Recreational Equipment, Inc. (REI) reported pre-audited earnings in 2009 more than doubled to $29.8 million from $14.5 million a year ago. Revenues improved 1.4% to $1.45 billion from $1.43 billion.
Gross margins improved 260 basis points to 44.7% from 42.1% in the prior year. Operating expenses increased slightly to 37.8% from 37.0% in 2008. Operating income increased 36.6% to $100.6 million from $73.6 million.
The company, which is the nations largest retail co-op, declared an $80.7 million dividend for the year, up 11.0% from the $72.7 million declared in 2008. After subtracting expired dividends, REI will pay out $67.2 million in net dividends, compared to $64.2 million in 2008. Members should receive those dividend notices in the mail in the next two weeks.
Total liabilities rose 16.3% to $437.1 million, which included a $12.9 million, or 51% increase in payroll related items, and an increase of $6.1 million, or 39% in retirement plan liabilities. Like many retailers, REI apparently focused on building up cash reserves in 2009, according to the unaudited statement. The co-op increased its cash and securities balance by 85.9% to $261.5 million. Inventory declined $3.5 million, or 1.6% versus the previous year. Accounts receivable grew 6.0%, while accounts payable rose 34.5%.
REI is expected to release audited results as early as this week.
