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8-K - FORM 8-K - LACROSSE FOOTWEAR INC | v59643e8vk.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 SECOND QUARTER RESULTS
Strong Growth Across Wholesale, Direct and International Sales Channels;
Sales to the Outdoor Market Up 18% Year-Over-Year
Strong Growth Across Wholesale, Direct and International Sales Channels;
Sales to the Outdoor Market Up 18% Year-Over-Year
Portland, Ore.July 21, 2011 LaCrosse Footwear, Inc. (Nasdaq: BOOT), a leading provider of
premium, branded footwear for work and outdoor users, today reported results for the second quarter
ended June 25, 2011.
For the second quarter of 2011, LaCrosse reported net sales of $27.1 million, up 2% from $26.6
million in the second quarter of 2010. For the first half of of 2011, net sales were $52.2
million, compared to $60.8 million in the same period of 2010. Excluding the government channel,
the Companys combined sales to its wholesale, direct and international channels increased 13% in
both the second quarter and the first half of 2011 compared to the same periods in 2010.
For the second quarter of 2011, the net loss was $0.2 million or ($0.03) per diluted share,
compared to net income of $0.1 million or $0.02 per diluted share in the second quarter of 2010.
For the first half of 2011, the net loss was $0.8 million or ($0.13) per diluted share, compared to
net income of $1.8 million or $0.27 per diluted share in the same period of 2010.
Sales to the work market were $17.6 million in the second quarter of 2011, down 5% from the same
period of 2010, reflecting a reduction of contract orders from the U.S. military and the Companys
decision in 2010 to discontinue its work apparel products. Excluding the contract military and the
work apparel sales, work sales in the second quarter of 2011 increased 17% from the same period in
2010. Sales to the outdoor market were $9.4 million in the second quarter of 2011, up 18% from the
same period of 2010. The increase in outdoor sales primarily reflects strong demand for hunting and
hiking products.
Gross margins for the second quarter of 2011 were 38.5% of net sales, compared to 40.9% in the same
period of 2010. The year-over-year decrease in gross margins primarily reflects an increase in
closeout sales of discontinued work apparel products. Operating expenses were $10.6 million in the
second quarter of 2011, down 1% from the same period in 2010, primarily related to a reduction in
compensation expense, partially offset by increased investments in marketing and product
development initiatives.
The Companys inventories were $53.4 million at the end of the second quarter of 2011, up from
$26.4 million at the end of the same period in 2010. The year-over-year increase in inventory
reflects low
inventory levels in the second quarter of 2010 due to supply constraints and a strategic decision
in 2011 to enhance the availability of core products in order to address future at-once demand, the
growth of the Companys wholesale distribution network and preparedness for its U.S. military
business.
Aside from continuing quarterly fluctuations in U.S. military orders, our business is
performing well, with strong growth across our wholesale, direct and international channels, said
Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. Our sales to the outdoor market
continue to be very robust, as our relationships with major retailers have continued to strengthen
and we expand into their new retail stores. We see strong demand for both our core work and
outdoor products, and our newest products for Fall 2011 are being very well received, including our
innovative retooling of classic Danner designs in our new Stumptown series.
As we move into the second half of 2011, we are executing our strategic plan and benefitting from
the key investments and initiatives that weve made in recent years. Our stronger sales
organization and distribution infrastructure continues to deepen our wholesale channel
relationships, both in the U.S. and internationally. Our enhanced e-commerce platforms continue to
expand our direct business, and our talented development team continues to introduce a wide range
of innovative new products for Spring 2012.
While the contract military business remains quite competitive and unpredictable, we have
established LaCrosse as a trusted partner to various branches of the U.S. military that can fulfill
their time-sensitive needs for high-performance, all-terrain, all-weather boots. We continue to
believe that our overall business is best evaluated on an annual basis and that LaCrosse is
well-positioned 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 third quarter dividend will be paid on
September 18, 2011 to shareholders of record as of the close of business on August 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.
Second Quarter 2011 Conference Call
LaCrosse will host a conference call to discuss its financial results today, July 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
800-762-8779 or +1 480-629-9818. A 48-hour replay will be available by calling 800-406-7325 or +1
303-590-3030 (Access Code: 4452259).
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 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 potential impact on our earnings and results of operations of U.S. government policies
concerning drawdown of troop deployments in various global regions and 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)
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)
(Unaudited)
Quarter Ended | First Half Year Ended | |||||||||||||||
June 25, | June 26, | June 25, | June 26, | |||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 27,056 | $ | 26,553 | $ | 52,244 | $ | 60,780 | ||||||||
Cost of goods sold |
16,646 | 15,690 | 31,397 | 36,149 | ||||||||||||
Gross profit |
10,410 | 10,863 | 20,847 | 24,631 | ||||||||||||
Operating expenses |
10,603 | 10,668 | 21,987 | 21,705 | ||||||||||||
Operating income (loss) |
(193 | ) | 195 | (1,140 | ) | 2,926 | ||||||||||
Non-operating expense, net |
(113 | ) | (33 | ) | (238 | ) | (55 | ) | ||||||||
Income (loss) before income taxes |
(306 | ) | 162 | (1,378 | ) | 2,871 | ||||||||||
Income tax provision (benefit) |
(121 | ) | 61 | (543 | ) | 1,108 | ||||||||||
Net income (loss) |
$ | (185 | ) | $ | 101 | $ | (835 | ) | $ | 1,763 | ||||||
Net income (loss) per common share: |
||||||||||||||||
Basic |
$ | (0.03 | ) | $ | 0.02 | $ | (0.13 | ) | $ | 0.28 | ||||||
Diluted |
$ | (0.03 | ) | $ | 0.02 | $ | (0.13 | ) | $ | 0.27 | ||||||
Weighted average number of common
shares outstanding: |
||||||||||||||||
Basic |
6,501 | 6,430 | 6,493 | 6,401 | ||||||||||||
Diluted |
6,501 | 6,632 | 6,493 | 6,577 | ||||||||||||
Supplemental Product Line Information |
||||||||||||||||
Work Market Sales |
$ | 17,636 | $ | 18,585 | $ | 33,692 | $ | 44,953 | ||||||||
Outdoor Market Sales |
9,420 | 7,968 | 18,552 | 15,827 | ||||||||||||
$ | 27,056 | $ | 26,553 | $ | 52,244 | $ | 60,780 | |||||||||
LaCrosse Footwear, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
June 25, | December 31, | June 26, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
Assets: |
||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
$ | 622 | $ | 4,274 | $ | 17,317 | ||||||
Trade and other accounts receivable, net |
15,358 | 22,834 | 16,260 | |||||||||
Inventories, net |
53,400 | 40,071 | 26,410 | |||||||||
Prepaid expenses and other |
1,156 | 1,321 | 1,191 | |||||||||
Deferred tax assets |
1,754 | 1,614 | 1,450 | |||||||||
Total current assets |
72,290 | 70,114 | 62,628 | |||||||||
Property and equipment, net |
16,002 | 16,154 | 12,135 | |||||||||
Goodwill |
10,753 | 10,753 | 10,753 | |||||||||
Other assets |
235 | 249 | 347 | |||||||||
Total assets |
$ | 99,280 | $ | 97,270 | $ | 85,863 | ||||||
Liabilities and Shareholders Equity: |
||||||||||||
Current Liabilities: |
||||||||||||
Short-term borrowings |
$ | 13,404 | $ | | $ | | ||||||
Accounts payable |
10,470 | 16,477 | 12,872 | |||||||||
Accrued compensation |
1,806 | 4,261 | 2,850 | |||||||||
Other accruals |
1,928 | 3,356 | 1,773 | |||||||||
Total current liabilities |
27,608 | 24,094 | 17,495 | |||||||||
Long-term debt |
201 | 263 | 300 | |||||||||
Deferred revenue |
549 | 566 | 150 | |||||||||
Deferred lease obligations |
811 | 782 | 722 | |||||||||
Compensation and benefits |
3,939 | 4,385 | 4,306 | |||||||||
Deferred tax liabilities |
3,142 | 2,732 | 2,181 | |||||||||
Total liabilities |
36,250 | 32,822 | 25,154 | |||||||||
Total shareholders equity |
63,030 | 64,448 | 60,709 | |||||||||
Total liabilities and shareholders equity |
$ | 99,280 | $ | 97,270 | $ | 85,863 | ||||||
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
First Half Year Ended | ||||||||
June 25, | June 26, | |||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | (835 | ) | $ | 1,763 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating
activities: |
||||||||
Depreciation and amortization |
1,783 | 1,468 | ||||||
Stock-based compensation expense |
404 | 349 | ||||||
Deferred income taxes |
270 | (98 | ) | |||||
Loss on disposal of property and equipment |
97 | 4 | ||||||
Changes in operating
assets and liabilities: |
||||||||
Trade and other accounts receivable |
7,503 | 5,322 | ||||||
Inventories |
(13,242 | ) | 435 | |||||
Accounts payable |
(5,791 | ) | 3,517 | |||||
Accrued expenses and other |
(4,073 | ) | (2,816 | ) | ||||
Net cash provided by
(used in) operating activities |
(13,884 | ) | 9,944 | |||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(2,048 | ) | (3,865 | ) | ||||
Cash flows from financing activities: |
||||||||
Net proceeds from short-term borrowings |
13,404 | | ||||||
Net proceeds from long-term debt |
| 300 | ||||||
Cash dividends paid |
(1,625 | ) | (8,007 | ) | ||||
Purchase of treasury stock |
| (59 | ) | |||||
Proceeds from exercise of stock
options |
480 | 1,369 | ||||||
Net cash provided by (used in) financing activities |
12,259 | (6,397 | ) | |||||
Effect of foreign currency exchange rate changes on cash and cash equivalents |
21 | (104 | ) | |||||
Net decrease in cash and cash equivalents |
(3,652 | ) | (422 | ) | ||||
Cash and cash equivalents: |
||||||||
Beginning of period |
4,274 | 17,739 | ||||||
End of period |
$ | 622 | $ | 17,317 | ||||
END OF FILING