WEYCO GROUP, INC.
|
(Exact name of registrant as specified in its charter)
|
WISCONSIN
|
39-0702200
|
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
|
incorporation or organization)
|
Identification No.)
|
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(Dollars in thousands)
|
||||||||
ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 10,175 | $ | 7,150 | ||||
Marketable securities, at amortized cost
|
3,066 | 4,989 | ||||||
Accounts receivable, net
|
34,830 | 38,840 | ||||||
Accrued income tax receivable
|
2,149 | - | ||||||
Inventories
|
54,575 | 56,111 | ||||||
Prepaid expenses and other current assets
|
3,912 | 4,398 | ||||||
Total current assets
|
108,707 | 111,488 | ||||||
Marketable securities, at amortized cost
|
56,034 | 58,059 | ||||||
Deferred income tax benefits
|
2,413 | 1,090 | ||||||
Other assets
|
17,846 | 14,375 | ||||||
Property, plant and equipment, net
|
27,624 | 25,675 | ||||||
Goodwill
|
11,027 | - | ||||||
Trademarks
|
34,748 | 12,748 | ||||||
Total assets
|
$ | 258,399 | $ | 223,435 | ||||
LIABILITIES AND EQUITY:
|
||||||||
Short-term borrowings
|
$ | 35,950 | $ | 5,000 | ||||
Accounts payable
|
7,380 | 10,360 | ||||||
Dividend payable
|
1,756 | 1,811 | ||||||
Accrued liabilities
|
9,750 | 10,204 | ||||||
Accrued income taxes
|
- | 116 | ||||||
Deferred income tax liabilities
|
790 | 228 | ||||||
Total current liabilities
|
55,626 | 27,719 | ||||||
Long-term pension liability
|
19,306 | 18,572 | ||||||
Other long-term liabilities
|
11,753 | - | ||||||
Common stock
|
10,986 | 11,356 | ||||||
Capital in excess of par value
|
21,131 | 19,548 | ||||||
Reinvested earnings
|
142,521 | 150,546 | ||||||
Accumulated other comprehensive loss
|
(8,232 | ) | (9,004 | ) | ||||
Total Weyco Group, Inc. equity
|
166,406 | 172,446 | ||||||
Noncontrolling interest
|
5,308 | 4,698 | ||||||
Total equity
|
171,714 | 177,144 | ||||||
Total liabilities and equity
|
$ | 258,399 | $ | 223,435 |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
Net sales
|
$ | 56,550 | $ | 48,724 | $ | 121,696 | $ | 109,762 | ||||||||
Cost of sales
|
33,887 | 30,066 | 74,208 | 67,696 | ||||||||||||
Gross earnings
|
22,663 | 18,658 | 47,488 | 42,066 | ||||||||||||
Selling and administrative expenses
|
19,930 | 16,972 | 39,946 | 34,939 | ||||||||||||
Earnings from operations
|
2,733 | 1,686 | 7,542 | 7,127 | ||||||||||||
Interest income
|
586 | 607 | 1,176 | 1,105 | ||||||||||||
Interest expense
|
(137 | ) | (87 | ) | (227 | ) | (87 | ) | ||||||||
Other income and expense, net
|
52 | (351 | ) | 108 | (218 | ) | ||||||||||
Earnings before provision for income taxes
|
3,234 | 1,855 | 8,599 | 7,927 | ||||||||||||
Provision for income taxes
|
946 | 774 | 2,809 | 2,864 | ||||||||||||
Net earnings
|
2,288 | 1,081 | 5,790 | 5,063 | ||||||||||||
Net earnings (loss) attributable to noncontrolling interest
|
351 | (201 | ) | 481 | (76 | ) | ||||||||||
Net earnings attributable to Weyco Group, Inc.
|
$ | 1,937 | $ | 1,282 | $ | 5,309 | $ | 5,139 | ||||||||
Weighted average shares outstanding
|
||||||||||||||||
Basic
|
11,120 | 11,326 | 11,221 | 11,309 | ||||||||||||
Diluted
|
11,239 | 11,533 | 11,358 | 11,514 | ||||||||||||
Earnings per share
|
||||||||||||||||
Basic
|
$ | 0.17 | $ | 0.11 | $ | 0.47 | $ | 0.45 | ||||||||
Diluted
|
$ | 0.17 | $ | 0.11 | $ | 0.47 | $ | 0.45 | ||||||||
Cash dividends per share
|
$ | 0.16 | $ | 0.16 | $ | 0.32 | $ | 0.31 |
2011
|
2010
|
|||||||
(Dollars in thousands)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net earnings
|
$ | 5,790 | $ | 5,063 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities -
|
||||||||
Depreciation
|
1,342 | 1,386 | ||||||
Amortization
|
83 | 60 | ||||||
Bad debt expense
|
99 | 65 | ||||||
Deferred income taxes
|
(957 | ) | (475 | ) | ||||
Net foreign currency transaction (gains) losses
|
(121 | ) | 213 | |||||
Stock-based compensation
|
597 | 569 | ||||||
Pension expense
|
1,474 | 1,624 | ||||||
Net gains on disposal of assets
|
(13 | ) | - | |||||
Increase in cash surrender value of life insurance
|
(127 | ) | (120 | ) | ||||
Change in operating assets and liabilities, net of effects from acquisitions -
|
||||||||
Accounts receivable
|
8,083 | 1,930 | ||||||
Inventories
|
4,662 | 2,843 | ||||||
Prepaids and other current assets
|
1,060 | 175 | ||||||
Accounts payable
|
(3,484 | ) | (2,574 | ) | ||||
Accrued liabilities and other
|
(1,320 | ) | (900 | ) | ||||
Accrued income taxes
|
(2,281 | ) | (1,972 | ) | ||||
Net cash provided by operating activities
|
14,887 | 7,887 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Acquisition of businesses, net of cash acquired
|
(27,023 | ) | (2,509 | ) | ||||
Purchase of marketable securities
|
(80 | ) | (21,802 | ) | ||||
Proceeds from maturities of marketable securities
|
4,035 | 3,648 | ||||||
Proceeds from the sale of assets
|
13 | - | ||||||
Life insurance premiums paid
|
(155 | ) | (155 | ) | ||||
Purchase of property, plant and equipment
|
(3,117 | ) | (646 | ) | ||||
Net cash used for investing activities
|
(26,327 | ) | (21,464 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Cash dividends paid
|
(3,634 | ) | (3,401 | ) | ||||
Shares purchased and retired
|
(10,205 | ) | (753 | ) | ||||
Proceeds from stock options exercised
|
725 | 607 | ||||||
Repayment of debt assumed in acquisition
|
(3,814 | ) | - | |||||
Net borrowings of commercial paper
|
19,950 | - | ||||||
Proceeds from bank borrowings
|
31,000 | - | ||||||
Repayments of bank borrowings
|
(20,000 | ) | - | |||||
Income tax benefits from stock-based compensation
|
341 | 331 | ||||||
Net cash provided by (used for) financing activities
|
14,363 | (3,216 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents
|
102 | (98 | ) | |||||
Net increase (decrease) in cash and cash equivalents
|
3,025 | (16,891 | ) | |||||
CASH AND CASH EQUIVALENTS at beginning of period
|
$ | 7,150 | $ | 30,000 | ||||
CASH AND CASH EQUIVALENTS at end of period
|
$ | 10,175 | $ | 13,109 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Income taxes paid, net of refunds
|
$ | 4,751 | $ | 5,352 | ||||
Interest paid
|
$ | 221 | $ | 82 |
1.
|
Financial Statements
|
2.
|
Acquisitions
|
Cash
|
$ | 317 | ||
Accounts receivable, net
|
3,962 | |||
Inventory
|
2,809 | |||
Prepaids
|
15 | |||
Deferred income tax benefits
|
85 | |||
Property, plant and equipment, net
|
7 | |||
Goodwill
|
11,027 | |||
Trademark
|
22,000 | |||
Other intangible assets
|
3,700 | |||
Accounts payable
|
(454 | ) | ||
Accrued liabilities
|
(561 | ) | ||
$ | 42,907 |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Net sales
|
$ | 56,550 | $ | 50,937 | $ | 126,064 | $ | 116,425 | ||||||||
Net earnings attributable to Weyco Group, Inc.
|
$ | 1,937 | $ | 935 | $ | 5,138 | $ | 5,099 |
3.
|
Earnings Per Share
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In thousands, except per share amounts)
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net earnings attributable to Weyco Group, Inc.
|
$ | 1,937 | $ | 1,282 | $ | 5,309 | $ | 5,139 | ||||||||
Denominator:
|
||||||||||||||||
Basic weighted average shares outstanding
|
11,120 | 11,326 | 11,221 | 11,309 | ||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Employee stock-based awards
|
119 | 207 | 137 | 205 | ||||||||||||
Diluted weighted average shares outstanding
|
11,239 | 11,533 | 11,358 | 11,514 | ||||||||||||
Basic earnings per share
|
$ | 0.17 | $ | 0.11 | $ | 0.47 | $ | 0.45 | ||||||||
Diluted earnings per share
|
$ | 0.17 | $ | 0.11 | $ | 0.47 | $ | 0.45 |
4.
|
Investments
|
June 30, 2011
|
December 31, 2010
|
|||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
Unrealized
|
|||||||||||||
Gains
|
Losses
|
Gains
|
Losses
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Municipal bonds
|
$ | 2,490 | $ | 241 | $ | 1,656 | $ | 518 |
5.
|
Intangible Assets
|
June 30, 2011
|
December 31, 2010
|
||||||||||||||||||||||||||
Wtd.
|
Gross
|
Gross
|
|||||||||||||||||||||||||
Average
|
Carrying
|
Accumulated
|
Carrying
|
Accumulated
|
|||||||||||||||||||||||
Life (Yrs)
|
Amount
|
Amortization
|
Net
|
Amount
|
Amortization
|
Net
|
|||||||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Amortized intangible assets:
|
|||||||||||||||||||||||||||
Non-compete agreement
|
5 | $ | 200 | $ | (13 | ) | $ | 187 | $ | - | $ | - | $ | - | |||||||||||||
Customer relationships
|
15 | 3,500 | (78 | ) | 3,422 | - | - | - | |||||||||||||||||||
Total amortized intangible assets
|
3,700 | (91 | ) | 3,609 | - | - | - | ||||||||||||||||||||
Goodwill
|
11,027 | - | 11,027 | - | - | - | |||||||||||||||||||||
Trademarks (indefinite-lived)
|
34,748 | - | 34,748 | 12,748 | - | 12,748 | |||||||||||||||||||||
Total intangible assets
|
$ | 49,475 | $ | (91 | ) | $ | 49,384 | $ | 12,748 | $ | - | $ | 12,748 |
6.
|
Segment Information
|
Three Months Ended
|
||||||||||||||||
June 30,
|
Wholesale
|
Retail
|
Other
|
Total
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
2011
|
||||||||||||||||
Product sales
|
$ | 38,745 | $ | 5,866 | $ | 11,289 | $ | 55,900 | ||||||||
Licensing revenues
|
650 | - | - | 650 | ||||||||||||
Net sales
|
$ | 39,395 | $ | 5,866 | $ | 11,289 | $ | 56,550 | ||||||||
Earnings from operations
|
$ | 1,025 | $ | 202 | $ | 1,507 | $ | 2,734 | ||||||||
2010
|
||||||||||||||||
Product sales
|
$ | 34,808 | $ | 5,301 | $ | 8,145 | $ | 48,254 | ||||||||
Licensing revenues
|
470 | - | - | 470 | ||||||||||||
Net sales
|
$ | 35,278 | $ | 5,301 | $ | 8,145 | $ | 48,724 | ||||||||
Earnings from operations
|
$ | 1,750 | $ | (160 | ) | $ | 96 | $ | 1,686 | |||||||
Six Months Ended
|
||||||||||||||||
June 30,
|
Wholesale
|
Retail
|
Other
|
Total
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||
2011
|
||||||||||||||||
Product sales
|
$ | 86,385 | $ | 11,443 | $ | 22,715 | $ | 120,543 | ||||||||
Licensing revenues
|
1,153 | - | - | 1,153 | ||||||||||||
Net sales
|
$ | 87,538 | $ | 11,443 | $ | 22,715 | $ | 121,696 | ||||||||
Earnings from operations
|
$ | 4,662 | $ | 142 | $ | 2,739 | $ | 7,543 | ||||||||
2010
|
||||||||||||||||
Product sales
|
$ | 78,896 | $ | 10,575 | $ | 19,241 | $ | 108,712 | ||||||||
Licensing revenues
|
1,050 | - | - | 1,050 | ||||||||||||
Net sales
|
$ | 79,946 | $ | 10,575 | $ | 19,241 | $ | 109,762 | ||||||||
Earnings from operations
|
$ | 6,142 | $ | (349 | ) | $ | 1,334 | $ | 7,127 |
7.
|
Employee Retirement Plans
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Benefits earned during the period
|
$ | 321 | $ | 300 | $ | 642 | $ | 585 | ||||||||
Interest cost on projected benefit obligation
|
595 | 612 | 1,191 | 1,224 | ||||||||||||
Expected return on plan assets
|
(505 | ) | (463 | ) | (1,010 | ) | (910 | ) | ||||||||
Net amortization and deferral
|
326 | 362 | 651 | 725 | ||||||||||||
Net pension expense
|
$ | 737 | $ | 811 | $ | 1,474 | $ | 1,624 |
8.
|
Stock-Based Compensation Plans
|
Weighted
|
Wtd. Average
|
|||||||||||||||
Average
|
Remaining
|
Aggregate
|
||||||||||||||
Exercise
|
Contractual
|
Intrinsic
|
||||||||||||||
Shares
|
Price
|
Term (Years)
|
Value*
|
|||||||||||||
Outstanding at December 31, 2010
|
1,269,426 | $ | 20.25 | |||||||||||||
Exercised
|
(80,041 | ) | $ | 9.07 | ||||||||||||
Forfeited or expired
|
(16,300 | ) | $ | 27.26 | ||||||||||||
Outstanding at June 30, 2011
|
1,173,085 | $ | 20.92 | 2.59 | $ | 5,372,000 | ||||||||||
Exercisable at June 30, 2011
|
761,409 | $ | 18.64 | 2.04 | $ | 5,150,000 |
|
* The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value at June 30, 2011 of $24.60 and the exercise price.
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Total intrinsic value of stock options exercised
|
$ | 862 | $ | 453 | $ | 874 | $ | 849 | ||||||||
Cash received from stock option exercises
|
$ | 553 | $ | 455 | $ | 725 | $ | 607 | ||||||||
Income tax benefit from the exercise of stock options
|
$ | 336 | $ | 177 | $ | 341 | $ | 331 |
Shares of
|
Average
|
Remaining
|
Aggregate
|
|||||||||||||
Restricted
|
Grant Date
|
Contractual
|
Intrinsic
|
|||||||||||||
Stock
|
Fair Value
|
Term (Years)
|
Value*
|
|||||||||||||
Non-vested - December 31, 2010
|
35,448 | $ | 24.79 | |||||||||||||
Issued
|
- | - | ||||||||||||||
Vested
|
- | - | ||||||||||||||
Forfeited
|
- | - | ||||||||||||||
Non-vested June 30, 2011
|
35,448 | $ | 24.79 | 2.25 | $ | 872,000 |
9.
|
Short-Term Borrowings
|
10.
|
Comprehensive Income
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Dollars in thousands)
|
(Dollars in thousands)
|
|||||||||||||||
Net earnings
|
$ | 2,288 | $ | 1,081 | $ | 5,790 | $ | 5,063 | ||||||||
Foreign currency translation adjustments
|
134 | (713 | ) | 375 | (1,096 | ) | ||||||||||
Pension liability, net of tax
|
198 | 221 | 397 | 442 | ||||||||||||
Total comprehensive income
|
$ | 2,620 | $ | 589 | $ | 6,562 | $ | 4,409 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(Dollars in thousands)
|
||||||||
Foreign currency translation adjustments
|
$ | 1,617 | $ | 1,243 | ||||
Pension liability, net of tax
|
(9,849 | ) | (10,247 | ) | ||||
Total accumulated other comprehensive loss
|
$ | (8,232 | ) | $ | (9,004 | ) |
11.
|
Equity
|
Accumulated
|
||||||||||||||||||||
Capital in
|
Other
|
|||||||||||||||||||
Common
|
Excess of
|
Reinvested
|
Comprehensive
|
Noncontrolling
|
||||||||||||||||
Stock
|
Par Value
|
Earnings
|
Loss
|
Interest
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Balance, December 31, 2010
|
$ | 11,356 | $ | 19,548 | $ | 150,546 | $ | (9,004 | ) | $ | 4,698 | |||||||||
Net earnings
|
- | - | 5,309 | - | 481 | |||||||||||||||
Foreign currency translation adjustments
|
- | - | - | 375 | 129 | |||||||||||||||
Pension liability adjustment, net of tax
|
- | - | - | 397 | - | |||||||||||||||
Cash dividends declared
|
- | - | (3,579 | ) | - | - | ||||||||||||||
Stock options exercised
|
80 | 645 | - | - | - | |||||||||||||||
Stock-based compensation expense
|
- | 597 | - | - | - | |||||||||||||||
Income tax benefit from stock-based compensation
|
- | 341 | - | - | - | |||||||||||||||
Shares purchased and retired
|
(450 | ) | - | (9,755 | ) | - | - | |||||||||||||
Balance, June 30, 2011
|
$ | 10,986 | $ | 21,131 | $ | 142,521 | $ | (8,232 | ) | $ | 5,308 |
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
|||||||||||||||||||
(Dollars in thousands)
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Net Sales
|
||||||||||||||||||||||||
North American Wholesale
|
$ | 39,395 | $ | 35,278 | 12 | % | $ | 87,538 | $ | 79,946 | 9 | % | ||||||||||||
North American Retail
|
5,866 | 5,301 | 11 | % | 11,443 | 10,575 | 8 | % | ||||||||||||||||
Other
|
11,289 | 8,145 | 39 | % | 22,715 | 19,241 | 18 | % | ||||||||||||||||
Total
|
$ | 56,550 | $ | 48,724 | 16 | % | $ | 121,696 | $ | 109,762 | 11 | % | ||||||||||||
Earnings from Operations
|
||||||||||||||||||||||||
North American Wholesale
|
$ | 1,025 | $ | 1,750 | -41 | % | $ | 4,662 | $ | 6,142 | -24 | % | ||||||||||||
North American Retail
|
202 | (160 | ) | 226 | % | 142 | (349 | ) | 141 | % | ||||||||||||||
Other
|
1,507 | 96 | 1470 | % | 2,739 | 1,334 | 105 | % | ||||||||||||||||
Total
|
$ | 2,734 | $ | 1,686 | 62 | % | $ | 7,543 | $ | 7,127 | 6 | % |
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
2011
|
2010
|
% Change
|
2011
|
2010
|
% Change
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
North American Net Sales
|
||||||||||||||||||||||||
Stacy Adams
|
$ | 11,658 | $ | 10,192 | 14 | % | $ | 27,405 | $ | 26,603 | 3 | % | ||||||||||||
Nunn Bush
|
14,091 | 14,433 | -2 | % | 30,176 | 30,314 | 0 | % | ||||||||||||||||
Florsheim
|
10,024 | 10,161 | -1 | % | 22,387 | 21,957 | 2 | % | ||||||||||||||||
Bogs
|
2,551 | - | n/a | 4,885 | - | n/a | ||||||||||||||||||
Umi
|
422 | 22 | n/a | 1,532 | 22 | n/a | ||||||||||||||||||
Total North American Wholesale
|
$ | 38,745 | $ | 34,808 | 11 | % | $ | 86,385 | $ | 78,896 | 9 | % | ||||||||||||
Licensing
|
650 | 470 | 38 | % | 1,153 | 1,050 | 10 | % | ||||||||||||||||
Total North American Wholesale Segment
|
$ | 39,395 | $ | 35,278 | 12 | % | $ | 87,538 | $ | 79,946 | 9 | % |
Total Number of
|
Maximum Number
|
|||||||||||||||
Total
|
Average
|
Shares Purchased as
|
of Shares
|
|||||||||||||
Number
|
Price
|
Part of the Publicly
|
that May Yet Be
|
|||||||||||||
of Shares
|
Paid
|
Announced
|
Purchased Under
|
|||||||||||||
Period
|
Purchased
|
Per Share
|
Program
|
the Program
|
||||||||||||
4/1/11 - 4/30/11
|
- | $ | - | - | 1,271,301 | |||||||||||
5/1/11 - 5/31/11
|
411,968 | (i) | $ | 22.61 | 11,649 | 1,259,652 | ||||||||||
6/1/11 - 6/30/11
|
25,687 | $ | 22.86 | 25,687 | 1,233,965 | |||||||||||
Total
|
437,655 | $ | 22.63 | 37,336 | ||||||||||||
WEYCO GROUP, INC.
|
||
August 4, 2011
|
/s/ John F. Wittkowske
|
|
Date
|
John F. Wittkowske
|
|
Senior Vice President and
|
||
Chief Financial Officer
|
Incorporated Herein
|
Included
|
|||||
Exhibit
|
Description
|
By Reference
|
Herewith
|
|||
10.1
|
Amendment to loan agreement dated April 7, 2011 which extends the Revolving maturity date to April 30, 2012
|
Exhibit 10.1 to Form 10-Q filed May 6, 2011
|
||||
10.2
|
Amendment to loan agreement dated July 22, 2011, which reduces the interest rate on the revolving line of credit
|
X
|
||||
31.1
|
Certification of Chief Executive Officer
|
X
|
||||
31.2
|
Certification of Chief Financial Officer
|
X
|
||||
32
|
Section 906 Certification of Chief Executive Officer and Chief Financial Officer
|
X
|
||||
101
|
The following materials from Weyco Group, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, formatted in XBRL (eXtensible Business Reporting Language):
|
|||||
(i) the Consolidated Condensed Balance Sheets,
|
||||||
(ii) the Consolidated Condensed Statements of Earnings,
|
||||||
(iii) the Consolidated Condensed Statements of Cash Flows, and
|
||||||
|
(iv) Notes to Consolidated Condensed Financial Statements, furnished herewith
|
|
X
|
BORROWER:
|
||
WEYCO GROUP, INC., a Wisconsin corporation
|
||
By:
|
/s/ John Wittkowske
|
|
John Wittkowske, Senior Vice President & CFO
|
BANK:
|
||
BMO HARRIS BANK, N.A.,
|
||
successor in interest to M&I Marshall & Ilsley Bank
|
||
By:
|
/s/ Ronald J. Carey
|
|
Ronald J. Carey, Sr. Vice President
|
||
By:
|
/s/ James R. Miller
|
|
James R. Miller, Sr. Vice President
|
Date: August 4, 2011
|
|
/s/ Thomas W. Florsheim, Jr.
|
|
Thomas W. Florsheim, Jr.
|
|
Chief Executive Officer
|
Date: August 4, 2011
|
|
/s/ John F. Wittkowske
|
|
John F. Wittkowske
|
|
Chief Financial Officer
|
|
(1)
|
the Periodic Report on Form 10-Q for the quarter ended June 30, 2011, (the “Periodic Report”) to which this statement is an exhibit fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and
|
|
(2)
|
the information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Weyco Group, Inc.
|
Dated: August 4, 2011
|
|
/s/ Thomas W. Florsheim, Jr.
|
|
Thomas W. Florsheim, Jr.
|
|
Chief Executive Officer
|
|
/s/ John F. Wittkowske
|
|
John F. Wittkowske
|
|
Chief Financial Officer
|
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (USD $)
In Thousands, except Per Share data |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Net sales | $ 56,550 | $ 48,724 | $ 121,696 | $ 109,762 |
Cost of sales | 33,887 | 30,066 | 74,208 | 67,696 |
Gross earnings | 22,663 | 18,658 | 47,488 | 42,066 |
Selling and administrative expenses | 19,930 | 16,972 | 39,946 | 34,939 |
Earnings from operations | 2,733 | 1,686 | 7,542 | 7,127 |
Interest income | 586 | 607 | 1,176 | 1,105 |
Interest expense | (137) | (87) | (227) | (87) |
Other income and expense, net | 52 | (351) | 108 | (218) |
Earnings before provision for income taxes | 3,234 | 1,855 | 8,599 | 7,927 |
Provision for income taxes | 946 | 774 | 2,809 | 2,864 |
Net earnings | 2,288 | 1,081 | 5,790 | 5,063 |
Net earnings (loss) attributable to noncontrolling interest | 351 | (201) | 481 | (76) |
Net earnings attributable to Weyco Group, Inc. | $ 1,937 | $ 1,282 | $ 5,309 | $ 5,139 |
Weighted average shares outstanding | Â | Â | Â | Â |
Basic | 11,120 | 11,326 | 11,221 | 11,309 |
Diluted | 11,239 | 11,533 | 11,358 | 11,514 |
Earnings per share | Â | Â | Â | Â |
Basic | $ 0.17 | $ 0.11 | $ 0.47 | $ 0.45 |
Diluted | $ 0.17 | $ 0.11 | $ 0.47 | $ 0.45 |
Cash dividends per share | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.31 |
Document and Entity Information
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Aug. 02, 2011
|
|
Document Type | 10-Q | Â |
Amendment Flag | false | Â |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Year Focus | 2011 | Â |
Document Fiscal Period Focus | Q2 | Â |
Trading Symbol | WEYS | Â |
Entity Registrant Name | WEYCO GROUP INC | Â |
Entity Central Index Key | 0000106532 | Â |
Current Fiscal Year End Date | --12-31 | Â |
Entity Filer Category | Accelerated Filer | Â |
Entity Common Stock, Shares Outstanding | Â | 11,006,184 |
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Stock-Based Compensation Plans
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans |
During
the three and six months ended June 30, 2011, the Company
recognized approximately $329,000 and $597,000, respectively, of
compensation expense associated with stock option and restricted
stock awards granted in the years 2007 through 2010. During
the three and six months ended June 30, 2010, the Company
recognized approximately $285,000 and $569,000, respectively, of
compensation expense associated with stock option and restricted
stock awards granted in the years 2006 through 2009.
The
following table summarizes the stock option activity under the
Company’s plans for the six-month period ended June 30,
2011:
The
following table summarizes stock option activity for the three and
six months ended June 30, 2011 and 2010:
The
following table summarizes the Company’s restricted stock
award activity for the six- month period ended June 30,
2011:
*
The aggregate intrinsic value of non-vested restricted stock is the
number of shares outstanding valued at the June 30, 2011 market
value of $24.60.
|
Investments
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments |
As
noted in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2010, all of the Company’s
investments are classified as held-to-maturity securities and
reported at amortized cost pursuant to ASC 320, Investments – Debt and
Equity Securities as the Company has the intent and ability
to hold all security investments to maturity.
The
amortized cost of all marketable securities as of June 30, 2011 and
December 31, 2010 as reported in the Consolidated Condensed Balance
Sheets was $59.1 million and $63.0 million, respectively. The
estimated fair market value of those marketable securities at June
30, 2011 and December 31, 2010 was $61.3 million and $64.2 million,
respectively.
The
unrealized gains and losses on marketable securities at June 30,
2011 and December 31, 2010 were:
The
estimated market values provided are level 2 valuations as defined
by ASC 820. The Company
has reviewed its portfolio of marketable securities as of June 30,
2011 and has determined that no other-than-temporary market value
impairment exists.
|
Comprehensive Income
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income |
Comprehensive
income for the three and six months ended June 30, 2011 and 2010
was as follows:
The
components of accumulated other comprehensive loss as recorded on
the accompanying balance sheets were as follows:
|
Equity
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity |
A
reconciliation of the Company’s equity for the six months
ended June 30, 2011 follows:
During the first half of 2011, the Company
repurchased 50,588 shares of its common stock at a total cost of
$1.2 million through its stock repurchase program and 400,319
shares at a total cost of $9.0 million in a private
transaction. The Company currently has 1,233,965 shares
available under its previously announced buyback
program.
|
Short-Term Borrowings
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
|||
Short-Term Borrowings |
The
Company has a $50.0 million unsecured revolving line of
credit. At June 30, 2011, the Company had $25.0 million of
non-rated commercial paper outstanding on the facility at an
average interest rate of 1.44% plus an issuance fee of 25 basis
points and $11.0 million of bank borrowings outstanding at an
average interest rate of 1.9%. The Company’s borrowing
facility includes one financial covenant that specifies a minimum
level of net worth. The Company was in compliance with the
covenant at June 30, 2011. The facility expired on April 30,
2011, and was renewed for another term that expires April 30,
2012. Effective July 22, 2011, the interest rate on bank
borrowings was changed to LIBOR plus 75 basis points, which is
currently approximately 0.95%.
|
Acquisitions
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions |
Bogs acquisition
On
March 2, 2011, the Company acquired 100% of the outstanding shares
of The Combs Company (“Bogs”) from its former
shareholders for $29.3 million in cash plus debt assumed of $3.8
million and contingent payments after two and five years, dependent
on Bogs achieving certain performance measures. In accordance
with the agreement, $2.0 million of the cash portion of the
purchase price was held back to be used to help satisfy any claims
of indemnification by the Company, and any amounts not used
therefore, will be paid to the seller 18 months from the date of
acquisition. At the acquisition date, the Company
preliminarily estimated the fair value of the two contingent
payments to be approximately $9.8 million in the aggregate.
Bogs designs and markets boots, shoes and sandals for men, women
and children, under the BOGS and Rafters brand names. Its
products are sold across the agricultural, industrial, outdoor
specialty, outdoor sport, lifestyle and fashion markets. Bogs
sales for its most recent fiscal year were approximately $27
million.
The
acquisition was funded with available cash and short-term
borrowings under the Company’s $50 million borrowing
facility.
The
acquisition of Bogs has been accounted for in these financial
statements as a business combination under Accounting Standards
Codification (“ASC”) 805, Business Combinations
(“ASC 805”). Under ASC 805, the total purchase
price is allocated to tangible and intangible assets acquired and
liabilities assumed based on their respective fair values at the
acquisition date. The determination of fair values requires
an extensive use of estimates and judgments, and accordingly, the
allocation in the table below is preliminary and will be adjusted
upon completion of the final valuation of the assets acquired and
liabilities assumed. Such adjustments could be
significant. The final valuation is expected to be completed
as soon as practicable but no later than 12 months after the
closing date of the acquisition.
The
Company’s preliminary allocation of the purchase price as of
June 30, 2011 is as follows (dollars in thousands):
Other
intangible assets consist of customer relationships and a
non-compete agreement. Goodwill reflects the excess purchase
price over the fair value of net assets, and has been assigned to
the North American wholesale segment. All of the goodwill is
expected to be deductible for tax purposes. For more
information on the intangible assets acquired, see Note
5.
The
Company has recorded the estimated fair value of the contingent
payments at the acquisition date, of $9.8 million, within other
long-term liabilities on the Company’s Consolidated Balance
Sheets. The estimated fair value of the contingent payments
was based on a probability-weighted model, and is subject to
change. Any changes within the 12 months following the
acquisition date that relate to factors that existed at the
acquisition date will be reflected within the final valuation of
the purchase price. Any changes thereafter will be recognized
in earnings. A change in the fair value of the contingent
payments could have a material effect on the Company’s
earnings and financial position. The fair value measurement
is based on significant inputs not observed in the market and thus
represents a level 3 valuation as defined by ASC 820, Fair Value Measurements and
Disclosures (“ASC 820”).
The
operating results of Bogs for the period March 2 through June 30,
2011 have been consolidated into the Company’s North American
wholesale operations in 2011. For the second quarter and for
the period March 2 through June 30, 2011, net sales of Bogs were
approximately $2.6 million and $4.9 million, respectively.
The Company incurred transaction costs of approximately $220,000 in
2011. These costs are included in wholesale selling and
administrative expenses.
Pro Forma Results of Operations
The
following unaudited pro forma results of operations assume that the
Company acquired Bogs on January 1, 2011 and 2010,
respectively. The unaudited pro forma results include
adjustments to reflect additional amortization of intangible
assets, interest expense and a corresponding estimate of the
provision for income taxes.
The
unaudited pro forma information presented above is not necessarily
indicative of either the results of operations that would have
occurred had the acquisition of Bogs been effective on January 1,
2011 or 2010, respectively, or of the Company’s future
results of operations.
Umi acquisition
On
April 28, 2010, the Company acquired certain assets, including the
Umi brand name, intellectual property and accounts receivable, from
Umi LLC, a children’s footwear company, for an aggregate
price of approximately $2.6 million. The acquisition has been
accounted for in these financial statements as a business
combination under ASC 805. The Company allocated the purchase
price to accounts receivable, trademarks and other assets.
The operating results of Umi have been consolidated into the
Company’s North American wholesale segment since the date of
acquisition. Accordingly, the Company’s 2011 results
included Umi’s operations from January 1 through June 30,
2011, while 2010 only included Umi for the period April 28 through
June 30, 2011. Additional disclosures required by ASC 805
have not been provided as the Umi acquisition was not material to
the Company’s financial statements.
|
Intangible Assets
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets |
The
Company’s amortized and unamortized intangible assets as
recorded in the accompanying balance sheets consisted
of:
The
Company’s amortized intangible assets are included within
other assets on the Company’s Consolidated Balance
Sheets. The change in the carrying amount of goodwill and
other intangible assets is due to the Bogs acquisition on March 2,
2011. See Note 2. The indefinite-lived assets and
goodwill will be evaluated for impairment at least annually and
more often when events indicate that impairment
exists.
Excluding
the impact of any future acquisitions, the Company anticipates
amortization expense to be approximately $228,000 in 2011 and
$273,000 annually in the years 2012 through 2015.
|
Segment Information
|
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Jun. 30, 2011
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Segment Information |
The
Company has two reportable segments: North American wholesale
operations (“wholesale”) and North American retail
operations (“retail”). The chief operating
decision maker, the Company’s Chief Executive Officer,
evaluates the performance of its segments based on earnings from
operations and accordingly, interest income, interest expense and
other income and expense are not allocated to the segments.
The “other” category in the table below includes the
Company’s wholesale and retail operations in Australia, South
Africa, Asia Pacific and Europe, which do not meet the criteria for
separate reportable segment classification. Summarized
segment data for the three and six months ended June 30, 2011 and
2010 was:
Total
assets in the North American wholesale segment were $222.2 million
at June 30, 2011 and $189.8 million at December 31, 2010. The
increase was primarily due to the Bogs acquisition on March 2,
2011. See Note 2.
|
Employee Retirement Plans
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
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Employee Retirement Plans |
The
components of the Company’s net pension expense
were:
|
Financial Statements
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
|
|||
Financial Statements |
In
the opinion of management, the accompanying unaudited consolidated
condensed financial statements contain all adjustments necessary to
present fairly the financial position, results of operations and
cash flows for the periods presented. The results of operations for
the three and six months ended June 30, 2011 are not necessarily
indicative of the results for the full year.
|
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|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
The
following table sets forth the computation of earnings per share
and diluted earnings
per share:
Diluted
weighted average shares outstanding for the three and six months
ended June 30, 2011 excluded outstanding options to purchase
460,675 shares of common stock at a weighted average price of
$26.80, as they were antidilutive. Diluted weighted
average shares outstanding for the three and six months ended June
30, 2010 excluded outstanding options to purchase 284,050 shares of
common stock at a weighted average price of $28.46, as they were
antidilutive.
|