Crocs, Inc. filed its 2008 annual report on Form 10-K filed with the Securities and Exchange Commission on March 17 and announced that its consolidated financial statements for the fiscal year ended December 31, 2008 are accompanied by an unqualified audit opinion from the companys independent registered public accounting firm, which has been modified to contain an explanatory paragraph that raises substantial doubt about the companys ability to continue as a going concern.
The announcement made by Crocs, Inc. is being made in compliance with NASDAQ Marketplace Rule 4350(b)(1)(B), which requires separate disclosure of a recent audit opinion that contains a going concern modification opinion. This announcement does not represent any change or amendment to the companys 2008 financial statements or to its annual report on Form 10-K.
As of December 31, 2008, the company had $51.6 million in cash and cash equivalents and $22.4 million in borrowings under its revolving credit facility, which matures on April 2, 2009. The company is in discussions on extending the current credit facility and are currently negotiating with financial institutions to obtain an asset backed lending arrangement. The company said it may also “explore other sources for capital to meet ongoing needs.”
Crocs, Inc. reported in the 10-K report that it incurred losses of $185.1 million in the year ended December 31, 2008, experienced declines in revenue and incurred one time charges related primarily to restructuring activities. The company said it took significant cost cutting measures during 2008 and is currently evaluating its operating plans for 2009 and “considering certain restructuring and right-sizing activities to address the potential for continued decreases in revenues.”
