Published: February 01, 2011
LaCrosse Footwear Reports Record Results for the Fourth Quarter and Full Year 2010
PORTLAND, Ore. - (BUSINESS WIRE) - LaCrosse Footwear, Inc. (Nasdaq:BOOT), a leading provider of premium,
branded footwear for work and outdoor users, today reported record
results for the fourth quarter and year ended December 31, 2010.
For the fourth quarter of 2010, LaCrosse reported net sales of $52.1
million, up 23% from $42.5 million in the fourth quarter of 2009. For
the full year 2010, net sales were $150.5 million, up 8% from $139.2
million in 2009.
Net income was $4.0 million or $0.60 per diluted share in the fourth
quarter of 2010, up 71% from $2.3 million or $0.36 per diluted share in
the fourth quarter of 2009. For the full year 2010, net income was $6.9
million or $1.04 per diluted share, up 25% from $5.5 million or $0.86
per diluted share in 2009.
Sales to the work market were $31.2 million for the fourth quarter and
$94.7 million for the full year of 2010, up 24% and 7%, respectively,
from the same periods of 2009. The increase in work sales primarily
reflects growth in sales to various areas of the U.S. government as well
as in specialized work footwear categories. Sales to the outdoor market
were $20.9 million for the fourth quarter and $55.8 million for the full
year of 2010, up 21% and 9%, respectively, from the same periods of
2009. The increase in outdoor sales reflects stronger demand in the
hunting and rugged outdoor categories.
Gross margins were 39.3% of net sales for the fourth quarter and the
full year of 2010, up from 38.4% and 38.9%, respectively, in the same
periods of 2009. The year-over-year increase in gross margins primarily
reflects a reduction in the volume of close-out sales.
During 2010, the Company reduced operating expenses to 31.7% of net
sales, down from 32.7% in 2009, despite increased investments in product
development and marketing activities. The improved operating leverage
was a result of growth in the Company's sales volumes, as well as
leveraging the Company's 2009 investments in its Midwest distribution
center and sales organizations in the U.S. and Europe.
The Company continued to maintain a strong balance sheet. At the end of
2010, LaCrosse had cash and cash equivalents of $4.3 million. During
2010, the Company made capital investments of $10.6 million which
included investments in its new domestic Danner factory and new flagship
Danner factory store. The Company also distributed dividends of $9.6
million to shareholders during 2010. The Company's investments in
inventories grew to $40.1 million at the end of 2010, up from $27.0 at
the end of 2009, primarily driven by a planned increase in inventory of
core products intended to improve availability for at-once demand.
"Our strong sales and earnings growth in the fourth quarter of 2010
demonstrates why our business is best evaluated on an annual basis,"
said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc.
"After being adversely impacted by supply constraints and the uncertain
timing of customer orders during the second and third quarters, our
strong performance in the fourth quarter resulted in record annual
revenue.
"Looking at the full year, we saw increased demand across all of our
channels and across our core work and outdoor markets, reflecting an
improving economic environment and the success of our innovative new
footwear. During the fourth quarter, our customers' response to our
next-generation Pronghorn hunting boot helped drive our significant
outdoor sales growth. Moreover, the improved business conditions among
our wholesale channel partners contributed strongly to our growth and
their outlook is increasingly positive.
"During 2010, we continued to take important steps to improve the
long-term efficiency and strength of our business. While continuing to
leverage the benefits of our Midwest distribution center and our
dedicated in-house sales team, we seamlessly expanded our domestic
manufacturing operations, opened our new flagship Danner factory store,
intensified our focus on core products and strengthened our position
with a number of our major retailer partners."
"As we move into 2011, our relationships with major retailers continue
to strengthen and our newest products have been very well received. We
plan to continue to introduce innovative new products and further
enhance our sales and marketing efforts to broaden awareness and demand
for our brands. While we expect to see continued quarter-to-quarter
fluctuations in our business, we believe LaCrosse is well-positioned to
continue to capture market share over the long term."
Based on the Company's financial position, the Board of Directors today
announced the approval of a quarterly dividend of $0.125 per share of
common stock. The first quarter dividend will be paid on March 18, 2011
to shareholders of record as of the close of business on February 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.
Fourth Quarter and Year End 2010 Conference Call
LaCrosse will host a conference call to discuss its financial results
today, February 1, 2011 at 2:00 PM Pacific (5:00 PM Eastern). A
broadcast of the conference call will be available at www.lacrossefootwearinc.com
under "Investor Events" or by calling 877-941-6009 or +1 480-629-9770. A
48-hour replay will be available by calling 800-406-7325 or +1
303-590-3030 (Access Code: 4398250).
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
Company's 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, including without limitation, any statements regarding
improved availability from higher inventory levels, the impact of an
improving economic environment on future sales, benefits from the new
factory store, domestic production facility and sales organization, the
impact of seasonality and quarter-to-quarter variability in our results
of operations, the anticipated success of new products, the assessment
of general market trends and improved consumer spending environment,
improved business conditions among our wholesale partners, our ability
to capture market share in the future, and the Board of Directors'
intent to declare and pay dividends in future periods 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. 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.
Forward-looking statements 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 directly
impact the outcome of such forward-looking statements included in this
release, each of which are included in our 2009 Annual Report on Form
10-K, as supplemented by our quarterly reports on Form 10-Q for 2010,
include the following:
-
There are uncertainties related to our future sales to the U.S.
government, which may not continue at the current levels.
Additionally, we may continue to experience significant fluctuations
in our quarterly revenue performance due to the timing of orders and
requested shipment dates for U.S. government contract orders.
-
We source approximately two thirds of our products from contract
manufacturers primarily in China, and depend on a limited number of
raw materials suppliers to support our U.S. manufacturing operations.
As such, we may face challenges in maintaining a timely supply of
goods to meet sales demands, and we may experience delays or
interruptions in our supply chain. Any shortfall or delay in the
supply of our products may decrease our sales and have an adverse
impact on our customer relationships.
-
We have initiated a program to broaden our portfolio of third party
manufacturers which may create future interruptions in product
delivery schedules or increased costs during future periods of factory
transitions.
-
The expected benefits of increases in inventory positions to improve
future deliveries may not be realized due to a variety of factors,
including slower consumer demand or mix of products, which could
impact the net realizable value of inventories in future periods.
-
Future changes in the price of raw materials and labor could adversely
affect our financial results, particularly our gross margins, if we
are not able to increase our selling prices to offset such cost
increases.
|
LaCrosse Footwear, Inc.
|
|
Condensed Consolidated Statements of Income
|
|
(Amounts in thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Year Ended
|
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
52,081
|
|
|
$
|
42,505
|
|
|
$
|
150,542
|
|
|
$
|
139,152
|
|
|
Cost of goods sold
|
|
|
31,598
|
|
|
|
26,185
|
|
|
|
91,413
|
|
|
|
85,062
|
|
|
Gross profit
|
|
|
20,483
|
|
|
|
16,320
|
|
|
|
59,129
|
|
|
|
54,090
|
|
|
Operating expenses
|
|
|
14,033
|
|
|
|
12,593
|
|
|
|
47,699
|
|
|
|
45,505
|
|
|
Operating income
|
|
|
6,450
|
|
|
|
3,727
|
|
|
|
11,430
|
|
|
|
8,585
|
|
|
Non-operating expense
|
|
|
(132
|
)
|
|
|
(71
|
)
|
|
|
(239
|
)
|
|
|
(375
|
)
|
|
Income before income taxes
|
|
|
6,318
|
|
|
|
3,656
|
|
|
|
11,191
|
|
|
|
8,210
|
|
|
Income tax provision
|
|
|
2,345
|
|
|
|
1,333
|
|
|
|
4,310
|
|
|
|
2,700
|
|
|
Net income
|
|
$
|
3,973
|
|
|
$
|
2,323
|
|
|
$
|
6,881
|
|
|
$
|
5,510
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.62
|
|
|
$
|
0.37
|
|
|
$
|
1.07
|
|
|
$
|
0.87
|
|
|
Diluted
|
|
$
|
0.60
|
|
|
$
|
0.36
|
|
|
$
|
1.04
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
6,456
|
|
|
|
6,332
|
|
|
|
6,429
|
|
|
|
6,303
|
|
|
Diluted
|
|
|
6,610
|
|
|
|
6,456
|
|
|
|
6,590
|
|
|
|
6,375
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Product Line Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Work Market Sales
|
|
$
|
31,147
|
|
|
$
|
25,204
|
|
|
$
|
94,751
|
|
|
$
|
88,200
|
|
|
Outdoor Market Sales
|
|
|
20,934
|
|
|
|
17,301
|
|
|
|
55,791
|
|
|
|
50,952
|
|
|
|
|
$
|
52,081
|
|
|
$
|
42,505
|
|
|
$
|
150,542
|
|
|
$
|
139,152
|
|
|
|
|
LaCrosse Footwear, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(Amounts in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
Assets:
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
4,274
|
|
$
|
17,739
|
|
Trade and other accounts receivable, net
|
|
|
22,834
|
|
|
21,635
|
|
Inventories
|
|
|
40,071
|
|
|
27,031
|
|
Prepaid expenses and other
|
|
|
1,321
|
|
|
1,129
|
|
Deferred tax assets
|
|
|
1,614
|
|
|
1,503
|
|
Total current assets
|
|
|
70,114
|
|
|
69,037
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
16,154
|
|
|
8,482
|
|
Goodwill
|
|
|
10,753
|
|
|
10,753
|
|
Other assets
|
|
|
249
|
|
|
313
|
|
Total assets
|
|
$
|
97,270
|
|
$
|
88,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity:
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
16,477
|
|
$
|
8,036
|
|
Accrued compensation
|
|
|
4,261
|
|
|
3,343
|
|
Other accruals
|
|
|
3,356
|
|
|
3,755
|
|
Total current liabilities
|
|
|
24,094
|
|
|
15,134
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
263
|
|
|
-
|
|
Deferred revenue
|
|
|
566
|
|
|
225
|
|
Deferred lease obligations
|
|
|
782
|
|
|
614
|
|
Compensation and benefits
|
|
|
4,385
|
|
|
4,680
|
|
Deferred tax liabilities
|
|
|
2,732
|
|
|
2,337
|
|
Total liabilities
|
|
|
32,822
|
|
|
22,990
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
64,448
|
|
|
65,595
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
97,270
|
|
$
|
88,585
|
|
|
|
LaCrosse Footwear, Inc.
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(Amounts in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2010
|
|
2009
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$ 6,881
|
|
$ 5,510
|
|
Adjustments to reconcile net income to net cash provided by
|
|
|
|
|
|
operating activities, net of effects of acquisition:
|
|
|
|
|
|
Depreciation and amortization
|
|
3,016
|
|
2,705
|
|
Stock-based compensation expense
|
|
560
|
|
581
|
|
Deferred income taxes
|
|
433
|
|
1,011
|
|
Loss on disposal of property and equipment
|
|
64
|
|
225
|
|
Changes in operating assets and liabilities, net of effects of
|
|
|
|
|
|
acquisition in 2009:
|
|
|
|
|
|
Trade and other accounts receivable
|
|
(1,241)
|
|
814
|
|
Inventories
|
|
(13,150)
|
|
1,740
|
|
Accounts payable
|
|
8,120
|
|
(2,252)
|
|
Accrued expenses and other
|
|
381
|
|
1,872
|
|
Net cash provided by operating activities
|
|
5,064
|
|
12,206
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(10,604)
|
|
(5,254)
|
|
Proceeds from sale of property and equipment
|
|
1
|
|
41
|
|
Acquisition
|
|
-
|
|
(388)
|
|
Net cash used in investing activities
|
|
(10,603)
|
|
(5,601)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from long-term debt
|
|
300
|
|
-
|
|
Cash dividends paid
|
|
(9,620)
|
|
(3,154)
|
|
Purchase of treasury stock
|
|
(59)
|
|
-
|
|
Proceeds from exercise of stock options
|
|
1,478
|
|
565
|
|
Net cash used in financing activities
|
|
(7,901)
|
|
(2,589)
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on cash and
|
|
|
|
|
|
cash equivalents
|
|
(25)
|
|
40
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
(13,465)
|
|
4,056
|
|
|
|
|
|
|
|
Cash and cash equivalents:
|
|
|
|
|
|
Beginning of period
|
|
17,739
|
|
13,683
|
|
End of period
|
|
$ 4,274
|
|
$ 17,739
|
LaCrosse Footwear, Inc.
Executive Vice President and Chief
Financial Officer
David Carlson, 503-262-0110 ext. 1331
or
StreetConnect,
Inc.
Investor Relations
Michael Newman, 800-654-3517
BOOT@stct.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
|
Search News
