Third Quarter Revenue Increased 27.5% to $274.9 million
Cash Increased 54.1% to $220.4 million
Consolidated Backlog up 30.3%
NIWOT, Colo., Oct 27, 2011 (BUSINESS WIRE) --
Crocs, Inc. (NASDAQ: CROX) today reported financial results for the
third quarter ended September 30, 2011.
Revenue for the third quarter of 2011 increased 27.5% to $274.9 million
compared to revenue of $215.6 million in the third quarter of 2010. Net
income for the third quarter of 2011 increased 20.8% to $30.2 million,
or $0.33 per diluted share compared to net income of $25.0 million, or
$0.28 per diluted share in the third quarter 2010 which included a
one-time tax benefit of $3.0 million, or $0.03 per diluted share.
John McCarvel, President and Chief Executive Officer, stated: "We
continued to experience strong global demand versus the prior year
period, particularly in Asia. The performance of our spring / summer
2011 product line and the composition of our backlog at September 30,
2011 underscores the progress we have made diversifying Crocs beyond its
clog origins. We still remain confident that our long-term brand and
growing selection of sneakers, casual shoes, and boots have the ability
to penetrate the cold weather selling season in each of our geographic
regions. While these are competitive categories with established
leaders, we believe we can continue to capture market share and further
reduce the seasonality of our business over the long-term."
Year-over year third quarter changes in the Company's channel revenue
streams were as follows:
-
Wholesale sales increased 24.3% to $154.0 million;
-
Retail sales increased 31.4% to $95.3 million; and
-
Internet sales increased 33.7% to $25.6 million.
Year-over year third quarter changes in the Company's regional revenue
streams were as follows:
-
Asia increased 40.6% to $111.2 million;
-
Americas increased 18.0% to $122.7 million; and
-
Europe increased 25.9% to $41.0 million.
Gross profit for the third quarter of 2011 increased 23.9% to $147.2
million, or 53.5% as a percentage of sales, from $118.8 million, or
55.1% of sales in same period last year. Selling, General, &
Administrative expenses increased 21.0% to $111.6 million versus $92.2
million a year ago. As a percentage of sales, SG&A decreased to 40.6%
from 42.8% in the third quarter of 2010.
Balance Sheet
Cash and cash equivalents at September 30, 2011 increased 54.1% to
$220.4 million compared to $143.1 million at September 30, 2010.
Inventories at September 30, 2011 were $151.1 million, up from $142.5
million at September 30, 2010.
Backlog
Backlog at September 30, 2011 increased 30.3% to $296.8 million compared
to backlog of $227.8 million at September 30, 2010.
Guidance
For the fourth quarter of 2011, the Company expects revenue to be in the
range of $200 to $205 million and diluted earnings per share to be
between $0.03 and $0.05.
Mr. McCarvel concluded, "Our fourth quarter guidance reflects recent
softness in our European business due to the current macroeconomic
conditions. While we expect Europe to remain challenging as we move into
2012, we are pleased with the strength of our spring 2012 backlog in
Asia and the Americas. We believe strong 33% growth in our consolidated
spring backlog sets us up for continued growth into next year. The
response from retailers to our new product introductions has been very
positive in Asia and the Americas and we believe it will provide us with
good momentum to start the New Year."
Conference Call Information
A conference call to discuss Crocs' third quarter 2011 financial results
is scheduled for today (October 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, 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 September 30,
|
Nine Months Ended September 30,
|
| ($ thousands, except per share amounts) |
|
|
|
2011 |
|
|
2010 |
|
|
|
|
2011 |
|
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$
|
274,897
|
|
$
|
215,605
|
|
|
|
$
|
797,189
|
|
$
|
610,503
|
|
Cost of sales
|
|
|
|
(127,722)
|
|
|
(96,797)
|
|
|
|
|
(360,591)
|
|
|
(273,072)
|
|
Gross profit
|
|
|
|
147,175
|
|
|
118,808
|
|
|
|
|
436,598
|
|
|
337,431
|
|
Selling, general and administrative expenses
|
|
|
|
(111,597)
|
|
|
(92,192)
|
|
|
|
|
(307,858)
|
|
|
(261,017)
|
|
Foreign currency transaction losses gains (losses), net
|
|
|
2,060
|
|
|
908
|
|
|
|
|
3,787
|
|
|
2,329
|
|
Restructuring charges
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(2,539)
|
|
Asset impairment
|
|
|
|
(495)
|
|
|
-
|
|
|
|
|
(527)
|
|
|
(141)
|
|
Charitable contributions expense
|
|
|
|
(75)
|
|
|
(78)
|
|
|
|
|
(1,911)
|
|
|
(496)
|
|
Income (loss) from operations
|
|
|
|
37,068
|
|
|
27,446
|
|
|
|
|
130,089
|
|
|
75,567
|
|
Interest expense
|
|
|
|
(204)
|
|
|
(153)
|
|
|
|
|
(632)
|
|
|
(445)
|
|
Gain on charitable contributions
|
|
|
|
61
|
|
|
19
|
|
|
|
|
671
|
|
|
135
|
|
Other (income) expense
|
|
|
|
(98)
|
|
|
(137)
|
|
|
|
|
(534)
|
|
|
(87)
|
|
Income (loss) before income taxes
|
|
|
|
36,827
|
|
|
27,175
|
|
|
|
|
129,594
|
|
|
75,170
|
|
Income tax (expense) benefit
|
|
|
|
(6,620)
|
|
|
(2,179)
|
|
|
|
|
(22,377)
|
|
|
(12,173)
|
|
Net income (loss)
|
|
|
$
|
30,207
|
|
$
|
24,996
|
|
|
|
$
|
107,217
|
|
$
|
62,997
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.34
|
|
$
|
0.29
|
|
|
|
$
|
1.21
|
|
$
|
0.73
|
|
Diluted
|
|
|
$
|
0.33
|
|
$
|
0.28
|
|
|
|
$
|
1.18
|
|
$
|
0.72
|
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ thousands, except number of shares)
|
|
September 30,
2011
|
|
|
December 31,
2010
|
|
|
September 30,
2010
|
| ASSETS |
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
220,388
|
|
$
|
145,583
|
|
$
|
143,057
|
|
Accounts receivable, net of allowance for doubtful accounts of
$14,457, $10,249 and $10,896, respectively.
|
|
95,305
|
|
|
64,260
|
|
|
81,303
|
|
Inventories
|
|
151,109
|
|
|
121,155
|
|
|
142,531
|
|
Deferred tax assets, net
|
|
14,134
|
|
|
15,888
|
|
|
7,973
|
|
Income tax receivable
|
|
16,460
|
|
|
9,062
|
|
|
9,597
|
|
Other receivables
|
|
18,488
|
|
|
11,637
|
|
|
11,008
|
|
Prepaid expenses and other current assets
|
|
18,654
|
|
|
13,429
|
|
|
14,276
|
|
Total current assets
|
|
534,538
|
|
|
381,014
|
|
|
409,745
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
66,115
|
|
|
70,014
|
|
|
65,882
|
|
Intangible assets, net
|
|
47,372
|
|
|
45,461
|
|
|
42,416
|
|
Deferred tax assets, net
|
|
31,423
|
|
|
34,711
|
|
|
18,859
|
|
Other assets
|
|
24,806
|
|
|
18,281
|
|
|
17,769
|
|
Total assets
|
$
|
704,254
|
|
$
|
549,481
|
|
$
|
554,671
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
$
|
57,354
|
|
$
|
35,669
|
|
$
|
66,763
|
|
Accrued expenses and other current liabilities
|
|
75,563
|
|
|
59,488
|
|
|
67,051
|
|
Deferred tax liabilities, net
|
|
15,237
|
|
|
17,620
|
|
|
9
|
|
Income taxes payable
|
|
22,373
|
|
|
23,084
|
|
|
18,188
|
|
Note payable, current portion of long-term debt and capital lease
obligations
|
|
1,232
|
|
|
1,901
|
|
|
1,861
|
|
Total current liabilities
|
|
171,759
|
|
|
137,762
|
|
|
153,872
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities, net
|
|
1,070
|
|
|
847
|
|
|
2,085
|
|
Long-term income tax payable
|
|
35,427
|
|
|
29,861
|
|
|
28,518
|
|
Other liabilities
|
|
5,749
|
|
|
4,905
|
|
|
5,249
|
|
Total liabilities
|
|
214,005
|
|
|
173,375
|
|
|
189,724
|
|
|
|
|
|
|
|
|
|
|
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, 90,232,212 and 89,725,726 shares issued and outstanding,
respectively, at September 30, 2011 and 88,600,860 and 88,065,859
shares issued and outstanding, respectively, at December 31, 2010
and 87,705,254 and 87,136,697 shares issued and outstanding,
respectively at September 30, 2010.
|
|
90
|
|
|
88
|
|
|
87
|
|
Treasury stock, at cost, 506,486, 535,001 and 568,557 shares,
respectively.
|
|
(20,103)
|
|
|
(22,008)
|
|
|
(23,610)
|
|
Additional paid-in capital
|
|
291,609
|
|
|
277,293
|
|
|
273,418
|
|
Retained earnings
|
|
197,098
|
|
|
89,881
|
|
|
85,152
|
|
Accumulated other comprehensive income
|
|
21,555
|
|
|
30,852
|
|
|
29,900
|
|
Total stockholders' equity
|
|
490,249
|
|
|
376,106
|
|
|
364,947
|
|
Total liabilities and stockholders' equity
|
$
|
704,254
|
|
$
|
549,481
|
|
$
|
554,671
|
SOURCE: Crocs, Inc.
Investor:
Crocs, Inc.
Kevin Kim, 303-848-7000
kkim@crocs.com
or
ICR, Inc.
Brendon Frey, 203-682-8200
brendon.frey@icrinc.com
or
Media:
Crocs, Inc.
Shelley Weibel, 303-848-7000
sweibel@crocs.com