Crocs Inc. Reports 2012 Fourth Quarter & Full Year Financial Results

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Crocs Inc. Reports 2012 Fourth Quarter & Full Year Financial Results

  • Record Full Year 2012 Revenue of $1.12 Billion
  • Full Year 2012 Diluted EPS of $1.44
  • Excluding Non-Operating Items the Company Generated $0.04 of Diluted EPS in the Fourth Quarter of 2012

NIWOT, Colo.--(BUSINESS WIRE)-- Crocs Inc. (NAS: CROX) reported today financial results for the fourth quarter and full year ended December 31, 2012.


Full Year 2012 Highlights

  • Revenue increased 12 percent to $1.12 billion or 14 percent on a constant currency basis compared with the prior year period
  • Gross Margin increased to 54.1 percent, an increase of 50 basis points compared with the prior year period
  • Net income, excluding non-operating items and one-time tax benefits, increased 17 percent compared with the prior year period

"Our strong performance in 2012 reflects our ongoing investment in our multi channel strategy. We saw revenue growth during 2012 of 14% on a constant currency basis, while also approaching a record 50 million units and increasing average selling prices," said John McCarvel, President and Chief Executive Officer. "Looking forward into 2013, our customers are eagerly anticipating delivery of our spring summer line in the next few weeks, including the Huarache collection, which we expect to be the thirtieth member of our million pair seller club, our molded boat shoes, and our women's wedge line. We believe our focus on bringing innovative, colorful, comfortable and fun products to the marketplace allows us to grow our business thoughtfully and provide long-term value to our stockholders."

Full Year 2012 Results

Net income for the year ended December 31, 2012 was $131.3 million, or $1.44 per diluted share, compared with net income of $112.8 million, or $1.24 per diluted share, in 2011. Non-GAAP net income1, adjusted for a tax benefit in the third quarter of 2012, contingency accruals of $5.9 million in the fourth quarter of 2012 and $1.8 million of expense related to the implementation of a new enterprise resource planning (ERP) system, for the full year 2012 was $127.7 million or $1.40 per diluted share compared with Non-GAAP net income of $109.2 million or $1.20 per diluted share in the same period last year.

Revenue for 2012 was $1.12 billion, up 12.2% over 2011. On a constant currency basis, revenue increased 14.0% for the full year 2012.

Gross profit for 2012 was $608.0 million, or 54.1% as a percentage of sales, compared with $536.4 million, or 53.6% as a percentage of sales in the same period last year. SG&A increased 13.7% to $460.4 million compared with $404.8 million a year ago. As a percentage of sales, SG&A was 41.0% compared with 40.4% for the full year 2011.

Operating income for the full year 2012 was $146.2 million compared with $131.1 million in the prior year.

Full Year Revenue Results

The following tables detail the company's full year 2012 and 2011 revenues:

         
Twelve Months Ended
December 31,ChangeConstant Currency Change(1)
($ thousands)2012  2011$  %$%
Channel revenues:
Wholesale:
Americas$235,988$214,062$21,92610.2%$25,92012.1%
Asia298,350259,10439,24615.138,98415.0
Europe110,947124,995(14,048)(11.2)(5,168)(4.1)
Other businesses 574 191 383 200.5  406 212.4 
Total Wholesale645,859598,35247,5077.960,14210.1
Consumer-direct:
Retail
Americas196,711174,84021,87112.522,69113.0
Asia143,062111,65031,41228.132,54329.1
Europe 35,052 20,167 14,885 73.8  16,093 79.8 
Total Retail374,825306,65768,16822.271,32723.3
Internet
Americas63,15359,1753,9786.74,0696.9
Asia15,99911,0124,98745.35,04945.8
Europe 23,465 25,707 (2,242)(8.7) (163)(0.6)
Total Internet 102,617 95,894 6,723 7.0  8,955 9.3 
Total Revenues$1,123,301$1,000,903$122,398 12.2%$140,424 14.0%
 
 
Twelve Months Ended
December 31,ChangeConstant Currency Change(1)
($ thousands)20122011$%$%
Regional Revenue:
Americas$495,852$448,077$47,77510.7%$52,68011.8%
Asia457,411

381,766

75,64419.876,57620.1
Europe169,464

170,869

(1,404)(0.8)

10,762

6.3
Other businesses 574 191 383 200.5  406 212.4 
Total Revenues$1,123,301$1,000,903$122,398 12.2%$140,424 14.0%
 

(1) Current period results have been restated using 2011 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.

 

Fourth Quarter Results

For fourth quarter 2012, the company had a net loss of $3.6 million or $0.04 per diluted share, compared with net income of $5.6 million or $0.06 per diluted share in the prior year period. Fourth quarter 2012 results included non-cash expenses of $5.9 million for contingency accruals, which adversely impacted selling, general and administrative (SG&A) expenses by $2.2 million and cost of goods sold by $3.7 million. In addition, in the 2012 period, the company had total expenses of $1.5 million relating to its implementation of a new ERP system including non-cash accelerated depreciation and cash expenses for program management, training and other non-capitalized costs. Adjusting for these non-operating items, the company had Non-GAAP net income of $3.8 million in the quarter or $0.04 per diluted share.

"For the fourth quarter we are pleased with our 11 percent constant currency revenue growth which was ahead of our prior guidance, and our $3.8 million net income, after adjustments," said John McCarvel. "We saw good reception of our fall holiday products during the season and we continued to position the brand for greater success in the back half of the year. For the quarter we saw gross margins after adjustments for special items in line with the prior year."

Revenue for the fourth quarter of 2012 increased 10.4% to $225.0 million compared with revenue of $203.7 million reported in the fourth quarter of 2011. On a constant currency basis revenue increased 10.9% for the fourth quarter of 2012.

Gross profit for the fourth quarter of 2012 was $106.4 million, or 47.3% as a percentage of sales, compared with $99.8 million, or 49.0% as a percentage of sales in the same period last year. Gross Margins in the fourth quarter of 2012 were negatively impacted by the aforementioned $3.7 million contingency accrual.

Fourth Quarter Revenue Results

The following tables detail the company's fourth quarter 2012 and 2011 revenues:

           
Three Months Ended
December 31,ChangeConstant Currency Change(1)
($ thousands)2012  2011$%$%
Channel revenues:
Wholesale:
Americas$48,118$41,209$6,90916.8%$7,72518.7%
Asia48,85947,3701,4893.11,6933.6
Europe13,17415,389(2,215)(14.4)(1,800)(11.7)
Other businesses 241 88 153 173.9  156 177.4 
Total Wholesale110,392104,0566,3366.17,7747.4
Consumer-direct:
Retail
Americas47,41543,4363,9799.24,1229.5
Asia32,29626,3495,94722.65,62321.3
Europe 9,894 4,334 5,560 128.3  5,054 116.6 
Total Retail89,60574,11915,48620.914,79920.0
Internet
Americas16,45318,979(2,526)(13.3)(2,514)(13.2)
Asia3,6802,3401,34057.31,36658.4
Europe 4,862 4,219 643 15.2  812 19.2 
Total Internet 24,995 25,538 (543)(2.1) (336)(1.3)
Total Revenues$224,992$203,713$21,279 10.4%$22,237 10.9%
 
 
Three Months Ended
December 31,ChangeConstant Currency Change(1)
($ thousands)20122011$ Read Full Story

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