NIWOT, Colo., Feb. 26, 2015 -- Crocs Inc. (Nasdaq:CROX) today reported financial results for the fourth quarter and full year ended December 31, 2014.
Full Year and Fourth Quarter Financial Highlights:
- GAAP revenue increased 0.5% year over year to $1.2 billion. On a constant currency basis, revenue increased 1.8% as compared to the prior year. For the fourth quarter, revenue was $206.5 million a decline of 9.7% as compared to the fourth quarter of 2013. On a constant currency basis, fourth quarter revenue declined 5%.
- Net loss attributable to common stockholders on a GAAP basis was $0.22 per diluted share for the year and $0.70 per diluted share for the fourth quarter. Excluding certain non-recurring and special charges, the company reported non-GAAP adjusted net income attributable to common stockholders of $50.0 million for the year and a non-GAAP adjusted net loss of $30.0 million for the fourth quarter.
We are making meaningful progress on implementing the strategy including: strengthening our brand; elevating our product stories while eliminating non-core categories; evolving our international business to focus on our six core markets while building best in class partnerships in the rest of the world; strengthening our relationships with key wholesale partners; improving our direct to consumer capabilities; simplifying our business model; and, building a best in class team.
More specifically, in the second half of 2014 the company eliminated non-core product categories, closed more than 100 stores, reduced headcount, and simplified our international operations. We are confident these moves will enable us to streamline our business model, focus on our biggest and most meaningful opportunities, and position the company for growth in the future."
Fourth quarter operating results
In the fourth quarter of 2014, the company incurred a GAAP net loss attributable to common stockholders of $56.9 million or $0.70 per diluted share, compared with a net loss of $66.9 million or $0.76 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 $26.8 million in non-recurring and special charges (of which $15.3 million were non-cash charges) in the fourth quarter of 2014; compared with $49.2 million in non-recurring and special charges (of which $46.5 million were non-cash charges) in the fourth quarter of 2013.
Excluding these items, the company reported a non-GAAP adjusted net loss attributable to common stockholders of $30.0 million in the quarter or compared with a non-GAAP adjusted net loss of $17.7 million in the fourth quarter of 2013.
Full year 2014 operating results
The company generated net loss attributable to common stockholders of $19.0 million or $0.22 per diluted share for the full year ended 2014, compared with net income of $10.4 million or $0.12 per diluted share in 2013.
As outlined in detail in the non-GAAP reconciliations set forth later in this press release, the company recorded $69 million in non-recurring and special charges (of which $27.7 million were non-cash charges) for the year ended 2014; compared with $62.4 million in non-recurring and special charges (of which $49.3 million were non-cash charges) for the full year 2013.
Excluding these items, the company generated non-GAAP adjusted net income attributable to common stockholders of $50.0 million for the year ended 2014 compared with non-GAAP adjusted net income of $72.8 million during 2013.
Cash and cash equivalents at December 31, 2014, amounted to $267.5 million. Inventory was $171.0 million at the end of 2014 compared with $162.3 million on December 31, 2013.
Mr. Ribatt continued, "As we look forward, 2015 will be a transition period for the company. Our business continues to stabilize across all of our regions while we address the continuing challenges of the stronger US dollar and our China business. We expect Q1 revenues to be down on a constant currency basis by 10% to 12%, to a range of $260 to $265 million, driven primarily by declines in our China business. We expect the declines to moderate substantially in Q2 and growth to return in the second half of 2015 as many of the strategic changes we implemented in late 2014 positively impact the business."
The company repurchased 10.6 million shares of common stock in 2014 of which 4.5 million shares were repurchased in the fourth quarter of 2014 at an average price of $12.38. The company ended the year at 78.5 million common shares outstanding and fourth quarter weighted average shares outstanding was 80.9 million.
Conference Call Information
A teleconference call to discuss fourth quarter and full year 2014 results is scheduled for today, Thursday, February 26, 2015, at 5:00 p.m. 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 39040660.
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 28, 2015
About Crocs, Inc.
Crocs, Inc. (Nasdaq:CROX) 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 90 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, expectations, 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 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; our ability to open and operate additional retail locations; 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 26, 2015. 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.
Source Crocs Inc through (GLOBE NEWSWIRE by press release.©
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