LaCrosse Footwear, Inc. reported consolidated net sales of $23.7 million for the first quarter of 2004, up 19.4% from $19.9 million in the first quarter of 2003. Consolidated net income was $1.1 million, or 18 cents per share, in the first quarter of 2004, up from a net loss of $0.6 million, or a net loss of 11 cents per share, in the same period of 2003.
Retail sales of LaCrosse brand products increased in the first quarter of 2004 compared to the same period of 2003, due to the introduction of the Quad Comfort line of work boots, increased sales of sporting boots, as well as strong sales of winter boots and waders. Sales for Danner brand products increased during the first quarter of 2004 compared to the same period in 2003, driven by the successful introduction of new recreational products, as well as a large purchase by the U.S. military. Safety and Industrial sales of LaCrosse brand products decreased, as the Company continued its strategic reduction in the number of products being offered for sale in the private label and mass merchant markets, the strategic elimination of low-margin products, and reduced sales of lower priced or commodity products.
Gross margins were 30.5% in the first quarter, up from 30.1% in the first quarter of 2003, reflecting increased sales from new higher-margin products. Operating expenses were $6.0 million in the quarter, down 5.2% from the comparable quarter in 2003. Excluding a nonrecurring cash receipt of $0.9 received from a former vendor, the Company's selling and administrative expenses in the first quarter of 2004 increased $0.6 million from the same period in 2003. The increase reflects the Company's strategic decision to invest additional resources in its product development and marketing efforts.
“We are pleased with our year-over-year sales and earnings growth in the first quarter,” said Joseph P. Schneider, President and CEO of LaCrosse Footwear, Inc. “In recent years, we successfully managed our strategic transition to a product development, marketing and sourcing company, with a major consolidation of operations and cost reductions. Moving into 2004, we are encouraged with dealer responses to our innovative new products, including our new LaCrosse Quad Comfort and Danner Agitator(TM) lines. These new work and outdoor boots incorporate cutting-edge technology into our trusted brands, long recognized by experts for their superb quality, high-performance and durability.”
“Going forward, we are executing a growth strategy based on leveraging our powerful brands with technology innovation, compelling marketing initiatives and enhanced customer service. We continue to focus on improving our operating performance, controlling costs and increasing our profitability, while strengthening our balance sheet by significantly improving inventory turns and eliminating our long-term debt. We also recently secured a more favorable credit facility to help fund our future growth. While the second quarter is our slowest season, we are encouraged with our long-term opportunities for growth.”
LaCrosse Footwear, Inc.
SELECTED FINANCIAL DATA
(Amounts in thousands, except per share amounts)
Condensed Consolidated
Statements of Operations Quarter Ended
(Unaudited)
March 27, 2004 March 29, 2003
Net sales $23,726 $19,874
Cost of goods sold 16,493 13,888
Gross profit 7,233 5,986
Operating expenses 5,997 6,329
Operating income (loss) 1,236 (343)
Non-operating expenses, net 141 306
Income (loss) before
income taxes 1,095 (649)
Income taxes -- --
Net income (loss) $1,095 $(649)
Net income (loss) per
common share, basic $0.19 $(0.11)
Net income (loss) per
common share, diluted $0.18 $(0.11)
