Second Quarter Revenue Increased 29.6% to a Record $295.6 Million
Second Quarter Diluted EPS Increased 64.9% to $0.61
Backlog at June 30, 2011 Increased 41.9% to $168.1 Million
NIWOT, Colo., Jul 27, 2011 (BUSINESS WIRE) --
Crocs, Inc. (NASDAQ: CROX) today reported financial results for the
second quarter ended June 30, 2011.
Revenue for the second quarter of 2011 increased 29.6% to $295.6 million
compared to revenue of $228.0 million reported in the second quarter of
2010. Net income for the second quarter of 2011 increased 71.9% to $55.5
million, or $0.61 per diluted share compared to net income of $32.3
million, or $0.37 per diluted share in the second quarter 2010. The
Company benefited from modifications in tax treaties in its
international businesses which together with other tax planning resulted
in an effective tax rate below 15% for the quarter.
John McCarvel, President and Chief Executive Officer, stated: "Our
second quarter results demonstrate the progress we have made evolving
Crocs into an innovative footwear leader. We achieved our highest
quarterly revenue and unit volume in the Company's history as revenues
surpassed $295 million and we sold over 14 million pair. Our performance
was fueled by demand for our most diverse product line ever and included
double-digit growth in each of our distribution channels and geographic
regions. As a result, we experienced significant operating expense
leverage and a substantial increase in profitability versus a year ago.
Looking ahead to the back half of 2011, we expect our momentum to
continue through summer and back to school. We are also optimistic about
our prospects for the fall and holiday given the 41.9% increase in our
backlog which totaled $168.1 million at the end of the second quarter ."
Year-over year second quarter changes in the Company's channel revenue
streams were as follows:
-
Wholesale sales increased 25.5% to $175.8 million;
-
Retail sales increased 38.1% to $91.8 million; and
-
Internet sales increased 30.1% to $28.1 million.
Year-over year second quarter changes in the Company's regional revenue
streams were as follows:
-
Asia increased 37.5% to $121.9 million;
-
Americas increased 15.9% to $121.4 million; and
-
Europe increased 50.4% to $52.2 million.
Gross profit for the second quarter of 2011 increased 29.0% to $170.2
million, or 57.6% as a percentage of sales, from $131.9 million, or
57.8% of sales in same period last year. Selling, General, &
Administrative expenses increased 14.5% to $107.6 million versus $94.0
million a year ago. As a percentage of sales, SG&A decreased to 36.4%
from 41.2% in the second quarter of 2010.
Balance Sheet
Cash and cash equivalents at June 30, 2011 increased 85.8% to $180.0
million compared to $96.9 million at June 30, 2010. Inventories at June
30, 2011 were $156.5 million, up from $113.6 million at June 30, 2010.
The increase in inventories at June 30, 2011 was primarily attributable
to the global growth in wholesale orders, an increase in
company-operated retail stores, and an increase in mixture of higher
content products and seasonal changes in product mix. The Company ended
the second quarter of 2011 with accounts receivable of $115.7 million
compared to $94.0 million at June 30, 2010.
Guidance
For the third quarter of 2011, the Company expects revenue of
approximately $280 million, a 30% increase over the third quarter of
2010. The Company expects diluted earnings per share for the third
quarter of 2011 to be approximately $0.40.
Conference Call Information
A conference call to discuss Crocs' second quarter 2011 financial
results is scheduled for today (July 27, 2011) 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 250 styles to suit every lifestyle. As
lighthearted as they are lightweight, Crocs(TM) footwear provides
profound comfort and support for any occasion and every season. All
Crocs(TM) branded shoes feature Croslite(TM) material, a proprietary,
revolutionary technology that produces soft, non-marking, and
odor-resistant shoes that conform to your feet.
Crocs(TM) products are sold in 90 countries. Every day, millions of
Crocs(TM) 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 include,butare not limited to, statements regarding future revenue, and
earnings; backlog and future orders;prospects and product
pipeline.. 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 toaccurately 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. 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 INCOME |
| (Unaudited) |
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
| ($ thousands, except per share amounts) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
295,585
|
|
|
$
|
228,046
|
|
|
$
|
522,293
|
|
|
$
|
394,898
|
|
|
Cost of sales
|
|
|
(125,367
|
)
|
|
|
(96,127
|
)
|
|
|
(232,869
|
)
|
|
|
(176,275
|
)
|
|
Gross profit
|
|
|
170,218
|
|
|
|
131,919
|
|
|
|
289,424
|
|
|
|
218,623
|
|
|
Selling, general and administrative expenses
|
|
|
(107,647
|
)
|
|
|
(94,047
|
)
|
|
|
(196,261
|
)
|
|
|
(168,825
|
)
|
|
Foreign curency transaction losses gains (losses), net
|
|
|
3,042
|
|
|
|
1,129
|
|
|
|
1,727
|
|
|
|
1,421
|
|
|
Restructuring charges
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,539
|
)
|
|
Asset impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
(32
|
)
|
|
|
(141
|
)
|
|
Charitable contributions expense
|
|
|
(839
|
)
|
|
|
(275
|
)
|
|
|
(1,836
|
)
|
|
|
(418
|
)
|
|
Income (loss) from operations
|
|
|
64,774
|
|
|
|
38,726
|
|
|
|
93,022
|
|
|
|
48,121
|
|
|
Interest expense
|
|
|
(241
|
)
|
|
|
(163
|
)
|
|
|
(429
|
)
|
|
|
(292
|
)
|
|
Gain on charitable contributions
|
|
|
353
|
|
|
|
32
|
|
|
|
610
|
|
|
|
116
|
|
|
Other (income) expense
|
|
|
(108
|
)
|
|
|
291
|
|
|
|
(436
|
)
|
|
|
50
|
|
|
Income (loss) before income taxes
|
|
|
64,778
|
|
|
|
38,886
|
|
|
|
92,767
|
|
|
|
47,995
|
|
|
Income tax (expense) benefit
|
|
|
(9,272
|
)
|
|
|
(6,602
|
)
|
|
|
(15,757
|
)
|
|
|
(9,994
|
)
|
|
Net income (loss)
|
|
$
|
55,506
|
|
|
$
|
32,284
|
|
|
$
|
77,010
|
|
|
$
|
38,001
|
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$0.62
|
|
|
$0.38
|
|
|
$0.87
|
|
|
$0.44
|
|
|
Diluted
|
|
$0.61
|
|
|
$0.37
|
|
|
$0.85
|
|
|
$0.43
|
|
|
|
| CROCS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ($ thousands, except number of shares) |
|
|
June 30,
2011
|
|
|
December 31,
2010
|
|
|
June 30,
2010
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
179,979
|
|
|
$
|
145,583
|
|
|
$
|
96,867
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$13,528 and $10,249 and $9,555, respectively
|
|
|
115,651
|
|
|
|
64,260
|
|
|
|
93,974
|
|
|
Inventories
|
|
|
156,464
|
|
|
|
121,155
|
|
|
|
113,553
|
|
|
Deferred tax assets, net
|
|
|
13,822
|
|
|
|
15,888
|
|
|
|
7,569
|
|
|
Income tax receivable
|
|
|
10,620
|
|
|
|
9,062
|
|
|
|
11,297
|
|
|
Other receivables
|
|
|
17,127
|
|
|
|
11,637
|
|
|
|
11,715
|
|
|
Prepaid expenses and other current assets
|
|
|
20,292
|
|
|
|
13,429
|
|
|
|
14,867
|
|
|
Total current assets
|
|
|
513,955
|
|
|
|
381,014
|
|
|
|
349,842
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
69,337
|
|
|
|
70,014
|
|
|
|
66,731
|
|
|
Intangible assets, net
|
|
|
48,164
|
|
|
|
45,461
|
|
|
|
41,335
|
|
|
Deferred tax assets, net
|
|
|
32,429
|
|
|
|
34,711
|
|
|
|
17,403
|
|
|
Other assets
|
|
|
19,629
|
|
|
|
18,281
|
|
|
|
21,742
|
|
|
Total assets
|
|
$
|
683,514
|
|
|
$
|
549,481
|
|
|
$
|
497,053
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
66,186
|
|
|
$
|
35,669
|
|
|
$
|
51,841
|
|
|
Accrued expenses and other current liabilities
|
|
|
71,269
|
|
|
|
59,488
|
|
|
|
62,512
|
|
|
Deferred tax liabilities, net
|
|
|
15,337
|
|
|
|
17,620
|
|
|
|
9
|
|
|
Income taxes payable
|
|
|
16,076
|
|
|
|
23,084
|
|
|
|
20,120
|
|
|
Note payable, current portion of long-term debt and capital lease
obligations
|
|
|
3,257
|
|
|
|
1,901
|
|
|
|
1,556
|
|
|
Total current liabilities
|
|
|
172,125
|
|
|
|
137,762
|
|
|
|
136,038
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities, net
|
|
|
1,909
|
|
|
|
847
|
|
|
|
1,867
|
|
|
Long-term income tax payable
|
|
|
35,429
|
|
|
|
29,861
|
|
|
|
27,890
|
|
|
Other liabilities
|
|
|
5,046
|
|
|
|
4,905
|
|
|
|
5,450
|
|
|
Total liabilities
|
|
|
214,509
|
|
|
|
173,375
|
|
|
|
171,245
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 89,919,925 and 89,390,187 shares issued and
outstanding, respectively, at March 31, 2011 and 88,600,860 and
88,065,859 shares issued and outstanding, respectively, at
December 31, 2010 and 87,079,451 and 86,482,574 shares issued and
outstanding, respectively, at June 30, 2010.
|
|
|
90
|
|
|
|
88
|
|
|
|
87
|
|
|
Treasury stock, at cost, 529,738 and 535,001 and 596,877 shares,
respectively.
|
|
|
(21,213
|
)
|
|
|
(22,008
|
)
|
|
|
(24,963
|
)
|
|
Additional paid-in capital
|
|
|
286,968
|
|
|
|
277,293
|
|
|
|
272,146
|
|
|
Retained earnings
|
|
|
166,891
|
|
|
|
89,881
|
|
|
|
60,156
|
|
|
Accumulated other comprehensive income
|
|
|
36,269
|
|
|
|
30,852
|
|
|
|
18,382
|
|
|
Total stockholders' equity
|
|
|
469,005
|
|
|
|
376,106
|
|
|
|
325,808
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
683,514
|
|
|
$
|
549,481
|
|
|
$
|
497,053
|
|
SOURCE: Crocs, Inc.
Investor Contact:
ICR, Inc.
Brendon Frey, 203-682-8200
brendon.frey@icrinc.com
or
Media Contact:
Crocs, Inc.
Shelley Weibel, 303-848-7000
sweibel@crocs.com