Crocs, Inc. reported that revenues for the foruth quarter were $33.6 million compared to revenues of $5.4 million for the year-ago quarter. Net income for the period was $4.1 million, or 12 cents per fully diluted share, compared to a net loss of $1.0 million, or a loss of four cents per share, for Q4 2004. Net income includes non-cash stock-based compensation expense of $1.3 million for the three months ended December 31, 2005 and $357,000 for the comparable period of 2004.

For the fiscal year ended December 31, 2005, revenues were $108.6 million, compared to revenues of $13.5 million for the year ended December 31, 2004. Net income for 2005 was $16.7 million, or 51 cents per fully diluted share, compared to a net loss of $1.6 million, or a loss of seven cents per share, for 2004. Net income includes non-cash stock-based compensation expense of $4.7 million for 2005 compared to $1.8 million for 2004.

Ron Snyder, President and Chief Executive Officer of Crocs Inc., commented, “We are pleased with our fourth quarter performance which represents a strong finish to a breakout year for our company. Fiscal 2005 was highlighted by significant financial improvements across the board, including dramatic increases in revenues, margins, and net income. We also made important progress expanding our geographic reach and diversifying the breadth and depth of our product offering. In 2006 we will continue to focus on executing our strategic plan and building on the positive momentum behind our brand.”

Gross profit for the three months ended December 31, 2005 was $17.8 million, compared to gross profit of $2.4 million for the three months ended December 31, 2004, and selling, general and administrative expense was $10.9 million for the three months ended December 31, 2005, compared to $3.5 million for the three months ended December 31, 2004.

For the fiscal year ended December 31, 2005, gross profit was $60.8 million, compared to gross profit of $6.4 million for 2004, and selling, general and administrative expense was $33.9 million for 2005, compared to $7.9 million for 2004.

On February 13, 2006, the company completed an initial public offering of 11,385,000 shares of common stock at a price to the public of $21.00 per share, of which 4,950,000 shares were sold by the company and 6,435,000 were sold by certain selling shareholders, including 1,485,000 shares that were sold by the selling shareholders pursuant to the underwriters' over-allotment option. Upon completing the offering, the company and the selling shareholders received net proceeds of approximately $96.9 million and $126.0 million, respectively. The company intends to use the proceeds to repay amounts outstanding under its U.S. credit facility and Canadian credit facility and bank loans and for working capital and general corporate purposes.

Ron Snyder commented, “We were very pleased to have successfully completed our initial public offering and we look forward to beginning a new chapter in our company's history.”

Ron Snyder concluded, “Our 2005 results, which reflect our growing brand recognition and the increasing consumer demand for our products, are a testament to the hard work and dedication of our entire organization. Looking ahead, we believe our unique position in the marketplace, coupled with our proprietary technologies and broad demographic appeal provides us with multiple long-term growth opportunities, both domestically and overseas. We move forward extremely excited about our prospects for the future.” 

                              Crocs, Inc.
                 Consolidated Statement of Operations
            (In thousands, except share and per share data)

                         THREE MONTHS ENDED          YEAR ENDED
                            DECEMBER 31,            DECEMBER 31,     
                          2004        2005        2004        2005
                            (unaudited)

Revenue                $    5,382  $   33,560  $   13,520  $  108,581
Cost of Sales               2,973      15,741       7,162      47,773
Gross Profit                2,409      17,819       6,358      60,808

Selling, general and
 administrative
 expense                    3,494      10,857       7,929      33,916
Income (loss) from
 operations                (1,085)      6,962      (1,571)     26,892

Interest expense               28         231          47         611
Other expense
 (income), net:                10         (33)         19          (8)
Income (loss) before
 income taxes              (1,123)      6,764      (1,637)     26,289

Income tax expense
 (benefit)                   (187)      2,593        (143)      9,317

Net income (loss)            (936)      4,171      (1,494)     16,972

Dividends on redeemable
 convertible preferred
 shares                        73          69         142         275
Net income (loss)
 attributable to
 common stockholders       (1,009)      4,102      (1,636)     16,697

Net income (loss) per
 share:
Basic(1)               $    (0.04) $     0.12  $    (0.07) $     0.51
Diluted                $    (0.04) $     0.12  $    (0.07) $     0.51