Crocs Inc. reported a loss of $3.6 million, or 4 cents a share, in the fourth quarter, compared with net income of $5.6 million or 6 cents, a year ago. Excluding non-recurring charges, earnings were slightly down. Revenue for the fourth quarter of 2012 increased 10.4 percent to $225.0 million
compared with revenue of $203.7 million reported in the fourth quarter
of 2011.
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 4 cents per diluted share.
â€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, President and Chief Executive Officer. â€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.â€
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 $3.7 million contingency accrual.
Fourth Quarter Revenue Results
The following tables detail the companyâ€s fourth quarter 2012 and 2011 revenues:
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Three Months Ended |
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December 31, |
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Change |
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Constant Currency Change(1) | |||||||||||||||||
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2012 | 2011 |
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$ |
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% |
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$ |
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% | ||||||||||
Channel revenues: |
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Wholesale: |
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Americas |
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$ |
48,118 |
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$ |
41,209 |
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$ |
6,909 |
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16.8 |
% |
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$ |
7,725 |
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18.7 |
% |
Asia |
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48,859 |
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47,370 |
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1,489 |
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3.1 |
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1,693 |
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3.6 |
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Europe |
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13,174 |
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15,389 |
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(2,215 |
) |
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(14.4 |
) |
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(1,800 |
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(11.7 |
) |
Other businesses |
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241 |
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88 |
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153 |
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173.9 |
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156 |
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177.4 |
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Total Wholesale |
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110,392 |
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104,056 |
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6,336 |
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6.1 |
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7,774 |
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7.4 |
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Consumer-direct: |
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Retail |
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Americas |
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47,415 |
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43,436 |
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3,979 |
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9.2 |
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4,122 |
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9.5 |
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Asia |
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32,296 |
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26,349 |
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5,947 |
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22.6 |
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5,623 |
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21.3 |
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Europe |
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9,894 |
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4,334 |
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5,560 |
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128.3 |
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5,054 |
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116.6 |
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Total Retail |
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89,605 |
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74,119 |
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15,486 |
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20.9 |
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14,799 |
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20.0 |
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Internet |
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Americas |
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16,453 |
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