News Flash

Clothing marketer Volcom Q2 revenue rises 47.1%

09 Aug '05

5 min read

In putting forth this outlook, the company reminds investors of the complexity of accurately assessing future revenue growth given the difficulty in predicting fashion trends and consumer preferences, boardsports popularity and participation rates, general economic conditions and the impact of trade safeguards with China.

Recent Initial Public Offering
On July 6, 2005, Volcom completed its initial public offering of 4,687,500 shares of common stock at a price of $19.00 per share and the simultaneous close of the underwriters' over-allotment option to purchase an additional 703,125 shares of common stock at the initial public offering price. Volcom sold 4,187,500 shares in the offering and 453,125 shares pursuant to the underwriters' over-allotment option. Certain selling stockholders of Volcom sold the remaining 500,000 shares in the offering and 250,000 shares pursuant to the underwriters' over-allotment option.

Upon the closing of the offering, the company received net proceeds, after deducting underwriting discounts and commissions and estimated offering expenses, of approximately $80.4 million, of which the company used $20.0 million to distribute its estimated undistributed S corporation earnings to its stockholders of record prior to the initial public offering.

While the $20.0 million liability for the distribution is reflected on the company's balance sheet at June 30, 2005, the net proceeds from the offering are not reflected on the balance sheet because the offering closed after the completion of the second quarter. The company anticipates the total shares outstanding at September 30, 2005 will be approximately 24.2 million, which includes shares issued in the initial public offering.

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