Crocs, Inc.’s revenues for the second quarter increased 231.8% to $85.6 million compared to revenues of $25.8 million for the second quarter ended June 30, 2005. Net income attributable to common stockholders for the second quarter was $15.7 million, or 39 cents per diluted share, compared to net income attributable to common stockholders of $3.3 million, or 10 cents per diluted share, for the second quarter of 2005.
Revenue for the six months ended June 30, 2006 increased 255.6% to $130.5 million compared to revenues of $36.7 million for the six months ended June 30, 2005. Second quarter net income attributable to common stockholders includes non-cash share-based compensation expense, net of tax effect, of $1.5 million compared to $685,000 for the comparable period of 2005. Excluding the non-cash share-based compensation expense, non-GAAP net income was $17.2 million and non-GAAP net income per diluted common share was $0.43 for the second quarter ended June 30, 2006. Net income attributable to common stockholders for the six months ended June 30, 2006 was $22.1 million, or $0.56 per diluted share, compared to net income attributable to common stockholders of $5.3 million, or $0.16 per diluted share, for the six months ended June 30, 2005.
Three months ended Six months ended
June 30, June 30,
------------------ ------------------
(In thousands, except
per share data) 2006 2005 2006 2005
--------- -------- --------- --------
Revenues $85,635 $25,769 $130,477 $36,727
GAAP net income attributable to
common stockholders $15,666 $3,282 $22,074 $5,254
Non-GAAP net income, excluding
share-based compensation, net of
tax effect $17,198 $3,967 $24,636 $7,415
GAAP net income per diluted
common share $0.39 $0.10 $0.56 $0.16
Non-GAAP net income per diluted
common share, excluding share-
based compensation $0.43 $0.12 $0.63 $0.22
Ron Snyder, President and Chief Executive Officer of Crocs, Inc., commented “Our second quarter results were much stronger than we anticipated due to increased demand for our footwear both domestically and overseas. Importantly, sales were driven by robust demand for our core product, as well as positive consumer reaction to our new styles, such as Athens, Off-Road and Scutes. At the same time, we drove improvements in operating leverage, which allowed us to generate a significant improvement in our bottom line.”
Gross profit for the three months ended June 30, 2006 was $47.0 million, or 54.8% of revenues, compared to gross profit of $14.0 million, or 54.2% of revenues for the three months ended June 30, 2005. Gross profit for the six months ended June 30, 2006 was $70.6 million, or 54.1% of revenues, compared to gross profit of $20.8 million, or 56.7% of revenues for the six months ended June 30, 2005. Selling, general and administrative expenses for the three months ended June 30, 2006 was $23.3 million, or 27.2% of revenues, compared to $8.6 million, or 33.2% of revenues in the corresponding period a year ago. Selling, general and administrative expenses for the six months ended June 30, 2006 was $37.0 million, or 28.4% of revenues, compared to $13.2 million, or 35.6% of revenues in the corresponding period a year ago.
For the third quarter ending September 30, 2006, the Company currently anticipates total revenues to be in the range of $87.0 to $90.0 million and projects its net income per diluted share to range from $0.38 to $0.40, including share-based compensation expense.
Mr. Snyder concluded, “The first six months of 2006 have been marked by a number of important accomplishments for Crocs. Financially, we reported significant improvements in revenues, net income, and income per diluted share, as well as completed a very successful initial public offering. Operationally, we made strategic investments in our infrastructure, particularly in the areas of manufacturing, shipping and warehousing in order to better serve our retail partners and to fully capitalize on the growing demand for our products. Strategically, we have further diversified our business with the introduction of new products and the addition of new channels of distribution. We are very pleased with the progress we have made across the board and we look forward to building on our positive momentum going forward.”
Crocs, Inc.
Consolidated Statements of Operations
(In thousands, except share and per share data)
(unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
June 30, June 30,
2006 2005 2006 2005(1)
Revenues $ 85,635 $ 25,769 $ 130,477 $ 36,727
Cost of Sales 38,665 11,800 59,828 15,919
Gross Profit 46,970 13,969 70,649 20,808
Selling, general
and administrative
expenses 23,312 8,552 36,978 13,225
Income from
operations 23,658 5,417 33,671 7,583
Interest expense 92 165 391 202
Other expense
(income), net: (366) 6 (662) 23
Income before
income taxes 23,932 5,246 33,942 7,358
Income tax expense 8,266 1,896 11,835 1,968
Net income 15,666 3,350 22,107 5,390
Dividends on
redeemable
convertible
preferred shares 0 68 33 136
Net income
attributable to
common
stockholders 15,666 3,282 22,074 5,254
Net income per
share:
Basic $ 0.41 $ 0.13 $ 0.62 $ 0.16
Diluted $ 0.39 $ 0.10 $ 0.56 $ 0.16
Weighted average
common shares:
Basic 38,286,877 25,217,641 35,608,875 25,197,004
Diluted 40,427,703 33,497,743 39,351,248 33,289,163
(1) Our Statement of Operations for the six month period ended June
30, 2005 has been restated to reflect the effect of adjustments to
our share-based compensation. See the notes to our Form 10-Q
filing for the quarter ended June 30, 2006 for further
information, which will be filed by August 14, 2006.
