For: Crocs, Inc.
Company Contact:
Russell Hammer/Chief Financial Officer
Tia Mattson /Public Relations Manager
(303) 848-7000
Investor Contact:
Integrated Corporate Relations, Inc.
Chad Jacobs/Brendon Frey
(203) 682-8200
CORRECTED: CROCS, INC. REPORTS FISCAL 2008 FIRST QUARTER FINANCIAL RESULTS
This press release has been corrected and restated in its entirety to include certain Non-GAAP reconciliations and expand upon and correct typographical errors in the consolidated balance sheet.
NIWOT , COLORADO – May 7, 2008 – Crocs, Inc. (NASDAQ: CROX) today reported financial results for the quarter ended March 31, 2008.
Revenues for the quarter ended March 31, 2008 increased 39.8% to $198.5 million compared to $142.0 million for the quarter ended March 31, 2007. For the quarter ended March 31, 2008 domestic sales rose approximately 11.7% to $92.6 million compared to $83.0 million for the same period a year ago, and international sales increased 79.5% to $105.9 million from $59.0 million for the quarter ended March 31, 2007. The Company reported a net loss of $4.5 million, or ($0.05) per share, compared to net income of $24.9 million, or $0.31 per diluted share for the quarter ended March 31, 2007. On a Non-GAAP basis, excluding a portion of the $12.1 million after-tax charge associated with the shutdown of the Company’s Canadian manufacturing operations, the Company reported net income of $7.6 million, or $0.09 per diluted share in the first quarter of 2008. Net loss per share and net income per diluted share and for the quarters ended March 31, 2008 and 2007 are adjusted to reflect the two-for-one stock split that took effect in June 2007. Gross profit for the first quarter of 2008 was $84.2 million, or 42.4% of revenues, compared to $84.5million, or 59.5% of revenues for the first quarter of 2007. Selling, general and administrative expenses for the quarter ended March 31, 2007 were $77.0 million, or 38.8% of revenues, compared to $47.3 million, or 33.3% of revenues in the quarter ended March 31, 2007.
Ron Snyder , President and Chief Executive Officer of Crocs, Inc. commented: “As we previously announced, our first quarter domestic sales came in below our original projections due to a combination of factors, including slower traffic at many of our retail partners and colder than normal temperatures that delayed the start to the spring selling season. Overseas, we experienced significant sales increases in Europe and Asia which were up 109.2% and 92.5% from the first quarter of last year, respectively; however this was not enough to offset the shortfall in our U.S. business. While we are disappointed with our start to the new year, we remain confident about the strength of our brand, optimistic about our future prospects, and committed to executing our long-term strategic plan.”
Guidance
For the year ending December 31, 2008, Crocs reaffirmed its previously revised outlook of revenue growth between 15% and 20% over 2007 levels with diluted earnings per share in the range of approximately $1.54 to $1.64, including the total pre-tax charges of approximately $20 million, or $0.16 per diluted share associated with the shutdown of the Company’s Canadian manufacturing operations. Excluding the charge, fiscal 2008 diluted earnings per share are expected to be between $1.70 and $1.80.
For the quarter ending June 30, 2008, the Company reiterated that it expects revenues to increase approximately 10% to 15% over the corresponding period of 2007 with diluted earnings per share in the range of $0.42 to $0.47 including a portion of the aforementioned pre-tax charges associated with the shutdown of the Company’s Canadian manufacturing operations equaling approximately $4 million, or $0.03 per diluted share. Excluding this charge, the Company expects second quarter 2008 diluted earnings per share in the range of $0.45 to $0.50.
Conference Call Information
A conference call to discuss first quarter fiscal 2008 financial results is scheduled for today (May 7, 2008) 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 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 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 retailer of footwear for men, women and children under the Crocs™ brand.
All Crocs™ brand shoes feature Crocs’ proprietary closed-cell resin, Croslite™, which represents a substantial innovation in footwear. The Croslite™ material enables us to produce soft, comfortable, lightweight, superior-gripping, non-marking and odor-resistant shoes. These unique elements make Crocs™ footwear ideal for casual wear, as well as for professional and recreational uses such as boating, hiking, hospitality and gardening. The versatile use of the material has enabled us to successfully market our products to a broad range of consumers.
In 2006, the company acquired Jibbitz LLC, a unique accessory brand with colorful snap-on products specifically suited for Crocs shoes. Today, more than 1,600 Jibbitz designs are available to consumers for personalizing and customizing their Crocs™ footwear.
Please visit www.crocs.com for additional information.
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 future prospects, inventory and strategic advances and our expectations regarding our growth, future sales and earnings, international expansion, bookings, worldwide popularity and product development. 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 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.