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ZAGG Announces Accelerated Consolidation of ZAGG and mophie, Adjusts Leadership Assignments and Focuses on Cost Down Initiatives; Reiterates 2016 Guidance

SALT LAKE CITY, June 16, 2016 (GLOBE NEWSWIRE) -- ZAGG Inc (ZAGG), a leading global mobile lifestyle company, today announced that consolidation of key operating teams at ZAGG and mophie is moving ahead of plan. The Company has now merged the North American sales teams, and integrated finance and accounting, information technology, eCommerce, legal, and its operating teams. The new structure aligns the Company’s core teams to more effectively leverage its combined resources. In addition, key leadership talent has been assigned new responsibilities to maximize strengths and make the business more efficient.

“Shortly after the acquisition we integrated our international teams, and it has proven to be very beneficial to our business. Following on that success, we’ve determined to move forward with these additional changes to streamline our business and improve our performance,” stated Randall Hales, CEO.

In addition to the organizational changes, the Company has kicked off a cost down initiative throughout all operating divisions with the goal of running an even more efficient organization. Details and updates on these initiatives will be provided on the second quarter earnings call to be held Tuesday, August 2, 2016.

The Company reiterates annual 2016 guidance as follows, with the forecast for net sales and Adjusted EBITDA at the low end of the range:

  • Net sales of $460 - $500 million
  • Gross profit margin (as a % of net sales) in a range of low to mid 30’s
  • Adjusted EBITDA of $60 - $65 million
  • Annual effective tax rate of approximately 40%

Safe Harbor Statement
In addition to the historical information contained in this press release, this release contains (and oral communications made by ZAGG may contain) statements that relate to future...