This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Deckers Outdoor Corporation Reports Third Quarter 2012 Financial Results

Conference Call Information

The Company’s conference call to review third quarter 2012 results will be broadcast live over the internet today, Thursday, October 25, 2012 at 4:30 pm Eastern Time. The broadcast will be hosted at www.deckers.com. You can access the broadcast by clicking on the “Investors” tab and then clicking on the microphone icon on the right side of the screen. The broadcast will be available for at least 30 days following the conference call. You can also access the broadcast at www.earnings.com.

About the Company

Deckers Outdoor Corporation strives to be a premier lifestyle marketer that builds niche brands into global market leaders by designing and marketing innovative, functional and fashion-oriented footwear developed for both high performance outdoor activities and everyday casual lifestyle use. UGG® Australia, Teva®, Sanuk®, TSUBO®, Ahnu®, and MOZO® are registered trademarks of Deckers Outdoor Corporation.

Forward Looking Statements

This press release contains statements regarding our expectations, beliefs and views about our future financial performance, brand strategies and cost structure which are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," “assume,” or future or conditional verbs such as "will," "would," "should," "could," or "may" or by the fact that such statements relate to future, and not just historical, events or circumstances, including statements related to anticipated revenues, expenses, earnings, cash flows, the outlook for the Company's markets and the demand for its products. The forward-looking statements in this press release regarding our future financial performance, brand strategies and cost structure are based on currently available information as of the date of this release, and because our business is subject to a number of risks and uncertainties, some of which may be beyond our control, actual results in the future may differ materially from the future financial performance expected at the current time. In addition, the results reported in this press release may differ from actual results filed with the Securities and Exchange Commission (SEC) for the quarter ended September 30, 2012 if material events or circumstances occur between now and the date of our SEC filing. Those risks and uncertainties include, but are not limited to: the recent financial crisis and current global economic uncertainty; the ability to realize returns on our new and existing retail stores; our ability to accurately forecast consumer demand; our ability to anticipate fashion trends; impairment losses on our goodwill, other intangible assets, or tangible assets; the sensitivity of our sales to seasonal and weather conditions; flaws, shortages, or price fluctuations of raw materials that could interrupt product manufacturing and increase product costs; the risks of international commerce of manufacturing in China and Vietnam; the risks of conducting business outside the US, including foreign currency and global liquidity risks; the international markets we sell to are subject to compliance with a variety of laws and political and economic risks; risks related to international trade, import regulations, and security procedures, including unexpected costs and other barriers to markets and impact of free trade agreements; our ability to implement our growth strategies, including our ability to successfully integrate newly acquired businesses or convert international distributors to wholesale models; the success of our customers and the risk of losing one or more of our key customers; our ability to protect our intellectual property rights or deter counterfeiting; our dependence on independent manufacturers to maintain a continuous supply of finished goods that meet our quality standards; liquidity and market risks for our cash and cash equivalents; the risk of attracting or retaining key personnel; the interruption of key business processes and supporting information systems; loss of our warehouses; the impact of increases in petroleum and other energy prices, or demand for ocean containers or other means of transportation; we could be subject to additional income tax liabilities; our ability to compete effectively with our competition; and the volatility of our common stock. Certain of these risks and uncertainties, as well as others, are more fully described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, which the Company filed with the SEC on February 29, 2012, and under “Risk Factors” in any subsequent SEC filings. Readers are cautioned not to place undue reliance on forward-looking statements contained in this news release, which speak only as of the date of this release. The Company undertakes no obligation to publicly release or update the results of any revisions to forward-looking statements, which may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The risks and uncertainties highlighted herein should not be assumed to be the only items that could affect the future performance or valuation of the Company.

 
DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands)
   
 
September 30, December 31,
Assets 2012 2011
 
Current assets:
Cash and cash equivalents $ 61,636 263,606
Trade accounts receivable, net 239,259 193,375
Inventories 486,168 253,270
Prepaid expenses 13,949 8,697
Other current assets 57,760 84,540
Income taxes receivable 16,837 -
Deferred tax assets 15,038   14,414  
Total current assets 890,647 817,902
 
Property and equipment, net 115,314 90,257
Goodwill 123,856 120,045
Other intangible assets, net 99,733 94,449
Deferred tax assets 13,360 13,223
Other assets 13,433   10,320  
 
Total assets $ 1,256,343   1,146,196  
 
Liabilities and Stockholders' Equity
 
Current liabilities:
Short-term borrowings $ 275,000 -
Trade accounts payable 167,957 110,853
Accrued payroll 12,411 32,594
Other accrued expenses 45,885 57,744
Income taxes payable 15,365   30,888  
Total current liabilities 516,618   232,079  
 
Long-term liabilities 57,946 72,687
 
Stockholders' equity:
Deckers Outdoor Corporation stockholders' equity:
Common stock 353 387
Additional paid-in capital 142,985 144,684
Retained earnings 538,744 692,595
Accumulated other comprehensive loss (303 ) (1,730 )
Total Deckers Outdoor Corporation stockholders' equity 681,779 835,936

Noncontrolling interest

-   5,494  
Total equity 681,779   841,430  
 
Total liabilities and equity $ 1,256,343   1,146,196  
 

 
DECKERS OUTDOOR CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
(Amounts in thousands, except for per share data)
 
 
  Three-month period ended   Nine-month period ended
September 30, September 30,
2012   2011 2012     2011
 
Net sales $ 376,392 414,358 $ 797,134 773,431
Cost of sales 217,099   211,505   450,974   402,188  
Gross profit 159,293 202,853 346,160 371,243
 
Selling, general and administrative expenses 99,684   112,192   303,326   263,185  
Income from operations 59,609 90,661 42,834 108,058
 
Other expense (income), net 607   50   27   (131 )
Income before income taxes 59,002 90,611 42,807 108,189
 
Income tax expense 15,941   28,266   11,850   33,539  
Net income 43,061 62,345 30,957 74,650
 
Other comprehensive (loss) income, net of tax
Unrealized (loss) gain on foreign currency hedging (968 ) 689 (946 ) (753 )
Foreign currency translation adjustment 412   (274 ) 2,373   (953 )
Total other comprehensive (loss) income (556 ) 415   1,427   (1,706 )
Comprehensive income $ 42,505   62,760   $ 32,384   72,944  
 
Net income (loss) attributable to:
Deckers Outdoor Corporation 43,061 62,484 30,809 74,323
Noncontrolling interest -   (139 ) 148   327  
$ 43,061   62,345   $ 30,957   74,650  
 
Comprehensive income (loss) attributable to:
Deckers Outdoor Corporation 42,505 62,899 32,236 72,617
Noncontrolling interest -   (139 ) 148   327  
$ 42,505   62,760   $ 32,384   72,944  
 
Net income per share attributable to Deckers
Outdoor Corporation common stockholders:
Basic $ 1.19 1.62 $ 0.82 1.93
Diluted $ 1.18   1.59   $ 0.81   1.89  
 
Weighted-average common shares outstanding:
Basic 36,129 38,603 37,534 38,595
Diluted 36,577   39,190   37,994   39,276  




5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs