NIWOT, Colo.--(BUSINESS WIRE)--Jul. 24, 2013--
Crocs Inc. (NASDAQ: CROX) reported today financial results for the
second quarter of 2013.
Second Quarter 2013 Review
-
Record revenue of $363.8 million
-
Gross Margin of 55.2 percent
-
Net income of $35.4 million
-
Earnings per diluted share of $0.40
-
Non-GAAP adjusted net income1 per diluted share of $0.48
“Our second quarter revenue grew 12.5% on a constant currency basis and
reflects the global appeal of the Crocs brand, the success of our new
spring/summer collections, including the Huarache, A-Leigh, Beach Line
Boat and Retro collections, combined with the ongoing strength of our
core product line-up,” said John McCarvel, President and Chief Executive
Officer. “Globally, our direct to consumer channel continues to be a key
component of our success. Our Asia Pacific region remains a fundamental
driver of our growth strategy as all channels in the region continue to
exceed expectations.”
“During the quarter we strategically managed our global sales channels
and balance sheet. Our direct to consumer channel performed very well,
growing nearly 20% on a constant currency basis, with positive same
store sales in Asia, the Americas and Europe. Wholesale revenue was
higher globally, but margins in this channel, particularly in the
Americas and Europe, were down due to lower than anticipated late season
at-once revenue and increased discount activity late in the quarter,
which negatively impacted earnings per share. Challenges during the
quarter included continued weakness in consumer spending in the U.S.,
Europe and Japan, compounded by colder than normal temperatures during
April and May in the U.S. and Europe. Our cash balance at quarter-end
was $289 million, and inventory decreased to $161 million or 2.5% from
December 31, 2012, as inventory turns increased to 3.8.”
Second Quarter Results
Revenue for the second quarter of 2013 increased 9.9% to $363.8 million
compared with revenue of $330.9 million reported in the second quarter
of 2012. On a constant currency basis revenue increased 12.5% for the
second quarter of 2013.
For second quarter of 2013, the company had net income of $35.4 million
or $0.40 per diluted share, compared with net income of $61.5 million or
$0.68 per diluted share in the prior year period. Diluted earnings per
share during the second quarter of 2013 were negatively impacted by
lower than expected gross margins, a one-time net charge of $6.1 million
related to the resolution of a statutory tax audit in Brazil, which
reduced earnings by $0.07 per share, and a higher than anticipated tax
rate of 29%, which reduced earnings by $0.02 per share.
Adjusting for the impact of the statutory tax audit in Brazil and $1.6
million relating to the implementation of a new ERP system including
non-cash accelerated depreciation and cash expenses for program
management, training and other non-capitalized costs, the company had
Non-GAAP adjusted net income of $43.1 million in the quarter or $0.48
per diluted share.
Mr. McCarvel continued, “When we look back on the second quarter we had
various items impact our results versus our guidance. Those included
lower gross margins, the resolution of the tax audit in Brazil and a
higher tax rate. Together with year-over-year impacts of currency which
reduced our earnings per share by $0.06 plus our investments in our new
ERP system and increased marketing, the impact of these items totaled
$0.17 per share in the quarter.”
Margins
Gross profit for the second quarter of 2013 increased 2.4% to $200.9
million, or 55.2% as a percentage of sales, compared with $196.1
million, or 59.3% as a percentage of sales in the prior year period. The
year- over-year decrease in gross profit as a percentage of sales was
primarily related to slower late season at-once revenue and increased
discounting late in the quarter in the Americas and Europe. Selling,
General & Administrative (“SG&A”) expenses increased 20.5% to $150.2
million compared with $124.7 million a year ago, reflecting increases in
retail store space, marketing expenses, resolution of the Brazil tax
audit, and the company’s ERP project. As a percentage of sales, SG&A
increased to 41.3% compared with 37.7% in the second quarter of 2012.
The impact of the non-recurring Brazil expense and the ERP expense
contributed approximately 200 basis points to the increase in SG&A
expense as a percentage of sales in the quarter.
Second Quarter Revenue Results
The following tables detail the company’s second quarter 2013 and 2012
revenues:
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Constant Currency Change(1) |
|
($ thousands)
|
|
2013
|
|
2012
|
|
$
|
|
%
|
|
$
|
|
%
|
|
Channel revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
69,089
|
|
$
|
62,369
|
|
$
|
6,720
|
|
|
10.8
|
%
|
|
$
|
7,041
|
|
|
11.3
|
%
|
|
Asia Pacific
|
|
|
67,383
|
|
|
54,285
|
|
|
13,098
|
|
|
24.1
|
|
|
|
12,080
|
|
|
22.3
|
|
|
Japan
|
|
|
31,053
|
|
|
39,335
|
|
|
(8,282
|
)
|
|
(21.1
|
)
|
|
|
(1,228
|
)
|
|
(3.1
|
)
|
|
Europe
|
|
|
33,742
|
|
|
32,490
|
|
|
1,252
|
|
|
3.9
|
|
|
|
623
|
|
|
1.9
|
|
|
Other businesses
|
|
|
98
|
|
|
47
|
|
|
51
|
|
|
108.5
|
|
|
|
44
|
|
|
93.6
|
|
|
Total Wholesale
|
|
|
201,365
|
|
|
188,526
|
|
|
12,839
|
|
|
6.8
|
|
|
|
18,560
|
|
|
9.8
|
|
|
Consumer-direct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
61,041
|
|
|
54,952
|
|
|
6,089
|
|
|
11.1
|
|
|
|
6,243
|
|
|
11.4
|
|
|
Asia Pacific
|
|
|
40,871
|
|
|
35,002
|
|
|
5,869
|
|
|
16.8
|
|
|
|
5,375
|
|
|
15.4
|
|
|
Japan
|
|
|
12,327
|
|
|
13,357
|
|
|
(1,030
|
)
|
|
(7.7
|
)
|
|
|
1,844
|
|
|
13.8
|
|
|
Europe
|
|
|
18,050
|
|
|
9,163
|
|
|
8,887
|
|
|
97.0
|
|
|
|
8,814
|
|
|
96.2
|
|
|
Total Retail
|
|
|
132,289
|
|
|
112,474
|
|
|
19,815
|
|
|
17.6
|
|
|
|
22,276
|
|
|
19.8
|
|
|
Internet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
16,125
|
|
|
17,290
|
|
|
(1,165
|
)
|
|
(6.7
|
)
|
|
|
(1,140
|
)
|
|
(6.6
|
)
|
|
Asia Pacific
|
|
|
3,578
|
|
|
2,338
|
|
|
1,240
|
|
|
53.0
|
|
|
|
1,166
|
|
|
49.9
|
|
|
Japan
|
|
|
2,092
|
|
|
2,540
|
|
|
(448
|
)
|
|
(17.6
|
)
|
|
|
35
|
|
|
1.4
|
|
|
Europe
|
|
|
8,378
|
|
|
7,774
|
|
|
604
|
|
|
7.8
|
|
|
|
411
|
|
|
5.3
|
|
|
Total Internet
|
|
|
30,173
|
|
|
29,942
|
|
|
231
|
|
|
0.8
|
|
|
|
472
|
|
|
1.6
|
|
|
Total revenues:
|
|
$
|
363,827
|
|
$
|
330,942
|
|
$
|
32,885
|
|
|
9.9
|
%
|
|
$
|
41,308
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Change
|
|
Constant Currency Change(1) |
|
($ thousands)
|
|
2013
|
|
2012
|
|
$
|
|
%
|
|
$
|
|
%
|
|
Regional Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
146,255
|
|
$
|
134,611
|
|
$
|
11,644
|
|
|
8.7
|
%
|
|
$
|
12,144
|
|
|
9.0
|
%
|
|
Asia Pacific
|
|
|
111,832
|
|
|
91,625
|
|
|
20,207
|
|
|
22.1
|
|
|
|
18,621
|
|
|
20.3
|
|
|
Japan
|
|
|
45,472
|
|
|
55,232
|
|
|
(9,760
|
)
|
|
(17.7
|
)
|
|
|
651
|
|
|
1.2
|
|
|
Europe
|
|
|
60,170
|
|
|
49,427
|
|
|
10,743
|
|
|
21.7
|
|
|
|
9,848
|
|
|
19.9
|
|
|
Other businesses
|
|
|
98
|
|
|
47
|
|
|
51
|
|
|
108.5
|
|
|
|
44
|
|
|
93.6
|
|
|
Total Revenues
|
|
$
|
363,827
|
|
$
|
330,942
|
|
$
|
32,885
|
|
|
9.9
|
%
|
|
$
|
41,308
|
|
|
12.5
|
%
|
(1) 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 excluding the impact of
foreign currency exchange rate fluctuations.
Other Financial Information
Comparable Store Sales Results2
Comparable store sales on a constant currency basis for the second
quarter of 2013 compared to the second quarter 2012 were as follows:
Global increased 1.0%, Americas increased 1.5%, Asia Pacific increased
8.3%, Japan decreased 19.5% and Europe increased 1.0%. Excluding Japan,
comparable store sales growth increased 4.4%.
|
|
|
Constant Currency
|
|
Constant Currency
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Comparable store sales growth
|
|
June 30, 2013
|
|
June 30, 2012
|
|
Americas
|
|
1.5
|
%
|
|
(1.2
|
)%
|
|
Asia Pacific
|
|
8.3
|
|
|
11.5
|
|
|
Japan
|
|
(19.5
|
)
|
|
(11.3
|
)
|
|
Europe
|
|
1.0
|
|
|
8.7
|
|
|
Total
|
|
1.0
|
%
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
Mr. McCarvel continued, “We saw same store sales growth accelerate
throughout the quarter with improved weather. Our Asia Pacific business
expanded 8 percent on a same store sales basis with limited discounting
or promotional activity.”
Balance Sheet
Cash and cash equivalents at June 30, 2013 decreased 1.7% compared with
December 31, 2012. During the first six months of 2013 the Company
repurchased approximately 834,000 shares of common stock for an
aggregate of approximately $12.5 million in cash.
Inventories at June 30, 2013 were $160.8 million, down 2.5% compared
with inventory at December 31, 2012.
Backlog
Backlog at June 30, 2013 was $161.0 million, down 6.7% compared with
$172.6 million in the prior year period. On a constant currency basis
backlog at June 30, 2013 was lower by an estimated 3% compared with the
prior year period. The Company believes the decline in backlog is
reflective of wholesale accounts taking a cautious view towards fall
holiday 2013 orders based on weaker than expected spring 2013 sales and
also the desire of some accounts to order product more on an at-once
basis.
Financial Outlook
For the third quarter of 2013, the company expects revenue between $300
million and $310 million and diluted earnings per share between $0.20
and $0.23. This outlook includes $(0.02) per share of ERP implementation
expense and reflects an impact of $(0.04) for currency translation.
Conference Call Information
A conference call to discuss Crocs’ second quarter 2013 results is
scheduled for today (July 24, 2013) 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
and at www.earnings.com.
An audio replay of the webcast will be available on the Crocs website
for one year.
Interested parties are advised to log on to the live webcast at least
fifteen minutes prior to the call in order to download the necessary
software.
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 200 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 future revenue and earnings,
backlog, future orders, prospects, investments in our business, outlook
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 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 July 24, 2013. 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 adjusted net income 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.
2 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 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 thirteen month post re-opening. 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 excluding the impact of foreign currency exchange rate
fluctuations.
|
|
|
CROCS, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
($ thousands, except per share data)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Revenues
|
|
$
|
363,827
|
|
|
$
|
330,942
|
|
|
$
|
675,483
|
|
|
$
|
602,740
|
|
|
Cost of sales
|
|
|
162,960
|
|
|
|
134,857
|
|
|
|
308,767
|
|
|
|
261,856
|
|
|
Gross profit
|
|
|
200,867
|
|
|
|
196,085
|
|
|
|
366,716
|
|
|
|
340,884
|
|
|
Selling, general and administrative expenses
|
|
|
150,246
|
|
|
|
124,718
|
|
|
|
278,445
|
|
|
|
229,009
|
|
|
Asset impairment
|
|
|
202
|
|
|
|
106
|
|
|
|
202
|
|
|
|
819
|
|
|
Income from operations
|
|
|
50,419
|
|
|
|
71,261
|
|
|
|
88,069
|
|
|
|
111,056
|
|
|
Foreign currency transaction (gains) losses, net
|
|
|
814
|
|
|
|
(1,627
|
)
|
|
|
3,414
|
|
|
|
2,649
|
|
|
Interest income
|
|
|
(517
|
)
|
|
|
(549
|
)
|
|
|
(823
|
)
|
|
|
(907
|
)
|
|
Interest expense
|
|
|
266
|
|
|
|
132
|
|
|
|
475
|
|
|
|
179
|
|
|
Other (income) expense, net
|
|
|
195
|
|
|
|
(520
|
)
|
|
|
167
|
|
|
|
(761
|
)
|
|
Income before income taxes
|
|
|
49,661
|
|
|
|
73,825
|
|
|
|
84,836
|
|
|
|
109,896
|
|
|
Income tax expense
|
|
|
14,305
|
|
|
|
12,301
|
|
|
|
20,519
|
|
|
|
20,026
|
|
|
Net income
|
|
$
|
35,356
|
|
|
$
|
61,524
|
|
|
$
|
64,317
|
|
|
$
|
89,870
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.40
|
|
|
$
|
0.68
|
|
|
$
|
0.73
|
|
|
$
|
1.00
|
|
|
Diluted
|
|
$
|
0.40
|
|
|
$
|
0.68
|
|
|
$
|
0.72
|
|
|
$
|
0.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
($ thousands, except number of shares)
|
|
2013
|
|
2012
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
289,354
|
|
|
$
|
294,348
|
|
|
Accounts receivable, net of allowances of $16,918 and $13,315,
respectively
|
|
|
162,263
|
|
|
|
92,278
|
|
|
Inventories
|
|
|
160,763
|
|
|
|
164,804
|
|
|
Deferred tax assets, net
|
|
|
5,628
|
|
|
|
6,284
|
|
|
Income tax receivable
|
|
|
12,307
|
|
|
|
5,613
|
|
|
Other receivables
|
|
|
17,293
|
|
|
|
24,821
|
|
|
Prepaid expenses and other current assets
|
|
|
31,051
|
|
|
|
24,967
|
|
|
Total current assets
|
|
|
678,659
|
|
|
|
613,115
|
|
|
Property and equipment, net
|
|
|
88,770
|
|
|
|
82,241
|
|
|
Intangible assets, net
|
|
|
64,082
|
|
|
|
59,931
|
|
|
Deferred tax assets, net
|
|
|
33,283
|
|
|
|
34,112
|
|
|
Other assets
|
|
|
54,167
|
|
|
|
40,239
|
|
|
Total assets
|
|
$
|
918,961
|
|
|
$
|
829,638
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
76,666
|
|
|
$
|
63,976
|
|
|
Accrued expenses and other current liabilities
|
|
|
90,963
|
|
|
|
81,371
|
|
|
Deferred tax liabilities, net
|
|
|
2,388
|
|
|
|
2,405
|
|
|
Income taxes payable
|
|
|
25,363
|
|
|
|
8,147
|
|
|
Current portion of long-term borrowings and capital lease obligations
|
|
|
3,031
|
|
|
|
2,039
|
|
|
Total current liabilities
|
|
|
198,411
|
|
|
|
157,938
|
|
|
Long term income tax payable
|
|
|
32,129
|
|
|
|
36,343
|
|
|
Long-term borrowings and capital lease obligations
|
|
|
6,899
|
|
|
|
4,596
|
|
|
Other liabilities
|
|
|
13,913
|
|
|
|
13,361
|
|
|
Total liabilities
|
|
|
251,352
|
|
|
|
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, 91,565,533 and 88,345,143 shares issued and
outstanding, respectively, at June 30, 2013 and 91,047,297 and
88,662,845 shares issued and outstanding, respectively, at
December 31, 2012
|
|
|
92
|
|
|
|
91
|
|
|
Treasury stock, at cost, 3,220,390 and 2,384,452 shares, respectively
|
|
|
(56,343
|
)
|
|
|
(44,214
|
)
|
|
Additional paid-in capital
|
|
|
316,111
|
|
|
|
307,823
|
|
|
Retained earnings
|
|
|
398,329
|
|
|
|
334,012
|
|
|
Accumulated other comprehensive income
|
|
|
9,420
|
|
|
|
19,688
|
|
|
Total stockholders’ equity
|
|
|
667,609
|
|
|
|
617,400
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
918,961
|
|
|
$
|
829,638
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
|
|
NON-GAAP NET INCOME RECONCILIATIONS (UNAUDITED)
|
|
(In thousands)
|
|
|
|
The Company prepares and reports its financial statements in
accordance with U.S. Generally Accepted Accounting Principles
(“GAAP”). Internally, management monitors the operating
performance of its business using the non-GAAP metrics constant
currency and Non-GAAP adjusted net income. Constant currency
excludes the effects of foreign exchange rate fluctuations by
restating current period results using the prior year average
exchange rates. Non-GAAP adjusted net income excludes the impact
of new enterprise resource planning system (“ERP”) implementation
expenses, a one-time net expense related to the resolution of a
statutory tax audit in Brazil and the accelerated depreciation and
amortization of our current ERP system. In management’s opinion,
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 exclude items that may not be
indicative of overall business trends and provide a better
baseline for analyzing trends in our operations. The Company does
not, nor does it suggest that investors should, consider such
non-GAAP financial measures in isolation from, or as a substitute
for, financial information prepared in accordance with GAAP. The
Company believes the disclosure of the effects of these items
increases the reader’s understanding of the underlying performance
of the business and that such non-GAAP financial measures provide
investors with an additional tool to evaluate our financial
results and assess our prospects for future performance.
|
The following is a reconciliation of our net income, the most directly
comparable U.S. GAAP measure, to Non-GAAP adjusted net income:
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income:
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
GAAP net income
|
|
$
|
35,356
|
|
$
|
61,524
|
|
$
|
64,317
|
|
$
|
89,870
|
|
New ERP implementation (1) |
|
|
715
|
|
|
-
|
|
|
1,846
|
|
|
-
|
|
Brazil tax credits (2) |
|
|
6,094
|
|
|
-
|
|
|
6,094
|
|
|
-
|
|
Depreciation and amortization (3) |
|
|
913
|
|
|
-
|
|
|
1,635
|
|
|
-
|
|
Non-GAAP adjusted net income
|
|
$
|
43,078
|
|
$
|
61,524
|
|
$
|
73,892
|
|
$
|
89,870
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net income per diluted share
|
|
$
|
0.48
|
|
$
|
0.68
|
|
$
|
0.83
|
|
$
|
0.99
|
|
(1) This proforma adjustment in the GAAP to Non-GAAP
reconciliations above represents expenses related to the
implementation of a new ERP system.
|
|
|
|
|
(2) This proforma adjustment in the GAAP to Non-GAAP
reconciliations above represents a one-time net expense related to
the resolution of a statutory tax audit in Brazil. In April 2013,
the State of Sao Paulo, Brazil government (“Brazil”) assessed
sales taxes, interest and penalties for the period April 2009 to
May 2011. We had previously tendered these taxes using Brazil
obligations purchased from third parties at a discount. On May 22,
2013, we applied for amnesty in order to receive a significant
reduction in penalties and interest, agreed to amend our 2009
through 2012 tax returns to remove the Brazil obligations, and
agreed to settle the assessment in cash to Brazil. In June 2013,
cash payment was made to Brazil, in full satisfaction of the
Brazil assessment. Brazil is making court-ordered payments to
holders of the Brazil obligations along with accrued interest. The
Company anticipates that the Brazil obligations (plus accrued
interest) will be paid by Brazil in accordance with the
court-orders. The Company is carrying the Brazil obligations at
the original discounted cost to the Company and intends to hold
the Brazil obligations until paid by Brazil.
|
|
|
|
|
(3) This proforma adjustment in this GAAP to Non-GAAP
reconciliation 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.
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
|
|
RETAIL STORE COUNTS
|
|
(UNAUDITED)
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
June 30,
|
|
Company-operated retail locations:
|
|
2012
|
|
Opened
|
|
Closed
|
|
2013
|
|
Type:
|
|
|
|
|
|
|
|
|
|
Kiosk/Store in Store
|
|
153
|
|
30
|
|
(58)
|
|
125
|
|
Retail Stores
|
|
220
|
|
108
|
|
(23)
|
|
305
|
|
Outlet Stores
|
|
111
|
|
39
|
|
(5)
|
|
145
|
|
Total
|
|
484
|
|
177
|
|
(86)
|
|
575
|
|
Operating segment:
|
|
|
|
|
|
|
|
|
|
Americas
|
|
197
|
|
45
|
|
(35)
|
|
207
|
|
Asia Pacific
|
|
201
|
|
52
|
|
(47)
|
|
206
|
|
Japan
|
|
32
|
|
18
|
|
(1)
|
|
49
|
|
Europe
|
|
54
|
|
62
|
|
(3)
|
|
113
|
|
Total
|
|
484
|
|
177
|
|
(86)
|
|
575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CROCS, INC. AND SUBSIDIARIES
|
|
BACKLOG
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
($ thousands)
|
|
2013
|
|
2012
|
|
Americas
|
|
$
|
58,628
|
|
$
|
68,613
|
|
Asia Pacific
|
|
|
53,430
|
|
|
50,459
|
|
Japan
|
|
|
28,748
|
|
|
32,265
|
|
Europe
|
|
|
20,230
|
|
|
21,249
|
|
Total backlog (1) |
|
$
|
161,036
|
|
$
|
172,586
|
|
|
|
|
|
|
|
(1) Backlog numbers represent preseason wholesale
orders, generally four to six months prior to shipment. Backlog as
of a particular date is affected by a number of factors, including
seasonality, manufacturing schedules and the timing of product
shipments. Further, the mix of future and immediate delivery
orders can vary significantly period over period. Due to these
factors and since unfulfilled orders can be canceled by our
customers at any time prior to shipment, backlog may not be a
reliable measure of future sale and comparison of backlog from
period to period may be misleading.
|
Source: Crocs Inc.
Crocs Inc.
Investor Contact:
William I. Kent,
303-848-7000
wkent@crocs.com
or
Media
Contact:
Katy Michael, 303-848-7000
kmichael@crocs.com