LeapFrog 2004 Annual Report Download - page 27

Item 6. Selected Financial Data
Selected Consolidated Financial Data
The following selected consolidated financial data for the five years ended December 31, 2004, 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,
2004 2003 2002 2001 2000
(In thousands, except per share data)
Consolidated Statements of Operations Data:
Net sales ...................................... $640,289 $680,012 $531,772 $314,243 $160,128
Gross profit ................................... 259,045 340,144 270,041 144,645 68,281
Income (loss) from operations ..................... (13,983) 109,458 71,351 16,435 132
Net income (loss) ............................... $ (6,528) $ 72,675 $ 43,444 $ 9,669 $ (2,259)
Net income (loss) per common share:
Basic .................................... $ (0.11) $ 1.27 $ 1.09 $ 0.29 $ (0.07)
Diluted ................................... $ (0.11) $ 1.20 $ 0.86 $ 0.25 $ (0.07)
Shares used in calculating net income (loss) per share:
Basic .................................... 59,976 57,246 39,695 33,449 32,462
Diluted ................................... 59,976 60,548 50,744 38,470 32,462
December 31,
2004 2003 2002 2001 2000
(In thousands)
Consolidated Balance Sheet Data:
Cash, cash equivalents, and short-term investments .... $ 88,747 $112,603 $ 73,327 $ 8,269 $ 5,327
Restricted cash ................................. 8,418 ————
Working capital (1) ............................. 370,877 368,456 224,685 117,960 30,323
Total assets ................................... 559,794 552,659 397,682 221,973 139,797
Long-term debt ................................ — — — 61,163 —
Redeemable convertible Series A preferred stock ..... — — — 24,139 —
Total stockholders’ equity ........................ 434,500 415,146 268,798 72,848 61,811
(1) Current assets less current liabilities
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. We operate three business segments, which we
refer to as U.S. Consumer, International, and Education and Training. 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 to our consolidated financial statements contained elsewhere in this annual report.
LeapFrog’s mission is to become the leading brand for quality, technology-based educational products for
home, school and work for all ages around the world. We believe that LeapFrog is in the early stage of
accomplishing this mission. To date, we have established our brand and products largely focused on infants,
toddlers, and children in preschool through grade school and primarily in the U.S. retail market. We believe that
LeapFrog is, first and foremost, an educational products company, and we use the toy form and price points to
make learning fun and cost-effective. As a result, our sales in our U.S. Consumer and International segments, our
20