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Crocs Inc. Reports Fourth Quarter and Full Year 2013 Financial Results
Revenues Slightly Exceed and EPS in-line With Guidance

NIWOT, Colo., Feb. 20, 2014 (GLOBE NEWSWIRE) -- Crocs Inc. (Nasdaq:CROX) today reported financial results for the fourth quarter and full year ended December 31, 2013.

Fourth Quarter and Full Year Financial Highlights:

  • GAAP revenue increased 1.6% and 6.2% in the 2013 fourth quarter and the full year, respectively. On a constant currency basis, revenue increased 4.1% and 8.8% in the 2013 fourth quarter and full year, respectively.
  • The company reported a net loss of $0.76 and net income of $0.12 per diluted share on a GAAP basis in the 2013 fourth quarter and the full year, respectively. Excluding certain non-recurring, unusual and infrequent charges, the company reported a non-GAAP net loss1 of $0.20 and non-GAAP net income of $0.82 per diluted share in the 2013 fourth quarter and the full year, respectively.

John McCarvel, President and Chief Executive Officer, said "We delivered balanced performance in the fourth quarter despite the challenging retail environment in North America. On a constant currency basis, 2013 revenue grew by 4% for the quarter and 9% for the full year. The full-year revenue growth was driven by a solid 7% increase in wholesale revenue, with particular strength in Europe, as well as our global retail expansion.

"We've made tremendous progress as a company over the past 10 years – from a one-season, one-shoe, and one-country brand to a diversified, four-season global footwear leader that is on solid financial footing, and we believe our business is well positioned to succeed going forward," McCarvel continued. "The recent investment in Crocs by Blackstone is a vote of confidence in our company and our brand, and we believe Crocs will benefit from Blackstone's financial, consumer, retail and brand-building experience."

Financial Review

Fourth quarter operating results

In the fourth quarter of 2013, the company incurred a GAAP net loss of $66.9 million or $0.76 per diluted share, compared with a net loss of $3.6 million or $0.04 per diluted share in the comparable quarter in the prior year.

As outlined in detail in the non-GAAP reconciliations set forth later in this press release, the company recorded $49.2 million in non-recurring, unusual and infrequent charges (of which $45.5 million were non-cash charges) in the fourth quarter of 2013.

Excluding these items, the company reported a non-GAAP net loss of $17.7 million in the quarter or $0.20 per diluted share compared with non-GAAP net income of $4.4 million or $0.05 per diluted share in the fourth quarter of 2012.

Full year 2013 operating results

The company generated net income of $10.4 million or $0.12 per diluted share for the full year 2013, compared with net income of $131.3 million or $1.44 per diluted share in 2012.

As outlined in detail in the non-GAAP reconciliations set forth later in this press release, the company recorded $62.4 million in non-recurring, unusual and infrequent charges (of which $48.3 million were non-cash charges) for the full year 2013.

Excluding these items, the company generated non-GAAP net income of $72.8 million or $0.82 per diluted share for the full year 2013 compared with non-GAAP net income of $129.1 million or $1.42 per diluted share during 2012.

Balance Sheet

Cash and cash equivalents at December 31, 2013, amounted to $317.1 million, which is an increase of 7.7% from December 31, 2012. Inventory decreased 1.5% during 2013 to $162.3 million at December 31, 2013.

Financial Outlook

Thomas J. Smach, Crocs chairman of the board, commented, "As we look forward, 2014 will be a significant transition period for the company. We will recruit a new CEO who will work with the reconstituted board to refine the company's short-term and long-term strategic plans, which will include prioritizing earnings over top-line growth. We will focus on improving financial performance, particularly in the Americas and Japan, as well as enhancing our global retail execution. As we increasingly focus on profitable growth and retail excellence, we may moderate the pace of our investments in new retail stores as well as consolidate some existing locations. While the company will remain focused on creating long-term value for our shareholders, given the transition that the company will be going through, we will not be providing earnings guidance in 2014."

For the first quarter of 2014, the company expects revenue between $305 million and $315 million.

Stock Repurchase

With respect to the previously announced $350 million stock repurchase program, the company expects to begin buying back stock in the current quarter. The company intends to be patient, methodical and opportunistic in the execution of this expanded buyback plan.

CEO Search

As previously announced, Mr. McCarvel intends to retire as president, chief executive officer and board member by April 30, 2014. The board has begun a search for Mr. McCarvel's replacement and will make an announcement when the search is successfully concluded.

Conference Call Information

A teleconference call to discuss fourth quarter and full year 2013 results is scheduled for today, Thursday, February 20, 2014, at 8:30 a.m. EST. The call participation number is (888) 771-4371. A replay of the conference call will be available two hours after the completion of the call at (888) 843-7419. International participants can dial (847) 585-4405 to take part in the conference call and can access a replay of the call at (630) 652-3042. All of the above calls will require the input of the conference identification number 36721382. The call also will be streamed on the Crocs website, www.crocs.com. An audio recording of the conference call will be available at www.crocs.com through March 22, 2014.

About Crocs, Inc.

Crocs, Inc. is a world leader in innovative casual footwear for men, women and children. Crocs offers several distinct shoe collections with more than 300 four-season footwear styles. All Crocs™ shoes feature Croslite™ material, a proprietary, revolutionary technology that gives each pair of shoes the soft, comfortable, lightweight, non-marking and odor-resistant qualities that Crocs fans know and love. Crocs fans "Get Crocs Inside" every pair of shoes, from the iconic clog to new sneakers, sandals, boots and heels. Since its inception in 2002, Crocs has sold more than 300 million pairs of shoes in more than 90 countries around the world.

Visit www.crocs.com for additional information.

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 prospects, investments in our business and outlook. 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.

All information in this document speaks as of February 20, 2014. 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. 

1 Non-GAAP net income (loss) is a financial measure not calculated in accordance with U.S. Generally Accepted Accounting Principles (non-GAAP). See the non-GAAP reconciliations set forth later in this press release for additional information.

CROCS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
         
  Three Months Ended
December 31,
Year Ended
December 31,
($ thousands, except per share data) 2013 2012 2013 2012
Revenues  $ 228,673  $ 224,992  $ 1,192,680  $ 1,123,301
Cost of sales  125,772  118,642  569,482  515,324
Gross profit  102,901  106,350  623,198  607,977
Selling, general and administrative expenses  135,035  110,656  549,154  460,393
Asset impairment charges  10,747  591  10,949  1,410
Income (loss) from operations  (42,881)  (4,897)  63,095  146,174
Foreign currency transaction (gains) losses, net  221  (170)  4,678  2,500
Interest income  (756)  (640)  (2,432)  (1,697)
Interest expense  497  281  1,016  837
Other income, net  (306)  (324)  (126)  (1,014)
Income (loss) before income taxes  (42,537)  (4,044)  59,959  145,548
Income tax expense (benefit)  24,396  (437)  49,539  14,205
Net income (loss)  $ (66,933)  $ (3,607)  $ 10,420  $ 131,343
Net income (loss) per common share:        
Basic  $ (0.76)  $ (0.04)  $ 0.12  $ 1.46
Diluted  $ (0.76)  $ (0.04)  $ 0.12  $ 1.44
 
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED)
                 
In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("U.S. GAAP"), we present current period 'adjusted results of operations' below, which is a non-GAAP financial measure. Adjusted results of operations excludes the impact of items that management believes are non-recurring, unusual and infrequent charges that affected our consolidated statements of operations in the periods presented.
 
Management uses adjusted results to assist in comparing business trends from period to period on a consistent basis without regard to the impact of non-recurring, unusual and infrequent items and in communications with the board of directors, stockholders, analysts and investors concerning our financial performance. We believe that these non-GAAP measures are used by, and are useful to, investors and other users of our financial statements in evaluating operating performance by providing better comparability between reporting periods because they provide an additional tool to evaluate our performance without regard to non-recurring, unusual and infrequent items that may not be indicative of overall business trends. They also provide a better baseline for analyzing trends in our operations. We do not suggest that investors should consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.
   
  Three Months Ended
December 31,
  2013 2012
    Non-Recurring, Unusual
and Infrequent Charges
    Non-Recurring, Unusual
and Infrequent Charges
 
($ thousands, except per share data) GAAP Cash Non-Cash Non-GAAP GAAP Cash Non-Cash Non-GAAP
Revenues  $ 228,673      $ 228,673  $ 224,992      $ 224,992
Cost of sales  125,772        118,642      
Inventory write-down (1)    --  (3,419)  (3,419)    --  --  --
Contingency accruals (2)    --  --  --    --  (3,704)  (3,704)
Cost of sales    --  (3,419)  122,353    --  (3,704)  114,938
Gross profit  102,901      106,320  106,350      110,054
Gross margin 45.0%     46.5% 47.3%     48.9%
                 
Selling, general and administrative expenses ("SG&A")  135,035        110,656      
New ERP implementation (3)    (1,656)  --  (1,656)    (870)  --  (870)
Contingency accruals (2)    --  (5,714)  (5,714)    --  (2,200)  (2,200)
Depreciation and amortization (4)    --  (404)  (404)    --  (648)  (648)
Blackstone deal and cash repatriation (5)    (1,091)  --  (1,091)    --  --  --
Management turnover benefit (6)    --  625  625    --  --  --
SG&A    (2,747)  (5,493)  126,795    (870)  (2,848)  106,938
SG&A as a percentage of revenues 59.1%     55.4% 49.2%     47.5%
                 
Asset impairment charges  10,747        591      
Retail asset impairment charges (7)    --  (10,408)  (10,408)    --  (591)  (591)
Goodwill impairment charges (8)    --  (339)  (339)    --  --  --
Asset impairment charges    --  (10,747)  --    --  (591)  --
Income (loss) from operations  (42,881)      (20,475)  (4,897)      3,116
Foreign currency transaction (gains) losses, net  221  --  --  221  (170)  --  --  (170)
Interest income  (756)  --  --  (756)  (640)  --  --  (640)
Interest expense  497  --  --  497  281  --  --  281
Other income, net  (306)  --  --  (306)  (324)  --  --  (324)
Income (loss) before income taxes  (42,537)  --  --  (20,131)  (4,044)  --  --  3,969
Income tax expense (benefit) (9)  24,396  (1,000)  (25,831)  (2,435)  (437)  --  --  (437)
Net income (loss)  $ (66,933)  $ (3,747)  $ (45,490)  $ (17,696)  $ (3,607)  $ (870)  $ (7,143)  $ 4,406
Net income (loss) per common share:                
Basic  $ (0.76)        $ (0.04)      
Diluted  $ (0.76)      $ (0.20)  $ (0.04)      $ 0.05
(1) This relates to a write-off of obsolete inventory including raw materials, footwear and accessories.
(2) This represents legal and customs contingency accruals during the year ended December 31, 2013 and 2012 of which $5.7 million and $2.2 million, respectively, was recorded in selling, general and administrative expenses and $0.0 million and $3.7 million, respectively, was recorded in cost of sales.
(3) This represents operating expenses related to the implementation of our new ERP system.
(4) This represents the add-back of accelerated depreciation and amortization on tangible and intangible items related to our current ERP system and supporting platforms that will no longer be utilized once the implementation of a new ERP is complete.
(5) This is related to our recent investment agreement with Blackstone, which includes professional service fees associated with our cash repatriation strategy and other expenses.
(6) This is related to benefits recognized by the Company due to the cancellation of stock awards associated with the resignation of our Chief Executive Officer.
(7) This represents retail asset impairment charges for certain underperforming locations in our Americas, Asia Pacific and Europe segments.
(8) This is related to a portion of our Crocs Benelux B.V. business purchased by our Crocs Stores B.V. subsidiary in July 2012.
(9) These represent the add-back of certain income tax expenses (benefits). The three months and year-ended December 31, 2013 includes a non-recurring tax expense related to our cash repatriation strategy as well as a valuation allowance adjustment. The year-ended December 31, 2012 includes a non-recurring tax benefit of $11.4 million related to the reversal of reserves related to specific uncertain tax positions and the release of certain valuation allowances associated with deferred tax assets.
 
CROCS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (UNAUDITED)
                 
In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("U.S. GAAP"), we present current period 'adjusted results of operations' below, which is a non-GAAP financial measure. Adjusted results of operations excludes the impact of items that management believes are non-recurring, unusual and infrequent charges that affected our consolidated statements of operations in the periods presented.
 
Management uses adjusted results to assist in comparing business trends from period to period on a consistent basis without regard to the impact of non-recurring, unusual and infrequent items and in communications with the board of directors, stockholders, analysts and investors concerning our financial performance. We believe that these non-GAAP measures are used by, and are useful to, investors and other users of our financial statements in evaluating operating performance by providing better comparability between reporting periods because they provide an additional tool to evaluate our performance without regard to non-recurring, unusual and infrequent items that may not be indicative of overall business trends. They also provide a better baseline for analyzing trends in our operations. We do not suggest that investors should consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.
   
  Year Ended
December 31,
  2013 2012
    Non-Recurring, Unusual     Non-Recurring, Unusual  
    and Infrequent Charges     and Infrequent Charges  
($ thousands, except per share data) GAAP Cash Non-Cash Non-GAAP GAAP Cash Non-Cash Non-GAAP
Revenues   $ 1,192,680  $   $   $ 1,192,680  $ 1,123,301  $   $   $ 1,123,301
Cost of sales   569,482        515,324      
Inventory write-down (1)    --  (3,419)  (3,419)    --  --  --
Contingency accruals (2)    --  --  --    --  (3,704)  (3,704)
Cost of sales     --  (3,419)  566,063    --  (3,704)  511,620
Gross profit   623,198      626,617  607,977      611,681
Gross margin 52.3%     52.5% 54.1%     54.5%
                 
SG&A  549,154        460,393      
Brazil tax credits (10)    (6,094)  --  (6,094)    --  --  --
New ERP implementation (3)    (5,902)  --  (5,902)    (870)  --  (870)
Contingency accruals (2)    --  (5,714)  (5,714)    --  (2,200)  (2,200)
Depreciation and amortization (4)    --  (2,991)  (2,991)    --  (903)  (903)
Blackstone deal and cash repatriation (5)    (1,091)  --  (1,091)    --  --  --
Management turnover benefit (6)    --  625  625    --  --  --
SG&A    (13,087)  (8,080)  527,987    (870)  (3,103)  456,420
SG&A as a percentage of revenues 46.0%     44.3% 41.0%     40.6%
                 
Asset impairment charges  10,949        1,410      
Retail asset impairment charges (7)    --  (10,610)  (10,610)    --  (1,410)  (1,410)
Goodwill impairment charges (8)    --  (339)  (339)    --  --  --
Asset impairment charges    --  (10,949)  --    --  (1,410)  --
Income from operations   63,095      98,630  146,174      155,261
Foreign currency transaction losses, net   4,678  --  --  4,678  2,500  --  --  2,500
Interest income  (2,432)  --  --  (2,432)  (1,697)  --  --  (1,697)
Interest expense  1,016  --  --  1,016  837  --  --  837
Other income, net   (126)  --  --  (126)  (1,014)  --  --  (1,014)
Income before income taxes   59,959  --  --  95,494  145,548  --  --  154,635
Income tax expense (9)  49,539  (1,000)  (25,831)  22,708  14,205  --  11,368  25,573
Net income  $ 10,420  $ (14,087)  $ (48,279)  $ 72,786  $ 131,343  $ (870)  $ 3,151  $ 129,062
Net income per common share:                
Basic   $ 0.12        $ 1.46      
Diluted  $ 0.12      $ 0.82  $ 1.44      $ 1.42
(1) This relates to a write-off of obsolete inventory including raw materials, footwear and accessories.
(2) This represents legal and customs contingency accruals during the year ended December 31, 2013 and 2012 of which $5.7 million and $2.2 million, respectively, was recorded in selling, general and administrative expenses and $0.0 million and $3.7 million, respectively, was recorded in cost of sales.
(3) This represents operating expenses related to the implementation of our new ERP system.
(4) This represents the add-back of accelerated depreciation and amortization on tangible and intangible items related to our current ERP system and supporting platforms that will no longer be utilized once the implementation of a new ERP is complete.
(5) This is related to our recent investment agreement with Blackstone, which includes professional service fees associated with our cash repatriation strategy and other expenses.
(6) This is related to benefits recognized by the Company due to the cancellation of stock awards associated with the resignation of our Chief Executive Officer.
(7) This represents retail asset impairment charges for certain underperforming locations in our Americas, Asia Pacific and Europe segments.
(8) This is related to a portion of our Crocs Benelux B.V. business purchased by our Crocs Stores B.V. subsidiary in July 2012.
(9) These represent the add-back of certain income tax expenses (benefits). The three months and year-ended December 31, 2013 includes a non-recurring tax expense related to our cash repatriation strategy as well as a valuation allowance adjustment. The year-ended December 31, 2012 includes a non-recurring tax benefit of $11.4 million related to the reversal of reserves related to specific uncertain tax positions and the release of certain valuation allowances associated with deferred tax assets.
(10) This represents a net expense related to the resolution of a statutory tax audit in Brazil.
 
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
     
     
  December 31,
($ thousands, except number of shares) 2013 2012
ASSETS    
Current assets:    
Cash and cash equivalents  $ 317,144  $ 294,348
Accounts receivable, net of allowances of $10,513 and $13,315, respectively  104,405  92,278 
Inventories  162,341  164,804
Deferred tax assets, net  4,440  6,284
Income tax receivable  10,630  5,613
Other receivables  11,942  24,821
Prepaid expenses and other current assets  29,175  24,967
Total current assets  640,077  613,115
Property and equipment, net  86,971  82,241
Intangible assets, net  74,822  59,931
Deferred tax assets, net  19,628  34,112
Other assets  53,661  40,239
Total assets  $ 875,159  $ 829,638
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $ 57,450  $ 63,976
Accrued expenses and other current liabilities  97,111  81,371
Deferred tax liabilities, net  11,199  2,405
Income taxes payable  15,992  8,147
Current portion of long-term borrowings and capital lease obligations  5,176  2,039
Total current liabilities  186,928  157,938
Long term income tax payable  36,616  36,343
Long-term borrowings and capital lease obligations  11,670  4,596
Other liabilities  15,201  13,361
Total liabilities  250,415  212,238
     
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, 91,662,656 and 88,450,203 shares issued and outstanding, respectively, at December 31, 2013 and 91,047,297 and 88,662,845 shares issued and outstanding, respectively, at December 31, 2012  92  91
Treasury stock, at cost, 3,212,453 and 2,384,452 shares, respectively  (55,964)  (44,214)
Additional paid-in capital  321,532  307,823
Retained earnings  344,432  334,012
Accumulated other comprehensive income  14,652  19,688
Total stockholders' equity  624,744  617,400
Total liabilities and stockholders' equity  $ 875,159  $ 829,638
     

Schedule 1: Revenue Results – Channel and Regional Fourth Quarter 2013 (UNAUDITED)

             
  Three Months Ended December 31, Change Constant Currency Change(1)
($ thousands) 2013 2012   % $ %
Channel revenues:            
Wholesale:            
Americas  $ 43,277  $ 48,118  $ (4,841)  (10.1)%  $ (4,235)  (8.8)%
Asia Pacific  32,556  33,342  (786)  (2.4)  (175)  (0.5)
Japan  12,310  15,517  (3,207)  (20.7)  (295)  (1.9)
Europe  23,526  13,174  10,352  78.6  9,419  71.5
Other businesses  54  241  (187)  (77.6)  (190)  (78.8)
Total Wholesale  111,723  110,392  1,331  1.2  4,524  4.1
Consumer-direct:            
Retail:            
Americas  46,141  47,415  (1,274)  (2.7)  (864)  (1.8)
Asia Pacific  26,083  25,342  741  2.9  1,185  4.7
Japan  5,941  6,954  (1,013)  (14.6)  395  5.7
Europe  11,773  9,894  1,879  19.0  1,652  16.7
Total Retail  89,938  89,605  333  0.4  2,368  2.6
Internet:            
Americas  17,256  16,453  803  4.9  894  5.4
Asia Pacific  2,418  1,922  496  25.8  568  29.6
Japan  1,797  1,758  39  2.2  463  26.3
Europe  5,541  4,862  679  14.0  445  9.2
Total Internet  27,012  24,995  2,017  8.1  2,370  9.5
Total revenues:  $ 228,673  $ 224,992  $ 3,681  1.6%  $ 9,262  4.1%
             
             
             
  Three Months Ended December 31, Change Constant Currency Change(1)
($ thousands) 2013 2012   % $ %
Regional Revenue:            
Americas  $ 106,674  $ 111,986  $ (5,312) (4.7)%  $ (4,205) (3.8)%
Asia Pacific  61,057  60,606  451 0.7  1,578 2.6
Japan  20,048  24,229  (4,181) (17.3)  563 2.3
Europe  40,840  27,930  12,910 46.2  11,516 41.2
Other businesses  54  241  (187) (77.6)  (190) (78.8)
Total revenues:  $ 228,673  $ 224,992  $ 3,681  1.6%  $ 9,262 4.1%
(1) Reflects quarter-over-quarter and year-over-year change as if the current period results were in "constant currency," which is a non-GAAP financial measure. Constant currency is a measure utilized by management in which current period results have been restated using 2012 average foreign exchange rates for the comparative period to enhance the visibility of the underlying business trends by excluding the impact of foreign currency exchange rate fluctuations. We do not suggest that investors should consider this non-GAAP measure in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.
             
Schedule 2: Revenue Results – Channel and Regional Full Year 2013 (UNAUDITED)            
             
  Year Ended December 31, Change Constant Currency Change(1)
($ thousands) 2013 2012 $ % $ %
Channel revenues:            
Wholesale:            
Americas  $ 239,104  $ 235,988  $ 3,116 1.3%  $ 5,589 2.4%
Asia Pacific  212,761  180,970  31,791 17.6  31,199 17.2
Japan  90,426  117,380  (26,954) (23.0)  (6,940) (5.9)
Europe  131,215  110,947  20,268 18.3  17,585 15.8
Other businesses  254  574  (320) (55.7)  (325) (56.6)
Total Wholesale  673,760  645,859  27,901 4.3  47,108 7.3
Consumer-direct:            
Retail:            
Americas  202,925  196,711  6,214 3.2  7,303 3.7
Asia Pacific  120,020  104,632  15,388 14.7  15,380 14.7
Japan  36,566  38,430  (1,864) (4.9)  6,526 17.0
Europe  58,507  35,052  23,455 66.9  22,728 64.8
Total Retail  418,018  374,825  43,193 11.5  51,937 13.9
Internet:            
Americas  56,523  63,153  (6,630) (10.5)  (6,404) (10.1)
Asia Pacific  9,971  7,244  2,727 37.6  2,749 37.9
Japan  7,871  8,755  (884) (10.1)  867 9.9
Europe  26,537  23,465  3,072 13.1  2,231 9.5
Total Internet  100,902  102,617  (1,715) (1.7)  (557) (0.5)
Total revenues:  $ 1,192,680  $ 1,123,301  $ 69,379 6.2%  $ 98,488 8.8%
             
             
             
  Year Ended December 31, Change Constant Currency Change(1)
($ thousands) 2013 2012 $ % $ %
Regional Revenue:            
Americas  $ 498,552  $ 495,852  $ 2,700 0.5%  $ 6,488 1.3%
Asia Pacific  342,752  292,846  49,906 17.0  49,328 16.8
Japan  134,863  164,565  (29,702) (18.0)  453 0.3
Europe  216,259  169,464  46,795 27.6  42,544 25.1
Other businesses  254  574  (320) (55.7)  (325) (56.6)
Total revenues:  $ 1,192,680  $ 1,123,301  $ 69,379 6.2%  $ 98,488 8.8%
(1) Reflects quarter-over-quarter and year-over-year change as if the current period results were in "constant currency," which is a non-GAAP financial measure. Constant currency is a measure utilized by management in which current period results have been restated using 2012 average foreign exchange rates for the comparative period to enhance the visibility of the underlying business trends by excluding the impact of foreign currency exchange rate fluctuations. We do not suggest that investors should consider this non-GAAP measure in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.
 
Schedule 3: Company Operated Retail Highlights (UNAUDITED)
     
Comparable store sales (1) Constant Currency
Three Months Ended
December 31, 2013(2)
Constant Currency
Three Months Ended
December 31, 2012(2)
Americas  (7.9)%   (0.9)% 
Asia Pacific  5.4  (4.9)
Japan  (9.7)   (20.2)
Europe  0.7  (2.3)
Global  (4)%   (3.5)% 
     
Comparable store sales (1) Constant Currency
Year Ended
December 31, 2013(2)
Constant Currency
Year Ended
December 31, 2012(2)
Americas  (5.8)%   2.6% 
Asia Pacific  6.9  3.3
Japan  (15.0)  (13.0)
Europe  2.4  5.4
Global  (2.7)%   1.5% 
(1) Comparable store status is determined on a monthly basis. Comparable store sales begin in the thirteenth month of a store's operation. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure. Location closures in excess of three months are excluded until the thirteenth month post re-opening. Comparable store sales growth is calculated on a currency neutral basis using historical annual average currency rates.
     
(2) Reflects quarter-over-quarter and year-over-year change as if the current period results were in "constant currency," which is a non-GAAP financial measure. Constant currency is a measure utilized by management in which current period results have been restated using 2012 average foreign exchange rates for the comparative period to enhance the visibility of the underlying business trends by excluding the impact of foreign currency exchange rate fluctuations. We do not suggest that investors should consider this non-GAAP measure in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.

Retail store counts

         
Company-operated retail locations: September 30,
2013
 Opened   Closed  December 31,
2013
Type:        
Kiosk/Store in Store  121  3  (2)  122
Retail Stores  311  18  (2)  327
Outlet Stores  159  12  (1)  170
Total  591  33  (5)  619
Operating segment:        
Americas  205  11  --   216
Asia Pacific  221  18  (3)  236
Japan  50  --   (1)  49
Europe  115  4  (1)  118
Total  591  33  (5)  619
         
Company-operated retail locations: December 31,
2012
 Opened   Closed  December 31,
2013
Type:        
Kiosk/Store in Store  121  23  (22)  122
Retail Stores  287  66  (26)  327
Outlet Stores  129  43  (2)  170
Total  537  132  (50)  619
Operating segment:        
Americas  199  34  (17)  216
Asia Pacific  201  61  (26)  236
Japan  40  11  (2)  49
Europe  97  26  (5)  118
Total  537  132  (50)  619

Schedule 4: Global and Segment metrics (UNAUDITED)

             
  Three Months Ended December 31, Change Year Ended December 31, Change
Global 2013 2012 % 2013 2012 %
Units (in millions)  10.738  9.821  9.3%  54.326  49.947  8.8%
Average Selling Price ("ASP")  $ 20.60  $ 21.93  (6.1)  $ 21.27  $ 21.55  (1.3)
New Product Introduction ("NPI")  24.6%  37.6%  (34.5)  30.6%  36.7%  (16.7)
Clogs as % of Revenue  51.5%  51.0%  0.9%  46.4%  48.5%  (4.5)%
             
  Three Months Ended December 31,   Change Year Ended December 31,   Change
Americas 2013 2012 % 2013 2012 %
Units (in millions)  5.150  5.6  (8.1)%  24.793  25.451  (2.6)%
ASP  $ 20.01  $ 19.03  5.2  $ 19.46  $ 18.54  5.0
NPI  25.0%  31.3%  (20.2)  26.9%  33.6%  (20.1)
Clogs as % of Revenue  56.8%  59.3%  (4.2)%  49.3%  52.5%  (6.2)%
             
  Three Months Ended December 31,   Change Year Ended December 31,   Change
Asia Pacific 2013 2012 % 2013 2012 %
Units (in millions)  2.156  2.3  (5.0)%  12.445  10.906  14.1%
ASP  $ 27.28  $ 25.81  5.7  $ 26.64  $ 25.88  3.0
NPI  41.9%  50.1%  (16.3)  48.3%  50.2%  (3.9)
Clogs as % of Revenue  28.2%  30.8%  (8.2)%  28.4%  31.4%  (9.7)%
             
  Three Months Ended December 31,   Change Year Ended December 31,   Change
Japan 2013 2012 % 2013 2012 %
Units (in millions)  1.039  0.850  22.3%  6.209  5.925  4.8%
ASP  $ 18.51  $ 27.41  (32.5)  $ 20.82  $ 26.36  (21.0)
NPI  26.1%  58.1%  (55.0)  35.5%  37.1%  (4.2)
Clogs as % of Revenue  56.1%  53.4%  5.1%  53.8%  51.9%  3.7%
             
  Three Months Ended December 31,   Change Year Ended December 31,   Change
Europe 2013 2012 % 2013 2012 %
Units (in millions)  2.393  1.095  118.5%  10.879  7.665  41.9%
ASP  $ 16.75  $ 24.44  (31.5)  $ 19.51  $ 21.65  (9.9)
NPI  7.6%  26.9%  (71.5)  15.9%  27.8%  (42.7)
Clogs as % of Revenue  69.6%  58.1%  19.8%  63.4%  60.0%  5.6%

Schedule 5: CROCS, INC. BACKLOG (UNAUDITED)

     
  December 31,
($ thousands) 2013 2012
Americas  $ 113,972  $ 122,376
Asia Pacific  141,446  121,767
Japan  47,651  53,732
Europe  76,203  56,456
Total backlog (1)  $ 379,272  $ 354,331
(1) We receive a significant portion of orders from our wholesale customers and distributors that remain unfilled as of any date and, at that point, represent orders scheduled to be shipped at a future date. We refer to these unfilled orders as backlog. While all orders in our backlog are subject to cancellation by customers, we expect that the majority of such orders will be filled within one year. Backlog as of a particular date is affected by a number of factors, including seasonality, manufacturing schedule and the timing of product shipments. Further, the mix of future and immediate delivery orders can vary significantly period over period. Backlog only relates to wholesale and distributor orders for the next season and current season fill-in orders and excludes potential sales in our retail and internet channels. Backlog also is affected by the timing of customers' orders and product availability. Due to these factors and since the unfulfilled orders can be canceled at any time prior to shipment by our customers, we believe that backlog may be an imprecise indicator of future revenues that may be achieved in a fiscal period and comparisons of backlog from period to period may be misleading. In addition, our historical cancellation experience may not be indicative of future cancellation rates. 
CONTACT: Investor Contact:
         William I. Kent/Crocs Inc.
         (303) 848-7000
         wkent@crocs.com

         Media Contact:
         Katy Michael/Crocs Inc.
         (303) 848-7000
         kmichael@crocs.com

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