Crocs, Inc. saw fourth quarter revenues jump 236.9% to $112.9 million from $33.6 million during last year's quarter. Net income for the quarter was $20.8 million, or 51 cents per diluted share, compared to $4.2 million, or 12 cents per diluted share, for the same period in 2005. Revenue for the fiscal year increased 226.6% to $354.7 million from $108.6 million last year. Net income for the full year was $64.4 million, or $1.61 per diluted share, compared to $17.0 million, or 51 cents per diluted share, last year.
Gross profit for the fourth quarter ended December 31, 2006 was $65.1 million, or 57.7% of revenues, compared to $17.8 million, or 53.0% of revenues for the fourth quarter ended December 31, 2005. Gross profit for the twelve months ended December 31, 2006 was $200.6 million, or 56.6% of revenues, compared to $60.8 million, or 56.0% of revenues for the twelve months ended December 31, 2005. Selling, general and administrative expenses for the fourth quarter ended December 31, 2006 was $34.6 million, or 30.6% of revenues, compared to $10.9 million, or 32.4% of revenues in the fourth quarter ended December 31, 2005. Selling, general and administrative expenses for the full year ended December 31, 2006 was $105.0 million, or 29.6% of revenues, compared to $33.9 million, or 31.2% of revenues in the year ended December 31, 2005.
Ron Snyder, President and Chief Executive Officer of Crocs, Inc. commented, “Our better than expected fourth quarter results were driven by strong retail sell-through of our entire product offering and represents a great finish to an important year for our Company. Throughout the quarter we witnessed ongoing demand for our classic footwear both here and abroad, coupled with growing consumer acceptance of our new styles. At the same time, our Collegiate and Disney collections are both off to a tremendous start which bodes well as we look to further expand and evolve our licensing programs. We enter the new year with great momentum evidenced by our heightened outlook for 2007.”
Guidance
For the first quarter of fiscal, 2007, the company currently anticipates total revenues to range from $113 million to $117 million and projects its net income per diluted share to range from 47 cents to 49 cents.
The company also raised its fiscal 2007 revenue and diluted earnings per share growth targets to more than 45% over fiscal year 2006, and up from the previous guidance of more than 30%.
Mr. Snyder concluded, “Fiscal 2006 was an incredibly rewarding period for Crocs on many levels beginning with our very successful initial public and follow-on offerings. Equally important, we made tremendous progress diversifying our product line, expanding our business both domestically and overseas, increasing our brand recognition, further building our infrastructure, and creating new vehicles for growth. We are very pleased with all we have accomplished over the past 12-months and move forward more excited than ever about the significant near- and long-term opportunities we believe exist for our company.”
Crocs, Inc.
Consolidated Statements of Operations
(In thousands, except share and per share data)
(unaudited)
THREE MONTHS ENDED YEAR ENDED
December 31, December 31,
2006 2005 2006 2005
Revenues $ 112,904 $ 33,560 $ 354,728 $ 108,581
Cost of Sales 47,810 15,741 154,158 47,773
Gross Profit 65,094 17,819 200,570 60,808
Selling, general and
administrative
expenses 34,648 10,857 104,992 33,916
Income from
operations 30,446 6,962 95,578 26,892
Interest expense 345 231 878 611
Other income, net (617) (33) (1,926) (8)
Income before income
taxes 30,718 6,764 96,626 26,289
Income tax expense 9,933 2,593 32,209 9,317
Net income 20,785 4,171 64,417 16,972
Dividends on
redeemable
convertible
preferred shares 0 69 33 275
Net income
attributable to
common stockholders 20,785 4,102 64,384 16,697
Net income per share:
Basic $ 0.53 $ 0.12 $ 1.73 $ 0.51
Diluted $ 0.51 $ 0.12 $ 1.61 $ 0.51
Weighted average
common shares:
Basic 39,150,500 25,858,239 37,299,200 25,493,577
Diluted 41,120,361 34,076,385 40,085,256 33,570,000
