Crocs, Inc. reported revenues for the three months ended Dec. 31, 2008 decreased 43.9% to $126.1 million compared to $224.8 million for the three months ended Dec. 31, 2007.
The company reported a net loss of $183.6 million or $2.22 per diluted share for the year ended Dec. 31, 2008 compared to net income of $168.2 million or $2.00 per diluted share for the year ended Dec. 31, 2007.
Gross profit for the three months ended Dec. 31, 2008 was $56.0 million or 44.4% of revenues, compared to $125.8 million or 56.0% of revenues for the three months ended Dec. 31, 2007.
Selling, general and administrative expenses, including foreign currency exchange rate gains and losses, for the three months ended Dec. 31, 2008 were $97.6 million or 77.4% of revenues compared to $71.9 million or 32.0% of revenues in the three months ended Dec. 31, 2007.
On a non-GAAP basis selling, general and administrative expenses, excluding foreign currency exchange rate gains and losses, for the three months ended Dec. 31, 2008 decreased approximately $13.3 million to $76.5 million from $89.8 million, excluding foreign currency exchange rate gains and losses, for the three months ended Sept. 30, 2008.
Balance Sheet
The company increased its cash and cash equivalents to $51.7 million as of Dec. 31, 2008, from $36.3 million as of Dec. 31, 2007. Borrowings under the company's credit facility were $22.4 million at Dec. 31, 2008 compared to $7.1 million at Dec. 31, 2007. The company extended the term of its bank credit facility through April 2, 2009 and is currently in discussions with other lending institutions to arrange an asset-backed borrowing facility.
The company had accounts receivable of $35.3 million as of Dec. 31, 2008 compared to $153.0 million as of Dec. 31, 2007. This reduction is due to the accounts receivable collections improving as days sales outstanding decreased from 63 days for the three months ended Dec. 31, 2007 to 26 days for the three months ended Dec. 31, 2008.
Inventories decreased $105.2 million to $143.2 million compared to $248.4 million as of Dec.31, 2007, primarily as a result of inventory write-downs during the three months ended Sept. 30, 2008.
Guidance
For the first quarter ending March 31, 2009, the company expects to generate revenues of between $110 to $135 million and a diluted loss per share of approximately 32 cents to 17 cents. Guidance includes an estimated non-cash foreign currency exchange loss of $10 million.
Crocs, Inc. | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
(In thousands, except share and per share data) | ||||||||||||
(unaudited) | ||||||||||||
THREE MONTHS ENDED | TWELVE MONTHS ENDED | |||||||||||
December 31, | December 31, | |||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||
Revenues | $ | 126,092 | $ | 224,800 | $ | 721,589 | $ | 847,350 | ||||
Cost of sales | 70,049 | 98,973 | 486,722 | 349,701 | ||||||||
Restructuring Charges | 901 | |||||||||||
Gross profit | 56,043 | 125,827 | 233,966 | 497,649 | ||||||||
Selling, general and administrative expenses | 76,484 | 75,307 | 343,361 | 269,937 | ||||||||
Foreign Exchange (gain)/loss | 21,091 | (3,381) | 25,439 | (10,055) | ||||||||
Impairment Charges | 483 | – | 45,784 | – | ||||||||
Restructuring Charges | 895 | – | 7,664 | – | ||||||||
Income (loss) from operations | (42,910) | 53,901 | (188,282) | 237,767 | ||||||||
Interest expense | 408 | 132 | 1,793 | 438 | ||||||||
Other expense (income), net | 217 | (923) | (565) | (2,997) | ||||||||
Income (loss) before taxes | (43,535) | 54,692 | (189,510) | 240,326 | ||||||||
Income tax expense (benefit) | (10,286) | 16,408 | (5,886) | 72,098 | ||||||||
Net income (loss) | $ | (33,249) | $ | 38,284 | $ | (183,624) | $ | 168,228 | ||||
