Full Year 2011 Revenue Increased 27% to $1.0 Billion
Full Year 2011 Diluted EPS Improved to $1.24
Year-End Cash Increased 77% to $257.6 million
2011 Year-End Backlog Increased 19%
NIWOT, COLORADO – February 23, 2012 – Crocs, Inc. (NASDAQ: CROX) today reported financial results for the fourth quarter and year ended December 31, 2011. Revenue for the fourth quarter of 2011 increased 14% to $203.7 million, over revenue of $179.2 million reported in the fourth quarter of 2010. Net income for the fourth quarter 2011 was $5.6 million, or $0.06 per diluted share compared to a net income of $4.7 million, or $0.05 per diluted share in the fourth quarter 2010. Revenue for 2011 increased 27% to $1.0 billion, over revenue of $789.7 million reported in 2010. Net income for 2011 improved to $112.8 million, or $1.24 per diluted share compared to net income of $67.7 million, or $0.76 per diluted share in 2010.
John McCarvel, President and Chief Executive Officer, stated: “The past 12-months were a period of terrific growth and important progress for our Company. In 2011, we grew annual sales 27% to surpass $1 billion for the first time ever. The success of existing and new product introductions drove improvements in our average selling price in addition to strong organic growth from channel & geographic expansion. As we move forward through 2012, we are confident that our long-term strategies will continue to deliver meaningful market share gains in spring and summer while also increasing our relevance during the cold weather season.”
Year-over year fourth quarter changes in the Company’s channel and regional revenue streams were as follows:
- Wholesale sales increased 6% to $104.1 million;
- Retail sales increased 24% to $74.1 million;
- Internet sales increased 17% to $25.5 million;
- Americas increased 10% to $103.6 million;
- Asia increased 22% to $76.1 million;
- Europe increased 6% to $24.0 million.
Gross profit for the fourth quarter of 2011 increased 16% to $99.8 million, or 49.0% as a percentage of sales, from $86.3 million, or 48.2% of sales in same period last year. Selling, General, & Administrative expenses (SG&A) increased 17% to $94.9 million versus $81.1 million a year ago. As a percentage of sales, SG&A increased to 46.6% from 45.3% in the fourth quarter of 2010.
Year-over year annual changes in the Company’s channel and regional revenue streams were as follows:
- Wholesale sales increased 24% to $598.4 million;
- Retail sales increased 32% to $306.7 million;
- Internet sales increased 28% to $95.9 million;
- Americas increased 19% to $448.0 million;
- Asia increased 34% to $381.8 million;
- Europe increased 34% to $171.2 million.
Gross profit for 2011 increased 27% to $536.4 million or 53.6% as a percentage of sales, from $423.8 million, or 53.7% of sales in 2010. Selling, General, & Administrative expenses increased 18% to $402.8 million versus $342.1 million a year ago. As a percentage of sales, SG&A decreased to 40.2% from 43.3% in 2010.
“The combination of strong sales growth and our ability to effectively manage costs created 310 basis points of operating expense leverage in 2011,” said John McCarvel.
Cash and cash equivalents at December 31, 2011 increased 77% to $257.6 million compared to $145.6 million at December 31, 2010. Inventories at December 31, 2011 were $129.6 million, up 7% compared to inventories at December 31, 2010 of $121.2 million.
Backlog at December 31, 2011 increased 19% to $307.4 million compared to backlog of $258.4 million at December 31, 2010.
For the first quarter of 2012, the Company expects revenue to be in the range of $263 to $268 million and diluted earnings per share to be between $0.24 and $0.26. This guidance is based on an effective tax rate of 24%.
Conference Call Information
A conference call to discuss Crocs’ 2011 fourth quarter and year-end financial results is scheduled for today (February 23, 2012) at 5:00 PM Eastern Time. A webcast of the call will take place simultaneously and can be accessed by clicking the ‘Investor Relations’ link under the Company section on www.crocs.com or at www.earnings.com. To listen to the broadcast, your computer must have Windows Media Player installed. If you do not have Windows Media Player, go to www.earnings.com prior to the call, where you can download the software for free.