Crocs, Inc. (NASDAQ: CROX) today reported financial results for
the fourth quarter and year ended December 31, 2011. Revenue for
the fourth quarter of 2011 increased 14% to $203.7 million, over
revenue of $179.2 million reported in the fourth quarter of 2010.
Net income for the fourth quarter 2011 was $5.6 million, or $0.06
per diluted share compared to a net income of $4.7 million, or
$0.05 per diluted share in the fourth quarter 2010. Revenue for
2011 increased 27% to $1.0 billion, over revenue of $789.7 million
reported in 2010. Net income for 2011 improved to $112.8 million,
or $1.24 per diluted share compared to net income of $67.7 million,
or $0.76 per diluted share in 2010.
John McCarvel, President and Chief Executive Officer, stated:
“The past 12-months were a period of terrific growth and important
progress for our Company. In 2011, we grew annual sales 27% to
surpass $1 billion for the first time ever. The success of existing
and new product introductions drove improvements in our average
selling price in addition to strong organic growth from channel
& geographic expansion. As we move forward through 2012, we are
confident that our long-term strategies will continue to deliver
meaningful market share gains in spring and summer while also
increasing our relevance during the cold weather season.”
Year-over year fourth quarter changes in the Company’s channel
and regional revenue streams were as follows:
- Wholesale sales increased 6% to $104.1
million;
- Retail sales increased 24% to $74.1
million;
- Internet sales increased 17% to $25.5
million;
- Americas increased 10% to $103.6
million;
- Asia increased 22% to $76.1
million;
- Europe increased 6% to $24.0
million.
Gross profit for the fourth quarter of 2011 increased 16% to
$99.8 million, or 49.0% as a percentage of sales, from $86.3
million, or 48.2% of sales in same period last year. Selling,
General, & Administrative expenses (SG&A) increased 17% to
$94.9 million versus $81.1 million a year ago. As a percentage of
sales, SG&A increased to 46.6% from 45.3% in the fourth quarter
of 2010.
Year-over year annual changes in the Company’s channel and
regional revenue streams were as follows:
- Wholesale sales increased 24% to $598.4
million;
- Retail sales increased 32% to $306.7
million;
- Internet sales increased 28% to $95.9
million;
- Americas increased 19% to $448.0
million;
- Asia increased 34% to $381.8
million;
- Europe increased 34% to $171.2
million.
Gross profit for 2011 increased 27% to $536.4 million or 53.6%
as a percentage of sales, from $423.8 million, or 53.7% of sales in
2010. SG&A increased 18% to $402.8 million versus $342.1
million a year ago. As a percentage of sales, SG&A decreased to
40.2% from 43.3% in 2010.
“The combination of strong sales growth and our ability to
effectively manage costs created 310 basis points of operating
expense leverage in 2011,” said John McCarvel.
Balance Sheet
Cash and cash equivalents at December 31, 2011 increased 77% to
$257.6 million compared to $145.6 million at December 31, 2010.
Inventories at December 31, 2011 were $129.6 million, up 7%
compared to inventories at December 31, 2011 of $121.2 million.
Backlog
Backlog at December 31, 2011 increased 19% to $307.4 million
compared to backlog of $258.4 million at December 31, 2010.
Guidance
For the first quarter of 2012, the Company expects revenue to be
in the range of $263 to $268 million and diluted earnings per share
to be between $0.24 and $0.26. This guidance is based on an
effective tax rate of 24%.
Conference Call Information
A conference call to discuss Crocs’ 2011 fourth quarter and
year-end financial results is scheduled for today (February 23,
2012) 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, but are 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 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 CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
December 31,
Twelve Months Ended
December 31,
($ thousands, except per share amounts) 2011
2010 2011 2010 (unaudited) Revenues $
203,713 $ 179,192 $ 1,000,903 $ 789,695 Cost of sales 103,902
92,912 464,493 364,631 Restructuring charges -
(53 ) - 1,300 Gross profit 99,811
86,333 536,410 423,764 Selling, general and administrative expenses
94,911 81,104 402,769 342,121
Foreign currency transaction (gains)
losses, net
(1,639 ) (583 ) (5,426 ) (2,912 ) Restructuring charges - - - 2,539
Asset impairment 1 - 528 141 Charitable contributions expense
123 344 2,034 840
Income (loss) from operations 6,415 5,468 136,505 81,035
Interest expense 220 212 853 657 Gain on charitable contributions
(43 ) (88 ) (714 ) (223 ) Other (income) expense (858 )
(278 ) (324 ) (191 ) Income (loss) before
income taxes 7,096 5,622 136,690 80,792 Income tax expense
(benefit) 1,525 893 23,902
13,066 Net income (loss) $ 5,571 $
4,729 $ 112,788 $ 67,726 Net income (loss) per
common share: Basic $ 0.06 $ 0.05 $ 1.27 $
0.78 Diluted $ 0.06 $ 0.05 $ 1.24 $
0.76
CROCS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
($ thousands, except number of shares)
December 31,2011
December 31,2010
ASSETS Current assets: Cash and cash equivalents $ 257,587 $
145,583
Accounts receivable, net of allowance for
doubtful accounts of $15,508 and $10,249, respectively.
84,760 64,260 Inventories 129,627 121,155 Deferred tax assets, net
7,047 15,888 Income tax receivable 5,828 9,062 Other receivables
20,295 11,637 Prepaid expenses and other current assets 20,199
13,429 Total current assets 525,343 381,014
Property and equipment, net 67,684 70,014 Intangible assets, net
48,641 45,461 Deferred tax assets, net 30,375 34,711 Other assets
23,410 18,281 Total assets $ 695,453 $ 549,481
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 66,517 $ 35,669 Accrued expenses
and other current liabilities 76,506 59,488 Deferred tax
liabilities, net 2,889 17,620 Income taxes payable 8,273 23,084
Bank borrowings and current portion of capital lease obligations
1,118 1,901 Total current liabilities 155,303 137,762
Long-term income tax payable 41,665 29,861 Other liabilities
6,705 5,752 Total liabilities 203,673 173,375
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, 90,306,432 and
89,807,146 shares issued and outstanding, respectively, at December
31, 2011 and 88,600,860 and 88,065,859 shares issued and
outstanding, respectively, at December 31, 2010. 90 88 Treasury
stock, at cost, 499,286 and 535,001 shares, respectively. (19,759 )
(22,008 ) Additional paid-in capital 293,959 277,293 Retained
earnings 202,669 89,881 Accumulated other comprehensive income
14,821 30,852 Total stockholders’ equity 491,780
376,106 Total liabilities and stockholders’ equity $
695,453 $ 549,481
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