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Volcom Q4 revenues grow 35.8% due to customer retention policy

15 Feb '06

3 min read

Operating income for 2005 increased 57.4 percent to $38.4 million, compared with $24.4 million for 2004. Operating margin increased to 24.0 percent for 2005, compared with 21.5 percent in 2004.

Net income for the fourth quarter of 2005, which includes a provision for income taxes using a 27.2 percent tax rate, increased to $7.2 million, or $0.29 per diluted share.

Net income for the full year 2005, which includes a provision for income taxes using a 26.3 percent tax rate, totaled $29.3 million, or $1.34 per diluted share.

In connection with the completion of its initial public offering, the company changed its tax status from an S corporation to a C corporation.

As a result, the company recorded a provision for income taxes for the fourth quarter of 2005 using a 27.2 percent tax rate, which reflects the rate necessary to bring the year-to-date provision for income taxes in line with the company's annual tax rate of 26.3 percent.

The tax rates for the fourth quarter and full year of 2005 compare to a 1.5 percent tax rate for the fourth quarter and full year of 2004, when the company was treated as an S corporation.

Volcom is an innovative designer, marketer and distributor of premium quality young men's and women's clothing, accessories and related products.

The Volcom brand, symbolized by The Stone, is athlete-driven, creative and forward thinking.

Volcom has consistently followed its motto of "youth against establishment," and the brand is inspired by the energy of youth culture.

Volcom Inc

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