LeapFrog 2003 Annual Report Download - page 28

Item 6. Selected Financial Data
Selected Consolidated Financial Data
The following selected consolidated financial data for the five years ended December 31, 2003, have been
derived from our consolidated financial statements. The following information is qualified by reference to, and
should be read in conjunction with, “Item 7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and the consolidated financial statements and related notes thereto.
For the Year Ended December 31,
2003 2002 2001 2000 1999
(In thousands, except per share data)
Consolidated Statements of Operations Data:
Net sales ..................................... $680,012 $531,772 $314,243 $160,128 $71,867
Gross profit ................................... 340,144 270,041 144,645 68,281 28,989
Income from operations ......................... 109,458 71,351 16,435 132 1,449
Net income (loss) .............................. $ 72,675 $ 43,444 $ 9,669 $ (2,259) $ 1,539
Net income (loss) per common share: ..............
Basic .................................... $ 1.27 $ 1.09 $ 0.29 $ (0.07) $ 0.05
Diluted .................................. $ 1.20 $ 0.86 $ 0.25 $ (0.07) $ 0.05
Shares used in calculating net income (loss) per
share: .....................................
Basic .................................... 57,246 39,695 33,449 32,462 31,878
Diluted .................................. 60,548 50,744 38,470 32,462 33,268
December 31,
2003 2002 2001 2000 1999
(In thousands)
Consolidated Balance Sheet Data:
Cash, cash equivalents, and short-term investments . . . $112,603 $ 73,327 $ 8,269 $ 5,327 $12,009
Working capital ............................... 368,456 224,685 117,960 30,323 35,569
Total assets ................................... 552,659 397,682 221,973 139,797 84,588
Long term debt ................................ — — 61,163 — —
Redeemable convertible Series A preferred stock ..... — — 24,139 — —
Total stockholders’ equity ....................... 415,146 268,798 72,848 61,811 63,751
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation.
Overview
We design, develop and market technology-based educational platforms, related interactive content and
stand-alone products for sale to retailers, distributors and schools. Since the founding of our business in 1995, we
have grown from a start-up business selling stand-alone educational toys into a company selling multiple
platform products and related interactive content, as well as stand-alone products, with total net sales in 2003 of
$680.0 million. We operate three business segments, which we refer to as U.S. Consumer, Education and
Training, and International. To date, we have sold our products predominantly through the toy sections of major
retailers. For further information regarding our three business segments, see “Note 23. Segment Reporting” in the
Notes to Consolidated Financial Statements included in this annual report on Form 10-K.
Our vision for LeapFrog is to become the leading brand for technology-based educational products for home
and school use for all ages around the world. We believe that LeapFrog is in the early stage of this vision. To
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