Spy Reports Q4 and Year End 2013 Financial Results

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CARLSBAD, Calif.— Spy Inc. (OTCBB: XSpy) has announced its financial results for the last three months and year ended Dec. 31, 2013.

Fourth quarter sales of Spy brand products were $8.6 million in 2013, an increase of 7 percent or $0.5 million over the fourth quarter of 2012. The fourth quarter Spy brand sales included higher closeout sales of $0.7 million in the fourth quarter of 2013 compared to $0.6 million in the fourth quarter of 2012, the company said. Total company net sales increased by 6 percent, or $0.5 million, to $8.6 million in the fourth quarter of 2013, compared to $8.1 million in the fourth quarter of 2012, primarily as a result of higher sales of the company’s snow goggle and optical products.

Annual sales of Spy brand products were $37.7 million in 2013, an increase of 8 percent or $2.6 million, compared to 2012’s $35.1 million. According to the company, Spy brand annual sales included slightly higher closeout sales of $2.8 million in 2013, compared to $2.6 million in 2012. Sales from discontinued licensed brand products, which are no longer a focus of the company, were less than $0.1 million in 2013, compared $0.5 million in 2012. Total company net sales increased by 6 percent, or $2.2 million, to $37.8 million for the year ended Dec. 31, 2013, compared to $35.6 million for 2012, primarily as a result of increased sales of the brand’s snow goggle and optical products, the company said.

“With continued strong Spy brand sales and an annual Spy brand growth of 8 percent for 2013 over 2012, we are happy to once again generate annual growth and achieve our 11th quarter in a row of year over year growth of our Spy brand products,” said Michael Marckx, president and CEO of Spy. “What is also noteworthy is we had income from operations of $0.4 million during 2013 compared to an operating loss of $5.0 million in 2012. We not only managed to significantly reduce our operating expenses for 2013, but also increased our margin to 50 percent in 2013 from 46 percent in 2012, which is a dramatic positive shift for us. This directly reflects the strong demand for our product offering as well as the operational and manufacturing efficiencies that we have achieved over the past year.”

Spy incurred a net loss of $1.3 million in the fourth quarter of 2013 compared to a net loss of $1.2 million in the fourth quarter of 2012. The company also reported an annual net loss of $2.9 million in 2013 compared to a net loss of $7.2 million in 2012. The primary difference between the net loss and income and loss from operations was due to interest expense on their long-term debt, the company said.