Slide 1: Investor Presentation December 2012
December 2012 investor presentation Exhibit 99.1
Slide 2: Regarding Forward-Looking Statements
Regarding Forward-Looking Statements This presentation may contain forward-looking statements, estimates or projections that are based on our current expectations. Any such statements, estimates or projections are subject to risks and uncertainties that could cause the actual results and outcomes to
Slide 3: Investment Highlights
Investment Highlights o Global Casual Lifestyle Footwear Brand o Balanced, International Growth o Long-Term Sales Growth o Strong Balance Sheet
Slide 4: Capital Allocation – Credit Agreement
Credit Agreement • Crocs has renegotiated its credit agreement • Credit line increased by 30% or $30mm to $100mm • Up to $50mm per quarter – up to $150mm per year - can now be used towards share repurchases • Up to 75% of the credit line can be used for share repurchases Capital Allocation – Credit
Slide 5: Capital Allocation – Share Repurchase
Share Repurchase • Crocs has been actively repurchasing shares in the open market since early November • Approximately 1.1 million shares have been repurchased at an average price of $12.75 - $14.4mm* • Shares are being repurchased under the 2007 Share Repurchase authorization of up to 5.5mm shares
Slide 6: 2013 SAP Investment Update
Total FY 2013 SAP Impact of $0.08 - $0.10 per share* 2013 SAP Investment Update 2013 SAP Investment • Implementation of SAP will continue through 2013 with an expected launch in 1H 2014 • $0.04 per share FY 2013 SAP impact due to accelerated depreciation and amortization of existing software assets
Slide 7: Q3 in review
in review
Slide 8: Income Statement
Income Statement (in millions) Q3 11 Q3 12 % Record Revenue Growth Revenue $274.9 $295.6 12% Gross Margin 53.5% 54.4% 90bp SG&A as % of Sales 40.6% 40.8% 20bp Operating Margin 12.7% 13.5% 80bp Diluted EPS $0.33 $0.49 $0.16
Slide 9: Channel Results
Channel Revenue (in millions) Q3 11 Q3 12 % Constant % Channel Results Wholesale $154.0 $156.2 2% 5% Retail $95.3 $112.2 18% 20% Internet $25.6 $27.1 6% 9% Total $274.9 $295.6 8% 10%
Slide 10: Regional Results
Regional Revenue (in millions) Q3 11 Q3 12 % Constant % Regional Results Americas $122.8 $131.9 7% 9% Asia $111.2 $123.7 11% 13% Europe $40.9 $39.8 3% 7% Total $274.9 $295.6 8% 10%
Slide 11: Retail Locations
Retail Locations (company owned) Q3 11 Q3 12 % Retail Locations Americas 3% Asia 28% Europe 133% Total 22% FY 2012 Retail Investments • Opening plan of 100-110 net locations • Aggressively close kiosk locations in US (25 – 30)
Slide 12: Retail Comp Store Growth
Comp Store Growth (constant currency) Q1 2012 Q2 2012 Q3 2012 First 9 Months 2012 Retail Comps Americas 9.3% (1.2)% 5.5% 3.7% Asia 9.4% 5.2% (6.3)% 1.2% Europe 21.4% 9.5% 0.9% 7.5% Total 10.2% 1.8% 1.0% 3.1%
Slide 13: Backlog
Backlog * Based on 9/30/12 backlog reported on 10/24/12 +30% +33% $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Q3 2010 Q3 2011 Q3 2012 Backlog (in millions) $228 $297 $395
Slide 14: Inventory
$129.6 Inventory * Due to a terms and conditions change from December 2011 with our factories, Q4 2011 inventory levels excluded $12.5 million of additional inventory commitments that were not owned at 12/31/11 $151.1 $142.1 $187.5 $175 to $180 $0 $50 $100 $150 $200 $250 Q3 2011 Q4 2011 Q3 2012 Q4 2
Slide 15: Future revenue growth drivers
Future revenue growth drivers
Slide 16: Long-Term Organic Growth Drivers
Long-Term Organic Growth Drivers o Sustained Growth in All Regions o Product-Driven w/ ASP Expansion o Wholesale Expansion o Investment in Retail & Internet
Slide 17: 2013 Planned Retail Store Growth
Planned 2013 Global Retail Store Growth of Approximately 70 - 95 Net Stores 2013 Planned Retail Store Growth Approximately - Retail Stores Globally by YE Europe Asia Americas 20 – 25 - -
Slide 18: New Retail Investment Metrics
Avg Store Size – US Avg Store Size - Asia 1500 – 1800 sqft 650 – 1500 sqft New Retail Investment Metrics • Location, Location, Location • Focus on High Traffic, Outlet Locations Avg. Store Cost – US Avg. Store Cost – Asia $240K $140K Avg. Store Sales Operating Income (OI) $750K-$800K >20% ROI Paybac
Slide 19: Product Road Map – All Year Growth
Product Road Map – All Year Growth
Slide 20: Investment Summary
investment summary
Slide 21: Investment Summary
o Global Casual Lifestyle Footwear Brand o Balanced, International Growth o Long-Term Sales Growth o Strong Balance Sheet Investment Summary