Crocs Inc. (NASDAQ:CROX) today reported financial results for the
fourth quarter and year ended December 31, 2015.
Fourth Quarter Highlights:
- Revenue was $208.7 million, in-line with
guidance. On a constant currency basis, revenue increased 7.0%
compared to the prior year period.
- Net loss attributable to common stockholders
on a GAAP basis was $73.9 million or a loss of $1.01 per
share.
- Excluding certain charges not related to our core business, the
company reported a non-GAAP adjusted net loss
attributable to common shareholders of $52.9 million.
Full Year Highlights:
- Revenue was $1,090.6 million. On a
constant currency basis revenue was down 1.9% compared to the prior
year.
- Net loss attributable to common stockholders
on a GAAP basis was $98.0 million or a loss of $1.30 per
share.
- Excluding certain charges not related to our core business,
non-GAAP adjusted net loss attributable to common
shareholders was $40.1 million.
Gregg Ribatt, Chief Executive Officer, said: “We continue to
make meaningful progress positioning our business for long-term
sustainable success despite some near-term challenges. Revenue on a
constant currency basis, excluding store closures and discontinued
product lines, grew at 12.2% in the quarter compared with a year
ago. Our overall results reflect the impact of higher clearance
sales as we made the decision in the quarter to increase our
promotional cadence, given the overall retail environment.
While we still face foreign exchange headwinds from the stronger
U.S. Dollar and macroeconomic challenges, we are making progress in
our transformation efforts. I believe we are reaching an
inflection point and we will see the benefits of our actions
increasingly as 2016 progresses.”
Fourth Quarter Operating Results
In the fourth quarter of 2015, the company reported a GAAP net
loss attributable to common stockholders of $73.9 million or $1.01
per share, compared with a net loss of $56.9 million or $0.70 per
diluted share in the same quarter of the prior year.
As outlined in detail in the non-GAAP reconciliations set forth
later in this press release, the company recorded $21.0 million of
certain charges not related to our core business (of which $14.6
million were non-cash charges) in the fourth quarter of 2015
compared with $26.8 million in non-recurring and special charges
(of which $15.3 million were non-cash charges) in the fourth
quarter of 2014. Excluding these items, the company reported
on a comparable basis, non-GAAP adjusted net loss attributable to
common shareholders of $52.9 million in the quarter versus non-GAAP
adjusted net loss attributable to common shareholders of $30.0
million in the fourth quarter 2014.
Full Year 2015 Operating Results
For the full year, the company reported a GAAP net loss
attributable to common stockholders of $98.0 million or $1.30 per
diluted share, compared with a net loss attributable to common
stockholders of $19.0 million or $0.22 per diluted share in
2014.
As outlined in detail in the non-GAAP reconciliations set forth
later in this press release, the company recorded $57.9 million of
certain charges not related to our core business (of which $24.5
million were non-cash charges) for the year ended 2015 compared
with $69.0 million (of which $27.7 million were non-cash charges)
for the year ended 2014. Excluding these items, the company
reported on a comparable basis, non-GAAP adjusted net loss
attributable to common shareholders of $40.1 million in the year
versus non-GAAP adjusted net loss of $50.0 million in 2014.
Balance Sheet
Cash and cash equivalents at December 31, 2015 were $143.3
million compared with $267.5 million at December 31, 2014. The
year-over-year change in cash and cash equivalents was primarily
driven by the repurchase of 6.5 million shares for approximately
$85.9 million. Inventory was $168.2 million compared with
$171.0 million at December 31, 2014.
Stock Repurchase
The company repurchased 918.0 thousand shares of common stock in
the fourth quarter of 2015 at an average price of $10.86. The
company ended the quarter at 72.9 million common shares outstanding
and fourth quarter weighted average shares outstanding was 73.5
million.
Financial Outlook
The company expects first quarter 2016 revenue in the $260 to
$270 million range compared to $262.2 million last year.
Conference Call Information
A teleconference call to discuss fourth quarter 2015 results is
scheduled for today, Monday, February 29, 2016, at 4:30 pm
EST. The call participation number is (888) 771-4371. A
recording of the conference call will be available two hours after
the completion of the call at (888) 843-7419. International
participants can dial (847) 585-4405 to take part in the conference
call and can access a replay of the call at (630) 652-3042. All of
the above calls will require the input of the conference
identification number 41827513. The call also will
be streamed on the Crocs website, www.crocs.com. An audio
recording of the conference call will be available at www.crocs.com
through March 29, 2016.
About Crocs, Inc.
Crocs, Inc. is a world leader in innovative casual footwear for
men, women and children. Crocs offers a broad portfolio of
all-season products, while remaining true to its core molded
footwear heritage. All Crocs™ shoes feature Croslite™ material, a
proprietary, revolutionary technology that gives each pair of shoes
the soft, comfortable, lightweight, non-marking and odor-resistant
qualities that Crocs fans know and love. Crocs celebrates the fun
of being a little different and encourages fans to "Find Your Fun"
in every colorful pair of shoes. Since its inception in 2002, Crocs
has sold more than 300 million pairs of shoes in more than 65
countries around the world.
Visit www.crocs.com for additional information.
The matters regarding the future discussed in this news release
include “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
include, but are not limited to, statements regarding prospects,
investments in our business and outlook. These statements involve
known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements to be
materially different from any future results, performances, or
achievements expressed or implied by the forward-looking
statements. These risks and uncertainties include, but are not
limited to, the following: macroeconomic issues, including, but not
limited to, the current global financial conditions; the effect of
competition in our industry; our ability to effectively manage our
future growth or declines in revenue; changing fashion trends; our
ability to maintain and expand revenues and gross margin; our
ability to accurately forecast consumer demand for our products;
our ability to successfully implement our strategic plans; our
ability to develop and sell new products; our ability to obtain and
protect intellectual property rights; the effect of potential
adverse currency exchange rate fluctuations and other international
operating risks; and other factors described in our most recent
annual report on Form 10-K under the heading “Risk Factors” and our
subsequent filings with the Securities and Exchange Commission.
Readers are encouraged to review that section and all other
disclosures appearing in our filings with the Securities and
Exchange Commission.
All information in this document speaks as of February 29, 2016.
We do not undertake any obligation to update publicly any
forward-looking statements, including, without limitation, any
estimate regarding revenues or earnings, whether as a result of the
receipt of new information, future events, or otherwise.
CROCS, INC.
AND SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED) |
($ thousands,
except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, |
|
Year Ended
December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
|
208,678 |
|
|
$ |
|
206,473 |
|
|
$ |
|
1,090,630 |
|
|
$ |
|
1,198,223 |
|
Cost of sales |
|
|
|
135,934 |
|
|
|
|
128,570 |
|
|
|
|
579,825 |
|
|
|
|
603,893 |
|
Restructuring charges |
|
|
|
- |
|
|
|
|
1,373 |
|
|
|
|
- |
|
|
|
|
3,985 |
|
Gross profit |
|
|
|
72,744 |
|
|
|
|
76,530 |
|
|
|
|
510,805 |
|
|
|
|
590,345 |
|
Selling, general and administrative expenses |
|
|
|
129,280 |
|
|
|
|
131,468 |
|
|
|
|
559,095 |
|
|
|
|
565,712 |
|
Restructuring charges |
|
|
|
1,274 |
|
|
|
|
6,637 |
|
|
|
|
8,728 |
|
|
|
|
20,532 |
|
Asset impairment charges |
|
|
|
7,771 |
|
|
|
|
2,997 |
|
|
|
|
15,306 |
|
|
|
|
8,827 |
|
Income (loss) from operations |
|
|
|
(65,581 |
) |
|
|
|
(64,572 |
) |
|
|
|
(72,324 |
) |
|
|
|
(4,726 |
) |
Foreign currency transaction loss, net |
|
|
|
(701 |
) |
|
|
|
(607 |
) |
|
|
|
(3,332 |
) |
|
|
|
(4,885 |
) |
Interest income |
|
|
|
215 |
|
|
|
|
360 |
|
|
|
|
967 |
|
|
|
|
1,664 |
|
Interest expense |
|
|
|
(319 |
) |
|
|
|
(121 |
) |
|
|
|
(969 |
) |
|
|
|
(806 |
) |
Other income, net |
|
|
|
920 |
|
|
|
|
(184 |
) |
|
|
|
914 |
|
|
|
|
204 |
|
Income (loss) before income
taxes |
|
|
|
(65,466 |
) |
|
|
|
(65,124 |
) |
|
|
|
(74,744 |
) |
|
|
|
(8,549 |
) |
Income tax benefit (expense) |
|
|
|
(4,707 |
) |
|
|
|
12,030 |
|
|
|
|
(8,452 |
) |
|
|
|
3,623 |
|
Net income (loss) |
|
$ |
|
(70,173 |
) |
|
$ |
|
(53,094 |
) |
|
$ |
|
(83,196 |
) |
|
$ |
|
(4,926 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on Series A convertible preferred
stock |
|
|
|
(3,000 |
) |
|
|
|
(3,068 |
) |
|
|
|
(11,833 |
) |
|
|
|
(11,301 |
) |
Dividend equivalents on Series A convertible
preferred shares related to redemption value accretion and
beneficial conversion feature |
|
|
|
(769 |
) |
|
|
|
(705 |
) |
|
|
|
(2,978 |
) |
|
|
|
(2,735 |
) |
Net income (loss) attributable to
common stockholders |
|
$ |
|
(73,942 |
) |
|
$ |
|
(56,867 |
) |
|
$ |
|
(98,007 |
) |
|
$ |
|
(18,962 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
|
(1.01 |
) |
|
$ |
|
(0.70 |
) |
|
$ |
|
(1.30 |
) |
|
$ |
|
(0.22 |
) |
Diluted |
|
$ |
|
(1.01 |
) |
|
$ |
|
(0.70 |
) |
|
$ |
|
(1.30 |
) |
|
$ |
|
(0.22 |
) |
CROCS, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP MEASURES TO
NON-GAAP MEASURES(UNAUDITED)
In addition to financial measures presented on
the basis of accounting principles generally accepted in the United
States of America (“U.S. GAAP”), we present “adjusted selling,
general, and administrative expenses”, “adjusted cost of sales”,
“adjusted net income (loss) attributable to common stockholders”,
and “revenue adjusted for business model changes”, which are
non-GAAP financial measures. Adjusted results exclude the impact of
items that management believes affect the comparability or
underlying business trends in our consolidated financial statements
in the periods presented.
The metric “revenue adjusted for business model changes” is used
by management to assess period-over-period change in the
performance of our continuing operations as compared to the same
quarter of the previous year. This metric is calculated on a
constant currency basis and removes the impact of store closures
and eliminated product lines from prior period results. We
believe this metric is useful in analyzing business trends related
to our ongoing operations by excluding products and locations that
have been eliminated and by removing foreign currency translation
adjustments, which can mask the underlying performance of the
business.
We also present certain information related to
our current period results of operations through “constant
currency”, which is a non-GAAP financial measure and should be
viewed as a supplement to our results of operations and
presentation of reportable segments under U.S. GAAP. Constant
currency represents current period results that have been restated
using prior year average foreign exchange rates for the comparative
period to enhance the visibility of the underlying business trends
excluding the impact of foreign currency exchange rate
fluctuations.
Management uses adjusted results to assist in
comparing business trends from period to period on a consistent
non-GAAP basis in communications with the Board, stockholders,
analysts, and investors concerning our financial performance. We
believe that these non-GAAP measures are useful to investors and
other users of our consolidated financial statements as an
additional tool for evaluating operating performance. We believe
they also provide a useful baseline for analyzing trends in our
operations. Investors should not consider these non-GAAP measures
in isolation from, or as a substitute for, financial information
prepared in accordance with U.S. GAAP.
CROCS, INC.
AND SUBSIDIARIES |
RECONCILIATION
OF GAAP MEASURES TO NON-GAAP MEASURES |
(UNAUDITED -
Continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, |
|
Year Ended
December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
Selling, general and
administrative expenses reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP selling, general and
administrative expenses |
|
$ |
|
129,280 |
|
|
$ |
|
131,468 |
|
|
$ |
|
559,095 |
|
|
$ |
|
565,712 |
|
ERP implementation and other
contract termination fees (1) |
|
|
|
(3,470 |
) |
|
|
|
(2,160 |
) |
|
|
|
(12,569 |
) |
|
|
|
(13,268 |
) |
Reorganization charges (2) |
|
|
|
(4,265 |
) |
|
|
|
(3,175 |
) |
|
|
|
(8,391 |
) |
|
|
|
(8,872 |
) |
Legal settlements and disbursement
(3) |
|
|
|
(207 |
) |
|
|
|
(446 |
) |
|
|
|
(7,895 |
) |
|
|
|
(2,646 |
) |
Bad debt expense related to South
Africa (4) |
|
|
|
(613 |
) |
|
|
|
- |
|
|
|
|
(613 |
) |
|
|
|
- |
|
Non-GAAP selling, general and
administrative expenses |
|
$ |
|
120,725 |
|
|
$ |
|
125,687 |
|
|
$ |
|
529,627 |
|
|
$ |
|
540,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, |
|
Year Ended
December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
Cost of sales
reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of sales: |
|
$ |
|
135,934 |
|
|
$ |
|
128,570 |
|
|
$ |
|
579,825 |
|
|
$ |
|
603,893 |
|
Inventory write-down (5) |
|
|
|
(3,108 |
) |
|
|
|
(6,168 |
) |
|
|
|
(3,108 |
) |
|
|
|
(7,064 |
) |
Statutory audits (7) |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(1,000 |
) |
|
|
|
- |
|
Reorganization charges (2) |
|
|
|
- |
|
|
|
|
(3,891 |
) |
|
|
|
- |
|
|
|
|
(3,806 |
) |
Contract termination fees (1) |
|
|
|
(324 |
) |
|
|
|
- |
|
|
|
|
(324 |
) |
|
|
|
- |
|
Non-GAAP cost of sales |
|
$ |
|
132,502 |
|
|
$ |
|
118,511 |
|
|
$ |
|
575,393 |
|
|
$ |
|
593,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, |
|
Year Ended
December 31, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
Net loss attributable
to common stockholders reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss attributable to
common stockholders reconciliation: |
|
$ |
|
(73,942 |
) |
|
$ |
|
(56,867 |
) |
|
$ |
|
(98,007 |
) |
|
$ |
|
(18,962 |
) |
Impairment charges related to South
Africa (4) |
|
|
|
5,747 |
|
|
|
|
- |
|
|
|
|
5,747 |
|
|
|
|
- |
|
ERP implementation and other
contract termination fees (1) |
|
|
|
3,794 |
|
|
|
|
2,160 |
|
|
|
|
12,893 |
|
|
|
|
13,268 |
|
Reorganization charges (2) |
|
|
|
4,265 |
|
|
|
|
7,066 |
|
|
|
|
8,391 |
|
|
|
|
12,678 |
|
Inventory write-down (5) |
|
|
|
3,108 |
|
|
|
|
6,168 |
|
|
|
|
3,108 |
|
|
|
|
7,064 |
|
Retail asset impairment charges
(6) |
|
|
|
2,024 |
|
|
|
|
2,997 |
|
|
|
|
9,559 |
|
|
|
|
8,827 |
|
Restructuring charges (2) |
|
|
|
1,274 |
|
|
|
|
8,010 |
|
|
|
|
8,728 |
|
|
|
|
24,517 |
|
Legal settlements and disbursement
(3) |
|
|
|
207 |
|
|
|
|
446 |
|
|
|
|
7,895 |
|
|
|
|
2,646 |
|
Statutory audits (7) |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
1,000 |
|
|
|
|
- |
|
Bad debt expense related to South
Africa (4) |
|
|
|
613 |
|
|
|
|
- |
|
|
|
|
613 |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss attributable to
common stockholders |
|
$ |
|
(52,910 |
) |
|
$ |
|
(30,020 |
) |
|
$ |
|
(40,073 |
) |
|
$ |
|
50,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This
represents operating expenses related to the implementation of our
new enterprise resource planning ("ERP") system and the termination
of certain IT contracts for better alignment with strategic
initiatives as well as fees associated with the termination of
certain royalty and other contracts. |
(2) This relates
to severance expenses, bonuses, store closure costs, consulting
fees and other expenses related to recent restructuring and
reorganization activities and our investment agreement with
Blackstone. |
(3) Expenses in
2015 relate primarily to legal expenses for matters surrounding
disbursements to invalid vendors and California wage settlements.
Expenses in 2014 relate primarily to other legal settlements. |
(4) Certain bad
debt and impairment expenses were incurred in 2015 relating to the
planned sale of operations in South Africa. |
(5) This relates
to a write-off of obsolete inventory with a market value lower than
cost. During the three months and year ended December 31, 2015, the
inventory write-down charge recorded related to the planned sale of
operations in the South Africa. |
(6) This
represents retail asset impairment charges for certain
underperforming locations in our Americas, Asia Pacific and Europe
segments. |
(7) This
represents an estimated liability associated with a prior period
audit by U.S. Customs and Border Protections. |
CROCS, INC.
AND SUBSIDIARIES |
RECONCILIATION
OF GAAP MEASURES TO NON-GAAP MEASURES |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
|
|
|
|
|
(in thousands) |
GAAP revenues, for the
period ended December 31, 2014 |
$ |
|
206,473 |
|
|
|
$ |
|
1,198,223 |
|
|
Less: constant currency adjustment
(1) |
|
|
(12,360 |
) |
|
|
|
|
(87,661 |
) |
|
Less: decrease associated with
store closures |
|
|
(5,813 |
) |
|
|
|
|
(34,894 |
) |
|
Less: decrease associated with
eliminated product lines |
|
|
(2,368 |
) |
|
|
|
|
(11,921 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP revenues,
adjusted for business model changes |
$ |
|
185,932 |
|
|
|
$ |
|
1,063,747 |
|
|
|
|
|
|
|
|
|
|
GAAP revenues, for the
period ended December 31, 2015 |
$ |
|
208,678 |
|
|
|
$ |
|
1,090,630 |
|
|
|
|
|
|
|
|
|
|
Percentage change |
|
|
12.2 |
|
% |
|
|
|
2.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
|
|
|
|
|
|
(in thousands) |
|
GAAP revenues, for the
period ended December 31, 2013 |
$ |
|
228,673 |
|
|
|
$ |
|
1,192,680 |
|
|
Less: constant currency adjustment
(1) |
|
|
(10,506 |
) |
|
|
|
|
(15,612 |
) |
|
Less: decrease associated with
store closures |
|
|
(5,218 |
) |
|
|
|
|
(22,027 |
) |
|
Less: decrease associated with
eliminated product lines |
|
|
(2,750 |
) |
|
|
|
|
(15,483 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP revenues,
adjusted for business model changes |
$ |
|
210,199 |
|
|
|
$ |
|
1,139,558 |
|
|
|
|
|
|
|
|
|
|
GAAP revenues, for the
period ended December 31, 2014 |
$ |
|
206,473 |
|
|
|
$ |
|
1,198,223 |
|
|
|
|
|
|
|
|
|
|
Percentage change |
|
|
(1.8 |
) |
% |
|
|
|
5.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Constant
currency is a non-GAAP measure utilized by management in which
current period results have been restated using prior year average
foreign exchange rates for the comparative period to enhance the
visibility of the underlying business trends by excluding the
impact of foreign currency exchange rate fluctuations. |
CROCS, INC.
AND SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
($ thousands,
except number of shares) |
|
|
|
|
|
|
|
|
|
December
31, 2015 |
|
December
31, 2014 |
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
143,341 |
|
|
$ |
|
267,512 |
|
Accounts receivable, net of
allowances of $49,364 and $32,392, respectively |
|
|
|
83,616 |
|
|
|
|
101,217 |
|
Inventories |
|
|
|
168,192 |
|
|
|
|
171,012 |
|
Deferred tax assets, net |
|
|
|
- |
|
|
|
|
4,190 |
|
Income tax receivable |
|
|
|
10,233 |
|
|
|
|
9,332 |
|
Other receivables |
|
|
|
14,233 |
|
|
|
|
11,989 |
|
Prepaid expenses and other
assets |
|
|
|
26,334 |
|
|
|
|
30,156 |
|
Total current assets |
|
|
|
445,949 |
|
|
|
|
595,408 |
|
Property and equipment,
net |
|
|
|
49,490 |
|
|
|
|
68,288 |
|
Intangible assets,
net |
|
|
|
82,297 |
|
|
|
|
97,337 |
|
Goodwill |
|
|
|
1,973 |
|
|
|
|
2,044 |
|
Deferred tax assets,
net |
|
|
|
6,608 |
|
|
|
|
17,886 |
|
Other assets |
|
|
|
21,703 |
|
|
|
|
25,968 |
|
Total assets |
|
$ |
|
608,020 |
|
|
$ |
|
806,931 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
|
63,336 |
|
|
$ |
|
42,923 |
|
Accrued expenses and other
liabilities |
|
|
|
91,835 |
|
|
|
|
80,216 |
|
Deferred tax liabilities, net |
|
|
|
- |
|
|
|
|
11,869 |
|
Accrued restructuring |
|
|
|
738 |
|
|
|
|
4,511 |
|
Income taxes payable |
|
|
|
6,416 |
|
|
|
|
9,078 |
|
Current portion of long-term
borrowings and capital lease obligations |
|
|
|
4,772 |
|
|
|
|
5,288 |
|
Total current liabilities |
|
|
|
167,097 |
|
|
|
|
153,885 |
|
Long-term income tax
payable |
|
|
|
4,547 |
|
|
|
|
8,843 |
|
Long-term borrowings
and capital lease obligations |
|
|
|
1,627 |
|
|
|
|
6,381 |
|
Long-term accrued
restructuring |
|
|
|
230 |
|
|
|
|
348 |
|
Other liabilities |
|
|
|
12,890 |
|
|
|
|
12,277 |
|
Total liabilities |
|
|
|
186,391 |
|
|
|
|
181,734 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Series A convertible preferred
stock, par value $0.001 per share, 1,000,000 shares authorized,
200,000 shares issued and outstanding, redemption amount and
liquidation preference of $203,000 and $203,067 as of December 31,
2015 and December 31, 2014, respectively |
|
|
|
175,657 |
|
|
|
|
172,679 |
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
Preferred stock, par value $0.001
per share, 4,000,000 shares authorized, none outstanding |
|
|
|
- |
|
|
|
|
- |
|
Common stock, par value $0.001 per
share, 250,000,000 shares authorized, 93,101,007 and
72,851,418 shares issued and outstanding, respectively, as of
December 31, 2015 and 92,325,201 and 78,516,566 shares issued and
outstanding, respectively, as of December 31, 2014 |
|
|
|
94 |
|
|
|
|
92 |
|
Treasury stock, at cost, 20,249,589
and 13,808,635 shares as of December 31, 2015 and December 31,
2014, respectively |
|
|
|
(283,913 |
) |
|
|
|
(200,424 |
) |
Additional paid-in capital |
|
|
|
353,241 |
|
|
|
|
345,732 |
|
Retained earnings |
|
|
|
227,463 |
|
|
|
|
325,470 |
|
Accumulated other comprehensive
loss |
|
|
|
(50,913 |
) |
|
|
|
(18,352 |
) |
Total stockholders’ equity |
|
|
|
245,972 |
|
|
|
|
452,518 |
|
Total liabilities, commitments and
contingencies and stockholders’ equity |
|
$ |
|
608,020 |
|
|
$ |
|
806,931 |
|
The following tables summarize our total revenue by channel for
the three and twelve months ended December 31, 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, |
|
Change |
|
|
Constant
Currency Change (1) |
|
|
|
2015 |
|
2014 |
|
$ |
|
% |
|
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Wholesale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
35,581 |
|
$ |
39,628 |
|
$ |
|
(4,047 |
) |
|
|
(10.2 |
) |
% |
|
$ |
|
(1,763 |
) |
|
|
(4.4 |
) |
% |
Asia Pacific |
|
|
37,166 |
|
|
29,149 |
|
|
|
8,017 |
|
|
|
27.5 |
|
|
|
|
|
10,045 |
|
|
|
34.5 |
|
|
Europe |
|
|
17,412 |
|
|
21,514 |
|
|
|
(4,102 |
) |
|
|
(19.1 |
) |
|
|
|
|
(1,260 |
) |
|
|
(5.9 |
) |
|
Other businesses |
|
|
125 |
|
|
187 |
|
|
|
(62 |
) |
|
|
(33.2 |
) |
|
|
|
|
(112 |
) |
|
|
(59.9 |
) |
|
Total wholesale |
|
|
90,284 |
|
|
90,478 |
|
|
|
(194 |
) |
|
|
(0.2 |
) |
|
|
|
|
6,910 |
|
|
|
7.6 |
|
|
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
44,912 |
|
|
47,129 |
|
|
|
(2,217 |
) |
|
|
(4.7 |
) |
|
|
|
|
(1,761 |
) |
|
|
(3.7 |
) |
|
Asia Pacific |
|
|
28,703 |
|
|
29,852 |
|
|
|
(1,149 |
) |
|
|
(3.8 |
) |
|
|
|
|
850 |
|
|
|
2.8 |
|
|
Europe |
|
|
8,126 |
|
|
10,465 |
|
|
|
(2,339 |
) |
|
|
(22.4 |
) |
|
|
|
|
(849 |
) |
|
|
(8.1 |
) |
|
Total retail |
|
|
81,741 |
|
|
87,446 |
|
|
|
(5,705 |
) |
|
|
(6.5 |
) |
|
|
|
|
(1,760 |
) |
|
|
(2.0 |
) |
|
E-commerce: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
22,160 |
|
|
16,995 |
|
|
|
5,165 |
|
|
|
30.4 |
|
|
|
|
|
5,327 |
|
|
|
31.3 |
|
|
Asia Pacific |
|
|
10,412 |
|
|
7,467 |
|
|
|
2,945 |
|
|
|
39.4 |
|
|
|
|
|
3,405 |
|
|
|
45.6 |
|
|
Europe |
|
|
4,081 |
|
|
4,087 |
|
|
|
(6 |
) |
|
|
(0.1 |
) |
|
|
|
|
546 |
|
|
|
13.4 |
|
|
Total e-commerce |
|
|
36,653 |
|
|
28,549 |
|
|
|
8,104 |
|
|
|
28.4 |
|
|
|
|
|
9,278 |
|
|
|
32.5 |
|
|
Total revenues |
|
$ |
208,678 |
|
$ |
206,473 |
|
$ |
|
2,205 |
|
|
|
1.1 |
|
% |
|
$ |
|
14,428 |
|
|
|
7.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
102,653 |
|
$ |
103,752 |
|
$ |
|
(1,099 |
) |
|
|
(1.1 |
) |
% |
|
$ |
|
1,803 |
|
|
|
1.7 |
|
% |
Asia Pacific |
|
|
76,281 |
|
|
66,468 |
|
|
|
9,813 |
|
|
|
14.8 |
|
|
|
|
|
14,300 |
|
|
|
21.5 |
|
|
Europe |
|
|
29,619 |
|
|
36,066 |
|
|
|
(6,447 |
) |
|
|
(17.9 |
) |
|
|
|
|
(1,563 |
) |
|
|
(4.3 |
) |
|
Total segment revenues |
|
|
208,553 |
|
|
206,286 |
|
|
|
2,267 |
|
|
|
1.1 |
|
|
|
|
|
14,540 |
|
|
|
7.0 |
|
|
Other businesses |
|
|
125 |
|
|
187 |
|
|
|
(62 |
) |
|
|
(33.2 |
) |
|
|
|
|
(112 |
) |
|
|
(59.9 |
) |
|
Total consolidated revenues |
|
$ |
208,678 |
|
$ |
206,473 |
|
$ |
|
2,205 |
|
|
|
1.1 |
|
% |
|
$ |
|
14,428 |
|
|
|
7.0 |
|
% |
|
(1) Reflects year over
year change as if the current period results were in “constant
currency,” which is a non-GAAP financial measure. See “Use of
Non-GAAP Financial Measures” above for more information. |
|
|
Year Ended
December 31, |
|
Change |
|
|
Constant
Currency Change (1) |
|
|
|
2015 |
|
2014 |
|
$ |
|
% |
|
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
Wholesale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
210,887 |
|
$ |
228,615 |
|
$ |
|
(17,728 |
) |
|
|
(7.8 |
) |
% |
|
$ |
|
(10,241 |
) |
|
|
(4.5 |
) |
% |
Asia Pacific |
|
|
255,897 |
|
|
290,610 |
|
|
|
(34,713 |
) |
|
|
(11.9 |
) |
|
|
|
|
(16,194 |
) |
|
|
(5.6 |
) |
|
Europe |
|
|
123,131 |
|
|
147,561 |
|
|
|
(24,430 |
) |
|
|
(16.6 |
) |
|
|
|
|
1,886 |
|
|
|
1.3 |
|
|
Other businesses |
|
|
1,096 |
|
|
794 |
|
|
|
302 |
|
|
|
38.0 |
|
|
|
|
|
194 |
|
|
|
24.4 |
|
|
Total wholesale |
|
|
591,011 |
|
|
667,580 |
|
|
|
(76,569 |
) |
|
|
(11.5 |
) |
|
|
|
|
(24,355 |
) |
|
|
(3.6 |
) |
|
Retail: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
197,306 |
|
|
206,053 |
|
|
|
(8,747 |
) |
|
|
(4.2 |
) |
|
|
|
|
(6,652 |
) |
|
|
(3.2 |
) |
|
Asia Pacific |
|
|
136,320 |
|
|
159,464 |
|
|
|
(23,144 |
) |
|
|
(14.5 |
) |
|
|
|
|
(11,552 |
) |
|
|
(7.2 |
) |
|
Europe |
|
|
44,873 |
|
|
60,309 |
|
|
|
(15,436 |
) |
|
|
(25.6 |
) |
|
|
|
|
(3,012 |
) |
|
|
(5.0 |
) |
|
Total retail |
|
|
378,499 |
|
|
425,826 |
|
|
|
(47,327 |
) |
|
|
(11.1 |
) |
|
|
|
|
(21,216 |
) |
|
|
(5.0 |
) |
|
E-commerce: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
68,017 |
|
|
55,247 |
|
|
|
12,770 |
|
|
|
23.1 |
|
|
|
|
|
13,434 |
|
|
|
24.3 |
|
|
Asia Pacific |
|
|
32,274 |
|
|
23,836 |
|
|
|
8,438 |
|
|
|
35.4 |
|
|
|
|
|
10,256 |
|
|
|
43.0 |
|
|
Europe |
|
|
20,829 |
|
|
25,734 |
|
|
|
(4,905 |
) |
|
|
(19.1 |
) |
|
|
|
|
(380 |
) |
|
|
(1.5 |
) |
|
Total e-commerce |
|
|
121,120 |
|
|
104,817 |
|
|
|
16,303 |
|
|
|
15.6 |
|
|
|
|
|
23,310 |
|
|
|
22.2 |
|
|
Total revenues |
|
$ |
1,090,630 |
|
$ |
1,198,223 |
|
$ |
|
(107,593 |
) |
|
|
(9.0 |
) |
% |
|
$ |
|
(22,261 |
) |
|
|
(1.9 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
476,210 |
|
$ |
489,915 |
|
$ |
|
(13,705 |
) |
|
|
(2.8 |
) |
% |
|
$ |
|
(3,459 |
) |
|
|
(0.7 |
) |
% |
Asia Pacific |
|
|
424,491 |
|
|
473,910 |
|
|
|
(49,419 |
) |
|
|
(10.4 |
) |
|
|
|
|
(17,490 |
) |
|
|
(3.7 |
) |
|
Europe |
|
|
188,833 |
|
|
233,604 |
|
|
|
(44,771 |
) |
|
|
(19.2 |
) |
|
|
|
|
(1,506 |
) |
|
|
(0.6 |
) |
|
Total segment revenues |
|
|
1,089,534 |
|
|
1,197,429 |
|
|
|
(107,895 |
) |
|
|
(9.0 |
) |
|
|
|
|
(22,455 |
) |
|
|
(1.9 |
) |
|
Other businesses |
|
|
1,096 |
|
|
794 |
|
|
|
302 |
|
|
|
38.0 |
|
|
|
|
|
194 |
|
|
|
24.4 |
|
|
Total consolidated revenues |
|
$ |
1,090,630 |
|
$ |
1,198,223 |
|
$ |
|
(107,593 |
) |
|
|
(9.0 |
) |
% |
|
$ |
|
(22,261 |
) |
|
|
(1.9 |
) |
% |
|
(1) Reflects year over
year change as if the current period results were in “constant
currency,” which is a non-GAAP financial measure. See “Use of
Non-GAAP Financial Measures” above for more information. |
CROCS, INC.
SUBSIDIARIES |
RETAIL STORE
COUNTS (UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015 |
|
Opened |
|
Closed |
|
December 31,
2015 |
Company-operated retail
locations |
|
|
|
|
|
|
|
|
Type |
|
|
|
|
|
|
|
|
Kiosk/store in store |
|
98 |
|
2 |
|
2 |
|
98 |
Retail stores |
|
279 |
|
5 |
|
9 |
|
275 |
Outlet stores |
|
180 |
|
6 |
|
- |
|
186 |
Total |
|
557 |
|
13 |
|
11 |
|
559 |
Operating segment |
|
|
|
|
|
|
|
|
Americas |
|
198 |
|
1 |
|
3 |
|
196 |
Asia Pacific |
|
256 |
|
12 |
|
7 |
|
261 |
Europe |
|
103 |
|
- |
|
1 |
|
102 |
Total |
|
557 |
|
13 |
|
11 |
|
559 |
|
|
December 31,
2014 |
|
Opened |
|
Closed |
|
December 31,
2015 |
Company-operated retail
locations |
|
|
|
|
|
|
|
|
Type |
|
|
|
|
|
|
|
|
Kiosk/store in store |
|
100 |
|
11 |
|
13 |
|
98 |
Retail stores |
|
311 |
|
15 |
|
51 |
|
275 |
Outlet stores |
|
174 |
|
16 |
|
4 |
|
186 |
Total |
|
585 |
|
42 |
|
68 |
|
559 |
Operating segment |
|
|
|
|
|
|
|
|
Americas |
|
210 |
|
4 |
|
18 |
|
196 |
Asia Pacific |
|
258 |
|
36 |
|
33 |
|
261 |
Europe |
|
117 |
|
2 |
|
17 |
|
102 |
Total |
|
585 |
|
42 |
|
68 |
|
559 |
CROCS, INC.
AND SUBSIDIARIES |
|
RETAIL |
|
(STORES
ONLY) |
|
COMPARABLE STORE
SALES |
|
(UNAUDITED) |
|
|
|
|
|
|
|
Constant Currency
(2) |
|
Constant Currency
(2) |
|
|
Three Months
Ended |
|
Three Months
Ended |
|
|
December
31, 2015 |
|
December
31, 2014 |
|
Comparable store sales (1) |
|
|
|
|
Americas |
(3.4 |
) |
% |
(3.3 |
) |
% |
Asia Pacific |
4.8 |
|
% |
(2.5 |
) |
% |
Europe |
5.7 |
|
% |
1.1 |
|
% |
Global |
0.1 |
|
% |
(2.4 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Currency
(2) |
|
Constant Currency
(2) |
|
|
Year
Ended |
|
Year
Ended |
|
|
December
31, 2015 |
|
December
31, 2014 |
|
Comparable store sales (1) |
|
|
|
|
Americas |
(3.2 |
) |
% |
(4.4 |
) |
% |
Asia Pacific |
(4.5 |
) |
% |
(4.7 |
) |
% |
Europe |
3.0 |
|
% |
0.7 |
|
% |
Global |
(2.8 |
) |
% |
(3.7 |
) |
% |
|
(1) Comparable
store status is determined on a monthly basis. Comparable store
sales begin in the thirteenth month of a store’s operation. Stores
in which selling square footage has changed more than 15% as a
result of a remodel, expansion or reduction are excluded until the
thirteenth month in which they have comparable prior year sales.
Temporarily closed stores are excluded from the comparable store
sales calculation during the month of closure. Location closures in
excess of three months are excluded until the thirteenth month post
re-opening. Comparable store sales exclude the impact of our
e-commerce channel revenues and are calculated on a currency
neutral basis using historical quarterly average currency
rates. |
|
|
|
|
|
(2) Reflects
quarter-over-quarter and year-over-year change as if the current
period results were in “constant currency,” which is a non-GAAP
financial measure. Constant currency is a measure utilized by
management in which current period results have been restated using
prior year average foreign exchange rates for the comparative
period to enhance the visibility of the underlying business trends
by excluding the impact of foreign currency exchange rate
fluctuations. We do not suggest that investors should consider this
non-GAAP measure in isolation from, or as a substitute for,
financial information prepared in accordance with U.S. GAAP. |
CROCS, INC.
AND SUBSIDIARIES |
|
DIRECT TO
CONSUMER |
|
(INCLUDES RETAIL
AND E-COMMERCE) |
|
COMPARABLE STORE
SALES |
|
(UNAUDITED) |
|
|
|
|
|
|
|
Constant Currency
(2) |
|
Constant Currency
(2) |
|
|
Three Months
Ended |
|
Three Months
Ended |
|
|
December 31,
2015 |
|
December
31, 2014 |
|
Comparable store sales (1) |
|
|
|
|
Americas |
6.3 |
% |
(2.7 |
) |
% |
Asia Pacific |
15.2 |
% |
10.1 |
|
% |
Europe |
13.9 |
% |
(5.4 |
) |
% |
Global |
9.8 |
% |
0.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant Currency
(2) |
|
Constant Currency
(2) |
|
|
Year Ended |
|
Year
Ended |
|
|
December 31,
2015 |
|
December
31, 2014 |
|
Comparable store sales (1) |
|
|
|
|
Americas |
3.3 |
% |
(3.8 |
) |
% |
Asia Pacific |
3.0 |
% |
0.6 |
|
% |
Europe |
7.8 |
% |
(0.6 |
) |
% |
Global |
3.9 |
% |
(1.9 |
) |
% |
|
|
|
|
|
(1) This includes
both e-commerce and retail comparable store sales. Comparable store
status is determined on a monthly basis. Comparable store sales
begin in the thirteenth month of a store’s operation. Stores in
which selling square footage has changed more than 15% as a result
of a remodel, expansion or reduction are excluded until the
thirteenth month in which they have comparable prior year sales.
Temporarily closed stores are excluded from the comparable store
sales calculation during the month of closure. Location closures in
excess of three months are excluded until the thirteenth month post
re-opening. E-commerce revenue is based on same site sales period
over period. Comparable store sales and e-commerce channel revenues
and are calculated on a currency neutral basis using historical
quarterly average currency rates. |
|
|
|
|
|
(2) Reflects
quarter-over-quarter and year-over-year change as if the current
period results were in “constant currency,” which is a non-GAAP
financial measure. Constant currency is a measure utilized by
management in which current period results have been restated using
prior year average foreign exchange rates for the comparative
period to enhance the visibility of the underlying business trends
by excluding the impact of foreign currency exchange rate
fluctuations. We do not suggest that investors should consider this
non-GAAP measure in isolation from, or as a substitute for,
financial information prepared in accordance with U.S. GAAP. |
|
Investor Contact: Brendon Frey, ICR
(203) 682-8200
Brendon.Frey@icrinc.com
Media Contact: Katy Michael/Crocs Inc.
(303) 848-7000
kmichael@crocs.com
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