Attached files
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| 8-K - CROCS, INC. 8-K - Crocs, Inc. | a50047132.htm |
Exhibit 99.1
Crocs, Inc. Reports 2011 Third Quarter Financial Results
Third Quarter Revenue Increased 27.5% to $274.9 million
Cash Increased 54.1% to $220.4 million
Consolidated Backlog up 30.3%
NIWOT, Colo.--(BUSINESS WIRE)--October 27, 2011--Crocs, Inc. (NASDAQ: CROX) today reported financial results for the third quarter ended September 30, 2011.
Revenue for the third quarter of 2011 increased 27.5% to $274.9 million compared to revenue of $215.6 million in the third quarter of 2010. Net income for the third quarter of 2011 increased 20.8% to $30.2 million, or $0.33 per diluted share compared to net income of $25.0 million, or $0.28 per diluted share in the third quarter 2010 which included a one-time tax benefit of $3.0 million, or $0.03 per diluted share.
John McCarvel, President and Chief Executive Officer, stated: “We continued to experience strong global demand versus the prior year period, particularly in Asia. The performance of our spring / summer 2011 product line and the composition of our backlog at September 30, 2011 underscores the progress we have made diversifying Crocs beyond its clog origins. We still remain confident that our long-term brand and growing selection of sneakers, casual shoes, and boots have the ability to penetrate the cold weather selling season in each of our geographic regions. While these are competitive categories with established leaders, we believe we can continue to capture market share and further reduce the seasonality of our business over the long-term.”
Year-over year third quarter changes in the Company’s channel revenue streams were as follows:
- Wholesale sales increased 24.3% to $154.0 million;
- Retail sales increased 31.4% to $95.3 million; and
- Internet sales increased 33.7% to $25.6 million.
Year-over year third quarter changes in the Company’s regional revenue streams were as follows:
- Asia increased 40.6% to $111.2 million;
- Americas increased 18.0% to $122.7 million; and
- Europe increased 25.9% to $41.0 million.
Gross profit for the third quarter of 2011 increased 23.9% to $147.2 million, or 53.5% as a percentage of sales, from $118.8 million, or 55.1% of sales in same period last year. Selling, General, & Administrative expenses increased 21.0% to $111.6 million versus $92.2 million a year ago. As a percentage of sales, SG&A decreased to 40.6% from 42.8% in the third quarter of 2010.
Balance Sheet
Cash and cash equivalents at September 30, 2011 increased 54.1% to $220.4 million compared to $143.1 million at September 30, 2010. Inventories at September 30, 2011 were $151.1 million, up from $142.5 million at September 30, 2010.
Backlog
Backlog at September 30, 2011 increased 30.3% to $296.8 million compared to backlog of $227.8 million at September 30, 2010.
Guidance
For the fourth quarter of 2011, the Company expects revenue to be in the range of $200 to $205 million and diluted earnings per share to be between $0.03 and $0.05.
Mr. McCarvel concluded, “Our fourth quarter guidance reflects recent softness in our European business due to the current macroeconomic conditions. While we expect Europe to remain challenging as we move into 2012, we are pleased with the strength of our spring 2012 backlog in Asia and the Americas. We believe strong 33% growth in our consolidated spring backlog sets us up for continued growth into next year. The response from retailers to our new product introductions has been very positive in Asia and the Americas and we believe it will provide us with good momentum to start the New Year.”
Conference Call Information
A conference call to discuss Crocs’ third quarter 2011 financial results is scheduled for today (October 27, 2011) at 5:00 PM Eastern Time. A webcast of the call will take place simultaneously and can be accessed by clicking the ‘Investor Relations’ link under the Company section on www.crocs.com or at www.earnings.com. To listen to the broadcast, your computer must have Windows Media Player installed. If you do not have Windows Media Player, go to www.earnings.com prior to the call, where you can download the software for free.
About Crocs, Inc.
A world leader in innovative casual footwear for men, women and children, Crocs, Inc. (NASDAQ: CROX), offers several distinct shoe collections with more than 250 styles to suit every lifestyle. As lighthearted as they are lightweight, Crocs(TM) footwear provides profound comfort and support for any occasion and every season. All Crocs(TM) branded shoes feature Croslite(TM) material, a proprietary, revolutionary technology that produces soft, non-marking, and odor-resistant shoes that conform to your feet.
Crocs(TM) products are sold in 90 countries. Every day, millions of Crocs(TM) shoe lovers around the world enjoy the exceptional form, function, versatility and feel-good qualities of these shoes while at work, school and play.
Visit www.crocs.com for additional information.
Forward-looking statements
The matters regarding the future discussed in this news release include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding future revenue and earnings, backlog, future orders, prospects and product pipeline. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: macroeconomic issues, including, but not limited to, the current global financial conditions; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenue; changing fashion trends; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks; our ability to open and operate additional retail locations; and other factors described in our most recent annual report on Form 10-K under the heading “Risk Factors” and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission. We do not undertake any obligation to update publicly any forward-looking statements, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events, or otherwise.
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CROCS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
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Three Months Ended
September 30, |
Nine Months Ended
September 30, |
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| ($ thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 | |||||||||||
| Revenues | $ | 274,897 | $ | 215,605 | $ | 797,189 | $ | 610,503 | |||||||
| Cost of sales | (127,722) | (96,797) | (360,591) | (273,072) | |||||||||||
| Gross profit | 147,175 | 118,808 | 436,598 | 337,431 | |||||||||||
| Selling, general and administrative expenses | (111,597) | (92,192) | (307,858) | (261,017) | |||||||||||
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Foreign currency transaction losses gains (losses), net |
2,060 | 908 | 3,787 | 2,329 | |||||||||||
| Restructuring charges | - | - | - | (2,539) | |||||||||||
| Asset impairment | (495) | - | (527) | (141) | |||||||||||
| Charitable contributions expense | (75) | (78) | (1,911) | (496) | |||||||||||
| Income (loss) from operations | 37,068 | 27,446 | 130,089 | 75,567 | |||||||||||
| Interest expense | (204) | (153) | (632) | (445) | |||||||||||
| Gain on charitable contributions | 61 | 19 | 671 | 135 | |||||||||||
| Other (income) expense | (98) | (137) | (534) | (87) | |||||||||||
| Income (loss) before income taxes | 36,827 | 27,175 | 129,594 | 75,170 | |||||||||||
| Income tax (expense) benefit | (6,620) | (2,179) | (22,377) | (12,173) | |||||||||||
| Net income (loss) | $ | 30,207 | $ | 24,996 | $ | 107,217 | $ | 62,997 | |||||||
| Net income (loss) per common share: | |||||||||||||||
| Basic | $ | 0.34 | $ | 0.29 | $ | 1.21 | $ | 0.73 | |||||||
| Diluted | $ | 0.33 | $ | 0.28 | $ | 1.18 | $ | 0.72 | |||||||
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CROCS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
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($ thousands, except number of shares) |
September 30, 2011 |
December 31, 2010 |
September 30, 2010 |
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| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 220,388 | $ | 145,583 | $ | 143,057 | ||
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Accounts receivable, net of allowance for doubtful accounts of $14,457, $10,249 and $10,896, respectively. |
95,305 | 64,260 | 81,303 | |||||
| Inventories | 151,109 | 121,155 | 142,531 | |||||
| Deferred tax assets, net | 14,134 | 15,888 | 7,973 | |||||
| Income tax receivable | 16,460 | 9,062 | 9,597 | |||||
| Other receivables | 18,488 | 11,637 | 11,008 | |||||
| Prepaid expenses and other current assets | 18,654 | 13,429 | 14,276 | |||||
| Total current assets | 534,538 | 381,014 | 409,745 | |||||
| Property and equipment, net | 66,115 | 70,014 | 65,882 | |||||
| Intangible assets, net | 47,372 | 45,461 | 42,416 | |||||
| Deferred tax assets, net | 31,423 | 34,711 | 18,859 | |||||
| Other assets | 24,806 | 18,281 | 17,769 | |||||
| Total assets | $ | 704,254 | $ | 549,481 | $ | 554,671 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 57,354 | $ | 35,669 | $ | 66,763 | ||
| Accrued expenses and other current liabilities | 75,563 | 59,488 | 67,051 | |||||
| Deferred tax liabilities, net | 15,237 | 17,620 | 9 | |||||
| Income taxes payable | 22,373 | 23,084 | 18,188 | |||||
| Note payable, current portion of long-term debt and capital lease obligations | 1,232 | 1,901 | 1,861 | |||||
| Total current liabilities | 171,759 | 137,762 | 153,872 | |||||
| Deferred tax liabilities, net | 1,070 | 847 | 2,085 | |||||
| Long-term income tax payable | 35,427 | 29,861 | 28,518 | |||||
| Other liabilities | 5,749 | 4,905 | 5,249 | |||||
| Total liabilities | 214,005 | 173,375 | 189,724 | |||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred shares, par value $0.001 per share, 5,000,000 shares authorized, none outstanding. | - | - | - | |||||
| Common shares, par value $0.001 per share, 250,000,000 shares authorized, 90,232,212 and 89,725,726 shares issued and outstanding, respectively, at September 30, 2011 and 88,600,860 and 88,065,859 shares issued and outstanding, respectively, at December 31, 2010 and 87,705,254 and 87,136,697 shares issued and outstanding, respectively at September 30, 2010. | 90 | 88 | 87 | |||||
| Treasury stock, at cost, 506,486, 535,001 and 568,557 shares, respectively. | (20,103) | (22,008) | (23,610) | |||||
| Additional paid-in capital | 291,609 | 277,293 | 273,418 | |||||
| Retained earnings | 197,098 | 89,881 | 85,152 | |||||
| Accumulated other comprehensive income | 21,555 | 30,852 | 29,900 | |||||
| Total stockholders’ equity | 490,249 | 376,106 | 364,947 | |||||
| Total liabilities and stockholders’ equity | $ | 704,254 | $ | 549,481 | $ | 554,671 | ||
CONTACT:
Investor:
Crocs, Inc.
Kevin Kim, 303-848-7000
kkim@crocs.com
or
ICR,
Inc.
Brendon Frey, 203-682-8200
brendon.frey@icrinc.com
or
Media:
Crocs,
Inc.
Shelley Weibel, 303-848-7000
sweibel@crocs.com