Exhibit 99.1
Columbia Sportswear Company Reports Record Fourth Quarter and Fiscal Year 2004
Results
PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 27, 2005--Columbia
Sportswear Company (Nasdaq:COLM):
Highlights:
-- Fourth quarter global sales increased 17.2 percent to $301.8
million, a fourth quarter record.
-- Fourth quarter net income increased 22.4 percent to a record
$39.4 million, or $0.97 per diluted share, compared to $0.79
last year.
-- Fiscal 2004 global sales were nearly $1.1 billion, a 15.1
percent increase over 2003 results.
-- Fiscal 2004 net income increased 15.4 percent to a record
$138.6 million, or $3.40 per diluted share, compared to $2.96
for 2003.
Columbia Sportswear Company (Nasdaq:COLM), a global leader in the
active outdoor apparel and footwear industries, today announced record
fourth quarter net sales of $301.8 million for the quarter ended
December 31, 2004, an increase of 17.2 percent over net sales of
$257.4 million for the same period of 2003. The Company reported
record net income for the fourth quarter of $39.4 million, a 22.4
percent increase over net income of $32.2 million for the same period
of 2003. Earnings per share for the fourth quarter of 2004 were $0.97
(diluted) on 40.6 million weighted average shares, compared to
earnings per share of $0.79 (diluted) for the fourth quarter of 2003
on 40.9 million weighted average shares.
Compared to the fourth quarter of 2003, U.S. sales increased 15.4
percent to $181.1 million, Other International sales increased 25.3
percent to $44.1 million, European sales increased 18.9 percent to
$44.0 million, and Canadian sales increased 15.2 percent to $32.6
million for the fourth quarter of 2004.
Excluding changes in currency exchange rates, consolidated net
sales increased 14.6 percent, Other International sales increased 22.2
percent, European sales increased 9.7 percent, and Canadian sales
increased 6.5 percent for the fourth quarter of 2004, compared to the
same period last year.
For the fourth quarter of 2004, sportswear sales increased 37.5
percent to $80.7 million, outerwear sales increased 10.5 percent to
$154.7 million, footwear sales increased 18.9 percent to $52.8
million, equipment sales increased 11.1 percent to $1.0 million and
accessories sales decreased 6.0 percent to $12.6 million, compared to
the fourth quarter of 2003.
Tim Boyle, Columbia's president and chief executive officer,
commented, "We are very pleased with our outstanding fourth quarter
financial results. Despite unseasonable weather conditions in many key
markets, sales growth was exceptional in our sportswear and footwear
product categories, and sales of outerwear products were strong in
Europe and Other International markets. Our diversified line of
outdoor products and the expanding geographic presence of our brands
were key drivers of overall sales growth during the fourth quarter."
Fiscal 2004 Results
For 2004, the Company reported net sales of $1,095.3 million, an
increase of 15.1 percent over net sales of $951.8 million for 2003.
The Company reported record net income for 2004 of $138.6 million, a
15.4 percent increase over net income of $120.1 million for 2003.
Earnings per share for 2004 were $3.40 (diluted) on 40.8 million
weighted average shares, compared to earnings per share of $2.96
(diluted) for 2003 on 40.6 million weighted average shares.
Compared to 2003, U.S. sales increased 11.7 percent to $666.7
million, European sales increased 26.0 percent to $170.3 million,
Other International sales increased 25.0 percent to $141.4 million,
and Canadian sales increased 9.6 percent to $116.9 million for 2004.
Excluding changes in currency exchange rates, consolidated net
sales increased 12.1 percent, Other International sales increased 21.7
percent, European sales increased 14.0 percent, and Canadian sales
increased 2.0 percent, compared to 2003.
For 2004, sportswear sales increased 27.3 percent to $396.4
million, footwear sales increased 24.2 percent to $184.6 million,
outerwear sales increased 3.7 percent to $460.3 million, equipment
sales increased 68.1 percent to $7.9 million, and accessories sales
increased 6.0 percent to $46.1 million, compared to 2003.
Mr. Boyle commented, "During 2004, we made significant personnel
and distribution related investments, which we believe were necessary
to help us maintain our operational excellence and continue to develop
exceptional products. We are confident that these expenditures,
consistent with prior investments in our design, merchandising,
sourcing and distribution infrastructure, will help us create and
exploit long-term growth opportunities and diversify our revenue base
as we strengthen our position as a comprehensive outdoor brand."
Stock Repurchase
In 2004, our board of directors authorized a purchase of up to
$100 million of Columbia common stock. During the fourth quarter, we
repurchased approximately 145,000 shares at an aggregate purchase
price of $7.9 million. We have repurchased a total of approximately
885,000 shares at an aggregate purchase price of $47.6 million since
the inception of the program. Today, our board of directors authorized
the repurchase of an additional $100 million of Columbia common stock
in market or negotiated transactions. The repurchase program does not
obligate the Company to acquire any specific number of shares or
acquire shares over any specified period of time.
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 2005 revenue growth of approximately 15
percent and we expect net income to remain flat compared to the first
quarter of 2004. As a reminder, spring product sales account for a
relatively small percentage of our overall business; the bulk of our
revenues and profits historically come in the second half of the year.
It is difficult for us to gauge revenue and profitability levels for
the full year 2005 until we have more visibility into the fall 2005
season. In keeping with our standard practice, we will announce our
fall 2005 backlog in our first quarter 2005 earnings release. At that
time we will give guidance for the full year. 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 2004 results on Thursday, January 27, 2005 at
5:00 p.m. Eastern. The call will include discussions regarding the
Company's fourth 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, where it will remain available until February 11,
2005.
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 website 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 2005 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, 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.
Risks and uncertainties that may affect our future revenues and
earnings include growth trends in the industry in general; local,
national, and international economic conditions; the financial health
of our customers; intense competition in the industry (which we expect
to increase); the effects of unseasonable weather on consumer demand
for our products; international risks, including foreign laws and
regulations, trade disruptions, political instability in foreign
markets, exchange rate fluctuations, and changes in quotas and tariffs
or other duties; business disruptions and costs arising from disease
outbreaks, disasters, acts of terrorism or military activities around
the globe; our dependence on key personnel; the effective
implementation of our Kentucky distribution center and expansion of
our other distribution facilities; our ability to fully and
cost-effectively integrate Sorel and Mountain Hardwear into our
existing operations; our ability to effectively deliver our products
to customers in a timely manner despite potential service
interruptions; our reliance on product acceptance by consumers; our
dependence on independent manufacturers and suppliers; the
effectiveness of our sales and marketing efforts; our ability to
achieve and manage growth effectively; the operations of our own and
third party computer systems; and our ability to establish and protect
our intellectual property. We do 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)
December 31,
-------------------
2004 2003
-------- --------
Current Assets:
Cash and cash equivalents $290,228 $264,585
Accounts receivable, net 267,653 206,024
Inventories 165,426 126,808
Deferred tax asset 22,190 17,442
Prepaid expenses and other current assets 10,536 5,371
-------- --------
Total current assets 756,033 620,230
Property, plant and equipment, net 155,013 126,247
Intangibles and other assets 38,398 37,289
-------- --------
Total assets $949,444 $783,766
======== ========
Current Liabilities:
Accounts payable $ 78,309 $ 62,432
Accrued liabilities 63,371 51,858
Current portion of long-term debt 5,216 4,596
-------- --------
Total current liabilities 146,896 118,886
Long-term debt and other liabilities 22,298 24,051
Shareholders' equity 780,250 640,829
-------- --------
Total liabilities and shareholders' equity $949,444 $783,766
======== ========
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ---------------------
2004 2003 2004 2003
-------- -------- ---------- --------
Net sales $301,776 $257,429 $1,095,307 $951,786
Cost of sales 167,344 137,024 597,373 511,101
-------- -------- ---------- --------
Gross profit 134,432 120,405 497,934 440,685
44.5% 46.8% 45.5% 46.3%
Selling, general, and
administrative 74,993 70,094 290,538 252,307
Net licensing income (960) (524) (4,032) (1,811)
-------- -------- ---------- --------
Income from operations 60,399 50,835 211,428 190,189
Interest income, net (620) (256) (3,493) (480)
-------- -------- ---------- --------
Income before income tax 61,019 51,091 214,921 190,669
Income tax provision 21,662 18,904 76,297 70,548
-------- -------- ---------- --------
Net income $ 39,357 $ 32,187 $ 138,624 $120,121
======== ======== ========== ========
Net income per share:
Basic $ 0.98 $ 0.80 $ 3.44 $ 3.01
Diluted 0.97 0.79 3.40 2.96
Weighted average shares
outstanding:
Basic 40,024 40,131 40,266 39,953
Diluted 40,609 40,918 40,812 40,591
CONTACT: Columbia Sportswear Company
David W. Kiser, 503-985-4584