1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ---- SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2001
-----------------------
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE
- ---- ACT OF 1934
For the transition period from ______________ to ______________
COLUMBIA SPORTSWEAR COMPANY
(Exact name of registrant as specified in its charter)
Oregon 0-23939 93-0498284
- -------------------------------------------------------------------------------
(State or other jurisdiction of (Commission File (IRS Employer
incorporation or organization) Number) Identification Number)
6600 North Baltimore Portland, Oregon 97203
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(503) 286-3676
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
--- ---
The number of shares of Common Stock outstanding on July 31, 2001, was
39,200,923.
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COLUMBIA SPORTSWEAR COMPANY
JUNE 30, 2001
INDEX TO FORM 10-Q
PAGE NO.
--------
PART I. FINANCIAL INFORMATION
ITEM 1 -- Financial Statements - Columbia Sportswear Company (Unaudited)
Condensed Consolidated Balance Sheets ................................... 2
Condensed Consolidated Statements of Operations ......................... 3
Condensed Consolidated Statements of Cash Flows ......................... 4
Notes to Condensed Consolidated Financial Statements .................... 5
ITEM 2 -- Management's Discussion and Analysis of Financial
Condition and Results of Operations ................................. 8
ITEM 3 -- Quantitative and Qualitative Disclosures About Market Risk ......... 10
PART II. OTHER INFORMATION
ITEM 4 -- Submission of Matters to a Vote of Security Holders ................ 11
ITEM 6 -- Exhibits and Reports on Form 8-K ................................... 11
SIGNATURES ................................................................... 12
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ITEM 1 -- FINANCIAL STATEMENTS
COLUMBIA SPORTSWEAR COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
JUNE 30, 2001 DECEMBER 31, 2000
------------- -----------------
ASSETS
Current Assets:
Cash and cash equivalents $ 20,938 $ 35,464
Accounts receivable, net of allowance of $6,210
and $5,826, respectively 97,843 129,539
Inventories (Note 2) 186,944 105,288
Deferred tax asset 12,217 13,347
Prepaid expenses and other current assets 6,013 5,610
--------- ---------
Total current assets 323,955 289,248
Property, plant, and equipment, net 88,552 76,662
Intangibles and other assets 8,609 9,176
--------- ---------
Total assets $ 421,116 $ 375,086
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Notes payable $ 24,411 $ 23,987
Accounts payable 71,054 45,047
Accrued liabilities 19,233 28,294
Current portion of long-term debt 353 308
--------- ---------
Total current liabilities 115,051 97,636
Long-term debt 25,463 26,000
Deferred tax liability 2,462 2,461
--------- ---------
Total liabilities 142,976 126,097
Commitments and contingencies -- --
Shareholders' Equity:
Preferred stock; 10,000 shares authorized; none
issued and outstanding -- --
Common stock; 50,000 shares authorized; 39,197
and 38,564 issued and outstanding 147,277 133,736
Retained earnings 138,939 123,901
Accumulated other comprehensive loss (5,689) (5,920)
Unearned portion of restricted stock issued for
future services (2,387) (2,728)
--------- ---------
Total shareholders' equity 278,140 248,989
--------- ---------
Total liabilities and shareholders' equity $ 421,116 $ 375,086
========= =========
See accompanying notes to condensed consolidated financial statements.
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COLUMBIA SPORTSWEAR COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
2001 2000 2001 2000
---- ---- ---- ----
Net sales $121,544 $ 97,155 $259,627 $205,592
Cost of sales 68,355 53,426 147,237 115,325
-------- -------- -------- --------
Gross profit 53,189 43,729 112,390 90,267
Selling, general, and administrative 41,995 36,933 86,888 77,311
-------- -------- -------- --------
Income from operations 11,194 6,796 25,502 12,956
Interest expense, net 566 740 646 1,424
-------- -------- -------- --------
Income before income tax 10,628 6,056 24,856 11,532
Income tax expense 4,198 2,438 9,818 4,642
-------- -------- -------- --------
Net income (Note 3) $ 6,430 $ 3,618 $ 15,038 $ 6,890
======== ======== ======== ========
Earnings per share (Note 4):
Basic $ 0.16 $ 0.09 $ 0.39 $ 0.18
Diluted $ 0.16 $ 0.09 $ 0.38 $ 0.18
Weighted average shares outstanding:
Basic 39,029 38,148 38,865 38,142
Diluted 40,074 39,189 39,810 38,972
See accompanying notes to condensed consolidated financial statements.
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COLUMBIA SPORTSWEAR COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
SIX MONTHS ENDED JUNE 30,
-------------------------
2001 2000
---- ----
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income $ 15,038 $ 6,890
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation and amortization 7,553 6,668
Non-cash compensation 341 341
Loss (gain) on disposal of property, plant, and
equipment 96 (321)
Deferred income taxes 1,105 (183)
Changes in operating assets and liabilities:
Accounts receivable 28,946 39,567
Inventories (83,373) (46,326)
Prepaid expenses and other current assets (433) (1,513)
Intangibles and other assets 61 (48)
Accounts payable 30,112 1,110
Accrued liabilities (3,429) (5,125)
-------- --------
Net cash provided by (used in) operating activities (3,983) 1,060
-------- --------
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Additions to property, plant, and equipment (19,410) (3,288)
Proceeds from sale of property, plant, and equipment 16 432
-------- --------
Net cash used in investing activities (19,394) (2,856)
-------- --------
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Net proceeds from (repayments on) notes payable 2,663 (1,328)
Repayment on long-term debt (492) (466)
Proceeds from issuance of common stock 7,124 1,101
-------- --------
Net cash provided by (used in) financing activities 9,295 (693)
-------- --------
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH (444) 718
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS (14,526) (1,771)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 35,464 14,622
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 20,938 $ 12,851
======== ========
See accompanying notes to condensed consolidated financial statements.
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COLUMBIA SPORTSWEAR COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared by the management of Columbia Sportswear Company (the "Company") and in
the opinion of management contain all adjustments, consisting only of normal
recurring adjustments, necessary to present fairly the Company's financial
position as of June 30, 2001, and the results of operations for the three and
six months ended June 30, 2001 and 2000 and cash flows for the six months ended
June 30, 2001 and 2000. It should be understood that accounting measurements at
interim dates inherently involve greater reliance on estimates than at year end.
The results of operations for the three and six months ended June 30, 2001 are
not necessarily indicative of the results to be expected for the full year.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted pursuant to the
rules and regulations of the Securities and Exchange Commission. It is suggested
that these condensed consolidated financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2000.
Certain reclassifications of amounts reported in the prior period financial
statements have been made to conform to classifications used in the current
period financial statements.
NOTE 2. INVENTORIES
Inventories are carried at the lower of cost or market. Cost is determined using
the first-in, first-out method.
Inventories consist of the following (in thousands):
June 30, 2001 December 31, 2000
------------- -----------------
Raw materials $ 5,599 $ 4,298
Work in process 22,870 9,217
Finished goods 158,475 91,773
-------- --------
$186,944 $105,288
======== ========
NOTE 3. COMPREHENSIVE INCOME
Comprehensive income and its components, net of tax, are as follows (in
thousands):
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2001 2000 2001 2000
-------- -------- -------- --------
Net income $ 6,430 $ 3,618 $ 15,038 $ 6,890
Foreign currency translation adjustments 403 (305) (1,542) (292)
Unrealized gain (loss) on derivative transactions
(net of tax (expense) benefit, ($50), $0,
$1,105 and $0, respectively) (80) 195 1,773 (35)
-------- -------- -------- --------
Comprehensive income $ 6,753 $ 3,508 $ 15,269 $ 6,563
======== ======== ======== ========
NOTE 4. EARNINGS PER SHARE
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per
Share," requires dual presentation of basic and diluted earnings per share
("EPS"). Basic EPS is based on the weighted average number of common shares
outstanding. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted
into common stock.
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There were no adjustments to net income in computing diluted earnings per share
for the three and six months ended June 30, 2001 and 2000. A reconciliation of
the common shares used in the denominator for computing basic and diluted
earnings per share is as follows (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2001 2000 2001 2000
------ ------ ------ ------
Weighted average common shares outstanding, used in
computing basic earnings per share 39,029 38,148 38,865 38,142
Effect of dilutive stock options 1,045 1,041 945 830
------ ------ ------ ------
Weighted-average common shares outstanding, used in
computing diluted earnings per share 40,074 39,189 39,810 38,972
====== ====== ====== ======
Earnings per share of common stock:
Basic $ 0.16 $ 0.09 $ 0.39 $ 0.18
Diluted $ 0.16 $ 0.09 $ 0.38 $ 0.18
On May 2, 2001, the Company announced that the Board of Directors approved a
three-for-two split of the Company's Common Stock. The additional shares were
distributed on June 4, 2001, to all shareholders of record at the close of
business on May 17, 2001.
The shares presented in the consolidated balance sheets as of June 30, 2001 and
December 31, 2000, and the number of shares used in the computation of earnings
per share in the consolidated statements of operations for the three and six
months ended June 30, 2001 and 2000, are based on the number of shares
outstanding after giving effect to the June 2001 stock split.
NOTE 5. SEGMENT INFORMATION
The Company operates in one industry segment: the design, production, marketing
and selling of active outdoor apparel, including outerwear, sportswear, rugged
footwear, and accessories. The geographic distribution of the Company's net
sales, income before income tax, and identifiable assets are summarized in the
following table (in thousands). Inter-geographic net sales, which are recorded
at a negotiated mark-up and eliminated in consolidation, are not material.
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2001 2000 2001 2000
--------- --------- --------- ---------
Net sales to unrelated entities:
United States $ 88,029 $ 71,774 $ 174,425 $ 140,675
Canada 7,897 6,905 21,364 17,376
Other International 25,618 18,476 63,838 47,541
--------- --------- --------- ---------
$ 121,544 $ 97,155 $ 259,627 $ 205,592
========= ========= ========= =========
Income (loss) before income tax:
United States $ 15,290 $ 5,584 $ 24,454 $ 7,577
Canada 515 255 2,689 1,348
Other International 590 (54) 3,385 2,124
Less interest and other income
(expense) and eliminations (5,767) 271 (5,672) 483
--------- --------- --------- ---------
$ 10,628 $ 6,056 $ 24,856 $ 11,532
========= ========= ========= =========
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June 30, December 31,
2001 2000
--------- -----------
Total assets:
United States $ 404,560 $ 351,270
Canada 27,044 31,645
Other international 60,178 56,059
--------- ---------
491,782 438,974
Eliminations (70,666) (63,888)
--------- ---------
Total assets $ 421,116 $ 375,086
========= =========
NOTE 6. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
As part of the Company's risk management programs, the Company uses a variety of
financial instruments, including foreign currency option and forward exchange
contracts. The Company does not hold or issue derivative financial instruments
for trading purposes.
The Company uses a combination of foreign currency option and forward exchange
contracts to hedge against the currency risk associated with Japanese yen,
Canadian dollar and European Euro denominated, firmly committed and anticipated
transactions for the next twelve months.
The Company accounts for these instruments as cash flow hedges. In accordance
with SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activity",
such financial instruments are marked-to-market with the offset to shareholders'
equity and then subsequently recognized as a component of gross margin when the
underlying transaction is recognized. The Company measures hedge effectiveness
of foreign currency option and forward exchange contracts based on the forward
price of the underlying commodity. Hedge ineffectiveness was not material during
the three and six months ended June 30, 2001 and 2000.
NOTE 7. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2001, the Financial Accounting Standards Board adopted SFAS No. 141,
"Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets." SFAS 141 requires that all business combinations subsequent to June 30,
2001 be accounted for under the purchase method of accounting. SFAS 142
establishes new standards for goodwill acquired in a business combination and
eliminates amortization of goodwill and instead sets forth methods to
periodically evaluate goodwill for impairment. SFAS 142 will be effective for
the Company beginning January 1, 2002. Management has evaluated the impact of
the adoption of SFAS 142 and has determined that this statement will not have a
material impact on the Company's financial position or results of operations.
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ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD LOOKING STATEMENTS
The statements in this report concerning future financing and working capital
requirements and the impact of Euro implementation on our business constitute
forward-looking statements that are subject to risks and uncertainties. Many
factors could cause actual results to differ materially from those projected in
such forward looking statements, including risks described in our annual report
on Form 10-K for the year ended December 31, 2000 under the heading "Factors
That May Affect Our Business". Factors that could adversely affect future
financing and working capital needs include, but are not limited to, unfavorable
economic conditions, increased competitive factors (including increased
competition, new product offerings by competitors and price pressures); changes
in consumer preferences; unseasonable weather; an inability to increase sales to
department stores or to open and operate new concept shops on favorable terms; a
failure to manage growth effectively; unavailability of independent
manufacturing, labor or supplies at reasonable prices; disruptions in the
outerwear, sportswear and rugged footwear industries; delays or disruptions in
our capital projects; and our ability to negotiate favorable terms for
construction and implementation of our proposed European distribution facility.
Factors that could cause the implementation of the Euro to have an adverse
affect on our business include operational disruptions that could result from
the systems conversion for the Euro introduction. The Company does not undertake
any obligations to update this forward-looking information to conform it to
changes in circumstances or expectations.
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, selected statements
of operations data expressed as a percentage of net sales.
Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30,
-------- --------
2001 2000 2001 2000
---- ---- ---- ----
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales 56.2 55.0 56.7 56.1
----- ----- ----- -----
Gross profit 43.8 45.0 43.3 43.9
Selling, general and
administrative 34.6 38.0 33.5 37.6
----- ----- ----- -----
Income from operations 9.2 7.0 9.8 6.3
Interest expense, net 0.5 0.8 0.2 0.7
----- ----- ----- -----
Income before income tax 8.7 6.2 9.6 5.6
Income tax expense 3.4 2.5 3.8 2.2
----- ----- ----- -----
Net income 5.3% 3.7% 5.8% 3.4%
===== ===== ===== =====
THREE MONTHS ENDED JUNE 30, 2001 COMPARED TO THREE MONTHS ENDED JUNE 30, 2000
NET SALES: Net sales increased 25.0% to $121.5 million for the three month
period ended June 30, 2001 from $97.2 million for the comparable period in 2000.
Domestic sales increased 22.6% to $88.0 million for the three month period ended
June 30, 2001 from $71.8 million for the comparable period in 2000. Net
international sales, excluding Canada, increased 38.4% to $25.6 million for the
three month period ended June 30, 2001 from $18.5 million for the comparable
period in 2000. Canadian sales increased 14.5% to $7.9 million for the three
month period ended June 30, 2001 from $6.9 million for the same period in 2000.
These increases were primarily attributable to increased sales of sportswear,
outerwear and footwear units primarily in the United States and Europe.
GROSS PROFIT: Gross profit as a percentage of net sales was 43.8 % for the three
months ended June 30, 2001 compared to 45.0% for the comparable period in 2000.
The decline in gross margin was due to the decreased gross margins on increased
sales of spring close-out products and the weakness of the Euro currency for the
quarter ended June 30, 2001 when compared to the same period in 2000.
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSE: Selling, general, and
administrative expense (SG&A) increased 13.8% to $42.0 million for the three
months ended June 30, 2001 from $36.9 million for the comparable period in 2000,
primarily as a result of an increase in variable selling and operating expenses
to support the higher level of sales. As a percentage of sales, SG&A decreased
to 34.6% for the three months ended June 30, 2001 from 38.0% for the comparable
period in 2000, as we continue to utilize the existing investments in global
infrastructure to support the higher level of sales.
INTEREST EXPENSE: Interest expense decreased by 23.5% for the three months ended
June 30, 2001 from the comparable period in 2000. This decrease was attributable
to our increased cash position for the quarter ended June 30, 2001 when compared
to the same period in 2000.
SIX MONTHS ENDED JUNE 30, 2001 COMPARED TO SIX MONTHS ENDED JUNE 30, 2000
NET SALES: Net sales increased 26.3% to $259.6 million for the six month period
ended June 30, 2001 from $205.6 million for the comparable period in 2000.
Domestic sales increased 24.0% to $174.4 million for the six month period ended
June 30, 2001 from $140.7 million for the comparable period in 2000. Net
international sales, excluding Canada, increased 34.3% to $63.8 million for the
six month period ended June 30, 2001 from $47.5 million for the comparable
period in 2000. Canadian net sales increased 23.0% to $21.4 million for the six
month period ended June 30, 2001 from $17.4 million for the comparable period in
2000. These increases were primarily attributable to increased sales of
sportswear and outerwear units across all regions and footwear units in the
United States and Europe.
GROSS PROFIT: Gross profit as a percentage of net sales was 43.3% for the six
months ended June 30, 2001 compared to 43.9% for the comparable period in 2000.
The decline in gross margin was due to the decreased gross margins on increased
sales of spring close-out products and the weakness of the Euro currency for the
six months ended June 30, 2001 when compared to the six months ended June 30,
2000.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE: SG&A increased 12.4% to $86.9
million for the six months ended June 30, 2001 from $77.3 million for the
comparable period in 2000, primarily as a result of an increase in variable
selling and operating expenses to support the higher level of sales. As a
percentage of sales, SG&A decreased to 33.5% for the six months ended June 30,
2001 from 37.6% for the comparable period in 2000 as we were able to leverage
our sales growth over our fixed operating expenses.
INTEREST EXPENSE: Interest expense decreased by 54.6% for the six months ended
June 30, 2001 from the comparable period in 2000. This decrease was attributable
to our increased cash position for the six months ended June 30, 2001 when
compared to the same period in 2000.
SEASONALITY OF BUSINESS
Our business is affected by the general seasonal trends common to the outdoor
apparel industry, with sales and profits highest in the third calendar quarter.
Our products are marketed on a seasonal basis, with a product mix weighted
substantially toward the fall season. Results of operations in any period should
not be considered indicative of the results to be expected for any future
period. The sale of our products is subject to substantial cyclical fluctuation
or impact from unseasonal weather conditions. Sales tend to decline in periods
of recession or uncertainty regarding future economic prospects that affect
consumer spending, particularly on discretionary items. This cyclicality and any
related fluctuation in consumer demand could have a material adverse effect on
the Company's results of operations, cash flows and financial position.
LIQUIDITY AND CAPITAL RESOURCES
Our primary ongoing funding requirements are to finance working capital and the
continued growth of the business. At June 30, 2001, we had total cash
equivalents of $20.9 million compared to $12.9 million at June 30, 2000. Cash
used in operating activities was $4.0 million for the six months ended June 30,
2001 as compared to cash provided by operating activities of $1.1 million for
the comparable period in 2000. This decrease was primarily due to an increase in
inventory required to support higher sales levels partially offset by an
increase in earnings and a decrease in accounts receivable.
Our primary capital requirements are for working capital, investing activities
associated with the expansion of our domestic and international operations and
general corporate needs. Net cash used in investing activities
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was $19.4 million for the six months ended June 30, 2001 and $2.9 million for
the comparable period in 2000. This increase was primarily due to expenditures
related to the expansion of our domestic distribution center.
Cash provided by financing activities was $9.3 million for the six months ended
June 30, 2001 compared to cash used in financing activities of $0.7 million for
the comparable period in 2000. The increase in net cash provided by financing
activities was primarily due to proceeds from issuance of common stock.
To fund our working capital requirements, we have available unsecured revolving
lines of credit with aggregate seasonal limits ranging from approximately $35 to
$75 million, of which $10 million to $50 million is committed. As of June 30,
2001, $24.4 million was outstanding under these lines of credit. Additionally,
we maintain credit agreements in order to provide us with unsecured import lines
of credit with a combined limit of approximately $215 million available for
issuing documentary letters of credit. Internationally, our subsidiaries have
local currency operating lines in place guaranteed by our domestic operations.
We have recently announced capital expenditures to support our continued growth,
including the expansion of our United States distribution center, remodeling of
our recently purchased corporate headquarters and construction of a European
distribution facility. We anticipate the capital expenditures associated with
these projects, as well as our maintenance capital, will be approximately $40
million in 2001 and will be funded by existing cash and cash provided by
operations. However, if the need for additional financing arises, our ability to
obtain additional credit facilities will depend on prevailing market conditions,
our financial condition, and our ability to negotiate favorable terms and
conditions.
EURO CURRENCY CONVERSION
On January 1, 1999, the Euro was adopted as the national currency of the
participating countries - Austria, Belgium, Finland, France, Germany, Ireland,
Italy, Luxembourg, Netherlands, Portugal and Spain. Greece adopted the Euro on
January 1, 2001. Initially, the Euro will be used for non-cash transactions.
Legacy currencies of the participating member states will remain legal tender
until January 1, 2002. On this date, Euro-denominated bills and coins will be
issued for use in cash transactions.
The introduction of the Euro is a significant event with potential implications
for our existing operations within the participating countries. As such, we have
committed resources to conduct risk assessments and to take corrective actions,
where required, to ensure that we are prepared for the introduction of the Euro.
Progress regarding Euro implementation is reported regularly to management.
We have not experienced any significant operational disruptions to date and at
this time do not expect the continued implementation of the Euro to cause any
significant operational disruptions. In addition, we have not incurred and do
not expect to incur any significant costs from the continued implementation of
the Euro, including any additional currency risk, which could materially affect
our liquidity or capital resources.
ITEM 3 -- QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There has not been any material change in the market risk disclosure contained
in the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2000.
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PART II. OTHER INFORMATION
ITEM 4 -- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
We held our Annual Meeting of Shareholders on May 17, 2001 where the following
matters were submitted to a vote of shareholders, with the results as follows:
1. Election of seven directors to serve for the following year and until
their successors are elected:
For Withheld
- --------------------------------------------------------------------------------
Gertrude Boyle 24,145,837 210,694
Timothy Boyle 24,146,026 210,505
Sarah Bany 23,868,270 488,261
Murrey Albers 24,145,926 210,605
Edward George 24,145,876 210,655
Walter Klenz 24,145,376 211,155
John Stanton 24,145,926 210,605
2. Approval of the amendment to the Company's 1997 Stock Incentive Plan. The
shareholders adopted, by the votes indicated below, an amendment to the 1997
Stock Incentive Plan to increase the number of shares authorized for issuance to
5.4 million and to make certain technical modifications to the Plan:
For Against Abstentions
- --------------------------------------------------------------------------------
21,992,459 2,351,683 12,389
ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
10.1 The 1997 Stock Incentive Plan, as amended.
(b) Reports on Form 8-K
None.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COLUMBIA SPORTSWEAR COMPANY
Date: 8/14/01 /s/ PATRICK D. ANDERSON
------------------------ ------------------------------------
Patrick D. Anderson
Chief Financial Officer and
Authorized Officer
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