Exhibit 99.1
Columbia Sportswear Company Reports Record Third Quarter 2003 Results;
Company Announces Spring Backlog Increase of 26.7 percent
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 23, 2003--Columbia
Sportswear Company (Nasdaq:COLM):
Highlights:
-- Global sales increased a solid 12.6 percent to a third quarter
record of $373.4 million.
-- Excluding changes in currency exchange rates, consolidated
sales increased by 9.3 percent in the third quarter.
-- Net income increased 11.8 percent to $63.6 million, a third
quarter record, or $1.56 per diluted share, vs. $1.42 last
year.
-- Global spring product backlog increased 26.7 percent to $292.5
million.
-- Full year 2003 net income guidance raised to 15 percent to 16
percent year over year growth.
Columbia Sportswear Company (Nasdaq:COLM), a global leader in the
active outdoor apparel and footwear industries, today announced record
third quarter net sales of $373.4 million for the quarter ended
September 30, 2003, an increase of 12.6 percent over net sales of
$331.5 million for the same period of 2002. The Company reported
record net income for the third quarter of $63.6 million, an 11.8
percent increase over net income of $56.9 million for the same period
of 2002. Earnings per share for the third quarter of 2003 were $1.56
(diluted) on 40.8 million weighted average shares, compared to
earnings per share of $1.42 (diluted) for the third quarter of 2002 on
40.2 million weighted average shares.
Compared to the third quarter of 2002, U.S. sales increased by 6.7
percent to $249.8 million, Canadian sales increased by 19.0 percent to
$49.4 million, European sales increased by 38.9 percent to $45.7
million and Other International sales increased 24.5 percent to reach
$28.5 million for the third quarter of 2003.
Excluding changes in currency exchange rates, Canadian sales grew
by 5.7 percent, European sales increased by 21.8 percent, and Other
International sales increased 24.3 percent for the third quarter of
2003. Consolidated net sales for the third quarter of 2003 increased
9.3 percent to $362.3 million excluding changes in currency exchange
rates, when compared to the same period of last year.
Outerwear sales increased 3.2 percent to $220.9 million,
sportswear sales increased 36.7 percent to $86.0 million, footwear
sales increased 21.9 percent to $46.2 million, and accessories sales
increased 13.2 percent to $18.9 million, when compared to the third
quarter of 2002. Mountain Hardwear, our recently acquired subsidiary,
contributed $13.0 million in sales during the third quarter. Equipment
sales, a new category consisting of tents and sleeping bags sold by
Mountain Hardwear, were $1.4 million in the quarter.
Net income expanded 11.8 percent to a third quarter record $63.6
million. Net income growth was primarily the result of strong top-line
sales growth.
Tim Boyle, Columbia's president and chief executive officer,
commented, "We are very pleased with our outstanding financial
results. Our better-than-expected third quarter sales and earnings
resulted from exceptional sales growth in our sportswear product
category, the continued development of our footwear product category
and the sustained sales momentum of our brands in key international
markets. Going forward, we expect sales velocity to continue through
the fourth quarter and into the first quarter of next year. Behind the
expectation of continued strength is the broad consumer demand that
exists for our value-oriented, authentic product lines, supported by
the global infrastructure we have created from design, to sourcing, to
distribution that provides us with the platform to sustain our future
growth opportunities."
Backlog
The Company reported that as of September 30, 2003, spring backlog
increased 26.7 percent to $292.5 million, compared to spring backlog
of $230.8 million at September 30, 2002. Consolidated product backlog
at September 30, 2003 was $503.0 million, an increase of 19.1 percent
when compared to consolidated product backlog of $422.2 million in the
same period of 2002.
Boyle commented, "Spring backlog growth was exceptional, led by
sustained footwear and sportswear growth in all major geographic
regions. Our brands continue to perform extremely well at retail,
resulting in strong future order growth from our retail customers. We
are particularly encouraged with the spring order growth in the United
States, which, when compared to the corporate average excluding
changes in currency exchange rates, grew faster on a significantly
larger revenue base. We believe this underscores the value offered by
Columbia's brands and the improving strength of the US retail apparel
market overall."
Guidance
Boyle continued, "Based on our current outlook, we are raising
fourth quarter and full year guidance. We currently believe that our
strategies will enable us to generate fourth quarter 2003 revenue
growth of 14 to 16 percent and net income growth of 4 to 6 percent as
compared to the fourth quarter of 2002. Based on the current outlook
for the fourth quarter, we believe full year 2003 revenue growth of 15
percent to 16 percent and net income growth of 15 percent to 16
percent when compared to the full year 2002 results is achievable."
Boyle concluded, "Based in part on the reported spring backlog and
taking into account less foreign currency translation benefits in the
future, we currently believe that for the first quarter of 2004
revenue growth of between 19 percent and 21 percent, and net income
growth of 10 percent to 14 percent are achievable targets when
compared to the first quarter of 2003. As a reminder, spring accounts
for a relatively small percentage of our overall business; the bulk of
our revenues and profits traditionally come in the second half of the
year. Further out, it is difficult for us to gauge revenue and
profitability levels until we gain more visibility into the fall 2004
season. Please note that 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 third
quarter 2003 results on Thursday, October 23rd at 5 p.m. Eastern. The
call will include discussions regarding the Company's third 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 November
14, 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 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 Quarterly Report on Form 10-Q for the period ended June
30, 2003, 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 Sorel
and 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.
-table follows-
COLUMBIA SPORTSWEAR COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30,
----------------------
2003 2002
---------- ----------
Current Assets:
Cash and cash equivalents $ 85,882 $ 38,434
Accounts receivable, net 321,169 268,428
Inventories 166,072 133,645
Deferred tax asset 16,439 11,280
Prepaid expenses and other current assets 7,092 5,124
---------- ----------
Total current assets 596,654 456,911
Property, plant and equipment, net 119,024 124,070
Intangibles and other assets 36,594 7,601
---------- ----------
Total assets $ 752,272 $ 588,582
========== ==========
Current Liabilities:
Notes payable $ - $ 13,116
Accounts payable 51,452 47,174
Accrued liabilities 79,898 66,256
Current portion of long-term debt 4,558 4,498
---------- ----------
Total current liabilities 135,908 131,044
Long-term debt 16,259 20,568
Deferred tax liability 7,530 1,233
Shareholders' equity 592,575 435,737
---------- ----------
Total liabilities and shareholders'
equity $ 752,272 $ 588,582
========== ==========
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
Net sales $373,409 $331,504 $694,357 $598,998
Cost of sales 194,592 170,717 374,077 322,966
-------- -------- -------- --------
Gross profit 178,817 160,787 320,280 276,032
47.9% 48.5% 46.1% 46.1%
Selling, general, and
administrative 78,070 69,646 180,926 158,660
-------- -------- -------- --------
Income from operations 100,747 91,141 139,354 117,372
Interest (income) expense, net 148 129 (224) (38)
-------- -------- -------- --------
Income before income tax 100,599 91,012 139,578 117,410
Income tax provision 37,027 34,130 51,644 44,029
-------- -------- -------- --------
Net income $ 63,572 $ 56,882 $ 87,934 $ 73,381
======== ======== ======== ========
Net income per share:
Basic $ 1.59 $ 1.44 $ 2.20 $ 1.86
Diluted 1.56 1.42 2.17 1.83
Weighted average shares
outstanding:
Basic 39,984 39,475 39,894 39,393
Diluted 40,781 40,151 40,540 40,059
CONTACT: Columbia Sportswear Company
David W. Kiser, 503-985-4584