Exhibit 99.1
Columbia Sportswear Company Reports Record Second Quarter 2004 Results
PORTLAND, Ore.--(BUSINESS WIRE)--July 21, 2004--Columbia
Sportswear Company (Nasdaq:COLM):
Highlights:
-- Global net sales increased to a second quarter record $171.1
million, a 12.5 percent increase over second quarter 2003
sales of $152.1 million.
-- Net income increased 13.8 percent to $10.7 million, also a
second quarter record, or $0.26 per diluted share, vs. $0.23
last year.
-- Full year 2004 net income guidance slightly raised to 10 to 11
percent over 2003 results.
Columbia Sportswear Company (Nasdaq:COLM), a global leader in the
active outdoor apparel and footwear industries, today announced record
second quarter net sales of $171.1 million for the quarter ended June
30, 2004, an increase of 12.5 percent over net sales of $152.1 million
for the same period of 2003. The Company reported record net income
for the second quarter of $10.7 million, a 13.8 percent increase over
net income of $9.4 million for the same period of 2003. Earnings per
share for the second quarter of 2004 were $0.26 (diluted) on 41.1
million weighted average shares, compared to earnings per share of
$0.23 (diluted) for the second quarter of 2003 on 40.6 million
weighted average shares.
Compared to the second quarter of 2003, U.S. sales increased 17.0
percent to $105.9 million, European sales increased 20.1 percent to
$24.5 million, Canadian sales increased 13.6 percent to $12.5 million,
and Other International sales decreased 6.6 percent to $28.2 million
for the second quarter of 2004.
Excluding changes in currency exchange rates, European sales
increased 9.9 percent, Canadian sales increased 7.9 percent, and Other
International sales decreased 10.0 percent for the second quarter of
2004. Consolidated net sales for the second quarter of 2004 increased
10.1 percent, excluding changes in currency exchange rates, compared
to the same period of last year.
For the second quarter of 2004, sportswear sales increased 31.4
percent to $90.4 million, footwear sales increased 8.5 percent to
$30.7 million, accessories sales increased 13.8 percent to $6.6
million, equipment sales increased 4.0 percent to $2.6 million, and
outerwear sales decreased 12.6 percent to $40.8 million compared to
the second quarter of 2003.
Tim Boyle, Columbia's president and chief executive officer,
commented, "Our second quarter results demonstrate the continued
strength of our brands domestically and internationally. Strong
shipments of spring sportswear in the U.S. and other key markets drove
worldwide sales growth. International distributor sales, a component
of Other International sales, decreased in the quarter due primarily
to the timing of some international distributor shipments. For the
full year 2004, we expect growth in our overall international
distributor business. Outerwear sales decreased in the quarter
primarily due to an expected weakness in the fall youth outerwear
category, which began shipping late in the second quarter. As we have
discussed previously, additional resources have been devoted to the
youth outerwear category, with new styles and product offerings
entering the fall 2005 product line. Operationally, we are pleased
with our gross and operating margin performance as we invest in
effective brand building programs worldwide."
"In reviewing the second quarter revenue results, investors should
be aware that the second quarter is our smallest revenue quarter of
the year, as we conclude our spring product shipping season and begin
shipping fall products late in the quarter. Due to the comparatively
low revenue levels in the quarter, changes in shipments in any one
channel or category may be excessively pronounced and may not
necessarily be indicative of future results," continued Mr. Boyle.
Guidance
Mr. Boyle continued, "Based on our current outlook, we believe
that our strategies will enable us to generate third quarter 2004
revenue growth of 9 to 10 percent, and net income growth of 3 to 5
percent, compared to the third quarter of 2003. For the full year
2004, we anticipate net sales growth of 12 to 13 percent, and net
income growth of approximately 10 to 11 percent, compared to 2003.
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 second
quarter 2004 results on Wednesday, July 21, 2004 at 5 p.m. Eastern.
The call will include discussions regarding the Company's second
quarter 2004 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 will be archived on the investor
information section of the Company's website until August 4, 2004.
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 sites at
www.columbia.com, www.sorel.com and www.mountainhardwear.com.
This press release contains forward-looking statements, including
Mr. Boyle's statements regarding anticipated revenues and earnings for
the third 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 March 31, 2004, 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)
June 30,
----------------------
2004 2003
--------- ---------
Current Assets:
Cash and cash equivalents $ 284,655 $ 158,817
Accounts receivable, net 138,517 128,244
Inventories 209,388 181,646
Deferred tax asset 17,211 11,104
Prepaid expenses and other current assets 7,669 9,195
--------- ---------
Total current assets 657,440 489,006
Property, plant and equipment, net 141,947 121,125
Intangibles and other assets 37,895 37,190
--------- ---------
Total assets $ 837,282 $ 647,321
========= =========
Current Liabilities:
Notes payable $ - $ 7,842
Accounts payable 88,545 61,395
Accrued liabilities 41,033 25,713
Current portion of long-term debt 4,582 4,490
--------- ---------
Total current liabilities 134,160 99,440
Long-term debt 15,802 20,154
Other liabilities 8,683 6,872
Shareholders' equity 678,637 520,855
--------- ---------
Total liabilities and shareholders'
equity $ 837,282 $ 647,321
========= =========
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2004 2003 2004 2003
--------- -------- --------- --------
Net sales $171,102 $152,077 $377,772 $320,948
Cost of sales 97,871 87,358 210,658 179,485
-------- -------- -------- --------
Gross profit 73,231 64,719 167,114 141,463
42.8% 42.6% 44.2% 44.1%
Selling, general, and
administrative 58,327 50,304 122,856 103,465
Net licensing income (781) (504) (1,478) (609)
-------- -------- -------- --------
Income from operations 15,685 14,919 45,736 38,607
Interest income, net (953) (189) (1,851) (372)
-------- -------- -------- --------
Income before income tax 16,638 15,108 47,587 38,979
Income tax provision 5,906 5,665 $ 16,893 14,617
-------- -------- -------- --------
Net income $ 10,732 $ 9,443 30,694 $ 24,362
======== ======== ======== ========
Net income per share:
Basic $ 0.27 $ 0.24 $ 0.76 $ 0.61
Diluted 0.26 0.23 0.75 0.60
Weighted average shares
outstanding:
Basic 40,469 39,926 40,394 39,848
Diluted 41,148 40,644 41,056 40,446
CONTACT: Columbia Sportswear Company
David W. Kiser, 503-985-4584