CROCS reports fiscal 2008 third quarter financial results
25 Nov '08
5 min read
Revenues Revenues for the three months ended September 30, 2008 were $174.2 million compared to $256.3 million for the three months ended September 30, 2007. Revenues are net of $29.1 million in returns and allowances during the three months ended September 30, 2008 compared to $9.6 million in the three months ended September 30, 2008.
Balance Sheet As of September 30, 2008, including the write-down of $65.8 million related to on-hand inventories, inventories decreased 36.0% to $141.0 million compared to $220.2 million as of June 30, 2008. The Company had cash and cash equivalents of $56.6 million as of September 30, 2008, an increase of $5.4 million compared to cash and cash equivalents of $51.2 million as of June 30, 2008. Borrowings under the Company's credit facility were $19.8 million at September 30, 2008 compared to $36.9 million at June 30, 2008.
Our accounts receivable collections improved as days sales outstanding decreased from 52.3 days for the three months ended June 30, 2008 to 37.5 days for the three months ended September 30, 2008.
Guidance The Company now expects to generate revenues for the fourth quarter of fiscal 2008 of between $100 million and $120 million and diluted loss per share of approximately $0.50 to $0.65.
Mr. Snyder, concluded, “After several years of rapid expansion, highlighted by triple digit sales and earnings growth, our business has slowed during 2008. During this transitional year we are making significant adjustments to our operating platform that we believe are in the best interests of the long-term success of the Company. Despite difficult market conditions and reduced profitability we expect to continue to aggressively manage our working capital.
During the third quarter we increased our cash position by $5.4 million and ended the quarter with $56.6 million in cash while, at the same time, we paid down our line of credit by $17.1 million. Longer-term, we are enacting new strategies aimed at reinvigorating our top-line such as developing new and innovative product lines, and refining our merchandising and distribution strategy. We are confident that our brand equity remains strong and believe that our unique and proprietary material continues to provide us with compelling growth opportunities both domestically and overseas.”
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