EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contacts:
David Carlson | Michael Newman | |
Executive Vice President and | Investor Relations | |
Chief Financial Officer | StreetConnect, Inc. | |
LaCrosse Footwear, Inc. | 800-654-3517 | |
503-262-0110 ext. 1331 | BOOT@stct.com |
LACROSSE FOOTWEAR REPORTS
THIRD QUARTER 2009 RESULTS
THIRD QUARTER 2009 RESULTS
Quarterly Sales Growth; Work Sales Up 14%; Continued Strong Demand from U.S. Military;
Maintaining Strong Balance Sheet
Maintaining Strong Balance Sheet
Portland, Ore.—October 26, 2009 — LaCrosse Footwear, Inc. (Nasdaq: BOOT), a leading provider of premium, branded work and outdoor footwear, today reported results for the third quarter ended September 26, 2009.
For the third quarter of 2009, LaCrosse reported net sales of $40.8 million, up from $40.3 million in the third quarter of 2008. For the first three quarters of 2009, net sales were $96.6 million, up 4% from $92.8 million in the same period of 2008.
Net income was $2.2 million or $0.35 per diluted share in the third quarter of 2009, compared to $2.8 million or $0.43 per diluted share in the third quarter of 2008. For the first three quarters of 2009, net income was $3.2 million or $0.50 per diluted share, compared to $5.0 million or $0.78 per diluted share for the same period in 2008.
Sales to the work market were $22.1 million for the third quarter of 2009, up 14% from $19.5 million for the same period of 2008. The growth in work sales reflects continued penetration into various areas of the U.S. military. Sales to the outdoor market were $18.7 million for the third quarter of 2009, down from $20.8 million for the same period of 2008, reflecting continued softness in the overall global retail environment.
For the third quarter of 2009, gross margins were 38.6% of net sales, compared to 39.2% in the same period of 2008. The decrease in gross profit was primarily due to the impact of a greater portion of quarterly revenue coming from military delivery orders.
LaCrosse generally moderated its operating expense growth during the third quarter of 2009. Operating expenses were $11.8 million in the third quarter of 2009, up 5% or $0.6 million from the third quarter of 2008.
The Company continued to maintain a strong balance sheet with no debt. At the end of the third quarter of 2009, LaCrosse had cash and cash equivalents of $3.5 million. The $3.8 million year-over-year increase in inventory primarily reflects the growth in domestic production for the Company’s expanded military business, as well as increased inventory for the planned build-up of certain core products for anticipated demand during the fall and winter seasons.
“We continued to grow our work business and took important steps to improve the long-term efficiency and strength of our business,” said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. “During the third quarter of 2009, we continued to win more business within various branches of the U.S. military, reflecting the proven durability and performance of our premium footwear in the demanding terrain of Afghanistan. While retail demand remained soft, we did see encouraging at-once demand in certain niche markets and product categories, including outdoor footwear that incorporates our new scent suppression technology.
“During the third quarter, we continued to execute our strategic initiatives and invest in our business. We completed the transition of our nationwide sales force into a dedicated in-house team, focused exclusively on the success of our brands. We have also strengthened our position with a number of major retailers and taken a strong inventory position on several core product lines in anticipation of fulfilling their growing at-once demand. We continue to leverage our talented team, powerful brands and strong balance sheet in order to grow our business and maintain operational excellence over the long term.”
Based on the strength of the Company’s financial position, the Board of Directors today announced the approval of a quarterly dividend of $0.125 per share of common stock, totaling $0.8 million. The fourth quarter dividend will be paid on December 18, 2009 to shareholders of record as of the close of business on November 22, 2009.
LaCrosse will host a conference call to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern) on October 26, 2009. A broadcast of the conference call will be available at www.lacrossefootwearinc.com under “Investor Events” or by calling 877-941-2332 or +1 480-629-9722. A 48-hour replay will be available by calling 800-406-7325 or +1 303 590 3030 (Access Code: 4167945). A replay will also be available on the Company’s Web site.
About LaCrosse Footwear, Inc.
LaCrosse Footwear, Inc. is a leading developer and marketer of branded, premium and innovative footwear for expert work and outdoor users. The Company’s trusted Danner® and LaCrosse® brands are sold to a network of specialty retailers and distributors in the United States, Canada, Europe and Asia. Work consumers include people in law enforcement, transportation, mining, oil and gas exploration and extraction, construction, military services and other occupations that require high-performance and protective footwear as a critical tool for the job. Outdoor consumers include people active in hunting, hiking and other outdoor recreational activities. For more information about LaCrosse Footwear products, please visit our Internet websites at www.lacrossefootwear.com and www.danner.com. For additional investor information, see our corporate website atwww.lacrossefootwearinc.com.
Forward-Looking Statements
All statements, other than statements of historical facts, included in this release, including without limitation, any statements regarding the impact of the transition of our nationwide sales force into an in-house team, any future business with the U.S. military and our ability to grow our business over the long term, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Risk factors and other uncertainties which may directly impact the outcome of such forward-looking statements included in this release, each of which are included in our 2008 Annual Report on Form 10-K, as supplemented by our quarterly reports on Form 10-Q for 2009, include the following:
• | Uncertainties related to our sales to the U.S. military, which may not continue at the current levels | ||
• | The current slow-down in consumer spending, which could impact both the financial stability of our domestic and international retail channel base and require additional price discounts for retailers and direct consumers |
Forward-looking statements relate to future events and typically address the Company’s expected future business and financial performance. Words such as “plan,” “expect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could” and other terms of similar meaning, typically identify such forward-looking statements. The Company assumes no obligation to update or revise any forward-looking statements to reflect the occurrence or non-occurrence of future events or circumstances.
Forward-looking statements are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Actual future results and trends may differ materially from historical results or those reflected in any such forward-looking statements depending on a variety of factors, including without limitation, economic, competitive and governmental factors outside of our control. For more information concerning these factors and other risks and uncertainties that could materially affect our results of operations, please refer to Part I, Item 1A—Risk Factors, of our 2008 Annual Report on Form 10-K, as supplemented or amended in our 2009 quarterly reports on Form 10-Q, which information is incorporated herein by reference.
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share amounts)
(Unaudited)
(amounts in thousands except per share data)
Quarter Ended | Three Quarters Ended | |||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net sales | $ | 40,761 | $ | 40,265 | $ | 96,647 | $ | 92,807 | ||||||||
Cost of goods sold | 25,040 | 24,478 | 58,877 | 55,717 | ||||||||||||
Gross profit | 15,721 | 15,787 | 37,770 | 37,090 | ||||||||||||
Selling and administrative expenses | 11,815 | 11,234 | 32,912 | 29,140 | ||||||||||||
Operating income | 3,906 | 4,553 | 4,858 | 7,950 | ||||||||||||
Non-operating income (expense) | (235 | ) | (54 | ) | (304 | ) | 57 | |||||||||
Income before income taxes | 3,671 | 4,499 | 4,554 | 8,007 | ||||||||||||
Income tax provision | 1,450 | 1,731 | 1,367 | 3,024 | ||||||||||||
Net income | $ | 2,221 | $ | 2,768 | $ | 3,187 | $ | 4,983 | ||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 0.35 | $ | 0.44 | $ | 0.51 | $ | 0.80 | ||||||||
Diluted | $ | 0.35 | $ | 0.43 | $ | 0.50 | $ | 0.78 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic | 6,307 | 6,229 | 6,293 | 6,204 | ||||||||||||
Diluted | 6,403 | 6,436 | 6,364 | 6,416 | ||||||||||||
Supplemental product line information: | ||||||||||||||||
Work Market Sales | $ | 22,116 | $ | 19,438 | $ | 62,996 | $ | 54,682 | ||||||||
Outdoor Market Sales | 18,645 | 20,827 | 33,651 | 38,125 | ||||||||||||
$ | 40,761 | $ | 40,265 | $ | 96,647 | $ | 92,807 | |||||||||
LaCrosse Footwear, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
Condensed Consolidated Balance Sheets
(Amounts in thousands)
September 26, | December 31, | September 27, | ||||||||||
2009 | 2008 | 2008 | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Assets: | ||||||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | $ | 3,495 | $ | 13,683 | $ | 4,316 | ||||||
Trade and other accounts receivable, net | 27,931 | 22,449 | 31,960 | |||||||||
Inventories | 34,549 | 28,618 | 30,769 | |||||||||
Prepaid expenses | 1,017 | 1,402 | 994 | |||||||||
Deferred tax assets | 1,302 | 1,364 | 1,234 | |||||||||
Total current assets | 68,294 | 67,516 | 69,273 | |||||||||
Property and equipment, net | 8,685 | 6,137 | 5,018 | |||||||||
Goodwill | 10,753 | 10,753 | 10,753 | |||||||||
Other assets | 298 | 159 | 420 | |||||||||
Total assets | $ | 88,030 | $ | 84,565 | $ | 85,464 | ||||||
Liabilities and Shareholders’ Equity: | ||||||||||||
Current Liabilities: | ||||||||||||
Accounts payable | $ | 11,688 | $ | 10,288 | $ | 11,020 | ||||||
Accrued compensation | 2,546 | 3,151 | 2,947 | |||||||||
Other accruals | 1,893 | 2,528 | 3,472 | |||||||||
Total current liabilities | 16,127 | 15,967 | 17,439 | |||||||||
Deferred revenue | 263 | 375 | 413 | |||||||||
Deferred lease obligations | 599 | 190 | 178 | |||||||||
Compensation and benefits | 5,424 | 5,844 | 1,564 | |||||||||
Deferred tax liabilities | 2,174 | 777 | 2,330 | |||||||||
Total liabilities | 24,587 | 23,153 | 21,924 | |||||||||
Total shareholders’ equity | 63,443 | 61,412 | 63,540 | |||||||||
Total liabilities and shareholders’ equity | $ | 88,030 | $ | 84,565 | $ | 85,464 | ||||||
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
Three Quarters Ended | ||||||||
September 26, | September 27, | |||||||
2009 | 2008 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 3,187 | $ | 4,983 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities, net of effects of acquisitions: | ||||||||
Depreciation and amortization | 2,041 | 1,368 | ||||||
Stock-based compensation expense | 448 | 454 | ||||||
Deferred income taxes | 1,366 | 15 | ||||||
Loss on disposal of property and equipment | 194 | 2 | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||
Trade and other accounts receivable | (5,482 | ) | (9,367 | ) | ||||
Inventories | (5,778 | ) | (469 | ) | ||||
Accounts payable | 1,400 | 3,564 | ||||||
Accrued expenses and other | (735 | ) | 936 | |||||
Net cash provided by (used in) operating activities | (3,359 | ) | 1,486 | |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (4,723 | ) | (1,504 | ) | ||||
Proceeds from sale of property and equipment | 33 | — | ||||||
Acquisitions | (388 | ) | (3,169 | ) | ||||
Net cash used in investing activities | (5,078 | ) | (4,673 | ) | ||||
Cash flows from financing activities: | ||||||||
Cash dividends paid | (2,362 | ) | (8,541 | ) | ||||
Purchase of treasury stock | — | (95 | ) | |||||
Proceeds from exercise of stock options | 432 | 938 | ||||||
Net cash used in financing activities | (1,930 | ) | (7,698 | ) | ||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 179 | (184 | ) | |||||
Net decrease in cash and cash equivalents | (10,188 | ) | (11,069 | ) | ||||
Cash and cash equivalents: | ||||||||
Beginning of period | 13,683 | 15,385 | ||||||
End of period | $ | 3,495 | $ | 4,316 | ||||
END OF FILING