December 2012 investor presentation Exhibit 99.1 |
Regarding Forward-Looking Statements 2 This presentation may contain forward-looking statements, estimates or projections that are based on our current expectations. Any such statements, estimates or projections are subject to risks and uncertainties that could cause the actual results and outcomes to vary materially from these statements, estimates and projections. These risks and uncertainties are discussed in our filing with the Securities and Exchange Commission (SEC) including, without limitation, the Crocs, Inc. Annual Report on From 10-K for the year ended December 31, 2011 and subsequent filings with the SEC prior to the date hereof. Crocs, Inc. undertakes no obligation to update its forward-looking statements upon the receipt of new information, future events or otherwise. |
Investment Highlights o Global Casual Lifestyle Footwear Brand o Balanced, International Growth o Long-Term Sales Growth o Strong Balance Sheet 3 |
Credit Agreement • Crocs has renegotiated its credit agreement • Credit line increased by 30% or $30mm to $100mm • Up to $50mm per quarter – up to $150mm per year - can now be used towards share repurchases • Up to 75% of the credit line can be used for share repurchases Capital Allocation – Credit Agreement 4 |
Share Repurchase • Crocs has been actively repurchasing shares in the open market since early November • Approximately 1.1 million shares have been repurchased at an average price of $12.75 - $14.4mm* • Shares are being repurchased under the 2007 Share Repurchase authorization of up to 5.5mm shares * Share repurchase totals are as of market close December 7, 2012 Capital Allocation – Share Repurchase 5 |
2013 SAP Investment Update 2013 SAP Investment • Implementation of SAP will continue through 2013 with an expected launch in 1H 2014 • $0.04 per share FY 2013 SAP impact due to accelerated depreciation and amortization of existing software assets • $0.04 - $0.06 per share FY 2013 SAP impact due to increased operating expense Total FY 2013 SAP Impact of $0.08 - $0.10 per share* * SAP expenses are excluded from normalized operating income results 6 |
2012 in review 7 |
Record Revenue Growth Income Statement (in millions) Q3 11 Q3 12 % Revenue $274.9 $295.6 12% Gross Margin 53.5% 54.4% 90bp SG&A as % of Sales 40.6% 40.8% 20bp Operating Margin 12.7% 13.5% 80bp Diluted EPS $0.33 $0.49 $0.16 8 |
Channel Results Channel Revenue (in millions) Q3 11 Q3 12 % Constant % Wholesale $154.0 $156.2 2% 5% Retail $95.3 $112.2 18% 20% Internet $25.6 $27.1 6% 9% Total $274.9 $295.6 8% 10% 9 |
Regional Results Regional Revenue (in millions) Q3 11 Q3 12 % Constant % Americas $122.8 $131.9 7% 9% Asia $111.2 $123.7 11% 13% Europe $40.9 $39.8 3% 7% Total $274.9 $295.6 8% 10% 10 |
Retail Locations Retail Locations (company owned) Q3 11 Q3 12 % Americas 195 189 3% Asia 182 233 28% Europe 33 77 133% Total 410 499 22% FY 2012 Retail Investments 11 • Opening plan of 100-110 net locations • Aggressively close kiosk locations in US (25 – 30) |
Retail Comps 12 Comp Store Growth (constant currency) Q1 2012 Q2 2012 Q3 2012 First 9 Months 2012 Americas 9.3% (1.2)% 5.5% 3.7% Asia 9.4% 5.2% (6.3)% 1.2% Europe 21.4% 9.5% 0.9% 7.5% Total 10.2% 1.8% 1.0% 3.1% |
Backlog * Based on 9/30/12 backlog reported on 10/24/12 +30% 13 +33% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Q3 2010 Q3 2011 Q3 2012 Backlog (in millions) $228 $297 $395 |
Inventory * Due to a terms and conditions change from December 2011 with our factories, Q4 2011 inventory levels excluded $12.5 million of additional inventory commitments that were not owned at 12/31/11 14 $151.1 $142.1 $187.5 $175 to $180 $0 $50 $100 $150 $200 $250 Q3 2011 Q4 2011 Q3 2012 Q4 2012E Inventory (in millions) $129.6 |
Future revenue growth drivers |
Long-Term Organic Growth Drivers o Sustained Growth in All Regions o Product-Driven w/ ASP Expansion o Wholesale Expansion o Investment in Retail & Internet 16 |
2013 Planned Retail Store Growth 17 Planned 2013 Global Retail Store Growth of Approximately 70 - 95 Net Stores Approximately 600 - 625 Retail Stores Globally by YE 2013 0 50 100 150 200 250 300 Europe Asia Americas 2013 2012 2011 2010 20 – 30 25 - 35 25 - 30 |
New Retail Investment Metrics • Location, Location, Location • Focus on High Traffic, Outlet Locations Avg Store Size – US Avg Store Size - Asia 1500 – 1800 sqft 650 – 1500 sqft Avg. Store Cost – US Avg. Store Cost – Asia $240K $140K Avg. Store Sales Operating Income (OI) $750K-$800K >20% ROI Payback Period >35% 1-3 years (3 year maximum) 18 |
Product Road Map – All Year Growth 19 |
investment summary |
o Global Casual Lifestyle Footwear Brand o Balanced, International Growth o Long-Term Sales Growth o Strong Balance Sheet Investment Summary 21 |