EX-99.1 2 a07-20442_1ex99d1.htm EX-99.1

Exhibit 99.1

For:

Crocs, Inc.

 

 

 

 

Company Contact:

Peter Case/Chief Financial Officer

 

 

Tia Mattson/Public Relations Manager

 

 

(303) 848-7000

 

 

 

 

Investor/Media Contact:

Integrated Corporate Relations, Inc.

 

 

Investors: Chad Jacobs/Brendon Frey

 

 

Media: Michael Fox

 

 

(203) 682-8200

 

CROCS, INC. REPORTS FISCAL 2007 SECOND QUARTER FINANCIAL RESULTS
— Second Quarter Revenues Increased 162% to $224.3 Million vs. $85.6 Million Last Year —
- Company Reports 2Q07 Diluted EPS of $0.58 vs. $0.19 Last Year-
— Company Issues 3Q07 Guidance of Revenues between $240 and $250 Million and Diluted EPS of $0.58 to $0.62 —
— Company Raises FY07 Guidance to Revenues of $810 to $820 Million and Diluted EPS of $1.89 to $1.93 —

NIWOT, COLORADO — July 26, 2007 — Crocs, Inc. (NASDAQ: CROX) today reported the following record financial results for the quarter ended June 30, 2007.

Revenues for the quarter ended June 30, 2007 increased 162% to $224.3 million compared to $85.6 million for the quarter ended June 30, 2006.  Net income for the quarter ended June 30, 2007 was $48.5 million, or $0.58 per diluted share, compared to $15.7 million, or $0.19 per diluted share, for the quarter ended June 30, 2006.  Net income per diluted share amounts for the second quarters of 2007 and 2006 are adjusted to reflect the two-for-one stock split that took effect in June 2007. Gross profit for the second quarter of 2007 was $131.9 million, or 58.8% of revenues, compared to $47.0 million, or 54.8% of revenues for the second quarter of 2006.  Selling, general and administrative expenses for the quarter ended June 30, 2007 was $63.5 million, or 28.3% of revenues, compared to $23.3 million, or 27.2% of revenues in the quarter ended June 30, 2006.

Ron Snyder, President and Chief Executive Officer of Crocs, Inc. commented, “The positive momentum we experienced at the beginning of the year carried forward into the second quarter, allowing us to exceed both internal and external expectations. We continued to witness robust demand for our expanded footwear collection and growing accessories category throughout the United States and Canada. Additionally, our overseas markets - in particular Europe -remained very strong driven by a broader merchandise assortment, increased distribution, and additional shelf space within our existing retailers. Looking ahead, our order book is coming in better than anticipated which has enabled us to once again increase our outlook for the fiscal year.”

Guidance

For the third quarter of 2007, Crocs currently anticipates total revenues to range from $240 million to $250 million and projects its net income per diluted share to range from $0.58 to $0.62.

Crocs also raised its fiscal 2007 guidance. Crocs now expects total revenues to range from $810 million to $820 million and net income per diluted share to range from $1.89 to $1.93.

Mr. Snyder concluded, “The first half of 2007 has been a period of rapid expansion and significant growth for Crocs. During this time we have further diversified our business, secured a number of additional partnerships with many of the premier sports and entertainment brands in the world and posted strong financial gains across the board. Equally important, we have continued to invest in our global operating platform, including key personnel and production capacity, as we remain committed to further positioning Crocs for future success.  We are excited about the many prospects we believe exist going forward and our entire organization is focused on executing our long-term strategic growth plan.”

Conference Call Information

A conference call to discuss second quarter financial results is scheduled for today (Thursday, July 26, 2007) at 4:30 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.viavid.net. To listen to the broadcast, your computer must have Windows Media Player installed.  If you do not have Windows Media Player, go to the latter site prior to the call, where you can download the software for free.

About Crocs, Inc:
Crocs, Inc. is a rapidly growing designer, manufacturer and retailer of footwear for men, women and children under the Crocs™ brand.

All Crocs™ brand shoes feature Crocs’ proprietary closed-cell resin, Croslite™, which represents a substantial innovation in footwear. The Croslite™ material enables us to produce soft, comfortable, lightweight, superior-gripping, non-marking and odor-resistant shoes. These unique elements make Crocs™ footwear ideal for casual wear, as well as for professional and recreational uses such as boating, hiking, hospitality and gardening. The versatile use of the material has enabled us to successfully market our products to a broad range of consumers.

In 2006, the company acquired Jibbitz LLC, a unique accessory brand with colorful snap-on products specifically suited for Crocs shoes. Today, more than 1,100 Jibbitz designs are available to consumers for personalizing and customizing their Crocs™ footwear.

Crocs™ are sold in more than 80 countries and come in a wide array of colors and styles. Please visit www.crocs.com for additional information.

Forward Looking Statements

The matters regarding the future discussed in this news release include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements related to our future prospects and our expectations regarding our growth, international expansion, total revenues and net income per diluted share for the third quarter ending September 30, 2007 and year ending December 31, 2007.  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: our limited operating history; our significant recent expansion; changing fashion trends; our reliance on market acceptance of the small number of products we sell; our ability to develop and sell new products; our limited manufacturing capacity and distribution channels; our reliance on third party manufacturing and logistics providers for the production and distribution of our products; our reliance on a single-source supply for certain raw materials; our management and information systems infrastructure; our ability to obtain and protect intellectual property rights; the effect of competition in our industry; the effects of seasonality on our sales; our ability to attract, assimilate and retain management talent; and other factors described in our 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 statement, 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.
Consolidated Statements of Operations
(In thousands, except share and per share data)
(unaudited)

 

 

THREE MONTHS ENDED

 

SIX MONTHS ENDED

 

 

 

June 30,

 

June 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

224,273

 

$

85,635

 

$

366,275

 

$

130,477

 

Cost of sales

 

92,329

 

38,665

 

149,845

 

59,828

 

Gross profit

 

131,944

 

46,970

 

216,430

 

70,649

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

63,472

 

23,312

 

110,799

 

36,978

 

Income from operations

 

68,472

 

23,658

 

105,631

 

33,671

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

51

 

92

 

115

 

391

 

Other expense (income), net

 

(399

)

(366

)

(915

)

(662

)

Income before income taxes

 

68,820

 

23,932

 

106,431

 

33,942

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

20,369

 

8,266

 

33,035

 

11,835

 

 

 

 

 

 

 

 

 

 

 

Net income

 

48,451

 

15,666

 

73,396

 

22,107

 

 

 

 

 

 

 

 

 

 

 

Dividends on redeemable convertible preferred shares

 

 

 

 

33

 

Net income attributable to common stockholders

 

48,451

 

15,666

 

73,396

 

22,074

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.60

 

$

0.20

 

$

0.92

 

$

0.31

 

Diluted

 

$

0.58

 

$

0.19

 

$

0.88

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares:

 

 

 

 

 

 

 

 

 

Basic

 

80,253,555

 

76,573,750

 

79,761,491

 

71,217,747

 

Diluted

 

83,686,108

 

80,855,402

 

83,066,178

 

78,702,492

 

 




Crocs, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(unaudited)

 

 

June 30,

 

 December 31, 

 

 

 

2007

 

2006

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

61,262

 

$

42,656

 

Restricted cash

 

3,726

 

2,890

 

Short-term investments

 

24,390

 

22,325

 

Accounts receivable, net

 

117,345

 

65,588

 

Inventories, net

 

118,647

 

86,210

 

Deferred tax assets

 

3,694

 

3,690

 

Prepaid income tax

 

 

4,715

 

Prepaid expenses and other current assets

 

14,581

 

9,617

 

 

 

 

 

 

 

Total current assets

 

343,645

 

237,691

 

 

 

 

 

 

 

Property and equipment, net

 

55,994

 

34,849

 

Goodwill

 

22,931

 

11,552

 

Other intangibles, net

 

19,020

 

12,210

 

Deferred tax assets, net

 

1,591

 

1,280

 

Other assets

 

3,393

 

1,875

 

Total assets

 

$

446,574

 

$

299,457

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

59,806

 

$

43,794

 

Accrued expenses and other liabilities

 

54,337

 

31,109

 

Income taxes payable

 

6,084

 

12,465

 

Notes payable and current installments of long-term debt

 

280

 

541

 

 

 

 

 

 

 

Total current liabilities

 

120,507

 

87,909

 

 

 

 

 

 

 

Long-term debt

 

71

 

116

 

Deferred tax liabilities

 

1,844

 

1,688

 

Other liabilities

 

1,387

 

1,486

 

 

 

 

 

 

 

Total liabilities

 

123,809

 

91,199

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common shares, par value $0.001 per share; 250,000,000 shares authorized, 81,019,866 and 76,823,384 shares issued and outstanding in 2007 and 2006

 

81

 

77

 

Additional paid-in-capital

 

169,399

 

131,796

 

Deferred compensation

 

(3,782

)

(5,702

)

Retained earnings

 

154,477

 

81,081

 

Accumulated other comprehensive income

 

2,590

 

1,006

 

Total stockholders’ equity

 

322,765

 

208,258

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

446,574

 

$

299,457