Crocs, Inc. saw a 162% jump in revenues for the second quarter to $224.3 million from $85.6 million for the same period last year. Net income for the quarter increased 209% to $48.5 million, or 58 cents per diluted share, from $15.7 million, or 19 cents per diluted share, in the year-ago quarter. Gross profit for the second quarter of 2007 was $131.9 million, or 58.8% of revenues, compared to $47.0 million, or 54.8% of revenues for the second quarter of 2006. Selling, general and administrative expenses for the quarter ended June 30, 2007 was $63.5 million, or 28.3% of revenues, compared to $23.3 million, or 27.2% of revenues in the quarter ended June 30, 2006.
Ron Snyder, president and CEO of Crocs, Inc. commented, “The positive momentum we experienced at the beginning of the year carried forward into the second quarter, allowing us to exceed both internal and external expectations. We continued to witness robust demand for our expanded footwear collection and growing accessories category throughout the United States and Canada. Additionally, our overseas markets – in particular Europe -remained very strong driven by a broader merchandise assortment, increased distribution, and additional shelf space within our existing retailers. Looking ahead, our order book is coming in better than anticipated which has enabled us to once again increase our outlook for the fiscal year.”
Guidance
For the third quarter of 2007, Crocs currently anticipates total revenues to range from $240 million to $250 million and projects its net income per diluted share to range from 58 cents to 62 cents.
Crocs also raised its fiscal 2007 guidance. Crocs now expects total revenues to range from $810 million to $820 million and net income per diluted share to range from $1.89 to $1.93.
Mr. Snyder concluded, “The first half of 2007 has been a period of rapid expansion and significant growth for Crocs. During this time we have further diversified our business, secured a number of additional partnerships with many of the premier sports and entertainment brands in the world and posted strong financial gains across the board. Equally important, we have continued to invest in our global operating platform, including key personnel and production capacity, as we remain committed to further positioning Crocs for future success. We are excited about the many prospects we believe exist going forward and our entire organization is focused on executing our long-term strategic growth plan.”
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,
2007 2006 2007 2006Revenues $ 224,273 $ 85,635 $ 366,275 $ 130,477
Cost of sales 92,329 38,665 149,845 59,828
Gross profit 131,944 46,970 216,430 70,649Selling, general
and
administrative
expenses 63,472 23,312 110,799 36,978
Income from
operations 68,472 23,658 105,631 33,671Interest expense 51 92 115 391
Other expense
(income), net (399) (366) (915) (662)
Income before
income taxes 68,820 23,932 106,431 33,942Income tax
expense 20,369 8,266 33,035 11,835Net income 48,451 15,666 73,396 22,107
Dividends on
redeemable
convertible
preferred shares – – – 33
Net income
attributable to
common
stockholders 48,451 15,666 73,396 22,074Net income per
share:
Basic $ 0.60 $ 0.20 $ 0.92 $ 0.31
Diluted $ 0.58 $ 0.19 $ 0.88 $ 0.28Weighted average
common shares:
Basic 80,253,555 76,573,750 79,761,491 71,217,747
Diluted 83,686,108 80,855,402 83,066,178 78,702,492
