LaCrosse Footwear Returns to Profitability on Robust Sales

LaCrosse Footwear, Inc. reported sales in the first quarter reached $33.3 million, up 32 percent from $25.2 million in the first quarter of 2011. The company’s first quarter 2012 sales results benefitted from its fiscal calendar which provided four additional business days compared to the first quarter of 2011. Net income was $0.6 million or 8 cents per diluted share in the first quarter of 2012, up from a net loss of $0.7 million or 10 cents per diluted share in the first quarter of 2011.

Sales to the work market were $24.0 million for the first quarter of 2012, up 50 percent from the same period of 2011, reflecting fulfillment of a previously announced U.S. military order and growing demand from a variety of non-military government and other niche work markets. Excluding the company’s contract military and discontinued work apparel sales, core work sales in the first quarter of 2012 increased 9 percent from the same period in 2011.

Sales to the outdoor market were $9.3 million for the first quarter of 2012, up 2 percent from the same period of 2011. Overall outdoor sales were negatively impacted by unseasonably warm and dry weather conditions, offset by growing demand for the company’s new hiking and lifestyle products.

Gross margins for the first quarter of 2012 were 37.9 percent of net sales, compared to 41.4 percent in the same period of 2011. The year-over-year decline in gross margins primarily reflects an increase in U.S. military business and closeout sales. Operating expenses were $11.6 million in the first quarter of 2012, up 2 percent from the same period in 2011, reflecting increased investments in product development activities. The company’s inventories were $43.1 million at the end of the first quarter of 2012, down 8 percent from the end of the same period in 2011.

“We're pleased with our performance in the first quarter of 2012, particularly the continued sales growth for our core work products and the success of our newest outdoor products,” said Joseph P. Schneider, President and CEO of LaCrosse Footwear, Inc. “During the quarter, we completed delivery of the large military contract that began in the fourth quarter of 2011 and saw increased sales of our tactical law enforcement boots and other innovative products to a variety of government customers. We also continued to penetrate into niche work market segments, such as mining, oil and gas exploration, and agriculture.”

“Despite the adverse impact of unusually warm and dry weather during the winter, we’ve made good progress in reinvigorating our outdoor product line with our innovative new hiking and lifestyle boots to extend the appeal of our brands across a broader demographic. We also continued to build relationships with new major retailers in North America, gradually expand our international distribution and grow our direct channels. We believe LaCrosse is well-positioned to continue to capture market share and grow profitably over the long term.”

Based on the company’s financial outlook, the Board of Directors today announced the approval of a quarterly dividend of $0.125 per share of common stock. The second quarter dividend will be paid on June 18, 2012 to shareholders of record as of the close of business on May 22, 2012. The Board of Directors, while not declaring future dividends to be paid, has established a quarterly dividend policy reflecting its intent to declare and pay a quarterly dividend of $0.125 per share of common stock.

LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Operations

(Amounts in thousands, except per share amounts)

(Unaudited)


 

 

 


 





Quarter Ended




March 31,
March 26,





 

 
2012

 


 

 
2011
 







 

Net sales




$

 

33,285



$

 

25,188


Cost of goods sold




 

 

20,654



 

 

14,751

 

Gross profit






12,631





10,437


Operating expenses




 

 

11,577



 

 

11,384

 

Operating income (loss)






1,054





(947

)

Non-operating expense




 

 

(123

)


 

 

(125

)

Income (loss) before income taxes






931





(1,072

)

Income tax provision (benefit)




 

 

371



 

 

(422

)
Net income (loss)




$

 

560



$

 

(650

)







 

Net income (loss) per common share:







Basic




$


0.09



$


(0.10

)

Diluted




$


0.08



$


(0.10

)







 

Weighted average number of common shares outstanding:







Basic






6,508





6,485


Diluted






6,608





6,485








 
Supplemental Product Line Information












 

Work Market Sales




$


24,010



$


16,056


Outdoor Market Sales




 

 

9,275



 

 

9,132

 





$

 

33,285



$

 

25,188

 


About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

LaCrosse Footwear Returns to Profitability on Robust Sales

LaCrosse Footwear, Inc. reported sales in the first quarter reached $33.3 million, up 32 percent from $25.2 million in the first quarter of 2011. The company’s first quarter 2012 sales results benefitted from its fiscal calendar which provided four additional business days compared to the first quarter of 2011. Net income was $0.6 million or 8 cents per diluted share in the first quarter of 2012, up from a net loss of $0.7 million or 10 cents per diluted share in the first quarter of 2011.

Sales to the work market were $24.0 million for the first quarter of 2012, up 50 percent from the same period of 2011, reflecting fulfillment of a previously announced U.S. military order and growing demand from a variety of non-military government and other niche work markets. Excluding the company’s contract military and discontinued work apparel sales, core work sales in the first quarter of 2012 increased 9 percent from the same period in 2011.

Sales to the outdoor market were $9.3 million for the first quarter of 2012, up 2 percent from the same period of 2011. Overall outdoor sales were negatively impacted by unseasonably warm and dry weather conditions, offset by growing demand for the company’s new hiking and lifestyle products.

Gross margins for the first quarter of 2012 were 37.9 percent of net sales, compared to 41.4 percent in the same period of 2011. The year-over-year decline in gross margins primarily reflects an increase in U.S. military business and closeout sales. Operating expenses were $11.6 million in the first quarter of 2012, up 2 percent from the same period in 2011, reflecting increased investments in product development activities. The company’s inventories were $43.1 million at the end of the first quarter of 2012, down 8 percent from the end of the same period in 2011.

“We're pleased with our performance in the first quarter of 2012, particularly the continued sales growth for our core work products and the success of our newest outdoor products,” said Joseph P. Schneider, President and CEO of LaCrosse Footwear, Inc. “During the quarter, we completed delivery of the large military contract that began in the fourth quarter of 2011 and saw increased sales of our tactical law enforcement boots and other innovative products to a variety of government customers. We also continued to penetrate into niche work market segments, such as mining, oil and gas exploration, and agriculture.”

“Despite the adverse impact of unusually warm and dry weather during the winter, we’ve made good progress in reinvigorating our outdoor product line with our innovative new hiking and lifestyle boots to extend the appeal of our brands across a broader demographic. We also continued to build relationships with new major retailers in North America, gradually expand our international distribution and grow our direct channels. We believe LaCrosse is well-positioned to continue to capture market share and grow profitably over the long term.”

Based on the company’s financial outlook, the Board of Directors today announced the approval of a quarterly dividend of $0.125 per share of common stock. The second quarter dividend will be paid on June 18, 2012 to shareholders of record as of the close of business on May 22, 2012. The Board of Directors, while not declaring future dividends to be paid, has established a quarterly dividend policy reflecting its intent to declare and pay a quarterly dividend of $0.125 per share of common stock.

LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Operations

(Amounts in thousands, except per share amounts)

(Unaudited)


 

 

 


 





Quarter Ended




March 31,
March 26,





 

 
2012

 


 

 
2011
 







 

Net sales




$

 

33,285



$

 

25,188


Cost of goods sold




 

 

20,654



 

 

14,751

 

Gross profit






12,631





10,437


Operating expenses




 

 

11,577



 

 

11,384

 

Operating income (loss)






1,054





(947

)

Non-operating expense




 

 

(123

)


 

 

(125

)

Income (loss) before income taxes






931





(1,072

)

Income tax provision (benefit)




 

 

371



 

 

(422

)
Net income (loss)




$

 

560



$

 

(650

)







 

Net income (loss) per common share:







Basic




$


0.09



$


(0.10

)

Diluted




$


0.08



$


(0.10

)







 

Weighted average number of common shares outstanding:







Basic






6,508





6,485


Diluted






6,608





6,485








 
Supplemental Product Line Information












 

Work Market Sales




$


24,010



$


16,056


Outdoor Market Sales




 

 

9,275



 

 

9,132

 





$

 

33,285



$

 

25,188

 


About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

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