Crocs, Inc. filed an amended S-1 last week setting a price range for its IPO that would see its market capitalization soar to nearly $530 million at the mid-point of the $13 to $15 target price range. Crocs, which filed for the Initial Public Offering in August 2005 to be listed on the Nasdaq exchange under the ticker symbol CROX, is offering 4.5 million shares for sales and existing shareholders are cashing out an additional 4.5 million shares. The underwriters have an option to purchase up to 1.35 million additional shares from the selling stockholders to cover over-allotments. There is expected to be 37.8 million shares outstanding after the IPO, with current shareholders still owning 76.2% of shares outstanding.
Crocs expects to raise approximately $56.6 million in the IPO and intends to use those net proceeds to repay $5.9 million outstanding under its U.S. credit facility as of December 31, 2005 and $5.8 million under its Canadian credit facility and bank loans, as well as for working capital and general corporate purposes. The company will not receive any funds from shares sold by selling shareholders.
CROX said it estimates it sold about 6.0 million pairs of crocs footwear in fiscal 2005, generating approximately $108 million in revenue, or a 700% increase from the $13.5 million in sales for 2004. Fourth quarter sales were approximately $33 million from $5.4 million in 2004. For the nine-month YTD period through September 30, Crocs generated $75.0 million in revenues, an 821% increase over the comparable period in 2004. Net income for the YTD period was $12.6 million, compared to a loss of roughly $627,000 in the prior-year.
>>> These guys hope to get a market cap multiple in the same range as Under Armour… Yikes!
>>> It appears that at least one independent sales rep will net about $1.4 million in the deal…
