UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 30, 2012
LaCROSSE FOOTWEAR, INC.
(Exact name of registrant as specified in its charter)
| Wisconsin | 0-23800 | 39-1446816 | ||
| (State or other jurisdiction of incorporation) |
(Commission file number) |
(IRS employer identification number) |
17634 NE Airport Way, Portland, Oregon 97230
(Address of principal executive offices, including zip code)
(503) 262-0110
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 Results of Operations and Financial Condition.
On February 2, 2012, LaCrosse Footwear, Inc. issued a press release entitled “LACROSSE FOOTWEAR REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2011” regarding its condensed consolidated financial results for the fourth quarter and year ended 2011. A copy of the press release is furnished herewith as Exhibit 99.1.
ITEM 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Ross M. Vonhoff resigned his position as Senior Vice President of Operations for LaCrosse Footwear, Inc. effective January 30, 2012.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | LaCrosse Footwear, Inc. Press Release dated February 2, 2012, entitled “LACROSSE FOOTWEAR REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2011”. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned thereunto duly authorized.
| LaCROSSE FOOTWEAR, INC. | ||||||
| Dated: February 2, 2012 | By: | /s/ David P. Carlson | ||||
| David P. Carlson | ||||||
| Executive Vice President and Chief Financial Officer | ||||||
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | LaCrosse Footwear, Inc. Press Release dated February 2, 2012, entitled “LACROSSE FOOTWEAR REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2011”. | |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contacts:
| David Carlson Executive Vice President and Chief Financial Officer LaCrosse Footwear, Inc. 503-262-0110 ext. 1331 |
Michael Newman Investor Relations StreetConnect, Inc. 800-654-3517 BOOT@stct.com |
LACROSSE FOOTWEAR REPORTS RESULTS FOR THE
FOURTH QUARTER AND FULL YEAR 2011
Strong Growth in Core Work Products; Growing Direct and International Channels
Maintaining Profitability and Investing in Future Growth
Portland, Ore.—February 2, 2012—LaCrosse Footwear, Inc. (Nasdaq: BOOT), a leading provider of premium, branded footwear for work and outdoor users, today reported results for the fourth quarter and year ended December 31, 2011.
For the fourth quarter of 2011, LaCrosse reported net sales of $43.8 million, compared to $52.1 million in the same period of 2010. For the full year 2011, net sales were $131.3 million, compared to $150.5 million in 2010.
Net income was $2.2 million or $0.33 per diluted share in the fourth quarter of 2011, compared to $4.0 million or $0.60 per diluted share in the same period of 2010. For the full year 2011, net income was $3.0 million or $0.45 per diluted share, compared to $6.9 million or $1.04 per diluted share in 2010.
Sales to the work market were $27.1 million for the fourth quarter and $76.9 million for the full year of 2011, down 13% and 19%, respectively, from the same periods of 2010. The decrease in work sales primarily reflects a reduction of contract delivery orders to the U.S. military and the Company’s discontinuation of its work apparel products. Excluding its contract military and work apparel sales, the Company’s core work sales for the fourth quarter and full of 2011 increased 10% and 13%, respectively, compared to the same periods in 2010.
Sales to the outdoor market were $16.7 million for the fourth quarter and $54.5 million for the full year of 2011, down 20% and 2%, respectively, from the same periods of 2010. The decrease in outdoor sales reflects a cautious retail environment and unfavorable weather conditions during the second half of 2011, partially offset by stronger demand for the Company’s new hiking boots.
Gross margins were 37.4% of net sales for the fourth quarter and 39.0% for the full year 2011, compared to 39.3% for both the fourth quarter and the full year in 2010. The year-over-year decline in fourth quarter gross margins primarily reflects an increase in close-out sales.
For the fourth quarter of 2011, the Company reduced operating expenses by approximately $1.4 million or 10% from the same period in 2010, despite increased investments in product development and marketing activities.
The Company maintained a strong balance sheet while making significant investments in its operations and preparedness for future growth. During 2011, the Company made capital investments of $4.0 million and distributed dividends of $3.3 million to shareholders. As expected, the Company reduced its inventory in the fourth quarter of 2011 by $9.3 million from the third quarter in order to bring inventory levels in line with seasonal demand. In connection with the decline in inventory, short term debt declined $8.8 million during the fourth quarter of 2011.
“While 2011 was a challenging year, we penetrated into niche work and outdoor markets, remained profitable and took important steps to improve the long-term efficiency and strength of our business,” said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. “Our revenue was impacted by fluctuations in our contract military business throughout the year and unfavorably warm and dry weather in the second half of the year. At the same time, we had strong growth in sales of our new hiking boots and our core work boots, particularly in such market segments as mining, oil and gas exploration, and agriculture. We also continued to see strong growth through our direct and international channels.
“As we move into 2012, our relationships with major retailers continue to strengthen and we expect to continue to see strong growth in our direct and international channels. During 2012, we plan to introduce a significant number of new products, including innovative outdoor products, tactical law enforcement boots and an exciting women’s lifestyle product line. While we expect continued quarter-to-quarter fluctuations in our contract military business, we have structured our operating model to improve profitability with or without the upside of future military contracts. We believe LaCrosse is well-positioned to continue to capture market share and grow profitably over the long term.”
Based on the Company’s financial position, the Board of Directors today announced the approval of a quarterly dividend of $0.125 per share of common stock. The first quarter dividend will be paid on March 18, 2012 to shareholders of record as of the close of business on February 22, 2012. The Board of Directors, while not declaring future dividends to be paid, has established a quarterly dividend policy reflecting its intent to declare and pay a quarterly dividend of $0.125 per share of common stock.
Fourth Quarter and Year End 2011 Conference Call
LaCrosse will host a conference call to discuss its financial results today, February 2, 2012 at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.lacrossefootwearinc.com under “Investor Events” or by calling 877-941-9205 or +1 480-629-9692. A 48-hour replay will be available by calling 800-406-7325 or +1 303-590-3030 (Access Code: 4503192).
About LaCrosse Footwear, Inc.
LaCrosse Footwear, Inc. is a leading developer and marketer of branded, premium and innovative footwear for work and outdoor users. The Company’s trusted Danner® and LaCrosse® brands are sold to a network of specialty retailers and distributors in North America, Canada, Europe and Asia. Work consumers include people in law enforcement, transportation, mining, oil and gas exploration and extraction, construction, Government services and other occupations that require high-performance and protective footwear as a critical tool for the job. Outdoor consumers include people active in hunting, outdoor cross-training, hiking and other outdoor recreational activities. For more information about LaCrosse Footwear products, please visit our Internet websites at www.lacrossefootwear.com and www.danner.com. For additional investor information, see our corporate website at www.lacrossefootwearinc.com.
Forward-Looking Statements
All statements, other than statements of historical facts, included in this release, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “plan,” “expect,” “aim,” “believe,” “project,” “target,” “anticipate,” “intend,” “estimate,” “will,” “should,” “could” and other terms of similar meaning, typically identify such forward-looking statements. Forward- looking statements include without limitation, statements regarding: the anticipated success of new products; the strength of our relationships with major retailers; expected total sales from our combined direct and international channels; anticipated fluctuations in revenues related to future contract military orders; anticipated future profitability; anticipated demand for our products; and the Board of Directors’ intent to declare and pay dividends in future periods. The forward-looking statements included in this release are based on certain assumptions and expectations of future events and trends that are subject to risks and uncertainties. Risk factors and other uncertainties which may adversely impact the outcome of such forward-looking statements, our financial position or our results of operations include the risk factors set forth in our 2010 Annual Report on Form 10-K, as supplemented by our quarterly reports on Form 10-Q for 2011. We assume no obligation to update or revise any forward-looking statements to reflect the occurrence or non-occurrence of future events or circumstances.
LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Income
(Amounts in thousands, except per share amounts)
(Unaudited)
| Quarter Ended | Year Ended | |||||||||||||||
| December 31, 2011 |
December 31, 2010 |
December 31, 2011 |
December 31, 2010 |
|||||||||||||
| Net sales |
$ | 43,827 | $ | 52,081 | $ | 131,321 | $ | 150,542 | ||||||||
| Cost of goods sold |
27,430 | 31,598 | 80,085 | 91,413 | ||||||||||||
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| Gross profit |
16,397 | 20,483 | 51,236 | 59,129 | ||||||||||||
| Operating expenses |
12,671 | 14,033 | 45,701 | 47,699 | ||||||||||||
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| Operating income |
3,726 | 6,450 | 5,535 | 11,430 | ||||||||||||
| Non-operating expense |
(287 | ) | (132 | ) | (720 | ) | (239 | ) | ||||||||
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| Income before income taxes |
3,439 | 6,318 | 4,815 | 11,191 | ||||||||||||
| Income tax provision |
1,274 | 2,345 | 1,815 | 4,310 | ||||||||||||
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| Net income |
$ | 2,165 | $ | 3,973 | $ | 3,000 | $ | 6,881 | ||||||||
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| Net income per common share: |
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| Basic |
$ | 0.33 | $ | 0.62 | $ | 0.46 | $ | 1.07 | ||||||||
| Diluted |
$ | 0.33 | $ | 0.60 | $ | 0.45 | $ | 1.04 | ||||||||
| Weighted average number of common shares outstanding: |
||||||||||||||||
| Basic |
6,504 | 6,456 | 6,499 | 6,429 | ||||||||||||
| Diluted |
6,602 | 6,610 | 6,639 | 6,590 | ||||||||||||
| Supplemental Product Line Information |
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| Work Market Sales |
$ | 27,110 | $ | 31,147 | $ | 76,858 | $ | 94,751 | ||||||||
| Outdoor Market Sales |
16,717 | 20,934 | 54,463 | 55,791 | ||||||||||||
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| $ | 43,827 | $ | 52,081 | $ | 131,321 | $ | 150,542 | |||||||||
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LaCrosse Footwear, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
| December 31, 2011 |
December 31, 2010 |
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| Assets: |
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| Current Assets: |
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| Cash and cash equivalents |
$ | 774 | $ | 4,274 | ||||
| Trade and other accounts receivable, net |
22,726 | 22,834 | ||||||
| Inventories |
48,648 | 40,071 | ||||||
| Prepaid expenses and other |
1,398 | 1,321 | ||||||
| Deferred tax assets |
1,771 | 1,614 | ||||||
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| Total current assets |
75,317 | 70,114 | ||||||
| Property and equipment, net |
16,143 | 16,154 | ||||||
| Goodwill |
10,753 | 10,753 | ||||||
| Other assets |
222 | 249 | ||||||
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| Total assets |
$ | 102,435 | $ | 97,270 | ||||
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| Liabilities and Shareholders’ Equity: |
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| Current Liabilities: |
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| Short-term borrowings |
$ | 16,869 | $ | — | ||||
| Accounts payable |
7,463 | 16,477 | ||||||
| Accrued compensation |
1,789 | 4,261 | ||||||
| Other accruals |
2,939 | 3,356 | ||||||
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| Total current liabilities |
29,060 | 24,094 | ||||||
| Long-term debt |
138 | 263 | ||||||
| Deferred revenue |
550 | 566 | ||||||
| Deferred lease obligations |
895 | 782 | ||||||
| Compensation and benefits |
7,214 | 4,385 | ||||||
| Deferred tax liabilities |
1,450 | 2,732 | ||||||
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| Total liabilities |
39,307 | 32,822 | ||||||
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| Total shareholders’ equity |
63,128 | 64,448 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 102,435 | $ | 97,270 | ||||
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LaCrosse Footwear, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
| December 31, 2011 |
December 31, 2010 |
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| Cash flows from operating activities: |
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| Net income |
$ | 3,000 | $ | 6,881 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
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| Depreciation and amortization |
3,685 | 3,016 | ||||||
| Stock-based compensation expense |
697 | 560 | ||||||
| Deferred income taxes |
6 | 433 | ||||||
| Loss on disposal of property and equipment |
171 | 64 | ||||||
| Changes in operating assets and liabilities: |
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| Trade and other accounts receivable |
95 | (1,241 | ) | |||||
| Inventories |
(8,695 | ) | (13,150 | ) | ||||
| Accounts payable |
(9,005 | ) | 8,120 | |||||
| Accrued expenses and other |
(3,728 | ) | 381 | |||||
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| Net cash provided by (used in) operating activities |
(13,774 | ) | 5,064 | |||||
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| Cash flows from investing activities: |
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| Purchases of property and equipment |
(3,955 | ) | (10,604 | ) | ||||
| Proceeds from sale of property and equipment |
3 | 1 | ||||||
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| Net cash used in investing activities |
(3,952 | ) | (10,603 | ) | ||||
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| Cash flows from financing activities: |
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| Net proceeds from short-term borrowings |
16,869 | — | ||||||
| Proceeds from long-term debt |
— | 300 | ||||||
| Cash dividends paid |
(3,251 | ) | (9,620 | ) | ||||
| Purchase of treasury stock |
— | (59 | ) | |||||
| Proceeds from exercise of stock options |
560 | 1,478 | ||||||
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| Net cash provided by (used in) financing activities |
14,178 | (7,901 | ) | |||||
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| Effect of foreign currency exchange rate changes on cash and cash equivalents |
48 | (25 | ) | |||||
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| Net decrease in cash and cash equivalents |
(3,500 | ) | (13,465 | ) | ||||
| Cash and cash equivalents: |
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| Beginning of period |
4,274 | 17,739 | ||||||
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| End of period |
$ | 774 | $ | 4,274 | ||||
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END OF FILING