Exhibit 99.1
Columbia Sportswear Company Reports Record First Quarter 2003 Results;
Company Announces Fall Backlog Increase of 10.4 percent
PORTLAND, Ore.--(BUSINESS WIRE)--April 24, 2003--Columbia
Sportswear Company (Nasdaq:COLM):
Highlights:
-- Global sales increased 17.9 percent to a first quarter record
of $168.9 million.
-- First quarter gross margins expanded 270 basis points to 45.4
percent.
-- Operating margin increased 360 basis points to 14.0 percent in
the first quarter.
-- Net income increased 65.6 percent to $14.9 million, a first
quarter record, or $0.37 per diluted share, vs. $0.22 last
year.
-- Global fall product backlog, excluding recently acquired
Mountain Hardwear, increased 10.4 percent to $571.7 million.
Columbia Sportswear Company (Nasdaq:COLM), a global leader in the
active outdoor apparel and footwear industries, today announced record
first quarter net sales of $168.9 million for the quarter ended March
31, 2003, an increase of 17.9 percent over net sales of $143.3 million
for the same period of 2002.
The Company reported net income for the first quarter of $14.9
million, a 65.6 percent increase over net income of $9.0 million for
the same period of 2002. Earnings per share for the first quarter of
2003 were $0.37 (diluted) on 40.4 million weighted average shares,
compared to earnings per share of $0.22 (diluted) for the first
quarter of 2002 on 40.0 million weighted average shares. The Company
completed its acquisition of Mountain Hardwear, Inc. on March 31,
2003. First quarter results do not include income or expense of
Mountain Hardwear operations.
Compared to the first quarter of 2002, U.S. sales increased by 9.8
percent to $99.6 million, Canadian sales increased by 39.2 percent to
$18.1 million, European sales increased by 27.8 percent to $32.2
million and Other International sales increased 31.9 percent to reach
$19.0 million for the first quarter of 2003.
When measured in constant dollar terms, Canadian sales grew by
32.1 percent, European sales increased by 3.4 percent, and Other
International sales increased 23.2 percent for the first quarter of
2003. Consolidated net sales for the first quarter of 2003 increased
12.0 percent to $160.5 million in constant dollars, when compared to
the first quarter of 2002.
When compared to the first quarter of 2002, outerwear sales
decreased 1.9 percent to $36.0 million, while sportswear sales
increased 20.9 percent to $97.8 million and footwear sales increased
by 47.0 percent to $29.7 million. Accessories sales were flat year
over year at $5.4 million.
Tim Boyle, Columbia's president and chief executive officer,
commented, "The strength of our brands and business globally
contributed to exceptional first quarter results. Based on previously
announced spring season bookings, worldwide sales continued to expand
during the period, led by strong growth in our sportswear and footwear
product lines. The acceleration of our spring business globally is in
part the result of previously discussed management restructurings in
sportswear and footwear, coupled with innovative product development.
Our ability to efficiently source and distribute our products,
combined with strong demand, contributed to expanding gross margins,
operating leverage and record first quarter earnings."
Net income expanded 65.6 percent to a first quarter record $14.9
million. Net income growth was primarily the result of (1) increased
sales volumes in spring sportswear and footwear in all key geographic
markets, (2) a 270 basis point improvement in gross margin to 45.4
percent compared to 42.7 percent for the first quarter of 2002, and
(3) continued improvement in operating leverage which resulted in a
decrease in sales, general and administrative (SG&A) expenses to 31.4
percent of sales compared to 32.3 percent of sales for the first
quarter of 2002. The increase in gross margin was primarily the result
of continued sourcing improvements for spring products and lower
volume sales of fall closeout products at higher margins. The leverage
gained through SG&A was primarily the result of continued cost control
measures with focus on personnel, capital and other discretionary
spending.
Backlog
The Company reported that as of March 31, 2003, consolidated
backlog increased 12.4 percent to $656.7 million, compared to
consolidated backlog of $584.4 million at March 31, 2002. Of this
total, fall product backlog at March 31, 2003 was $571.7 million, an
increase of 10.4 percent when compared to fall product backlog of
$517.8 million from the prior year. Due to the acquisition of Mountain
Hardwear late in the quarter, Mountain Hardwear projected backlog is
not included in the reported backlog; however, second quarter and full
year financial guidance includes projected Mountain Hardwear results.
Boyle commented, "Fall backlog growth was stronger than previously
anticipated, led by sportswear and footwear growth in all key
geographic regions, and benefited by foreign currency strength in our
direct markets. Geographically, strength in the backlog numbers for
fall 2003 was led by international markets including Europe, Japan,
and Canada. Achieving accelerating backlog growth rates in a difficult
retail environment is very encouraging and underscores the value
offered by Columbia's brands."
Guidance
Boyle continued, "Based on the backlog we released today and
including Mountain Hardwear projected results, we currently believe
that our strategies will enable us to generate second quarter 2003
revenue growth of 18 to 20 percent and net income growth of up to 5
percent as compared to the second quarter 2002. For the full year
2003, we believe that consolidated year over year revenue growth of 12
to 14 percent is achievable. Mountain Hardwear is expected to
contribute revenue of approximately $30 million for 2003. We also
project consolidated net income growth of 8 to 10 percent when
compared to the full year 2002. These projections are forward-looking
in nature, and are based on backlog and forecasts, which may change,
perhaps significantly."
The Company will host a conference call to elaborate on first
quarter 2003 results on Thursday, April 24th at 5 p.m. Eastern. The
call will include discussions regarding the Company's first quarter
2003 performance in general, the Company's geographic and merchandise
category performance, and the Company's future opportunities. To
participate, please dial 800-358-8449 in the United States (outside
the United States, please dial 706-634-7408) five to ten minutes prior
to the call. The call will also be webcast live on the investor
information section of the Company's website at www.columbia.com. An
audio replay will be available for 24 hours after the call has ended.
To access, please dial 800-642-1687 in the United States (outside the
United States, please dial 706-645-9291) and enter reservation #
3624344. The webcast can also be accessed on the investor information
section of the Company's website at www.columbia.com until May 15,
2003.
Founded in 1938 in Portland, Ore., Columbia Sportswear Company is
a global leader in the design, sourcing, marketing and distribution of
active outdoor apparel and footwear. As one of the largest outerwear
manufacturers in the world and the leading seller of skiwear in the
United States, the Company has developed an international reputation
for quality, performance, functionality and value. To learn more about
Columbia Sportswear, please visit the Company's Web site at
www.columbia.com.
This press release contains forward-looking statements, including
Mr. Boyle's statements regarding backlog growth, anticipated revenues
and earnings in 2003 and growth in future periods. Actual results
could differ materially from those projected in these and other
forward-looking statements as a result of a number of risks and
uncertainties, including those set forth in this press release, those
described in the Company's Annual Report on Form 10-K under the
heading "Factors That May Affect Our Business and the Price of Our
Common Stock," and other risks and uncertainties that have been or may
be described from time to time in other reports filed by the Company,
including reports on Form 8-K, Form 10-Q, and Form 10-K. Risk factors
that may affect future revenues, earnings and deliveries include, but
are not limited to, business disruptions and costs arising from
disease outbreaks, acts of terrorism or military activities around the
globe; unfavorable economic conditions generally and weakness in
consumer confidence; the financial health of Company customers; the
Company's ability to cost-effectively integrate Mountain Hardwear into
its existing operations; the Company's ability to effectively deliver
its products to customers in a timely manner due to potential service
interruptions; the Company's reliance on product acceptance by
consumers; effects of unseasonable weather (including, for example,
warm weather in the winter and cold weather in the spring which
affects demand for the Company's products); dependence on independent
manufacturers and suppliers; effectiveness of the Company's sales and
marketing efforts; intense competition in the industry (which the
Company expects to increase); the Company's ability to achieve and
manage growth effectively; international risks including trade
disruptions, political instability in foreign markets, exchange rate
fluctuations, changes in quotas and tariffs or other duties; effective
implementation and expansion of the Company's distribution facilities;
operations of the Company's and third party computer systems; and the
Company's ability to establish and protect its intellectual property.
Although forward-looking statements help provide complete information
about the Company, investors should keep in mind that forward-looking
statements are inherently less reliable than historical information.
The Company does not undertake any duty to update any of the
forward-looking statements after the date of this release, to conform
them to actual results or to changes in our expectations.
COLUMBIA SPORTSWEAR COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31,
---------------------
2003 2002
---------- ----------
Current Assets:
Cash and cash equivalents $ 179,197 $ 123,910
Accounts receivable, net 130,156 104,964
Inventories 115,759 114,342
Deferred tax asset 10,884 13,872
Prepaid expenses and other current assets 4,798 4,149
---------- ----------
Total current assets 440,794 361,237
Property, plant and equipment, net 122,557 104,400
Intangibles and other assets 36,027 7,549
--------- ---------
Total assets $ 599,378 $ 473,186
========= =========
Current Liabilities:
Notes payable $ 9,928 $ 28,381
Accounts payable 37,781 31,150
Accrued liabilities 25,590 20,275
Current portion of long-term debt 4,502 4,776
--------- ---------
Total current liabilities 77,801 84,582
Long-term debt 20,183 24,507
Deferred tax liability 7,104 842
Shareholders' equity 494,290 363,255
--------- ---------
Total liabilities and shareholders' equity $ 599,378 $ 473,186
========= =========
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
Three Months Ended
March 31,
---------------------
2003 2002
---------- ----------
Net sales $ 168,871 $ 143,299
Cost of sales 92,127 82,148
---------- ----------
Gross profit 76,744 61,151
45.4% 42.7%
Selling, general, and administrative 53,056 46,227
---------- ----------
Income from operations 23,688 14,924
Interest (income) expense, net (183) 109
---------- ----------
Income before income tax 23,871 14,815
Income tax provision 8,952 5,852
---------- ----------
Net income $ 14,919 $ 8,963
========== ==========
Net income per share:
Basic $ 0.38 $ 0.23
Diluted $ 0.37 $ 0.22
Weighted average shares outstanding:
Basic 39,768 39,302
Diluted 40,399 40,010
CONTACT: Columbia Sportswear Company
David W. Kiser, 503/985-4584