« Previous | Next » | All Messages |  CROX Message Board Home | recommend post |  Ignore Poster

CROX News Crocs, Inc. Reports Fiscal 2006 Third Quarter Financial Results

NIWOT, Colo.--(BUSINESS WIRE)--Crocs, Inc. (NASDAQ: CROX) today reported the following record financial results for the third quarter ended September 30, 2006:

Revenues for the third quarter ended September 30, 2006 increased 192% to $111 million compared to $38 million for the third quarter ended September 30, 2005. Revenue for the nine months ended September 30, 2006 increased 223% to $242 million compared to $75 million for the nine months ended September 30, 2005. Net income for the third quarter ended September 30, 2006 was $22 million, or $0.53 per diluted share, compared to $7 million, or $0.22 per diluted share, for the same period in 2005. Net income for the nine months ended September 30, 2006 was $44 million, or $1.10 per diluted share, compared to $13 million, or $0.38 per diluted share, for the nine months ended September 30, 2005.

Gross profit for the third quarter ended September 30, 2006 was $65 million, or 58.2% of revenues, compared to $22 million, or 57.9% of revenues for the third quarter ended September 30, 2005. Gross profit for the nine months ended September 30, 2006 was $136 million, or 56.0% of revenues, compared to $43.0 million, or 57.3% of revenues for the nine months ended September 30, 2005. Selling, general and administrative expenses for the third quarter ended September 30, 2006 was $33 million, or 30% of revenues, compared to $10 million, or 26% of revenues in the same period in 2005. Selling, general and administrative expenses for the nine months ended September 30, 2006 was $70 million, or 29% of revenues, compared to $23 million, or 31% of revenues in the comparable year ago period.

“We are extremely pleased with our record third quarter performance which was once again fueled by growing demand for Crocs across the board,” commented, Ron Snyder, President and Chief Executive Officer of Crocs, Inc. “We continue to experience strong sell through of our core footwear offerings, while our new product launches, including the Mary Jane, Collegiate, and Disney, are outperforming our expectations. Internationally, the brand has increased retail traction which bodes well as we prepare to launch a full line of styles overseas next year.”

For the fourth quarter ending December 31, 2006, the Company currently anticipates total revenues to be in the range of $92 to $95 million and projects its net income per diluted share to range from $0.40 to $0.43.

For the fiscal year ending December 31, 2006, the Company currently anticipates total revenues to be in the range of $334 to $337 million and projects its net income per diluted share to range from $1.50 to $1.53.

Mr. Snyder concluded, “The positive response to our entire line of footwear, both in the U.S. and abroad, gives us further confidence that our brand recognition is growing, our market share is expanding, and our products are among the most innovative and functional in the industry. While we have achieved significant sales and earnings year-to-date, we believe our prospects have never been brighter. Our entire team is energized and focused on capitalizing on the great number of compelling opportunities that we believe lie ahead.”

Conference Call Information

A conference call to discuss third quarter 2006 financial results is scheduled for today (Thursday, November 2) 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 marketer of footwear for men, women and children under the crocs™ brand. All of our footwear products incorporate our proprietary closed-cell resin material, which we believe represents a substantial innovation in footwear comfort and functionality. Our proprietary closed-cell resin, which we refer to as croslite™ enables us to produce a soft and lightweight, non-marking, slip- and odor-resistant shoe. These unique properties make crocs™ footwear ideal for casual wear, as well as for recreational uses such as boating, hiking, fishing and gardening, and have enabled us to successfully market our products to a broad range of consumers.

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 fourth quarter ending December 31, 2006. 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.