Turtle Beach Corp 10-K

Item 5 - Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s stock is traded on the Nasdaq Global Market under the symbol “HEAR.” The number of holders of record of common stock at January 31, 2021 was 948. Stock Performance Graph Notwithstanding any statement to the contrary in any of our previous or future filings with the SEC, the following information relating to the price performance of our common stock shall not be deemed to be “filed” with the SEC for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to be “soliciting material” or subject to Rule 14A of the Exchange Act, or to be incorporated by reference into any of our filings under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act whether made before or after the date of this Report, except to the extent we specifically incorporate it by reference into such filing. The following graph shows a comparison from December 31, 2015 through December 31, 2020 of the cumulative total return assuming a $100 investment in our common stock, the S&P 500 Index and the S&P 500 Consumer Durables Index. In accordance with the rules of the Securities and Exchange Commission, the returns are indexed to a value of $100 at December 31, 2015 and assume that all dividends, if any, were reinvested. The comparisons in this graph below are based on historical data and are not intended to forecast or be indicative of future performance of our common stock. Dividend Policy We have not paid regular cash dividends on our common stock and do not anticipate paying cash dividends in the foreseeable future. Any future determination to pay cash dividends will be at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements and such other factors as our board of directors deems relevant. 19 Unregistered Sale of Equity Securities and Issuer Purchases of Equity Securities On April 9, 2019, the Company’s board of directors authorized a stock repurchase program to acquire up to $15.0 million of its common stock. Any repurchases under the program will be made from time to time on the open market at prevailing market prices. The following table summarizes, by month, the repurchases made during the three months ended December 31, 2020, under the repurchase program and in connection with shares repurchased from employees to satisfy tax withholding obligations in connection with the vesting of restricted stock awards. Issuer Purchases of Equity Securities Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs Period October 1 - 31, 2020 — $ — — — November 1 - 30, 2020 6,204 $ 17.80 — — December 1 - 31, 2020 — $ — — — Total 6,204 $ 17.80 — For the fourth quarter of 2020, we repurchased approximately $0.1 million of common shares related to employee transactions. These amounts represent common shares repurchased from employees in an amount equal to the statutory tax liability associated with the vesting of their equity awards, which is then remitted on behalf of the employee. Securities Authorized for Issuance under Equity Compensation Plans See Part III, Item 12 - Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters in this Report for disclosure relating to our equity compensation plans. Such information will be included in our Proxy Statement or an amendment to this Report, which is incorporated herein by reference. Item 6 - Selected Financial Data The following table sets forth selected consolidated financial data for each of the five years ended December 31, 2020. This selected financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the notes thereto included in this Report. Year Ended December 31, 2020 2019 (1) 2018 2017 2016 (2) (in thousands, except per share data) Net Revenue $ 360,093 $ 234,663 $ 287,437 $ 149,135 $ 173,978 Cost of Revenue 226,305 155,950 178,738 98,132 131,368 Gross Profit 133,788 78,713 108,699 51,003 42,610 Gross Margin 37.2 % 33.5 % 37.8 % 34.2 % 24.5 % Operating income (loss) 49,167 10,427 54,041 4,798 (77,701 ) Operating Margin 13.7 % 4.4 % 18.8 % 3.2 % (44.7 %) Net income (loss) $ 38,746 $ 17,944 $ 39,190 $ (3,248 ) $ (87,182 ) Net earnings (loss) per share: Basic $ 2.62 $ 1.24 $ 2.90 $ (0.26 ) $ (7.18 ) Diluted $ 2.37 $ 1.04 $ 2.74 $ (0.26 ) $ (7.18 ) Weighted average number of shares: Basic 14,801 14,483 13,512 12,336 12,148 Diluted 16,365 15,688 14,289 12,336 12,148 Balance Sheet Data: Cash and cash equivalents 46,681 8,249 7,078 5,247 6,183 Total Assets 203,453 131,351 121,920 94,251 94,800 Total Debt — 15,655 37,385 70,265 66,875 Series B Redeemable Preferred Stock — — — 18,921 17,480 ( 1 ) In 2019, we acquired ROCCAT, which contributed revenue of $14.4 million in the year and $23.9 million of total assets on the date of acquisition. ( 2 ) Includes a $7.1 million charge for inventory reserves associated with the HyperSound restructuring and goodwill and other intangibles impairment charges of $63.2 million. 20