Company Contact: Peter Case/Chief Financial Officer
Tia Mattson/Public Relations Manager
(303) 848-7000
Investor/Media Contact: Integrated Corporate Relations, Inc.
Investors: Chad Jacobs/Brendon Frey
Media: Michael Fox
(203) 682-8200
CROCS, INC. REPORTS FISCAL 2006 SECOND QUARTER FINANCIAL RESULTS
– Second Quarter Revenues More than Triple to $85.6 Million vs. $25.8 Million Last Year — – Company Reports 2Q06 Diluted EPS Including Share-based Compensation of $0.39 vs. $0.10 Last Year- — Company Issues Third Quarter 2006 Guidance –
NIWOT, COLORADO – August 3, 2006 – Crocs, Inc. (NASDAQ: CROX) today reported its results of operations for the second quarter ended June 30, 2006.
Revenues for the second quarter ended June 30, 2006 increased 231.8% to $85.6 million compared to revenues of $25.8 million for the second quarter ended June 30, 2005. Revenue for the six months ended June 30, 2006 increased 255.6% to $130.5 million compared to revenues of $36.7 million for the six months ended June 30, 2005. Net income attributable to common stockholders for the second quarter of fiscal 2006 was $15.7 million, or $0.39 per diluted share, compared to net income attributable to common stockholders of $3.3 million, or $0.10 per diluted share, for the second quarter of fiscal 2005. Second quarter net income attributable to common stockholders includes non-cash share-based compensation expense, net of tax effect, of $1.5 million compared to $685,000 for the comparable period of 2005. Excluding the non-cash share-based compensation expense, non-GAAP net income was $17.2 million and non-GAAP net income per diluted common share was $0.43 for the second quarter ended June 30, 2006. Net income attributable to common stockholders for the six months ended June 30, 2006 was $22.1 million, or $0.56 per diluted share, compared to net income attributable to common stockholders of $5.3 million, or $0.16 per diluted share, for the six months ended June 30, 2005.
Mr. Snyder concluded, “The first six months of 2006 have been marked by a number of important accomplishments for Crocs. Financially, we reported significant improvements in revenues, net income, and income per diluted share, as well as completed a very successful initial public offering. Operationally, we made strategic investments in our infrastructure, particularly in the areas of manufacturing, shipping and warehousing in order to better serve our retail partners and to fully capitalize on the growing demand for our products. Strategically, we have further diversified our business with the introduction of new products and the addition of new channels of distribution. We are very pleased with the progress we have made across the board and we look forward to building on our positive momentum going forward.”
Non-GAAP Disclosures
This press release includes certain non-GAAP financial measures with respect to net income and diluted earnings per common share, excluding the impact of share-based compensation expense. The Company’s management uses these measures to monitor and evaluate operating results and trends and to gain an understanding of the comparative operating performance of the Company. The Company believes these measures enable investors to assess the Company’s performance on the same basis applied by management and to ease comparisons of the Company’s operating performance from period to period and among other companies that separately identify share-based compensation expenses.
Conference Call Information
A conference call to discuss second quarter fiscal 2006 financial results is scheduled for today (Thursday, August 3) at 4:30 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 and at www.viavid.net. To listen to the broadcast, your computer must have Windows Media Player installed. If you do not have Windows Media Player, go to the latter site prior to the call, where you can download the software for free.
About Crocs, Inc.
Crocs, Inc. is a rapidly growing designer, manufacturer and marketer of footwear for men, women and children under the crocs brand. All of our footwear products incorporate our proprietary closed-cell resin material, which we believe represents a substantial innovation in footwear comfort and functionality. Our proprietary closed-cell resin, which we refer to as Croslite™ enables us to produce a soft and lightweight, non-marking, slip- and odor-resistant shoe. These unique properties make crocs footwear ideal for casual wear, as well as for recreational uses such as boating, hiking, fishing and gardening, and have enabled us to successfully market our products to a broad range of consumers
. Forward Looking Statements
The matters regarding the future discussed in this news release include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements related to our expectations regarding our total revenues and net income per diluted share for the third quarter ending September 30, 2006. 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: our limited operating history; our significant recent expansion; changing fashion trends; our reliance on market acceptance of the small number of products we sell; our ability to develop and sell new products; our limited manufacturing capacity and distribution channels; our reliance on third party manufacturing and logistics providers for the production and distribution of our products; our reliance on a single-source supply for certain raw materials; our management and information systems infrastructure; our ability to obtain and protect intellectual property rights; the effect of competition in our industry; the potential effects of seasonality on our sales; our ability to attract, assimilate and retain management talent; and other factors described in our 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 statement, including, without limitation, any estimate regarding revenues or earnings, whether as a result of the receipt of new information, future events, or otherwise.