Skullcandy - Advanced CFO

CASE STUDIES:

Skullcandy is a leading audio brand that reflects the collision of the music, fashion and action sports lifestyles. Rick Alden, the creator of several successful action sports companies and a lifelong industry enthusiast, founded the company in 2003. Their brand and distinctive logo symbolizes youth and rebellion, and embodies their motto, “Every revolution needs a soundtrack.” Skullcandy products are sold in the United States and in more than 70 other countries around the world.

They pioneered the distribution of headphones in specialty retailers focused on action sports and the youth lifestyle. Through this channel they reach consumer influencers, individuals who help establish and maintain the credibility and authenticity of our brand. Building on this foundation, they have successfully expanded their distribution to select consumer electronics, mass, sporting goods and mobile phone retailers.

Industeries

Retail, Consumer Products, Electronics, Manufacturing, Distribution.

Challenge

Engage a partner to assist with cash flow and growth challenges.

Amplēo

Implementation of inventory and purchasing controls, securing growth capital.

Continued Success

Skullcandy continued its growth and went public in 2011 and trades on the NASDAQ (SKUL).

CHALLENGE

Skullcandy needed controls in place to help manage its coming growth. In addition they knew they would need access to capital and needed a partner to assist them.

SOLUTION

During the early years, Amplēo provide a part-time CFO to help manage through their growth pains. Initially, Amplēo helped separate the owner’s personal finances from his business then to help them track and control inventory, purchasing and collections in a way that would give greater insight into, and control over cash flow. This control was crucial as the company, with Amplēo’s assistance met the challenge of over 7200% growth between 2004 and 2007 – often exceeding 300% growth annually. Amplēo helped the company in secure its first Accounts Receivable factoring line, its first equity capital from angel investors, and its first traditional bank line of credit. Because of Amplēo's deep knowledge of the company, they became the CEO’s strategic finance partner, frequently receiving calls or called into meetings to discuss important strategic ideas or decisions. This gave Rick the added confidence he needed to make big bets. As the business grew, it was time to hire a full-time CFO. Though Rick at first said, “You can’t leave…you’re my rent-a-FO”, Amplēo helped them select a great full-time CFO partner. Skullcandy went public in 2011 with a valuation in excess of $500 million and currently trades on the NASDAQ.