UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended: July 3, 2004 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number: 0-19848
FOSSIL, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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75-2018505 |
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(State or other
jurisdiction of |
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(I.R.S. Employer |
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2280 N. Greenville Avenue, Richardson, Texas 75082 |
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(Address of principal
executive offices) |
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(972) 234-2525 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
The number of shares of Registrant’s common stock outstanding as of August 9, 2004: 70,773,815
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FOSSIL, INC. AND SUBSIDIARIES
(In thousands)
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July 3, |
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January 3, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
136,072 |
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$ |
158,062 |
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Short-term marketable investments |
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5,957 |
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5,991 |
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Accounts receivable – net |
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105,325 |
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119,852 |
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Inventories |
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162,186 |
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126,789 |
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Deferred income tax assets |
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9,320 |
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8,653 |
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Prepaid expenses and other current assets |
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25,594 |
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19,973 |
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Total current assets |
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444,454 |
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439,320 |
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Investment in joint venture |
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5,392 |
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4,635 |
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Property, plant and equipment – net |
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118,634 |
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116,066 |
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Goodwill – net |
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57,887 |
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18,390 |
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Intangible and other assets – net |
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11,535 |
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9,130 |
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$ |
637,902 |
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$ |
587,541 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Notes payable |
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$ |
2,768 |
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$ |
2,805 |
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Current portion of obligations under capital leases |
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95 |
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— |
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Accounts payable |
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38,460 |
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32,362 |
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Accrued expenses: |
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Accrued accounts payable |
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19,279 |
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16,772 |
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Accrued royalties |
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8,961 |
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10,543 |
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Compensation |
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16,925 |
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15,648 |
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Co-op advertising |
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10,016 |
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14,292 |
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Other |
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13,555 |
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11,040 |
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Income taxes payable |
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23,879 |
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22,297 |
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Total current liabilities |
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133,938 |
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125,759 |
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Deferred income tax liability |
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41,487 |
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32,861 |
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Obligations under capital leases |
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1,415 |
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— |
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Total long-term liabilities |
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42,902 |
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32,861 |
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Minority interest in subsidiaries |
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5,246 |
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5,495 |
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Stockholders’ equity: |
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Common stock, 70,767 and 69,942 shares issued and outstanding, respectively |
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707 |
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699 |
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Additional paid-in capital |
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35,525 |
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25,648 |
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Retained earnings |
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411,479 |
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379,354 |
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Accumulated other comprehensive income |
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12,216 |
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20,969 |
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Deferred compensation |
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(4,111 |
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(3,244 |
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Total stockholders’ equity |
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455,816 |
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423,426 |
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$ |
637,902 |
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$ |
587,541 |
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See notes to condensed consolidated financial statements.
1
FOSSIL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
UNAUDITED
(In thousands, except per share amounts)
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For the 13 |
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For the 13 |
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For the 26 |
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For the 26 |
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July 3, 2004 |
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July 5, 2003 |
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July 3, 2004 |
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July 5, 2003 |
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Net sales |
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$ |
206,122 |
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$ |
159,593 |
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$ |
405,517 |
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$ |
329,360 |
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Cost of sales |
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97,101 |
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77,725 |
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192,876 |
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161,876 |
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Gross profit |
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109,021 |
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81,868 |
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212,641 |
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167,484 |
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Operating expenses: |
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Selling and distribution |
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61,237 |
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51,141 |
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118,285 |
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102,279 |
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General and administrative |
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23,749 |
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14,529 |
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43,842 |
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29,185 |
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Total operating expenses |
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84,986 |
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65,670 |
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162,127 |
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131,464 |
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Operating income |
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24,035 |
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16,198 |
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50,514 |
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36,020 |
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Interest expense |
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5 |
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4 |
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10 |
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8 |
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Other income – net |
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1,018 |
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512 |
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488 |
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279 |
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Income before income taxes |
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25,048 |
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16,706 |
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50,992 |
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36,291 |
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Provision for income taxes |
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9,268 |
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6,317 |
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18,867 |
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