and other similar expressions together with the negative of such expressions.. These forward-looking statements reflect management’s current beliefs and expectations and are based on information currently available to management, as well as its analysis made in light of its experience, perception of trends, current conditions, expected developments and other factors and assumptions believed to be reasonable and relevant in the circumstances. These assumptions include, but are not limited to, continuing demand by consumers for video game consoles and accessories, the continuance of open trade relations between China and the United States, the ability to maintain or extend our existing licenses, the ability to continue producing and selling our products in accordance with various intellectual property that might apply to said products, the continued financial viability of our largest customers, the continuance of timely and adequate supply from third party manufacturers and suppliers, no significant fluctuations in the value of the U.S. dollar relative to other currencies, the continued satisfaction of our obligations under our existing loan agreements and any future loan agreements we may obtain, and continued listing of our common stock on the NYSE MKT.

4

 

Forward-looking statements are subject to significant risks, uncertainties, assumptions and other factors, any of which could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. A further list and description of these and other factors, risks, uncertainties and other matters can be found in the Company's most recent annual report, and any subsequent quarterly reports, filed with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators. Investors should not place undue reliance on such forward-looking statements. Forward-looking statements are not guarantees of future performance or outcomes and actual results could differ materially from those expressed or implied by the forward-looking statements. We assume no obligation to update or alter such forward-looking statements whether as a result of new information, future events or otherwise except as required by law.

 

Contact:

 

David McKeon

Joseph Jaffoni, Norberto Aja, Jim Leahy

Chief Financial OfficerJCIR

JCIR

Mad Catz Interactive, Inc.

[email protected] or (212) 835-8500

[email protected] or (858) 790-5045

 

 

- TABLES FOLLOW -

 

 

 

5

 

Consolidated Statements of Operations

(in thousands, except share and per share data)

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Six Months Ended

September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net sales

 

$

14,867

 

 

$

38,918

 

 

$

25,655

 

 

$

51,892

 

Cost of sales

 

 

14,339

 

 

 

29,912

 

 

 

25,231

 

 

 

40,008

 

Gross profit

 

 

528

 

 

 

9,006

 

 

 

424

 

 

 

11,884

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

1,457

 

 

 

4,457

 

 

 

2,848

 

 

 

7,173

 

General and administrative

 

 

2,079

 

 

 

2,638

 

 

 

4,547

 

 

 

5,532

 

Research and development

 

 

560

 

 

 

941

 

 

 

1,217

 

 

 

1,862

 

Restructuring and severance costs

 

 

22

 

 

 

—

 

 

 

(3

)

 

 

—

 

Amortization of intangible assets

 

 

109

 

 

 

111

 

 

 

222

 

 

 

220

 

Net gain on sale of Saitek assets

 

 

(8,177

)

 

 

—

 

 

 

(8,177

)

 

 

—

 

Net operating expenses

 

 

(3,950

)

 

 

8,147

 

 

 

654

 

 

 

14,787

 

Operating income (loss)

 

 

4,478

 

 

 

859

 

 

 

(230

)

 

 

(2,903

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(277

)

 

 

(364

)

 

 

(610

)

 

 

(621

)

Foreign exchange gain (loss), net

 

 

286

 

 

 

(154

)

 

 

820

 

 

 

(93

)

Change in fair value of warrant liabilities

 

 

49

 

 

 

(871

)

 

 

3

 

 

 

(917

)

Other income

 

 

2

 

 

 

10

 

 

 

23

 

 

 

22

 

Total other income (expense)

 

 

60

 

 

 

(1,379

)

 

 

236

 

 

 

(1,609

)

Income (loss) before income taxes

 

 

4,538

 

 

 

(520

)

 

 

6

 

 

 

(4,512

)

Income tax expense

 

 

(458

)

 

 

(1,091

)

 

 

(719

)

 

 

(1,064

)

Net income (loss)

 

$

4,080

 

 

$

(1,611

)

 

$

(713

)

 

$

(5,576

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.06

 

 

$

(0.02

)

 

$

(0.01

)

 

$

(0.08

)

Diluted

 

$

0.06

 

 

$

(0.02

)

 

$

(0.01

)

 

$

(0.08

)

Shares used in per share computations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

73,469,571

 

 

 

73,469,571

 

 

 

73,469,571

 

 

 

73,469,571

 

Diluted

 

 

73,469,571

 

 

 

73,469,571

 

 

 

73,469,571

 

 

 

73,469,571

 


6

 

Consolidated Balance Sheets

(in thousands)

(Unaudited)

 

 

 

September 30,

2016

 

 

March 31,

2016

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

1,176

 

 

$

2,436

 

Restricted cash

 

 

180

 

 

 

680

 

Accounts receivable, net

 

 

6,106

 

 

 

9,585

 

Other receivables

 

 

528

 

 

 

998

 

Inventories

 

 

17,160

 

 

 

23,005

 

Income taxes receivable

 

 

163

 

 

 

159

 

Prepaid expenses and other current assets

 

 

1,907

 

 

 

2,969

 

Total current assets

 

 

27,220

 

 

 

39,832

 

Deferred tax assets

 

 

8,775

 

 

 

9,449

 

Other assets

 

 

389

 

 

 

531

 

Property and equipment, net

 

 

2,019

 

 

 

2,921

 

Intangible assets, net

 

 

1,682

 

 

 

2,270

 

Total assets

 

$

40,085

 

 

$

55,003

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Bank loans

 

$

10,549

 

 

$

16,076

 

Accounts payable

 

 

19,145

 

 

 

25,354

 

Accrued liabilities

 

 

7,403

 

 

 

8,153

 

Notes payable

 

 

50

 

 

 

73

 

Income taxes payable

 

 

4

 

 

 

173

 

Total current liabilities

 

 

37,151

 

 

 

49,829

 

Notes payable, less current portion

 

 

119

 

 

 

145

 

Warrant liabilities

 

 

297

 

 

 

300

 

Deferred tax liabilities

 

 

10

 

 

 

10

 

Other long-term liabilities

 

 

587

 

 

 

699

 

Total liabilities

 

 

38,164

 

 

 

50,983

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Common stock

 

 

63,655

 

 

 

63,552

 

Accumulated other comprehensive loss

 

 

(7,184

)

 

 

(5,695

)

Accumulated deficit

 

 

(54,550

)

 

 

(53,837

)

Total shareholders’ equity

 

 

1,921

 

 

 

4,020

 

Total liabilities and shareholders’ equity

 

$

40,085

 

 

$

55,003

 

 

7

 

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

 

Six Months Ended

September 30,

 

 

 

2016

 

 

2015

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(713

)

 

$

(5,576

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,169

 

 

 

1,038

 

Amortization of deferred financing fees

 

 

120

 

 

 

189

 

(Gain) loss on disposal of assets

 

 

(23

)

 

 

6

 

Net gain on sale of Saitek assets

 

 

(8,177

)

 

 

—

 

Stock-based compensation

 

 

103

 

 

 

262

 

Change in fair value of warrant liabilities

 

 

(3

)

 

 

917

 

Provision for deferred income taxes

 

 

674

 

 

 

678

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

3,176

 

 

 

(19,790

)

Other receivables

 

 

429

 

 

 

(431

)

Inventories

 

 

3,889

 

 

 

(17,625

)

Prepaid expenses and other current assets

 

 

891

 

 

 

(357

)

Other assets

 

 

15

 

 

 

85

 

Accounts payable

 

 

(6,455

)

 

 

22,280

 

Accrued liabilities

 

 

(1,130

)

 

 

9,602

 

Deferred rent

 

 

(122

)

 

 

(24

)

Income taxes receivable/payable

 

 

(188

)

 

 

1,045

 

Net cash used in operating activities

 

 

(6,345

)

 

 

(7,701

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of intangible assets

 

 

—

 

 

 

(25

)

Purchases of property and equipment

 

 

(422

)

 

 

(1,245

)

Net proceeds from sale of Saitek assets

 

 

10,628

 

 

 

—

 

Net cash provided by (used in) investing activities

 

 

10,206

 

 

 

(1,270

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Borrowings on bank loans

 

 

19,288

 

 

 

41,955

 

Repayments on bank loans

 

 

(24,815

)

 

 

(30,248

)

Payment of financing fees

 

 

—

 

 

 

(720

)

Changes in restricted cash

 

 

500

 

 

 

—

 

Borrowings on notes payable

 

 

—

 

 

 

95

 

Repayments on notes payable

 

 

(56

)

 

 

(160

)

Payment of expenses related to issuance of common stock

 

 

—

 

 

 

(164

)

Net cash (used in) provided by financing activities

 

 

(5,083

)

 

 

10,758

 

Effects of foreign currency exchange rate changes on cash

 

 

(38

)

 

 

41

 

Net (decrease) increase in cash

 

 

(1,260

)

 

 

1,828

 

Cash, beginning of period

 

 

2,436

 

 

 

5,142

 

Cash, end of period

 

$

1,176

 

 

$

6,970

 

 

8

 

Supplementary Data

Adjusted EBITDA (Loss) Reconciliation (non-GAAP)

(in thousands)

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Six Months Ended

September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net income (loss)

 

$

4,080

 

 

$

(1,611

)

 

$

(713

)

 

$

(5,576

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

544

 

 

 

552

 

 

 

1,169

 

 

 

1,038

 

Stock-based compensation

 

 

50

 

 

 

124

 

 

 

103

 

 

 

262

 

Change in fair value of warrant liabilities

 

 

(49

)

 

 

871

 

 

 

(3

)

 

 

917

 

Interest expense, net

 

 

277

 

 

 

364

 

 

 

610

 

 

 

621

 

Income tax expense

 

 

458

 

 

 

1,091

 

 

 

719

 

 

 

1,064

 

Adjusted EBITDA (loss)

 

$

5,360

 

 

$

1,391

 

 

$

1,885

 

 

$

(1,674

)

 

Adjusted EBITDA, a non-GAAP (“Generally Accepted Accounting Principles”) financial measure, represents net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation and change in the fair value of warrant liabilities. Adjusted EBITDA is not intended to represent cash flows for the period, nor is it being presented as an alternative to operating or net income (loss) as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. As defined, Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation. Our management believes, however, that in addition to the performance measures found in our financial statements, Adjusted EBITDA is a useful financial performance measurement for assessing our Company’s operating performance. Our management uses Adjusted EBITDA as a measurement of operating performance in comparing our performance on a consistent basis over prior periods, as it removes from operating results the impact of our capital structure, including the interest expense resulting from our outstanding debt, and our asset base, including depreciation and amortization of our capital and intangible assets. In addition, Adjusted EBITDA is an important measure for our lender.

 

9

 


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings