CROX News Crocs, Inc. Reports Fiscal 2006 Fourth Quarter and Year-End Financial Results
NIWOT, Colo.--(BUSINESS WIRE)--Crocs, Inc. (NASDAQ: CROX) today reported the following record financial results for the fourth quarter ended December 31, 2006:
Fourth Quarter Highlights
Revenues Increased 236.0% to $112.9 million versus $33.6 million in the fourth quarter of 2005.
Net Income Increased 395.2% to $20.8 million versus $4.2 million in the fourth quarter of 2005.
Diluted Earnings Per Share Increased 325.0% to $0.51 versus $0.12 in the fourth quarter of 2005.
Fiscal 2006 Highlights
Revenues Increased 226.6% to $354.7 million compared to $108.6 million in fiscal 2005.
Net Income Increased 278.8% to $64.4 million compared to $17.0 million in fiscal 2005.
Diluted Earnings Per Share Increased 215.7% to $1.61 compared to $0.51 in fiscal 2005.
Revenues for the fourth quarter ended December 31, 2006 increased 236.0% to $112.9 million compared to $33.6 million for the fourth quarter ended December 31, 2005. Revenue for the twelve months ended December 31, 2006 increased 226.6% to $354.7 million compared to $108.6 million for the twelve months ended December 31, 2005. Net income for the fourth quarter ended December 31, 2006 was $20.8 million, or $0.51 per diluted share, compared to $4.2 million, or $0.12 per diluted share, for the same period in 2005. Net income for the full year ended December 31, 2006 was $64.4 million, or $1.61 per diluted share, compared to $17.0 million, or $0.51 per diluted share, for the year ended December 31, 2005.
Gross profit for the fourth quarter ended December 31, 2006 was $65.1 million, or 57.7% of revenues, compared to $17.8 million, or 53.0% of revenues for the fourth quarter ended December 31, 2005. Gross profit for the twelve months ended December 31, 2006 was $200.6 million, or 56.6% of revenues, compared to $60.8million, or 56.0% of revenues for the twelve months ended December 31, 2005. Selling, general and administrative expenses for the fourth quarter ended December 31, 2006 was $34.6 million, or 30.6% of revenues, compared to $10.9 million, or 32.4% of revenues in the fourth quarter ended December 31, 2005. Selling, general and administrative expenses for the full year ended December 31, 2006 was $105.0 million, or 29.6% of revenues, compared to $33.9 million, or 31.2% of revenues in the year ended December 31, 2005.
Ron Snyder, President and Chief Executive Officer of Crocs, Inc. commented, “Our better than expected fourth quarter results were driven by strong retail sell-through of our entire product offering and represents a great finish to an important year for our Company. Throughout the quarter we witnessed ongoing demand for our classic footwear both here and abroad, coupled with growing consumer acceptance of our new styles. At the same time, our Collegiate and Disney collections are both off to a tremendous start which bodes well as we look to further expand and evolve our licensing programs. We enter the new year with great momentum evidenced by our heightened outlook for 2007.”
Guidance
For the first quarter of fiscal, 2007, the Company currently anticipates total revenues to range from $113 million to $117 million and projects its net income per diluted share to range from $0.47 to $0.49.
The Company also raised its fiscal 2007 revenue and diluted earnings per share growth targets to more than 45% over fiscal year 2006, and up from the previous guidance of more than 30%.
Mr. Snyder concluded, “Fiscal 2006 was an incredibly rewarding period for Crocs on many levels beginning with our very successful initial public and follow-on offerings. Equally important, we made tremendous progress diversifying our product line, expanding our business both domestically and overseas, increasing our brand recognition, further building our infrastructure, and creating new vehicles for growth. We are very pleased with all we have accomplished over the past 12-months and move forward more excited than ever about the significant near- and long-term opportunities we believe exist for our company.”
Conference Call Information
A conference call to discuss fourth quarter and fiscal 2006 year-end financial results is scheduled for today (Tuesday, February 20, 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.
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 900 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 total revenues and net income per diluted share for the first quarter ending March 31, 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.
