Volcom announced today that their fourth quarter consolidated revenues were $64.2 Million; net income was $3.4 Million and they’re pretty happy about it.
“I am very proud of the entire Volcom team’s focus, dedication and strategic agility this past year as we navigated through one of the most challenging economic periods in history,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “We rose to the challenge, remained healthy and profitable and planted the seeds that I believe will position the company for growth and success in the years to come.”
Follow the jump for the rest of the details or click here for the entire release.Volcom Reports Financial Results for 2009 Fourth Quarter and Full Year
SELECT HIGHLIGHTS
Fourth Quarter Consolidated Revenues of $64.2 Million; Net Income of $3.4 Million, Equal to $0.14 Per Diluted Share
Full-Year Consolidated Revenues of $280.6 Million; Net Income of $21.7 Million, Equal to $0.89 Per Diluted Share
2009 Cash Flow from Operations Reaches Record $36.2 Million
Balance Sheet with $111.2 Million in Cash and Short-Term Investments; No Long-term debt
COSTA MESA, Calif.–(BUSINESS WIRE)–Volcom, Inc. (NASDAQ: VLCM) today announced financial results for the fourth quarter and full year ended December 31, 2009.
“I am very proud of the entire Volcom team’s focus, dedication and strategic agility this past year as we navigated through one of the most challenging economic periods in history”
For the 2009 fourth quarter, total consolidated revenues were $64.2 million, compared with $69.6 million in the fourth quarter of 2008. Total revenues in the company’s U.S. segment, which includes revenues from the U.S., Canada, Japan and most other international territories outside of Europe, as well as the company’s branded retail stores, were $46.0 million, compared with $54.9 million in the prior-year period. Total revenues in the company’s Europe segment were $12.9 million, compared with $10.9 million in the same period in 2008. Total revenues in the company’s Electric segment were $5.3 million, compared with $3.8 million in 2008.
“I am very proud of the entire Volcom team’s focus, dedication and strategic agility this past year as we navigated through one of the most challenging economic periods in history,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “We rose to the challenge, remained healthy and profitable and planted the seeds that I believe will position the company for growth and success in the years to come.”
Consolidated gross profit for the 2009 fourth quarter was $31.6 million, equal to 49.2% of total revenues, compared with $30.9 million, equal to 44.4% of total revenues, in the fourth quarter of 2008.
Selling, general and administrative expenses on a consolidated basis were $28.1 million in the 2009 fourth quarter versus $26.5 million in the comparable period in 2008.
On a GAAP basis, net income for the 2009 fourth quarter was $3.4 million, equal to $0.14 per diluted share. This compares with net loss for the fourth quarter of 2008 of $8.7 million, or $0.36 per share, which included a pre-tax, non-cash impairment charge on goodwill and intangible assets of $16.2 million, or approximately $0.46 per share, as well as a foreign exchange loss of $1.4 million, or approximately $0.04 per share, related to the strengthened U.S. dollar against the company’s Canadian dollar denominated receivables. Excluding these two items, adjusted net income for the 2008 fourth quarter was $3.3 million, or $0.14 per diluted share.
The company believes that including adjusted net income and adjusted net income per diluted share for the 2008 fourth quarter provides a useful and relevant measure for comparative year-over-year operating performance. Refer to the attached reconciliation table for details regarding the basis for the adjusted net income per diluted share calculation.
At December 31, 2009 the company had cash, cash equivalents and short-term investments totaling $111.2 million, and no long-term debt. Cash flow from operations for the full year was approximately $36.2 million. Total stockholder’s equity was $219.0 million at year-end.
2010 First Quarter Financial Outlook
In casting its financial outlook, Volcom noted it expects increased revenue growth as the year progresses, primarily reflecting the company’s forecast of a generally strengthening global economy throughout 2010. For the 2010 first quarter, the company currently expects total consolidated revenues of approximately $71 million to $74 million and fully diluted earnings per share in the range of $0.16 to $0.19.
Conference Call Information
The company will host a conference call today at approximately 4:30 p.m. ET to discuss its financial results and outlook in further detail. The conference call will be available to interested parties through a live audio Internet broadcast at www.volcom.com. A telephone playback of the conference call also will be available through 11:59 p.m. ET, Thursday, March 4. Listeners should call (800) 642-1687 (domestic) or (706) 645-9291 (international) and use reservation number 53413719.
