Revenue and Adjusted EBITDA Increased 16% and 54% Year-over-Year, Respectively
Maintains Full Year 2023 Revenue and Adjusted EBITDA Guidance
Provides Line-of-Sight to Exit 2023 with
Previously Announced Value Enhancement Committee Continues to
Second Quarter Summary vs.
-
Net revenue was
$48.0 million , an increase of 16% compared to$41.3 million a year ago; -
Net loss was
$15.9 million , or$0.93 per diluted share, compared to net loss of$17.8 million , or$1.08 per diluted share, a year ago; -
Adjusted net loss was
$7.0 million , or$0.41 per diluted share, compared to adjusted net loss of$12.7 million or$0.77 per diluted share, a year ago; -
Adjusted EBITDA loss improved to
$5.6 million compared to adjusted EBITDA loss of$12.1 million a year ago.
Management Commentary
“In the second quarter, we delivered sales and adjusted EBITDA results in-line with our expectations, and up significantly compared to the year ago period,” said
“The operating environment and gaming markets have improved significantly compared to a year ago, and our strategy continues to track to plan. Operationally, we have experienced a stabilization in channel inventories as retailers are returning to pre-pandemic levels and strategies, and as we expected, the frequency and scope of the aggressive competitive discounting has decreased. With respect to our products, we announced upgrades across our product portfolio and are pleased with our progress to date. Specifically, the Stealth Pro performed extremely well and captured over 15% market share in the
“We remain committed to maintaining our leadership in gaming headsets and driving growth in adjacent categories. While we execute on these core pillars, we will continue to proactively manage our operating expenses to support our growth strategy. We look forward to continuing our work with the Board and management team to deliver on our strategy, execute on our key initiatives, and ultimately increase value for our shareholders.”
Second Quarter 2023 Financial Results
Net revenue in the second quarter of 2023 was
Gross margin in the second quarter of 2023 increased to 24.7% compared to 19.1% a year ago, driven by lower freight costs, warehouse costs, promotional credits and business mix.
Operating expenses in the second quarter of 2023 were
Net loss in the second quarter of 2023 was
Adjusted EBITDA loss (as defined below in “Non-GAAP Financial Measures”) in the second quarter of 2023 improved to
Balance Sheet and Cash Flow Summary
At
Additionally, in March of 2023, the Company announced that its Board of Directors approved the extension of the share repurchase program for an additional two years through
Full Year 2023 Outlook
The Company continues to target its long-term goals of 10+% revenue CAGR, mid-30s gross margin percentage, and 10+% adjusted EBITDA margins. In light of the aforementioned market and operational conditions, the Company is maintaining its outlook for fiscal year 2023 and expects net revenues to be in the range of
Further, the Company has mobilized and accelerated initiatives for a variety of efficiencies that include SKU rationalization, portfolio optimization, platformed product development for a range of cost improvements and more. These strategic initiatives are expected to contribute meaningfully to the profitability of
Value Enhancement Committee Review
As stated previously, the Value Enhancement Committee was established to review a broad range of opportunities to maximize value for shareholders, including potential strategic transactions. In conjunction with the Company’s financial advisors, the Committee has been and continues to be focused on both short- and long-term revenue, profit and cash flow optimization and capital allocation, as well as a range of potential strategic paths to maximize value for shareholders.
The Company notes that there can be no assurances that the review will result in a transaction or announcement of any kind.
With respect to the Company’s adjusted EBITDA outlook for the full year 2023, a reconciliation to its net income (loss) outlook for the same periods has not been provided because of the variability, complexity, and lack of visibility with respect to certain reconciling items between adjusted EBITDA and net income (loss), including other income (expense), provision for income taxes and stock-based compensation. These items cannot be reasonably and accurately predicted without the investment of undue time, cost and other resources and, accordingly, a reconciliation of the Company’s adjusted EBITDA outlook to its net income (loss) outlook for such periods is not provided. These reconciling items could be material to the Company’s actual results for such periods.
Conference Call Details
In conjunction with this announcement,
Non-GAAP Financial Measures
In addition to its reported results, the Company has included in this earnings release certain financial results, including adjusted EBITDA, and adjusted net income that the
About
Cautionary Note on Forward-Looking Statements
This press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions or beliefs about future events. Statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “goal,” “project,” “intend” and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management’s current beliefs and expectations, as well as assumptions made by, and information currently available to, management.
While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to inflationary pressures, optimizing our product portfolio, reducing our cost of goods and operating expenses, reductions in logistic and supply chain challenges and costs, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, including promotional credits and discounts, general business and economic conditions, risks associated with the future direction or governance of the Company, risks associated with the expansion of our business, including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company’s other periodic reports filed with the
All trademarks are the property of their respective owners.
|
|
||||||||||||||||
|
Condensed Consolidated Statements of Operations |
||||||||||||||||
|
(in thousands, except per-share data) |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
Table 1. |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
Net revenue |
|
$ |
47,982 |
|
|
$ |
41,300 |
|
|
$ |
99,426 |
|
|
$ |
87,962 |
|
|
Cost of revenue |
|
|
36,110 |
|
|
|
33,418 |
|
|
|
73,415 |
|
|
|
66,051 |
|
|
Gross profit |
|
|
11,872 |
|
|
|
7,882 |
|
|
|
26,011 |
|
|
|
21,911 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Selling and marketing |
|
|
10,351 |
|
|
|
11,587 |
|
|
|
19,874 |
|
|
|
22,416 |
|
|
Research and development |
|
|
4,189 |
|
|
|
5,136 |
|
|
|
8,290 |
|
|
|
10,388 |
|
|
General and administrative |
|
|
13,125 |
|
|
|
12,532 |
|
|
|
20,132 |
|
|
|
18,767 |
|
|
Total operating expenses |
|
|
27,665 |
|
|
|
29,255 |
|
|
|
48,296 |
|
|
|
51,571 |
|
|
Operating loss |
|
|
(15,793 |
) |
|
|
(21,373 |
) |
|
|
(22,285 |
) |
|
|
(29,660 |
) |
|
Interest expense (income) |
|
|
(17 |
) |
|
|
84 |
|
|
|
146 |
|
|
|
193 |
|
|
Other non-operating expense, net |
|
|
198 |
|
|
|
1,109 |
|
|
|
318 |
|
|
|
1,828 |
|
|
Loss before income tax |
|
|
(15,974 |
) |
|
|
(22,566 |
) |
|
|
(22,749 |
) |
|
|
(31,681 |
) |
|
Income tax expense benefit |
|
|
(54 |
) |
|
|
(4,740 |
) |
|
|
(124 |
) |
|
|
(7,379 |
) |
|
Net loss |
|
$ |
(15,920 |
) |
|
$ |
(17,826 |
) |
|
$ |
(22,625 |
) |
|
$ |
(24,302 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
(0.93 |
) |
|
$ |
(1.08 |
) |
|
$ |
(1.34 |
) |
|
$ |
(1.49 |
) |
|
Diluted |
|
$ |
(0.93 |
) |
|
$ |
(1.08 |
) |
|
$ |
(1.34 |
) |
|
$ |
(1.49 |
) |
|
Weighted average number of shares: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
|
17,156 |
|
|
|
16,500 |
|
|
|
16,869 |
|
|
|
16,348 |
|
|
Diluted |
|
|
17,156 |
|
|
|
16,500 |
|
|
|
16,869 |
|
|
|
16,348 |
|
|
|
||||||||
|
Condensed Consolidated Balance Sheets |
||||||||
|
(in thousands, except par value and share amounts) |
||||||||
|
|
||||||||
|
Table 2. |
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
|
|
2023 |
|
|
2022 |
|
||
|
|
|
(unaudited) |
|
|
|
|
||
|
ASSETS |
|
|
|
|||||
|
Current Assets: |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
15,787 |
|
|
$ |
11,396 |
|
|
Accounts receivable, net |
|
|
20,254 |
|
|
|
43,336 |
|
|
Inventories |
|
|
67,831 |
|
|
|
71,252 |
|
|
Prepaid expenses and other current assets |
|
|
8,927 |
|
|
|
9,196 |
|
|
Total Current Assets |
|
|
112,799 |
|
|
|
135,180 |
|
|
Property and equipment, net |
|
|
5,691 |
|
|
|
6,362 |
|
|
|
|
|
10,686 |
|
|
|
10,686 |
|
|
Intangible assets, net |
|
|
2,238 |
|
|
|
2,612 |
|
|
Other assets |
|
|
8,124 |
|
|
|
8,547 |
|
|
Total Assets |
|
$ |
139,538 |
|
|
$ |
163,387 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
|
Current Liabilities: |
|
|
|
|
|
|
||
|
Revolving credit facility |
|
$ |
— |
|
|
$ |
19,053 |
|
|
Accounts payable |
|
|
34,036 |
|
|
|
19,846 |
|
|
Other current liabilities |
|
|
21,808 |
|
|
|
25,433 |
|
|
Total Current Liabilities |
|
|
55,844 |
|
|
|
64,332 |
|
|
Income tax payable |
|
|
2,196 |
|
|
|
2,076 |
|
|
Other liabilities |
|
|
7,443 |
|
|
|
8,038 |
|
|
Total Liabilities |
|
|
65,483 |
|
|
|
74,446 |
|
|
Commitments and Contingencies |
|
|
|
|
|
|
||
|
Stockholders’ Equity |
|
|
|
|
|
|
||
|
Common stock |
|
|
17 |
|
|
|
17 |
|
|
Additional paid-in capital |
|
|
214,245 |
|
|
|
206,916 |
|
|
Accumulated deficit |
|
|
(139,223 |
) |
|
|
(116,598 |
) |
|
Accumulated other comprehensive loss |
|
|
(984 |
) |
|
|
(1,394 |
) |
|
Total Stockholders’ Equity |
|
|
74,055 |
|
|
|
88,941 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
139,538 |
|
|
$ |
163,387 |
|
|
|
||||||||
|
Condensed Consolidated Statements of Cash Flows |
||||||||
|
(in thousands) |
||||||||
|
(unaudited) |
||||||||
|
Table 3. |
||||||||
|
|
|
Six Months Ended |
|
|||||
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
$ |
24,210 |
|
|
$ |
(41,247 |
) |
|
|
|
|
|
|
|
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
(1,252 |
) |
|
|
(1,207 |
) |
|
|
|
|
|
|
|
|
||
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
|
Borrowings on revolving credit facilities |
|
|
99,785 |
|
|
|
36,209 |
|
|
Repayment of revolving credit facilities |
|
|
(118,838 |
) |
|
|
(20,502 |
) |
|
Proceeds from exercise of stock options and warrants |
|
|
1,358 |
|
|
|
538 |
|
|
Repurchase of common stock |
|
|
(974 |
) |
|
|
– |
|
|
Debt Issuance Costs |
|
|
(80 |
) |
|
|
– |
|
|
Net cash provided by (used for) financing activities |
|
|
(18,749 |
) |
|
|
16,245 |
|
|
Effect of exchange rate changes on cash |
|
|
182 |
|
|
|
(634 |
) |
|
Net increase (decrease) in cash |
|
|
4,391 |
|
|
|
(26,843 |
) |
|
Cash – beginning of period |
|
|
11,396 |
|
|
|
37,720 |
|
|
Cash – end of period |
|
$ |
15,787 |
|
|
$ |
10,877 |
|
|
|
||||||||||||||||
|
Reconciliation of GAAP and Non-GAAP Measures |
||||||||||||||||
|
(in thousands, except per-share data) |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
Table 4. |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP Net Income (Loss) |
|
$ |
(15,920 |
) |
|
$ |
(17,826 |
) |
|
$ |
(22,625 |
) |
|
$ |
(24,302 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-recurring business costs |
|
|
1,086 |
|
|
|
5,123 |
|
|
|
2,079 |
|
|
|
5,295 |
|
|
Acquisition integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
58 |
|
|
CEO separation related costs |
|
|
5,063 |
|
|
|
— |
|
|
|
5,063 |
|
|
|
— |
|
|
Valuation allowance |
|
|
2,768 |
|
|
|
— |
|
|
|
4,012 |
|
|
|
— |
|
|
Adjusted Earnings |
|
$ |
(7,003 |
) |
|
$ |
(12,703 |
) |
|
$ |
(11,471 |
) |
|
$ |
(18,949 |
) |
|
|
|
|
-17 |
% |
|
|
|
|
|
|
|
|
|
|||
|
Diluted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP- Diluted |
|
$ |
(0.93 |
) |
|
$ |
(1.08 |
) |
|
$ |
(1.34 |
) |
|
$ |
(1.49 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-recurring business costs |
|
|
0.06 |
|
|
|
0.31 |
|
|
|
0.12 |
|
|
|
0.32 |
|
|
Acquisition integration costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
CEO separation related costs |
|
|
0.30 |
|
|
|
– |
|
|
|
0.30 |
|
|
|
– |
|
|
Valuation allowance |
|
|
0.16 |
|
|
|
— |
|
|
|
0.24 |
|
|
|
— |
|
|
Adjusted – Diluted |
|
$ |
(0.41 |
) |
|
$ |
(0.77 |
) |
|
$ |
(0.68 |
) |
|
$ |
(1.16 |
) |
|
|
||||||||||||||||||||||||||||||
|
GAAP to Adjusted EBITDA Reconciliation |
||||||||||||||||||||||||||||||
|
(in thousands) |
||||||||||||||||||||||||||||||
|
Table 5. |
||||||||||||||||||||||||||||||
|
|
|
Three Months Ended |
|
|||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Adj |
|
|
|
|
|||||||||||||||||||
|
|
|
As |
|
Adj |
Adj |
|
Stock |
|
|
Adj |
|
|||||||||||||||||||
|
|
|
Reported |
|
Depreciation |
Amortization |
|
Compensation |
Other (1) |
|
EBITDA |
|
|||||||||||||||||||
|
Net revenue |
|
$ |
47,982 |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
47,982 |
|
|||||||||||
|
Cost of revenue |
|
|
36,110 |
|
|
(511 |
) |
|
– |
|
|
(162 |
) |
|
– |
|
|
35,437 |
|
|||||||||||
|
Gross Profit |
|
|
11,872 |
|
|
511 |
|
|
– |
|
|
162 |
|
|
– |
|
|
12,545 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Operating expenses |
|
|
27,665 |
|
|
(460 |
) |
|
(248 |
) |
|
(4,808 |
) |
|
(4,207 |
) |
|
17,942 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Operating income (loss) |
|
|
(15,793 |
) |
|
971 |
|
|
248 |
|
|
4,970 |
|
|
4,207 |
|
|
(5,397 |
) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Interest income |
|
|
(17 |
) |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Other non-operating expense, net |
|
|
198 |
|
|
|
|
|
|
|
|
198 |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Income (loss) before income tax |
|
|
(15,974 |
) |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Income tax benefit |
|
|
(54 |
) |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net loss |
|
$ |
(15,920 |
) |
|
|
|
Adjusted EBITDA |
|
$ |
(5,595 |
) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
Six Months Ended |
|
|||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Adj |
|
|
|
|
|||||||||||||||||||
|
|
|
As |
|
Adj |
Adj |
|
Stock |
|
|
Adj |
|
|||||||||||||||||||
|
|
|
Reported |
|
Depreciation |
Amortization |
|
Compensation |
Other (1) |
|
EBITDA |
|
|||||||||||||||||||
|
Net revenue |
|
$ |
99,426 |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
99,426 |
|
|||||||||||
|
Cost of revenue |
|
|
73,415 |
|
|
(1,028 |
) |
|
– |
|
|
(337 |
) |
|
– |
|
|
72,050 |
|
|||||||||||
|
Gross Profit |
|
|
26,011 |
|
|
1,028 |
|
|
– |
|
|
337 |
|
|
– |
|
|
27,376 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Operating expenses |
|
|
48,296 |
|
|
(920 |
) |
|
(513 |
) |
|
(6,591 |
) |
|
(5,294 |
) |
|
34,978 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Operating income (loss) |
|
|
(22,285 |
) |
|
1,948 |
|
|
513 |
|
|
6,928 |
|
|
5,294 |
|
|
(7,602 |
) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Interest expense |
|
|
146 |
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Other non-operating expense, net |
|
|
318 |
|
|
|
|
|
|
|
|
318 |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Income (loss) before income tax |
|
|
(22,749 |
) |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Income tax benefit |
|
|
(124 |
) |
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Net loss |
|
$ |
(22,625 |
) |
|
|
|
Adjusted EBITDA |
|
$ |
(7,920 |
) |
||||||||||||||||||
|
(1) Other includes certain non-recurring business costs. |
||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||
|
GAAP to Adjusted EBITDA Reconciliation |
||||||||||||||||||||||||||||
|
(in thousands) |
||||||||||||||||||||||||||||
|
Table 5. (continued) |
||||||||||||||||||||||||||||
|
|
|
Three Months Ended |
|
|||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Adj |
|
|
|
|
|
|||||||||||||||
|
|
|
As |
|
Adj |
|
Adj |
|
Stock |
|
|
|
Adj |
|
|||||||||||||||
|
|
|
Reported |
|
Depreciation |
|
Amortization |
|
Compensation |
|
Other (1) |
|
EBITDA |
|
|||||||||||||||
|
Net revenue |
|
$ |
41,300 |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
41,300 |
|
|||||||||
|
Cost of revenue |
|
|
33,418 |
|
|
(601 |
) |
|
– |
|
|
(96 |
) |
|
(1 |
) |
|
32,720 |
|
|||||||||
|
Gross Profit |
|
|
7,882 |
|
|
601 |
|
|
– |
|
|
96 |
|
|
1 |
|
|
8,580 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Operating expenses |
|
|
29,255 |
|
|
(665 |
) |
|
(311 |
) |
|
(1,934 |
) |
|
(6,793 |
) |
|
19,552 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Operating income (loss) |
|
|
(21,373 |
) |
|
1,266 |
|
|
311 |
|
|
2,030 |
|
|
6,794 |
|
|
(10,972 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest expense |
|
|
84 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other non-operating expense, net |
|
|
1,109 |
|
|
|
|
|
|
|
|
|
|
1,109 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Income (loss) before income tax |
|
|
(22,566 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income tax benefit |
|
|
(4,740 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net loss |
|
$ |
(17,826 |
) |
|
|
|
|
Adjusted EBITDA |
|
$ |
(12,081 |
) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
Six Months Ended |
|
|||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Adj |
|
|
|
|
|
|||||||||||||||
|
|
|
As |
|
Adj |
|
Adj |
|
Stock |
|
|
|
Adj |
|
|||||||||||||||
|
|
|
Reported |
|
Depreciation |
|
Amortization |
|
Compensation |
|
Other (1) |
|
EBITDA |
|
|||||||||||||||
|
Net revenue |
|
$ |
87,962 |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
– |
|
$ |
87,962 |
|
|||||||||
|
Cost of revenue |
|
|
66,051 |
|
|
(1,185 |
) |
|
– |
|
|
(122 |
) |
|
(1 |
) |
|
64,743 |
|
|||||||||
|
Gross Profit |
|
|
21,911 |
|
|
1,185 |
|
|
– |
|
|
122 |
|
|
1 |
|
|
23,219 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Operating expenses |
|
|
51,571 |
|
|
(1,273 |
) |
|
(623 |
) |
|
(3,445 |
) |
|
(7,025 |
) |
|
39,205 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Operating income (loss) |
|
|
(29,660 |
) |
|
2,458 |
|
|
623 |
|
|
3,567 |
|
|
7,026 |
|
|
(15,986 |
) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest expense |
|
|
193 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Other non-operating expense, net |
|
|
1,828 |
|
|
|
|
|
|
|
|
|
|
1,828 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Income (loss) before income tax |
|
|
(31,681 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income tax benefit |
|
|
(7,379 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net loss |
|
$ |
(24,302 |
) |
|
|
|
|
Adjusted EBITDA |
|
$ |
(17,814 |
) |
|||||||||||||||
|
(1) Other includes certain non-recurring business costs. |
||||||||||||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230807807781/en/
Sr. Director, Public Relations &
858.914.5093
maclean.marshall@turtlebeach.com
Investor Information:
949.574.3860
hear@gateway-grp.com
Source: