Skullcandy is a company many investors and many adults may have never heard of. That may change as the company has now updated the SEC paperwork for an IPO. The company first filed an S-1 in January to come public, and it has now updated its paperwork to show some expected IPO terms. The company intends to raise up to $182 million in new equity capital through issuance of 4.2 million shares of common stock. The expected offering price is $17 to $19 per share. The company anticipates listing its shares on the NASDAQ under the symbol “SKUL.”
The company a audio brand for headphones, and it sells apparel and accessories as well. Its motto is “Every revolution needs a soundtrack” and it has more advanced headphones than traditional in-ear headsets used by most music players. This was not one of our Top 17 IPOs for 2011, but this is riding the multimedia and consumer electronics spending wave.
It offers Link Technology for integrated mobile phones and personal media devices, and it now offers Skullcrusher headphones and headphones with bold color schemes, loud patterns, unique materials and creative packaging from a wide array of styles and price points. It is expanding into complementary audio products and accessories. The company is promoted through DJ’s, skateboarding, skiing, snowboarding, surfing, BMX, Moto-sports and more.
Skullcandy has increased net sales from $9.1 million in 2006 to $160.6 million in 2010. Sales in the first three months of 2011 were $36 million, more than 65% greater than 2010 three-month sales of $21.6 million. The company posted net income of $1.1 million for the first quarter of 2011 compared with a first-quarter loss of $808 thousand in 2010.
The Full SEC S-1 Filing lists Merrill Lynch, Morgan Stanley, Jefferies, Piper Jaffray, KeyBanc Capital Markets and Raymond James as underwriters.