{"id":19142,"date":"2010-10-28T14:33:05","date_gmt":"2010-10-28T21:33:05","guid":{"rendered":"http:\/\/www.boardistan.com\/?p=19142"},"modified":"2010-10-28T15:07:08","modified_gmt":"2010-10-28T22:07:08","slug":"volcom-to-pay-1-special-dividend","status":"publish","type":"post","link":"https:\/\/www.boardistan.com\/?p=19142","title":{"rendered":"Volcom To Pay $1 Special Dividend"},"content":{"rendered":"

\"Volcom-Stone-Logojpg\"<\/a>In among the other news reported today during Volcom’s<\/a><\/strong> third quarter results report was the announcement that the Board of Directors has approved a special $1 a share dividend for shareholders (and those holding unvested shares of restricted common stock).<\/p>\n

The payout will be made on November 19, 2010 to stockholders of record on November 8, 2010. “The aggregate amount of payments to be made in connection with the special dividend will be approximately $24.4 million.”<\/p>\n

This is the kind of stuff companies do just to jack with us. Sure, all the big shareholders (Wooly<\/strong> has 2.7 million or so) and the employees who have unvested shares will get a nice little payout. But here’s what we’re thinking: if we get a dollar a share for all the Volcom stock we own (which is, of course, zero). We could buy some shares on November 3 (the ex-dividend date<\/a><\/strong> is November 4), hold it until November 8 to qualify for the dividend, and then sell it back on Tuesday. If the share price goes up during the time, even better. The downside, as always, is if the share price goes down during that week then the dividend won’t even pay for itself. Oh, the way they toy with us.<\/p>\n

Those interested in all the financial nitty gritty (things were up a bit over last year) from the rest of VeeCo’s announcement today can follow the jump.
\nVolcom, Inc. (VLCM 18.87, +0.00, +0.01%) today announced financial results for the third quarter ended September 30, 2010.<\/p>\n

For the 2010 third quarter, total consolidated revenues were $104.7 million, compared with $93.9 million in the third quarter of 2009. 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 $64.5 million, compared with $56.8 million in the prior-year period. Total revenues in the company’s Europe segment were $28.7 million, compared with $30.2 million in the same period in 2009. Total revenues in the company’s Electric segment were $8.9 million, compared with $6.9 million in 2009. Total revenues in the company’s Australia segment were $2.6 million.<\/p>\n

“Our results for the third quarter are in line with our plan and reinforce our strategy to gain market share on a global level,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “During the first nine-months of this year, we have experienced solid revenue growth in our mens and boys categories, and our business with our core retailers remains very healthy. In other activities, we have launched major branding initiatives, acquired our Australian licensee, acquired distribution operations in Spain, and launched our e-commerce business. We are encouraged by the momentum thus far and I am proud of our team’s focus and dedication to building Volcom into a world brand.”<\/p>\n

Woolcott also noted that given the company’s continued cash flow from operations, strong balance sheet and no long-term debt, Volcom’s Board of Directors has determined that a special cash dividend was appropriate and supports the company’s commitment to providing shareholder value.<\/p>\n

Consolidated gross profit for the 2010 third quarter was $51.9 million, equal to 49.6% of total revenues, compared with $48.5 million, equal to 51.6% of total revenues, in the third quarter of 2009.<\/p>\n

Selling, general and administrative expenses on a consolidated basis were $33.9 million in the 2010 third quarter versus $28.8 million in the comparable period in 2009.<\/p>\n

Net income for the 2010 third quarter was $13.1 million, or $0.53 per diluted share, compared with $13.3 million, or $0.54 per diluted share, in the third quarter of 2009.<\/p>\n

At September 30, 2010 the company had cash, cash equivalents and short-term investments totaling $105 million, and no long-term debt.<\/p>\n

Special Dividend<\/p>\n

The company also announced that on October 27, the Board of Directors approved a special cash dividend of $1.00 per share payable on each share of the company’s outstanding common stock, including any unvested shares of restricted common stock. The special dividend will be payable on November 19, 2010 to stockholders of record at the close of business on November 8, 2010. In accordance with NASDAQ rules, the company’s common stock will start trading on an ex-dividend basis beginning November 4, 2010. The aggregate amount of payments to be made in connection with the special dividend will be approximately $24.4 million.<\/p>\n

2010 Fourth Quarter Financial Outlook<\/p>\n

For the 2010 fourth quarter, the company currently expects total consolidated revenues of approximately $76 million to $79 million, and fully diluted earnings per share amounts in the range of $0.04 to $0.07.<\/p>\n

Giving effect to the company’s current outlook for the 2010 fourth quarter, Volcom’s full year consolidated revenue expectation is between $321 million and $324 million. This translates to diluted earnings per share for 2010 in the range of $0.89 to $0.92.<\/p>\n

Conference Call Information<\/p>\n

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, Friday, November 5. Listeners should call (800) 642-1687 (domestic) or (706) 645-9291 (international) and use reservation number 15128955.<\/p>\n

About Volcom, Inc.<\/p>\n

Volcom is an innovative designer, marketer and distributor of premium quality young mens and womens 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 branded products are sold throughout the United States and internationally. Volcom’s news announcements and SEC filings are available through the company’s website at www.volcom.com.<\/p>\n

Safe Harbor Statement<\/p>\n

Certain statements in this press release and oral statements made from time to time by representatives of the company are forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including statements in connection with or related to any discussion of or reference to Volcom’s future operations, opportunities or financial performance. In particular, statements regarding the company’s guidance and future financial performance contained under the section entitled 2010 Fourth Quarter Financial Outlook are forward-looking statements. These forward-looking statements are based on management’s current expectations but they involve a number of risks and uncertainties. Volcom’s actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, including, without limitation, further softening of the retail environment, sales of our products by key retailers, including Pacific Sunwear and Zumiez, changes in fashion trends and consumer preferences, general economic conditions, the impact of sourcing costs, and additional factors which are detailed in our filings with the Securities and Exchange Commission, including the Risk Factors contained in the company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) and the subsequently filed Quarterly Reports on Form 10-Q, all of which are available at www.sec.gov. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Volcom is under no obligation, and expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.<\/p>\n

(tables follow)<\/p>\n

                                          VOLCOM, INC. AND SUBSIDIARIES\n                                CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)\n                                 (in thousands, except share and per share data)\n                                                        Three Months Ended               Nine Months Ended\n                                                           September 30,                   September 30,\n                                                  ------------------------------- -------------------------------\n                                                       2010            2009            2010            2009\n                                                  --------------- --------------- --------------- ---------------\nRevenues:\n   Product revenues                                 $    104,213    $     93,356    $    243,196    $    215,103\n   Licensing revenues                                        445             560           1,426           1,348\n                                                      ----------      ----------      ----------      ----------\n      Total revenues                                     104,658          93,916         244,622         216,451\nCost of goods sold                                        52,797          45,433         120,933         107,232\n                                                      ----------      ----------      ----------      ----------\nGross profit                                              51,861          48,483         123,689         109,219\nSelling, general and administrative expenses              33,884          28,825          94,657          82,710\n                                                      ----------      ----------      ----------      ----------\nOperating income                                          17,977          19,658          29,032          26,509\nOther income:\n   Interest income, net                                       66             127             272             229\n   Gain on investment in unconsolidated investee              39              --              39              --\n   Foreign currency gain                                   1,256             222           1,179             991\n                                                      ----------      ----------      ----------      ----------\n      Total other income                                   1,361             349           1,490           1,220\n                                                      ----------      ----------      ----------      ----------\nIncome before provision for income taxes                  19,338          20,007          30,522          27,729\nProvision for income taxes                                 6,285           6,750           9,868           9,381\n                                                      ----------      ----------      ----------      ----------\nNet income                                          $     13,053    $     13,257    $     20,654    $     18,348\n                                                  === ==========  === ==========  === ==========  === ==========\nNet income per share:\n   Basic                                            $       0.54    $       0.54    $       0.85    $       0.75\n   Diluted                                          $       0.53    $       0.54    $       0.85    $       0.75\nWeighted average shares outstanding:\n   Basic                                              24,396,899      24,354,208      24,377,222      24,350,725\n   Diluted                                            24,431,095      24,367,464      24,421,970      24,361,034\n\n\n\n \n                               VOLCOM, INC. AND SUBSIDIARIES\n                          CONSOLIDATED BALANCE SHEETS (UNAUDITED)\n                                      (in thousands)\n                                                    September 30, 2010   December 31, 2009\n                                                   -------------------- ------------------\nAssets\nCurrent assets:\n   Cash and cash equivalents                               $   104,950         $   76,180\n   Short-term investments                                          ---             35,000\n   Accounts receivable -- net of allowances                     81,821             53,792\n   Inventories                                                  37,024             33,250\n   Prepaid expenses and other current assets                     9,404              4,353\n   Income taxes receivable                                         ---                725\n   Deferred income taxes                                         8,212              7,700\n                                                             ---------           --------\n      Total current assets                                     241,411            211,000\n                                                             ---------           --------\nProperty and equipment -- net                                   26,543             26,348\nInvestment in unconsolidated investee                              ---                330\nDeferred income taxes                                            3,535              3,545\nIntangible assets -- net                                        10,235              9,784\nGoodwill                                                         1,341              1,291\nOther assets                                                     1,134                735\n                                                             ---------           --------\n      Total assets                                         $   284,199         $  253,033\n                                                   ========= =========  ======== ========\nLiabilities and Stockholders' Equity\nCurrent liabilities:\n   Accounts payable                                        $    24,328         $   22,788\n   Accrued expenses and other current liabilities               15,168              9,957\n   Income taxes payable                                          3,422                ---\n   Current portion of capital lease obligations                     17                 50\n                                                             ---------           --------\n      Total current liabilities                                 42,935             32,795\n                                                             ---------           --------\nLong-term capital lease obligations                                 27                ---\nOther long-term liabilities                                      1,257              1,203\nIncome taxes payable - non-current                                  23                 68\nStockholders' equity:\n   Common stock                                                     24                 24\n   Additional paid-in capital                                   94,279             92,192\n   Retained earnings                                           144,334            123,679\n   Accumulated other comprehensive income                        1,320              3,072\n                                                             ---------           --------\n      Total stockholders' equity                               239,957            218,967\n                                                             ---------           --------\n      Total liabilities and stockholders' equity           $   284,199         $  253,033\n                                                   ========= =========  ======== ========\n\n\n\n \n                                   VOLCOM, INC. AND SUBSIDIARIES\n                         CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)\n                                          (in thousands)\n                                                                            Nine Months Ended\n                                                                              September 30,\n                                                                      -----------------------------\n                                                                              2010         2009\n                                                                            -------      -------\nCash flows from operating activities:\n   Net income                                                             $  20,654    $  18,348\n   Adjustments to reconcile net income to net cash provided by\n   operating activities:\n      Depreciation and amortization                                           4,645        5,034\n      Gain on investment in unconsolidated investee                             (39)         --\n      Provision for doubtful accounts                                           173        2,434\n      Excess tax benefits related to exercise of stock options                  (51)         --\n      Loss on disposal of property and equipment                                 35            3\n      Stock-based compensation                                                1,514        1,246\n      Deferred income taxes                                                    (487)       (963)\n      Changes in operating assets and liabilities, net of effects of\n      acquisition:\n         Accounts receivable                                                (24,562)    (13,574)\n         Inventories                                                            376        5,032\n         Prepaid expenses and other current assets                           (4,149)       (407)\n         Income taxes receivable\/payable                                      4,182        6,683\n         Other assets                                                          (351)         31\n         Accounts payable                                                       800       (5,445)\n         Accrued expenses and other current liabilities                       4,035        1,040\n         Other long-term liabilities                                             72          (96)\n                                                                            -------      ------- -\n            Net cash provided by operating activities                         6,847       19,366\n                                                                            -------      -------\nCash flows from investing activities:\n   Purchase of property and equipment                                        (4,286)     (3,406)\n   Business acquisitions, net of cash acquired                               (2,304)       (897)\n   Purchase of short-term investments                                       (20,000)    (64,933)\n   Sale of short-term investments                                            55,000       24,944\n   Proceeds from sale of property and equipment                                  38            6\n                                                                            -------      -------\n            Net cash provided by (used in) investing activities              28,448      (44,286)\n                                                                            -------      ------- -\nCash flows from financing activities:\n   Principal payments capital lease obligations                                 (12)        (65)\n   Proceeds from exercise of stock options                                      523           --\n   Excess tax benefits related to exercise of stock options                      51           --\n                                                                            -------      -------\n            Net cash provided by (used in) financing activities                 562          (65)\n                                                                            -------      ------- -\n   Effect of exchange rate changes on cash                                   (7,087)      4,701\n                                                                            ------- -    -------\nNet increase (decrease) in cash and cash equivalents                         28,770      (20,284)\nCash and cash equivalents -- Beginning of period                             76,180       79,613\n                                                                            -------      -------\nCash and cash equivalents -- End of period                                $ 104,950    $  59,329\n                                                                      ===== =======    = =======\n\n\n\n \n                        VOLCOM, INC. AND SUBSIDIARIES\n                  OPERATING SEGMENT INFORMATION (UNAUDITED)\n                               (in thousands)\n                             Three Months Ended         Nine Months Ended\n                                September 30,             September 30,\n                          ------------------------ --------------------------\n                              2010        2009        2010          2009\n                          ------------ ----------- -----------    -------\nTotal revenues:\n   United States            $  64,487    $ 56,769   $ 163,513   $ 142,839\n   Europe                      28,672      30,250      57,420      57,814\n   Electric                     8,911       6,897      21,101      15,798\n   Australia                    2,588         ---       2,588         ---\n                              -------      ------     -------     -------\n      Consolidated          $ 104,658    $ 93,916   $ 244,622   $ 216,451\n                          === =======  === ======  == =======  == =======\nGross profit:\n   United States            $  29,261    $ 28,350   $  77,409   $  69,874\n   Europe                      15,971      16,016      32,611      30,457\n   Electric                     5,466       4,117      12,506       8,888\n   Australia                    1,163         ---       1,163         ---\n                              -------      ------     -------     -------\n      Consolidated          $  51,861    $ 48,483   $ 123,689   $ 109,219\n                          === =======  === ======  == =======  == =======\nOperating income (loss):\n   United States            $   6,354    $  9,017   $  11,624   $  13,801\n   Europe                       9,653       9,730      14,725      13,306\n   Electric                     1,885         911       2,598        (598)\n   Australia                       85         ---          85         ---\n                              -------      ------     -------     -------\n      Consolidated          $  17,977    $ 19,658   $  29,032   $  26,509\n                          === =======  === ======  == =======  == =======\n<\/pre>\n
SOURCE: Volcom, Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"
In among the other news reported today during Volcom’s third quarter results report was the announcement that the Board of Directors has approved a special $1 a share dividend for shareholders (and those holding unvested shares of restricted common stock). The payout will be made on November 19, 2010 to stockholders of record on November […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[10,12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/19142"}],"collection":[{"href":"https:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19142"}],"version-history":[{"count":5,"href":"https:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/19142\/revisions"}],"predecessor-version":[{"id":19147,"href":"https:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/19142\/revisions\/19147"}],"wp:attachment":[{"href":"https:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}