Crocs, Inc. (NASDAQ: CROX) today reported financial results for
the fourth quarter and fiscal year ended December 31, 2010.
Revenue for the fourth quarter of 2010 increased 32% to $179.2
million, over revenue of $136.0 million reported in the fourth
quarter of 2009. Net income for the fourth quarter 2010 improved to
$4.7 million, or $0.05 per diluted share compared to a net loss of
$11.4 million, or ($0.13) per diluted share in the fourth quarter
2009.
Year-over year fourth quarter changes in the Company’s channel
and regional revenue streams were as follows:
- Wholesale sales increased 27% to $97.7
million;
- Retail sales increased 36% to $59.6
million;
- Internet sales increased 44% to $21.9
million;
- Americas increased 36% to $94.1
million;
- Asia increased 24% to $62.4
million;
- Europe increased 37% to $22.7
million.
Gross profit for the fourth quarter of 2010 increased 43% to
$86.3 million, or 48.2% as a percentage of sales, from $60.3
million, or 44.3% of sales in same period last year. Selling,
General, & Administrative expenses (including foreign exchange,
restructuring, impairment, and charitable contributions) increased
9% to $80.9 million versus $74.1 million a year ago. As a
percentage of sales, SG&A decreased to 45.1% from 54.5% in the
fourth quarter of 2009.
Revenue for 2010 increased 22% to $789.7 million, over revenue
of $645.8 million reported in 2009. Net income for 2010 improved to
$67.7 million, or $0.76 per diluted share compared to a net loss of
$42.1 million, or ($0.49) per diluted share in 2009.
Year-over year annual changes in the Company’s channel and
regional revenue streams were as follows:
- Wholesale sales increased 19% to $481.8
million;
- Retail sales increased 29% to $232.9
million;
- Internet sales increased 24% to $75.0
million;
- Americas increased 25% to $377.1
million;
- Asia increased 20% to $284.8
million;
- Europe increased 21% to $127.7
million.
Gross profit for 2010 increased 41% to $423.8 million or 53.7%
as a percentage of sales, from $301.0 million, or 46.6% of sales in
2009. Selling, General, & Administrative expenses (including
foreign exchange, restructuring, impairment, and charitable
contributions) decreased 3% to $342.7 million versus $352.1 million
a year ago. As a percentage of sales, SG&A decreased to 43.4%
from 54.5% in 2009.
Balance Sheet
Cash and cash equivalents at December 31, 2010 increased 88% to
$145.6 million compared to $77.3 million at December 31, 2009. The
Company had an immaterial amount of bank debt as of December 31,
2010.
In-line with the 32% increase in year-over-year fourth quarter
sales and in support of the 57% increase over prior year end
backlog to $258.4 million, inventory grew 30% to $121.2 million at
December 31, 2010 from $93.3 million at December 31, 2009. On a
sequential basis, inventories declined 15% from $142.5 million at
September 30, 2010. The Company ended the fourth quarter of 2010
with accounts receivable of $64.3 million compared to $50.5 million
at December 31, 2009.
“We had a good fourth quarter that concluded a year in which we
achieved profitability in all four quarters for the first time
since 2007,” said John McCarvel, President and Chief Executive
Officer. “We reengaged the consumer during 2010 through great
product and more effective marketing and merchandising programs.
Our recent performance demonstrates we are succeeding at generating
new demand and evolving into a year round brand as we continue to
diversify our product line. At the same time, we’ve made important
investments in our operating platform to support our multi channel
growth strategy and drive efficiency. Looking ahead, our backlog is
up 57%, with all regions posting strong increases. We're very
pleased with the brand strength reflected in these future orders
and we see continued potential for profitable expansion of our
business."
Guidance
For the first quarter of 2011, the Company expects revenue of
approximately $215 million, a 29% increase over first quarter 2010.
The Company expects diluted earnings per share for the first
quarter 2011 to be approximately $0.19. This guidance assumes an
effective tax rate of 27% and outstanding diluted shares of
approximately 91 million.
Conference Call Information
A conference call to discuss Crocs’ fourth quarter and full year
2010 financial results is scheduled for today (February 24, 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 120 styles to suit every lifestyle. As
lighthearted as they are lightweight, Crocs™ footwear provides
profound comfort and support for any occasion and every season. All
Crocs™ branded shoes feature Croslite™ material, a proprietary,
revolutionary technology that produces soft, non-marking, and
odor-resistant shoes that conform to your feet.
Crocs™ products are sold in 129 countries. Every day, millions
of Crocs™ 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, but not limited to, statements regarding future revenue,
margin and earnings; backlog and future orders; expansion of our
business; and product diversification. 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. 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 CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except share and per share
data) (Unaudited) Three
Months Ended
December 31,
Twelve Months Ended
December 31,
2010 2009 2010 2009 Revenues $
179,192 $ 136,011 $ 789,695 $ 645,767 Cost of sales 92,859
75,743 365,931 344,806
Gross profit 86,333 60,268 423,764 300,961 Selling, general
and administrative expenses 81,104 70,835 342,121 311,592
Foreign currency transaction losses
(gains), net
(583 ) 582 (2,912 ) (665 ) Restructuring charges - 1,653 2,539
7,623 Asset impairment charges - 638 141 26,085 Charitable
contributions expense 344 214
840 7,510 Income (loss) from operations 5,468
(13,072 ) 81,035 (51,184 ) Interest expense 212 83 657 1,495 Gain
on charitable contributions (88 ) (330 ) (223 ) (3,163 ) Other
(income) expense (278 ) 625 (191 )
(895 ) Income (loss) before income taxes 5,622 (13,450 )
80,792 (48,621 ) Income tax (benefit) expense 893
(2,002 ) 13,066 (6,543 ) Net income
(loss) $ 4,729 $ (11,448 ) $ 67,726 $ (42,078 ) Net
income (loss) per common share: Basic $ 0.05 ($0.13 )
$ 0.78 ($0.49 ) Diluted $ 0.05 ($0.13 )
$ 0.76 ($0.49 ) Weighted average common shares
outstanding: Basic 86,449,792 85,670,340
85,482,055 85,112,461 Diluted
88,632,967 85,670,340 87,595,618
85,112,461
CROCS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (In thousands, except share
data)
December 31,2010
December 31,2009
ASSETS Current assets: Cash and cash equivalents $ 145,583 $
77,343
Accounts receivable, net of allowance for
doubtful accounts of $10,249 and $9,839, respectively
64,260 50,458 Inventories 121,155 93,329 Deferred tax assets, net
15,888 7,358 Income tax receivable 9,062 8,611 Other Receivables
11,637 16,140 Prepaid expenses and other current assets
13,429 14,015 Total current assets 381,014
267,254 Property and equipment, net 70,014 71,084 Intangible
assets, net 45,461 35,984 Deferred tax assets, net 34,711 18,479
Other assets 18,281 16,937 Total assets
$ 549,481 $ 409,738
LIABILITIES AND
STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $
35,669 $ 23,434 Accrued expenses and other current liabilities
59,049 53,580 Accrued restructuring charges 439 2,616 Deferred tax
liabilities, net 17,620 9 Income taxes payable 23,084 6,377 Note
payable, current portion of long-term debt and capital lease
obligations 1,901 640 Total current
liabilities 137,762 86,656 Deferred tax liabilities, net 847
2,192 Long-term income tax payable 29,861 27,890 Other liabilities
4,905 5,380 Total liabilities
173,375 122,118 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, 88,600,860 and 88,065,859 shares
issued and outstanding, respectively, at December 31, 2010 and
86,224,760 and 85,659,581 shares issued and outstanding,
respectively, at December 31, 2009. 88 85 Treasury stock, at cost,
535,001 and 565,179 shares, respectively. (22,008 ) (25,260 )
Additional paid-in capital 277,293 266,472 Retained earnings 89,881
22,155 Accumulated other comprehensive income 30,852
24,168 Total stockholders’ equity 376,106
287,620 Total liabilities and stockholders’
equity $ 549,481 $ 409,738
Crocs (NASDAQ:CROX)
Historical Stock Chart
From May 2024 to Jun 2024
Crocs (NASDAQ:CROX)
Historical Stock Chart
From Jun 2023 to Jun 2024