10-31-2007, 08:10 PM
LaCrosse Footwear, Inc. third quarter of 2007 net sales were $36.9 million, up 12% from $32.8 million in the third quarter of 2006. Net income was $3.3 million or 52 cents per diluted share in the third quarter of 2007, up 30% from $2.5 million or 41 cents per diluted share in the third quarter of 2006.
Sales to the work market were $15.1 million, up 20% from $12.5 million. Sales to the outdoor market were $21.8 million, up 7% from $20.3 million for the same period of 2006.
For the nine months, sales were $85.5 million, up 12% from $76.1 million in the same period of 2006. Net income was $4.9 million or 77 cents a share, up 19% from $4.1 million, 66 cents.
For the nine months, sales to the work market were $43.7 million, up 13%. Year-over-year growth in work market sales reflects continued penetration into a variety of general and specialized work and uniform boot markets.
For the nine months, sales to the outdoor market were $41.8 million, up 12%. Year-over-year growth in outdoor market sales primarily reflects increased penetration into the cold weather and rugged outdoor boot markets.
LaCrosse continued to maintain strong gross margins. For the third quarter, its gross margin was 39.1% of net sales, up from 38.6% in the same period of 2006. For the nine months, gross margins were 39.5% of net sales, up from 39.1%.
LaCrosse's total operating expenses were $9.5 million or 26% of net sales in the quarter, compared to $8.7 million or 27% a year ago. While operating expenses grew at a slower rate than net sales, the year-over-year absolute dollar increase primarily reflects increased investment in sales and product development.
At the end of the quarter, LaCrosse had cash and cash equivalents of $4.7 million, up 87% from $2.5 million at the end of the third quarter of 2006. LaCrosse's inventory at the end of the quarter increased 8% versus the year-ago period, a substantially lower increase than its sales growth, and reflects improved inventory management.
"We are pleased with our execution and financial performance for the third quarter, despite the unseasonably warm weather conditions in the eastern US, which certainly impacted our outdoor boot sales throughout much of the quarter," said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. "Our strong overall sales growth continued to be driven by the success of our new fall product lines. At the same time, we maintained our strong gross margins, leveraged our operating expenses as a percent of sales, managed our inventory better and increased our profitability."
"Our continued investment in developing premium products, infused with innovative technology and backed by outstanding customer service, is paying off and creating new opportunities for sustainable and profitable growth. One of our key strategic goals is to become less dependent on seasonality and changing weather conditions. As we progress toward this long-term objective, we are encouraged by the very positive customer response to our extensive new spring lines of Danner and LaCrosse products, with exciting new boots for every climate, every season and every part of the day, on the job or in the field."
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share amounts)
(Unaudited)
Quarter Ended
Three Quarters Ended
September 29,
September 30,<br />
September 29,<br />
September 30,
2007<br />
2006
2007<br />
2006
Net sales<br />
$ 36,876<br />
$ 32,840
$ 85,496<br />
$ 76,063<br />
Cost of goods sold
22,464
20,171
51,705
46,326<br />
Gross profit
14,412
12,669
33,791
29,737<br />
Operating expenses
9,465
8,736
26,580
24,245<br />
Operating income
4,947
3,933
7,211
5,492<br />
Non-operating income (expense)<br />
48
(20 )
262
115<br />
Income before income taxes
4,995
3,913
7,473
5,607<br />
Income tax provision
1,684
1,365
2,582
1,488<br />
Net income<br />
$ 3,311<br />
$ 2,548
$ 4,891<br />
$ 4,119
Net income per common share:
Basic<br />
$ 0.54<br />
$ 0.42
$ 0.80<br />
$ 0.68<br />
Diluted<br />
$ 0.52<br />
$ 0.41
$ 0.77<br />
$ 0.66
Weighted average number of common shares outstanding:
Basic
6,100
6,034
6,079
6,017<br />
Diluted
6,394
6,223
6,343
6,205
Supplemental Product Line Information
Work Market Sales<br />
$ 15,080<br />
$ 12,539
$ 43,658<br />
$ 38,647<br />
Outdoor Market Sales
21,796
20,301
41,838
37,416
$ 36,876<br />
$ 32,840
$ 85,496<br />
$ 76,063
Sales to the work market were $15.1 million, up 20% from $12.5 million. Sales to the outdoor market were $21.8 million, up 7% from $20.3 million for the same period of 2006.
For the nine months, sales were $85.5 million, up 12% from $76.1 million in the same period of 2006. Net income was $4.9 million or 77 cents a share, up 19% from $4.1 million, 66 cents.
For the nine months, sales to the work market were $43.7 million, up 13%. Year-over-year growth in work market sales reflects continued penetration into a variety of general and specialized work and uniform boot markets.
For the nine months, sales to the outdoor market were $41.8 million, up 12%. Year-over-year growth in outdoor market sales primarily reflects increased penetration into the cold weather and rugged outdoor boot markets.
LaCrosse continued to maintain strong gross margins. For the third quarter, its gross margin was 39.1% of net sales, up from 38.6% in the same period of 2006. For the nine months, gross margins were 39.5% of net sales, up from 39.1%.
LaCrosse's total operating expenses were $9.5 million or 26% of net sales in the quarter, compared to $8.7 million or 27% a year ago. While operating expenses grew at a slower rate than net sales, the year-over-year absolute dollar increase primarily reflects increased investment in sales and product development.
At the end of the quarter, LaCrosse had cash and cash equivalents of $4.7 million, up 87% from $2.5 million at the end of the third quarter of 2006. LaCrosse's inventory at the end of the quarter increased 8% versus the year-ago period, a substantially lower increase than its sales growth, and reflects improved inventory management.
"We are pleased with our execution and financial performance for the third quarter, despite the unseasonably warm weather conditions in the eastern US, which certainly impacted our outdoor boot sales throughout much of the quarter," said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. "Our strong overall sales growth continued to be driven by the success of our new fall product lines. At the same time, we maintained our strong gross margins, leveraged our operating expenses as a percent of sales, managed our inventory better and increased our profitability."
"Our continued investment in developing premium products, infused with innovative technology and backed by outstanding customer service, is paying off and creating new opportunities for sustainable and profitable growth. One of our key strategic goals is to become less dependent on seasonality and changing weather conditions. As we progress toward this long-term objective, we are encouraged by the very positive customer response to our extensive new spring lines of Danner and LaCrosse products, with exciting new boots for every climate, every season and every part of the day, on the job or in the field."
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share amounts)
(Unaudited)
Quarter Ended
Three Quarters Ended
September 29,
September 30,<br />
September 29,<br />
September 30,
2007<br />
2006
2007<br />
2006
Net sales<br />
$ 36,876<br />
$ 32,840
$ 85,496<br />
$ 76,063<br />
Cost of goods sold
22,464
20,171
51,705
46,326<br />
Gross profit
14,412
12,669
33,791
29,737<br />
Operating expenses
9,465
8,736
26,580
24,245<br />
Operating income
4,947
3,933
7,211
5,492<br />
Non-operating income (expense)<br />
48
(20 )
262
115<br />
Income before income taxes
4,995
3,913
7,473
5,607<br />
Income tax provision
1,684
1,365
2,582
1,488<br />
Net income<br />
$ 3,311<br />
$ 2,548
$ 4,891<br />
$ 4,119
Net income per common share:
Basic<br />
$ 0.54<br />
$ 0.42
$ 0.80<br />
$ 0.68<br />
Diluted<br />
$ 0.52<br />
$ 0.41
$ 0.77<br />
$ 0.66
Weighted average number of common shares outstanding:
Basic
6,100
6,034
6,079
6,017<br />
Diluted
6,394
6,223
6,343
6,205
Supplemental Product Line Information
Work Market Sales<br />
$ 15,080<br />
$ 12,539
$ 43,658<br />
$ 38,647<br />
Outdoor Market Sales
21,796
20,301
41,838
37,416
$ 36,876<br />
$ 32,840
$ 85,496<br />
$ 76,063