Crocs, Inc. saw revenues for the first quarter increase 217% to $142.0 million from $44.8 million for the first quarter last year. Net income for the quarter was $24.9 million, or 61 cents per diluted share, compared to $6.4 million, or 17 cents per diluted share, for the same period in 2006. Gross profit for the quarter of 2007 was $84.5 million, or 59.5% of revenues, compared to $23.7 million, or 52.9% of revenues for the quarter of 2006. Selling, general and administrative expenses for the first quarter ended March 31, 2007 was $47.3 million, or 33.3% of revenues, compared to $13.7 million, or 30.6% of revenues in the first quarter ended March 31, 2006.
Ron Snyder, president and CEO of Crocs, Inc. commented, “Our strong first quarter performance was driven by the growing worldwide demand for our entire portfolio of products. Domestically, we benefited from robust sell through of our Crocs footwear, including our new spring/summer collection, in addition to our new licensed and Jibbitz businesses. At the same time, our international business continues to rapidly expand fueled by sales of our classic models, as well as our more recent introductions. We are pleased with our start to 2007 and we remain extremely optimistic about the many growth opportunities that lie ahead as evidenced by our heightened outlook for the year.”
Stock Split
Crocs announced that on May 2, 2007, its Board of Directors declared a two-for-one stock split of the company's common shares, to be effected in the form of a common stock dividend. All shareholders of record at the close of business on May 31, 2007, will receive one additional share of common stock for each share held on that date. The additional share common stock will be distributed on June 14, 2007. Information pertaining to shares and earnings per share does not reflect this split.
Guidance
For the second quarter of 2007, the company currently anticipates total revenues to range from $180 million to $190 million and projects its net income per diluted share to range from 80 cents to 85 cents.
Crocs also raised its fiscal 2007 guidance. The company now expects total revenues to range from $670 million to $680 million and net income per diluted share to range from $2.90 to $2.95.
Mr. Snyder concluded, “Crocs is quickly becoming a global lifestyle brand and we are confident that our diversified operating model affords us substantial growth prospects across the board and well into the future. Our momentum is robust, our financials are strong, and we remain committed to fully capitalizing on our growing position in the market.”
Crocs, Inc.
Consolidated Statements of Operations
(In thousands, except share and per share data)
THREE MONTHS ENDED
March 31,
2007 2006
(unaudited)
Revenues $ 142,002 $ 44,844
Cost of Sales 57,517 21,163
Gross Profit 84,485 23,681
Selling, general and administrative expense 47,327 13,689
Income from operations 37,158 9,992
Interest expense 193 279
Other expense (income), net: (646) (287)
Income before income taxes 37,611 10,000
Income tax expense 12,666 3,560
Net income 24,945 6,440
Dividends on redeemable convertible
preferred shares 0 33
Net income attributable to common
stockholders 24,945 6,407
Net income per share:
Basic $ 0.63 $ 0.19
Diluted $ 0.61 $ 0.17
Weighted average common shares:
Basic 39,361,981 32,897,743
Diluted 41,219,824 38,259,456
