The Company also announced the Board of Directors’ approval to repurchase up to an additional $200 million of the Company’s common stock in the open market or in privately negotiated transactions, in compliance with the Securities and Exchange Commission Rule 10b-18, from time to time, subject to market conditions, applicable legal requirements and other factors. The program does not obligate the Company to acquire any particular amount of common stock and the program may be suspended at any time at the Company’s discretion. The purchases will be funded from available cash and cash equivalents and borrowings under the Company’s credit facility.
Full-Year 2012 Outlook
The Company is reiterating the current full year outlook --
- 2012 revenues are expected to increase approximately 14% over 2011 levels and diluted earnings per share to decrease between 9% and 10%.
- UGG brand sales are expected to increase approximately 10% over 2011 levels. Teva brand sales are now expected to be flat to slightly down compared to previous guidance of growth in the low to mid single digit range. Sanuk brand sales are now expected to be approximately $95 million, up from previous guidance of $90 million. Combined sales of other brands are expected to be down approximately 15% to approximately $21 million, driven by the closure of the Simple brand at the end of 2011.
- The guidance is still based on a full year gross margin decline of approximately 250 basis points from 2011 levels and SG&A as a percentage of sales of approximately 30%.
- Given a higher expected mix of domestic pre-tax income, the tax rate is now forecasted to increase to 32%, up from previous guidance of approximately 31%.
- Fiscal 2012 guidance includes $17 million, or $0.30 per diluted share associated with amortization and accretion expenses related to the Sanuk brand acquisition, up from previous guidance of $13 million, or $0.23 per diluted share.
Third and Fourth Quarter Outlook
- The Company currently expects third quarter 2012 revenue to increase approximately 1% and diluted earnings per share to decrease approximately 31% from 2011 levels.
- The Company currently expects fourth quarter 2012 revenue to increase approximately 19% and diluted earnings per share to increase approximately 22% over 2011 levels.
|DECKERS OUTDOOR CORPORATION|
|Condensed Consolidated Balance Sheets|
|(Amounts in thousands)|
|June 30,||December 31,|
|Cash and cash equivalents||$||114,401||263,606|
|Trade accounts receivable, net||123,182||193,375|
|Other current assets||54,972||84,540|
|Income taxes receivable||16,858||-|
|Deferred tax assets||14,409||14,414|
|Total current assets||683,476||817,902|
|Property and equipment, net||103,280||90,257|
|Other intangible assets, net||90,130||94,449|
|Deferred tax assets||13,360||13,223|
|Liabilities and Stockholders' Equity|
|Trade accounts payable||$||191,773||110,853|
|Other accrued expenses||38,889||57,744|
|Income taxes payable||3,851||30,888|
|Total current liabilities||249,737||232,079|
|Deckers Outdoor Corporation stockholders' equity:|
|Additional paid-in capital||139,141||144,684|
|Accumulated other comprehensive income (loss)||253||(1,730||)|
|Total Deckers Outdoor Corporation stockholders' equity||720,124||835,936|
|Total liabilities and equity||$||1,025,003||1,146,196|
DECKERS OUTDOOR CORPORATION
Condensed Consolidated Statements of Comprehensive (Loss) Income
(Amounts in thousands, except for per share data)
|Three-month period ended||Six-month period ended|
|June 30,||June 30,|
|Cost of sales||100,857||88,310||233,875||190,683|
|Selling, general and administrative expenses||102,287||76,710||203,642||150,993|
|(Loss) income from operations||(28,708||)||(10,798||)||(16,775||)||17,397|
|Other income, net||(179||)||(43||)||(580||)||(181||)|
|(Loss) income before income taxes||(28,529||)||(10,755||)||(16,195||)||17,578|
|Income tax (benefit) expense||(8,390||)||(3,227||)||(4,091||)||5,273|
|Net (loss) income||(20,139||)||(7,528||)||(12,104||)||12,305|
|Other comprehensive (loss) income, net of tax|
|Unrealized gain (loss) on foreign currency hedging||1,090||1,274||22||(1,442||)|
|Foreign currency translation adjustment||1,223||(425||)||1,961||(679||)|
|Total other comprehensive income (loss)||2,313||849||1,983||(2,121||)|
|Comprehensive (loss) income||$||(17,826||)||(6,679||)||$||(10,121||)||10,184|
|Net (loss) income attributable to:|
|Deckers Outdoor Corporation||(20,139||)||(7,339||)||(12,252||)||11,839|
|Comprehensive (loss) income attributable to:|
|Deckers Outdoor Corporation||(17,826||)||(6,490||)||(10,269||)||9,718|
|Net (loss) income per share attributable to Deckers|
|Outdoor Corporation common stockholders:|
|Weighted-average common shares outstanding:|