Published: August 05, 2010
Crocs, Inc. Reports 2010 Second Quarter Financial Results
NIWOT, Colo. - (BUSINESS WIRE) - Crocs, Inc. (NASDAQ: CROX) today reported financial results for the
second quarter ended June 30, 2010.
Revenue for the second quarter of 2010 increased 31% to $228.0 million,
over adjusted revenue of $174.1 million reported in the second quarter
of 2009, which excluded $23.7 million in previously impaired product
sales that the Company has stated would be non-recurring. On a GAAP
basis, second quarter revenue increased 15% year-over-year.
Second quarter 2010 net income was $32.3 million with diluted earnings
per share of $0.37, compared to a second quarter 2009 net loss of $30.3
million, or a loss per diluted share of ($0.36).
Year-over-year second quarter changes in the Company's channel revenue
streams were as follows:
-
Wholesale sales increased 12% to $140.0 million;
-
Retail sales increased 20% to $66.4 million; and
-
Internet sales increased 24% to $21.6 million.
Changes in the Company's regional revenue streams during the same
quarterly periods were as follows:
-
Americas increased 23% to $104.8 million;
-
Asia increased 11% to $88.6 million; and
-
Europe increased 7% to $34.6 million.
Gross profit for the second quarter of 2010 increased 30% to $131.9
million, or 57.8% as a percentage of sales, compared to $101.1 million,
or 51.1% of sales in the year ago period. Selling, General, &
Administrative expenses (including foreign exchange, restructuring,
impairment, and charitable contributions) decreased 25.8% to $93.2
million or 40.9% of sales, versus $125.6 million, or 63.5% of sales in
the second quarter of 2009.
Balance Sheet
The Company's cash and cash equivalents as of June 30, 2010 increased
25% to $96.9 million compared to $77.5 million at June 30, 2009. The
Company had no bank debt at June 30, 2010.
Inventory increased 2% to $113.6 million at June 30, 2010 from $111.6
million at June 30, 2009, resulting in inventory turnover of 3.5 times
in the current quarter.
The Company ended the second quarter of 2010 with accounts receivable of
$94.0 million compared to $67.1 million at June 30, 2009.
"We are very pleased with our second quarter results, which show further
strengthening of our global wholesale and consumer direct businesses"
commented John McCarvel, President and Chief Executive Officer. "We
believe sales are being driven by product innovation, improved service,
and brand building initiatives as well as new distribution from the
expansion of our company-operated stores and key wholesale accounts.
Importantly, our updated business model is generating enhanced
profitability and higher cash flow. We are encouraged with our recent
performance and believe we have the right strategies in place along with
the balance sheet strength to capitalize on the global opportunities
still in front of us."
Guidance
For the third quarter of 2010, the Company expects revenue of
approximately $205 million, a 24% increase over third quarter 2009
adjusted revenue of $165.7 million, which excludes $11.5 million in
impaired product sales that the Company has stated would be
non-recurring. On a GAAP basis, the company expects third quarter 2010
revenue to grow approximately 16% year-over-year.
The Company expects diluted earnings per share for the third quarter
2010 to increase to approximately $0.22 to $0.24 versus $0.09 in third
quarter 2009, which excludes last year's one time tax benefit of $0.16.
Conference Call Information
A conference call to discuss Crocs' second quarter 2010 financial
results is scheduled for today (August 5, 2010) 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 120 styles to suit every lifestyle. As
lighthearted as they are lightweight, Crocs footwear provides profound
comfort and support for any occasion and every season. All Crocs
branded shoes feature Croslite material, a proprietary, revolutionary
technology that produces soft, non-marking, and odor-resistant shoes
that conform to your feet.
Crocs products are sold in 125 countries. Every day, millions of
Crocs 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
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 crisis; 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 management
and information systems infrastructure; our ability to repatriate cash
held in foreign locations in a timely and cost-effective manner; our
ability to develop and sell new products; our ability to obtain and
protect intellectual property rights; the effect of competition in our
industry; and the effect of potential adverse currency exchange rate
fluctuations; 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.
|
CROCS, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
228,046
|
|
|
$
|
197,722
|
|
|
$
|
394,898
|
|
|
$
|
332,614
|
|
|
Cost of sales
|
|
|
96,127
|
|
|
|
96,610
|
|
|
|
176,275
|
|
|
|
181,771
|
|
|
Gross profit
|
|
|
131,919
|
|
|
|
101,112
|
|
|
|
218,623
|
|
|
|
150,843
|
|
|
Selling, general and administrative expenses
|
|
|
94,047
|
|
|
|
94,606
|
|
|
|
168,825
|
|
|
|
163,395
|
|
|
Foreign currency transaction losses (gains), net
|
|
|
(1,129
|
)
|
|
|
(3,623
|
)
|
|
|
(1,421
|
)
|
|
|
(214
|
)
|
|
Restructuring charges
|
|
|
-
|
|
|
|
5,915
|
|
|
|
2,539
|
|
|
|
5,953
|
|
|
Impairment charges
|
|
|
-
|
|
|
|
23,655
|
|
|
|
141
|
|
|
|
23,724
|
|
|
Charitable contributions expense
|
|
|
275
|
|
|
|
5,078
|
|
|
|
418
|
|
|
|
5,119
|
|
|
Income (loss) from operations
|
|
|
38,726
|
|
|
|
(24,519
|
)
|
|
|
48,121
|
|
|
|
(47,134
|
)
|
|
Interest expense
|
|
|
163
|
|
|
|
562
|
|
|
|
292
|
|
|
|
1,257
|
|
|
Gain on charitable contributions
|
|
|
(32
|
)
|
|
|
(2,024
|
)
|
|
|
(116
|
)
|
|
|
(2,024
|
)
|
|
Other (income) expense
|
|
|
(291
|
)
|
|
|
(343
|
)
|
|
|
(50
|
)
|
|
|
(1,446
|
)
|
|
Income (loss) before income taxes
|
|
|
38,886
|
|
|
|
(22,714
|
)
|
|
|
47,995
|
|
|
|
(44,921
|
)
|
|
Income tax (benefit) expense
|
|
|
6,602
|
|
|
|
7,567
|
|
|
|
9,994
|
|
|
|
7,777
|
|
|
Net income (loss)
|
|
$
|
32,284
|
|
|
$
|
(30,281
|
)
|
|
$
|
38,001
|
|
|
$
|
(52,698
|
)
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.38
|
|
|
|
($0.36
|
)
|
|
$
|
0.44
|
|
|
|
($0.62
|
)
|
|
Diluted
|
|
$
|
0.37
|
|
|
|
($0.36
|
)
|
|
$
|
0.43
|
|
|
|
($0.62
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands, except share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2010
|
|
December 31, 2009
|
|
June 30, 2009
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
96,867
|
|
|
$
|
77,343
|
|
|
$
|
77,477
|
|
|
Restricted cash
|
|
|
590
|
|
|
|
1,144
|
|
|
|
813
|
|
|
Accounts receivable, net
|
|
|
93,974
|
|
|
|
50,458
|
|
|
|
67,050
|
|
|
Inventories
|
|
|
113,553
|
|
|
|
93,329
|
|
|
|
111,615
|
|
|
Deferred tax assets, net
|
|
|
7,569
|
|
|
|
7,358
|
|
|
|
11,386
|
|
|
Income tax receivable
|
|
|
11,297
|
|
|
|
8,611
|
|
|
|
1,138
|
|
|
Other Receivables
|
|
|
11,715
|
|
|
|
16,140
|
|
|
|
7,126
|
|
|
Prepaid expenses and other current assets
|
|
|
14,277
|
|
|
|
12,871
|
|
|
|
13,884
|
|
|
Total current assets
|
|
|
349,842
|
|
|
|
267,254
|
|
|
|
290,489
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
66,731
|
|
|
|
71,084
|
|
|
|
74,475
|
|
|
Restricted cash
|
|
|
1,466
|
|
|
|
1,506
|
|
|
|
1,795
|
|
|
Intangible assets, net
|
|
|
41,335
|
|
|
|
35,984
|
|
|
|
34,026
|
|
|
Deferred tax assets, net
|
|
|
17,403
|
|
|
|
18,479
|
|
|
|
21,669
|
|
|
Marketable Securities
|
|
|
5,444
|
|
|
|
866
|
|
|
|
-
|
|
|
Other assets
|
|
|
14,832
|
|
|
|
14,565
|
|
|
|
15,113
|
|
|
Total assets
|
|
$
|
497,053
|
|
|
$
|
409,738
|
|
|
$
|
437,567
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
51,841
|
|
|
$
|
23,434
|
|
|
$
|
42,296
|
|
|
Accrued expenses and other current liabilities
|
|
|
58,544
|
|
|
|
53,589
|
|
|
|
48,711
|
|
|
Accrued restructuring charges
|
|
|
3,977
|
|
|
|
2,616
|
|
|
|
6,445
|
|
|
Income taxes payable
|
|
|
20,120
|
|
|
|
6,377
|
|
|
|
22,311
|
|
|
Note payable, current portion of long-term debt and capital lease
obligations
|
|
|
1,556
|
|
|
|
640
|
|
|
|
17,732
|
|
|
Total current liabilities
|
|
|
136,038
|
|
|
|
86,656
|
|
|
|
137,495
|
|
|
|
|
|
|
|
|
|
|
Long-term debt and capital lease obligations
|
|
|
1,434
|
|
|
|
912
|
|
|
|
-
|
|
|
Deferred tax liabilities, net
|
|
|
1,867
|
|
|
|
2,192
|
|
|
|
5,087
|
|
|
Long-term restructuring
|
|
|
103
|
|
|
|
520
|
|
|
|
663
|
|
|
Other liabilities
|
|
|
31,803
|
|
|
|
31,838
|
|
|
|
32,374
|
|
|
Total liabilities
|
|
|
171,245
|
|
|
|
122,118
|
|
|
|
175,619
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Common shares, par value $0.001 per share; 250,000,000 shares
authorized, 87,079,451 and 86,482,574 shares issued and outstanding,
respectively, at June 30, 2010 and 86,224,760 and 85,659,581 shares
issued and outstanding, respectively, at December 31, 2009 and
86,144,566 and 85,620,566 shares issued and outstanding,
respectively, at June 30, 2009.
|
|
|
87
|
|
|
|
85
|
|
|
|
84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Treasury Stock, at cost, 596,877 and 565,179 and 524,000 shares,
respectively
|
|
|
(24,963
|
)
|
|
|
(25,260
|
)
|
|
|
(25,022
|
)
|
|
Additional paid-in capital
|
|
|
272,146
|
|
|
|
266,472
|
|
|
|
256,981
|
|
|
Deferred compensation
|
|
|
-
|
|
|
|
-
|
|
|
|
(13
|
)
|
|
Retained earnings
|
|
|
60,156
|
|
|
|
22,155
|
|
|
|
11,535
|
|
|
Accumulated other comprehensive income
|
|
|
18,382
|
|
|
|
24,168
|
|
|
|
18,383
|
|
|
Total stockholders' equity
|
|
|
325,808
|
|
|
|
287,620
|
|
|
|
261,948
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
497,053
|
|
|
$
|
409,738
|
|
|
$
|
437,567
|
|
Investors:
ICR, Inc.
Brendon Frey, 203-682-8200
brendon.frey@icrinc.com
or
Media:
Crocs,
Inc.
Shelley Weibel, 303-848-7000
sweibel@crocs.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
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