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8-K - FORM 8-K - LACROSSE FOOTWEAR INC | v58992e8vk.htm |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contacts:
David Carlson Executive Vice President and Chief Financial Officer LaCrosse Footwear, Inc. 503-262-0110 ext. 1331 |
Michael Newman Investor Relations StreetConnect, Inc. 800-654-3517 BOOT@stct.com |
LACROSSE FOOTWEAR REPORTS FIRST QUARTER RESULTS
First Quarter Impacted by Fluctuations in U.S. Military Orders;
Strong Growth Across Wholesale, Direct and International Sales Channels
First Quarter Impacted by Fluctuations in U.S. Military Orders;
Strong Growth Across Wholesale, Direct and International Sales Channels
Portland, Ore.April 21, 2011 LaCrosse Footwear, Inc. (Nasdaq: BOOT), a leading provider
of premium, branded footwear for work and outdoor users, today reported results for the first
quarter ended March 26, 2011.
For the first quarter of 2011, LaCrosse reported net sales of $25.2 million, compared to $34.2
million in the first quarter of 2010. The net loss was $0.7 million or ($.10) per diluted share in
the first quarter of 2011, compared to net income of $1.7 million or $0.25 per diluted share in the
first quarter of 2010.
The decrease in net sales in the first quarter of 2011 reflects a reduction in U.S. military
orders. Excluding the government channel, sales to the wholesale, direct and international
channels increased 14% collectively from the same period of 2010.
Sales to the work market were $16.1 million, down 39% from the same period of 2010, reflecting a
reduction of orders from the U.S. military. Sales to the outdoor market were $9.1 million for the
first quarter of 2011, up 16% from the same period of 2010. The increase in outdoor sales primarily
reflects strong demand for hiking and hunting products.
Gross margins for the first quarter of 2011 were 41.4% of net sales, up from 40.2% in the same
period of 2010. The year-over-year increase in gross margins primarily reflects the success of the
Companys new products and the strong growth of its wholesale and direct business. Operating
expenses were $11.4 million in the first quarter of 2011, up 3% from the same period in 2010,
reflecting increased investments in marketing and product development activities.
The Companys inventories were $46.9 million at the end of the first quarter of 2011, up from $21.9
million at the end of the same period in 2010. The increase in inventory reflects a strategic
decision to enhance availability of core products in order to address future at-once demand, the
growth of the Companys wholesale distribution network and preparedness of our U.S. military
business.
While we continue to see quarterly fluctuations of U.S. military orders, we achieved strong
growth across our wholesale, direct and international channels, as well as continued penetration
into various branches of the U.S. government, said Joseph P. Schneider, president and CEO of
LaCrosse Footwear, Inc. Our sales to the outdoor market were particularly robust, as our
relationships with major retailers continue to strengthen and we expand into new retail stores. Our
newest products have been very well received and we see strong demand for both our core work and
outdoor products.
As we move into the second quarter of 2011, we are encouraged by the significant growth in our
wholesale backlog, by the enthusiastic response of our customers to our innovative new products for
Fall 2011 and by the effectiveness of our new sales and marketing efforts. Today we also announced
another order from the United States Marine Corps which will be delivered during the second quarter
of 2011, who turned to us to fulfill an immediate need for high-performance, all-terrain boots as a
result of the recent recall of boots supplied by another manufacturer. While we expect to see
ongoing quarter-to-quarter fluctuations, we believe that our business overall can best be evaluated
on an annual basis and LaCrosse is well-positioned to continue to capture market share over the
long term.
Based on the Companys financial outlook, the Board of Directors today announced the approval of a
quarterly dividend of $0.125 per share of common stock. The second quarter dividend will be paid on
June 18, 2011 to shareholders of record as of the close of business on May 22, 2011. The Board of
Directors, while not declaring future dividends to be paid, has established a quarterly dividend
policy reflecting its intent to declare and pay a quarterly dividend of $0.125 per share of common
stock.
First Quarter 2011 Conference Call
LaCrosse will host a conference call to discuss its financial results today, April 21, 2011 at 2:00
PM Pacific (5:00 PM Eastern). A broadcast of the conference call and accompanying slideshow
presentation will be available at www.lacrossefootwearinc.com under Investor Events or by calling
866-225-8754 or +1 480-629-9692. A 48-hour replay will be available by calling 800-406-7325 or +1
303-590-3030 (Access Code: 4422525).
About LaCrosse Footwear, Inc.
LaCrosse Footwear, Inc. is a leading developer and marketer of branded, premium and innovative
footwear for work and outdoor users. The Companys trusted Danner® and LaCrosse® brands are sold to
a network of specialty retailers and distributors in the United States, Canada, Europe and Asia.
Work consumers include people in law enforcement, transportation, mining, oil and gas exploration
and extraction, construction, Government services and other occupations that require
high-performance and protective footwear as a critical tool for the job. Outdoor consumers
include people active in hunting, outdoor cross-training, hiking and other outdoor recreational
activities. For more information about LaCrosse Footwear products, please visit our Internet
websites at www.lacrossefootwear.com and www.danner.com. For additional investor information, see
our corporate website at www.lacrossefootwearinc.com.
Forward-Looking Statements
All statements, other than statements of historical facts, included in this release, are
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. Words such as plan, expect, aim, believe, project, target, anticipate,
intend, estimate, will, should, could and other terms of similar meaning, typically
identify such forward-looking statements. Forward-looking statements include without limitation,
statements regarding the anticipated success of new products, our ability to continue to innovate
new products, our ability to broaden awareness and demand for our brands, our ability to capture
market share in the future, our expectations concerning future demand for our products, and the
Board of Directors intent to declare and pay dividends in future periods. The Company assumes no
obligation to update or revise any forward-looking statements to reflect the occurrence or
non-occurrence of future events or circumstances.
The forward-looking statements included in this release are based on certain assumptions and
expectations of future events and trends that are subject to risks and uncertainties. Risk factors
and other uncertainties which may adversely impact the outcome of such forward-looking statements
include the risk factors set forth in our 2010 Annual Report on Form 10-K, as supplemented by our
quarterly reports on Form 10-Q for 2011.
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)
(Unaudited)
Quarter Ended | ||||||||
March 26, | March 27, | |||||||
2011 | 2010 | |||||||
Net sales |
$ | 25,188 | $ | 34,227 | ||||
Cost of goods sold |
14,751 | 20,459 | ||||||
Gross profit |
10,437 | 13,768 | ||||||
Operating expenses |
11,384 | 11,037 | ||||||
Operating income (loss) |
(947 | ) | 2,731 | |||||
Non-operating expense |
(125 | ) | (22 | ) | ||||
Income (loss) before income taxes |
(1,072 | ) | 2,709 | |||||
Income tax provision (benefit) |
(422 | ) | 1,047 | |||||
Net income (loss) |
$ | (650 | ) | $ | 1,662 | |||
Net income (loss) per common share: |
||||||||
Basic |
$ | (0.10 | ) | $ | 0.26 | |||
Diluted |
$ | (0.10 | ) | $ | 0.25 | |||
Weighted average number of common shares outstanding: |
||||||||
Basic |
6,485 | 6,371 | ||||||
Diluted |
6,485 | 6,529 | ||||||
Supplemental Product Line Information |
||||||||
Work Market Sales |
$ | 16,056 | $ | 26,363 | ||||
Outdoor Market Sales |
9,132 | 7,864 | ||||||
$ | 25,188 | $ | 34,227 | |||||
LaCrosse Footwear, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
March 26, | December 31, | March 27, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Assets: |
||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
$ | 527 | $ | 4,274 | $ | 19,713 | ||||||
Trade and other accounts receivable, net |
15,666 | 22,834 | 16,933 | |||||||||
Inventories |
46,869 | 40,071 | 21,928 | |||||||||
Prepaid expenses and other |
984 | 1,321 | 1,026 | |||||||||
Deferred tax assets |
1,675 | 1,614 | 1,552 | |||||||||
Total current assets |
65,721 | 70,114 | 61,152 | |||||||||
Property and equipment, net |
16,000 | 16,154 | 8,446 | |||||||||
Goodwill |
10,753 | 10,753 | 10,753 | |||||||||
Other assets |
243 | 249 | 369 | |||||||||
Total assets |
$ | 92,717 | $ | 97,270 | $ | 80,720 | ||||||
Liabilities and Shareholders Equity: |
||||||||||||
Current Liabilities: |
||||||||||||
Short-term borrowings |
$ | 6,247 | $ | | $ | | ||||||
Accounts payable |
10,553 | 16,477 | 7,211 | |||||||||
Accrued compensation |
1,301 | 4,261 | 2,088 | |||||||||
Other accruals |
1,994 | 3,356 | 3,012 | |||||||||
Total current liabilities |
20,095 | 24,094 | 12,311 | |||||||||
Long-term debt |
225 | 263 | | |||||||||
Deferred revenue |
548 | 566 | 188 | |||||||||
Deferred lease obligations |
813 | 782 | 635 | |||||||||
Compensation and benefits |
4,146 | 4,385 | 4,493 | |||||||||
Deferred tax liabilities |
3,053 | 2,732 | 2,211 | |||||||||
Total liabilities |
28,880 | 32,822 | 19,838 | |||||||||
Total shareholders equity |
63,837 | 64,448 | 60,882 | |||||||||
Total liabilities and shareholders equity |
$ | 92,717 | $ | 97,270 | $ | 80,720 | ||||||
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
Quarter Ended | ||||||||
March 26, | March 27, | |||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | (650 | ) | $ | 1,662 | |||
Adjustments to reconcile net income (loss) to net cash provided |
||||||||
by (used in) operating activities: |
||||||||
Depreciation and amortization |
883 | 688 | ||||||
Stock-based compensation expense |
257 | 234 | ||||||
Deferred income taxes |
260 | (175 | ) | |||||
Loss on disposal of property and equipment |
74 | | ||||||
Changes in operating assets and liabilities: |
||||||||
Trade and other accounts receivable |
7,190 | 4,702 | ||||||
Inventories |
(6,724 | ) | 5,103 | |||||
Accounts payable |
(5,993 | ) | (825 | ) | ||||
Accrued expenses and other |
(4,163 | ) | (2,124 | ) | ||||
Net cash provided by (used in) operating activities |
(8,866 | ) | 9,265 | |||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(791 | ) | (682 | ) | ||||
Cash flows from financing activities: |
||||||||
Net proceeds from short-term borrowings |
6,247 | | ||||||
Cash dividends paid |
(812 | ) | (7,201 | ) | ||||
Purchase of treasury stock |
| (59 | ) | |||||
Proceeds from exercise of stock options |
451 | 796 | ||||||
Net cash provided by (used in) financing activities |
5,886 | (6,464 | ) | |||||
Effect of foreign currency exchange rate changes on cash and |
||||||||
cash equivalents |
24 | (145 | ) | |||||
Net increase (decrease) in cash and cash equivalents |
(3,747 | ) | 1,974 | |||||
Cash and cash equivalents: |
||||||||
Beginning of period |
4,274 | 17,739 | ||||||
End of period |
$ | 527 | $ | 19,713 | ||||