Exhibit 99.1
Columbia Sportswear Company Reports Record Fourth Quarter and Fiscal Year 2003
Results; Fiscal 2004 Net Income Estimated to Increase Up to 10 Percent
PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 29, 2004--Columbia
Sportswear Company (Nasdaq:COLM):
Highlights:
-- Fourth quarter global sales increased 18.5 percent to $257.4
million, a fourth quarter record. Excluding changes in
currency exchange rates, fourth quarter sales increased 13.1
percent.
-- Fourth quarter net income increased 10.5 percent to a record
$32.2 million, or $0.79 per diluted share, compared to $0.72
last year.
-- Fiscal 2003 global sales were a record $951.8 million, a 16.6
percent increase over 2002 results. Fiscal 2003 net income
increased 17.2 percent to a record $120.1 million for the
year.
-- Fiscal 2004 net sales are estimated to increase in the low
double digits, and net income is estimated to increase up to
10 percent, over 2003 results.
Columbia Sportswear Company (Nasdaq:COLM), a global leader in the
active outdoor apparel and footwear industries, today announced record
fourth quarter net sales of $257.4 million for the quarter ended
December 31, 2003, an increase of 18.5 percent over net sales of
$217.3 million for the same period of 2002. The Company reported
record net income for the fourth quarter of $32.2 million, a 10.5
percent increase over net income of $29.1 million for the same period
of 2002. Earnings per share for the fourth quarter of 2003 were $0.79
(diluted) on 40.9 million weighted average shares, compared to
earnings per share of $0.72 (diluted) for the fourth quarter of 2002
on 40.3 million weighted average shares.
Compared to the fourth quarter of 2002, European sales increased
60.2 percent to $37.0 million, Other International sales increased
49.8 percent to $35.2 million, U.S. sales increased 7.6 percent to
$156.9 million, and Canadian sales increased 13.7 percent to $28.3
million for the fourth quarter of 2003.
Excluding changes in currency exchange rates, Other International
sales increased 42.6 percent, European sales increased 35.6 percent,
and Canadian sales decreased 4.0 percent for the fourth quarter of
2003. Consolidated net sales for the fourth quarter of 2003 increased
13.1 percent to $245.7 million, excluding changes in currency exchange
rates, compared to the same period of last year.
Sportswear sales increased 44.2 percent to $58.7 million, footwear
sales increased 29.8 percent to $44.4 million, outerwear sales
increased 7.0 percent to $140.0 million, and accessories sales
increased 15.5 percent to $13.4 million, compared to the fourth
quarter of 2002. Mountain Hardwear, a subsidiary we acquired on March
31, 2003, contributed $8.4 million in sales for the fourth quarter.
Equipment sales, a new category consisting of tents and sleeping bags
sold by Mountain Hardwear, were $0.9 million for the quarter.
Tim Boyle, Columbia's president and chief executive officer,
commented, "We are very pleased with our outstanding fourth quarter
financial results. Sales growth continued globally in our sportswear
and footwear product categories during the quarter. While soft in the
U.S., sales of outerwear products were very strong in Europe and Other
International markets, demonstrating the opportunity to grow this
category in less mature markets. International sales growth, favorably
affected by foreign currency valuations, was strong in diverse markets
such as Europe and Japan, as Columbia brands extend to geographic
markets worldwide."
Fiscal 2003 Results
For 2003, the Company reported net sales of $951.8 million, an
increase of 16.6 percent over net sales of $816.3 million for 2002.
The Company reported record net income for 2003 of $120.1 million, a
17.2 percent increase over net income of $102.5 million for 2002.
Earnings per share for 2003 were $2.96 (diluted) on 40.6 million
weighted average shares, compared to earnings per share of $2.56
(diluted) for 2002 on 40.1 million weighted average shares.
Compared to 2002, U.S. sales increased 7.0 percent to $596.8
million, European sales increased 41.0 percent to $135.2 million,
Other International sales increased 48.4 percent to $113.1 million,
and Canadian sales increased 23.1 percent to $106.7 million for 2003.
Excluding changes in currency exchange rates, Other International
sales increased 43.5 percent, European sales increased 18.5 percent,
and Canadian sales increased 9.6 percent for 2003. Consolidated net
sales for 2003 increased 12.1 percent to $914.8 million excluding
changes in currency exchange rates, compared to fiscal 2002.
Sportswear sales increased 27.0 percent to $311.3 million,
footwear sales increased 35.1 percent to $148.6 million, outerwear
sales increased 5.0 percent to $443.7 million, and accessories sales
increased 12.7 percent to $43.5 million, compared to 2002. Mountain
Hardwear contributed $27.8 million in sales during 2003, including
equipment sales of $4.7 million for the year.
Mr. Boyle continued, "Our solid fiscal 2003 results, achieved in a
difficult environment for many of our retailers, demonstrate the
global strength of our brands. Our strategy of diversifying product
lines and geographic distribution was a key driver in 2003 sales
growth. For the first time in company history, the combined sales of
our sportswear and footwear products made up a majority of
consolidated sales during a fiscal year."
"International sales growth, strengthened by currency valuations,
was vigorous in all product categories. International sales, as a
percentage of total revenues, increased more than 5 percentage points
to constitute more than 37 percent of consolidated revenues in 2003.
Moreover, our acquired Sorel and Mountain Hardwear brands provide
opportunities to further penetrate additional markets and distribution
channels. Overall, we maintain a strong balance sheet and are well
positioned to continue to execute our strategies of diversifying our
product and geographic revenue base while maintaining a keen focus on
expense control and capital investment to strengthen the company
long-term."
Guidance
Mr. Boyle continued, "Based on our current outlook and our spring
order backlog, we currently believe that our strategies will enable us
to generate first quarter 2004 revenue growth of 19 to 21 percent and
net income growth of 14 to 16 percent 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.
"It is difficult for us to gauge revenue and profitability levels
for the full year 2004 until we gain more visibility into the fall
2004 season. In keeping with our standard practice, we will announce
our fall 2004 backlog in our first quarter 2004 earnings release. That
said, based on our current estimates for the full year 2004, we
anticipate net sales growth in the low double digits, and net income
growth of up to 10 percent, compared to 2003. 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 fourth
quarter and full year 2003 results on Thursday, January 29th at 5 p.m.
Eastern. The call will include discussions regarding the Company's
fourth quarter 2003 performance in general, the Company's geographic
and merchandise category performance, and the Company's future
opportunities. To participate, please dial 800-257-6566 in the United
States (outside the United States, please dial 303-262-2140) 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. The webcast can also be accessed on the investor
information section of the Company's website at www.columbia.com until
February 12, 2004.
Founded in 1938 in Portland, Oregon, 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 for
the first quarter of 2004 and for the full year 2004 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 quarter ended September 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,
international risks including trade disruptions, political instability
in foreign markets, exchange rate fluctuations, and changes in quotas
and tariffs or other duties; unfavorable economic conditions generally
and weakness in consumer confidence; the financial health of Company
customers; the Company's ability to fully and 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 despite 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; business disruptions and costs arising from disease
outbreaks, acts of terrorism or military activities around the globe;
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 Company
expectations.
COLUMBIA SPORTSWEAR COMPANY
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31,
--------------------
2003 2002
---- ----
Current Assets:
Cash and cash equivalents $264,585 $194,670
Accounts receivable, net 206,024 154,099
Inventories 126,808 94,862
Deferred tax asset 17,442 10,840
Prepaid expenses and other current assets 6,028 6,006
-------- --------
Total current assets 620,887 460,477
Property, plant and equipment, net 126,247 124,515
Intangibles and other assets 36,632 7,825
-------- --------
Total assets $783,766 $592,817
======== ========
Current Liabilities:
Notes payable $ - $ 9,835
Accounts payable 62,432 49,370
Accrued liabilities 51,858 35,146
Current portion of long-term debt 4,596 4,498
-------- --------
Total current liabilities 118,886 98,849
Long-term debt 16,335 20,636
Deferred tax liability 7,716 613
Shareholders' equity 640,829 472,719
-------- --------
Total liabilities and shareholders'
equity $783,766 $592,817
======== ========
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2003 2002 2003 2002
---- ---- ---- ----
Net sales $257,429 $217,321 $951,786 $816,319
Cost of sales 137,024 114,816 511,101 437,782
-------- -------- -------- --------
Gross profit 120,405 102,505 440,685 378,537
46.8% 47.2% 46.3% 46.4%
Selling, general, and
administrative 69,570 56,202 250,496 214,862
-------- -------- -------- --------
Income from operations 50,835 46,303 190,189 163,675
Interest (income) expense,
net (256) (316) (480) (354)
-------- -------- -------- --------
Income before income tax 51,091 46,619 190,669 164,029
Income tax provision 18,904 17,482 70,548 61,511
-------- -------- -------- --------
Net income $ 32,187 $ 29,137 $120,121 $102,518
======== ======== ======== ========
Net income per share:
Basic $ 0.80 $ 0.74 $ 3.01 $ 2.60
Diluted 0.79 0.72 2.96 2.56
Weighted average shares outstanding:
Basic 40,131 39,617 39,953 39,449
Diluted 40,918 40,334 40,591 40,063
CONTACT: Columbia Sportswear Company
David W. Kiser, 503-985-4584