03.08.07

3.8.2007: Meldung: Timberland Reports Q2 Results

The Timberland Company today reported a second-quarter net loss of $19.2 million and a loss per share (EPS) of ($0.31). These results compare to a second-quarter 2006 net loss of $16.6 million, and EPS of ($0.26). Second-quarter net loss was $18.6 million and EPS was ($0.30) when adjusted to exclude restructuring costs principally related to globally restructuring its organization around key consumer groups.

* Second quarter revenue of $224.1 million was down 1.1% compared to the prior year as gains in the casual footwear business and in Timberland PRO® series were offset by anticipated declines in the boots and kids" businesses as well as declines in the apparel business. Foreign exchange rate changes increased second quarter revenues by $4.3 million, or 1.9%.
* International revenue grew 7.5%, or 3.4% on a constant dollar basis, supported by growth in the casual footwear and outdoor businesses which offset declines in the apparel business. U.S. revenues decreased 8.5%, due to the anticipated declines in boots and kids" sales as well as declines in the apparel business which offset strong growth in Timberland PRO® series footwear and gains in SmartWool® brand apparel and accessories.
* Second-quarter results reflected global gains in the casual footwear, SmartWool® and Timberland PRO® series businesses. Global footwear revenues of $154.5 million were up 2.5% compared to the prior year period as strong gains in casual footwear and in Timberland PRO® series offset anticipated declines in boots and kids", which were impacted in part by proactive steps to maintain a premium brand positioning through the Company"s strategy to restrict sales of the iconic boot product. Apparel and accessories revenue decreased 7.0% to $66.5 million driven by declines in Timberland® apparel, which were partially offset by strong growth in SmartWool.
* Global wholesale revenue decreased by 3.3% to $150.9 million. Worldwide consumer direct revenue increased 3.8% to $73.2 million reflecting strong sales in Asia and gains in foreign currency. Overall, global comparable store sales declined 6.2% reflecting decreases in the U.S., Europe and Asia.
* The operating loss for the quarter was $31.5 million, compared to a loss of $20.2 million in the prior year period. The operating loss excluding the above noted restructuring costs was $30.5 million. These results were consistent with the Company"s performance expectations, reflecting anticipated gross profit pressures from higher levels of off-price sales and markdowns as well as increased product costs, including approximately $1 million related to the final implementation of European Union duties. For the quarter, foreign exchange rate changes reduced the operating loss by approximately $0.6 million.
* Timberland ended the quarter with $97.5 million in cash and no debt outstanding. In the second quarter, the Company was unable to enter into new share repurchase agreements as a result of the restatement process that it undertook in the first quarter of 2007. Timberland currently has 3.2 million shares remaining under existing share repurchase authorizations.
* The Company continues to expect significant sales declines in boots and kids" sales in 2007, likely in the range of $100 million globally, which will offset strong gains in other parts of the portfolio, and believes that full year revenue will likely decline by low-single digits compared to the prior year. Lower boots and kids" sales, higher levels of promotional activity, and increased product costs will place continued pressure on operating margins, with expectations for full-year declines in the range of 350 basis points compared to prior-year levels excluding restructuring costs.
* Timberland anticipates that these impacts will be greater in the third quarter, with relatively improved performance in the fourth quarter. For the third quarter, Timberland anticipates revenue declines in the mid to high single digit range compared to the prior year. For the fourth quarter, it is targeting relatively flat revenues and operating margin, due in part to benefits from cost savings actions implemented for the second half of the year.

Jeffrey B. Swartz, Timberland"s President and Chief Executive Officer, stated, "We are focused on continuing to put into action key components of our long-term strategy to build the Timberland® brand and enterprise. Our product development efforts focused on key consumer segments are enabling us to create more relevant products that better reflect the needs of our key consumer groups. At the same time, we are working to drive better returns for our shareholders and improve the efficiency of our entire organization to deliver against our long-term objectives for strong revenue growth and a 15% operating margin."

Note that comments made by the Company and Mr. Swartz are Timberland"s performance targets, based on current expectations. These comments are forward-looking, and actual results may differ materially.

As previously announced, Timberland will be hosting a conference call to discuss second quarter results today at 8:25 AM Eastern Time. Interested parties may listen to this call through the investor relations section of the Company"s website, www.timberland.com, or by calling 617-614-3472 and providing access code number 93228986. Replays of this conference call will be available through the investor relations section of the Company"s website.

Timberland (NYSE: TBL - News) is a global leader in the design, engineering and marketing of premium-quality footwear, apparel and accessories for consumers who value the outdoors and their time in it. Timberland markets products under the Timberland®, Timberland PRO®, SmartWool®, Timberland Boot Company(TM), Mion®, GoLite® Howies® and IPATH® brands, all of which offer quality workmanship and detailing and are built to withstand the elements of nature. The Company"s products can be found in leading department and specialty stores as well as Timberland® retail stores throughout North America, Europe, Asia, Latin America, South Africa and the Middle East. More information about Timberland is available in the Company"s reports filed with the Securities and Exchange Commission (SEC).

This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which include statements regarding The Timberland Company"s future financial results, are subject to risks, uncertainties and assumptions and are not guarantees of future financial performance or expected benefits. These risks, uncertainties and assumptions could cause the results of The Timberland Company to be materially different from any future results or expected benefits expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, but are not limited to: (i) the Company"s ability to successfully market and sell its products in a highly competitive industry and in view of changing consumer trends, consumer acceptance of products and other factors affecting retail market conditions; (ii) the Company"s ability to profitably sell certain footwear products in European Member States in light of anti-dumping duties and measures imposed by the European Commission with respect to leather footwear imported from China and Vietnam; (iii) Timberland"s ability to procure a majority of its products from independent manufacturers; (iv) changes in foreign exchange rates; (v) Timberland"s ability to obtain adequate materials at competitive prices; and (vi) other factors, including those detailed from time to time in The Timberland Company"s filings made with the SEC. The Timberland Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

This press release also includes discussion of constant dollar revenue changes and operating loss, net loss and diluted EPS excluding restructuring and related costs, which are non-GAAP measures. As required by SEC rules, the Company has provided reconciliations of these measures on attached tables that follow its financial statements. Additional required information is located in the Form 8-K furnished to the SEC on August 2, 2007.

THE TIMBERLAND COMPANY
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)

June 29, December 31, June 30, 2006
2007 2006 (As Restated)
------------ --------------- -----------------

Assets
Current assets
Cash and equivalents $ 97,530 $181,698 $108,065
Accounts receivable,
net 134,776 204,016 125,719
Inventory 215,881 186,765 210,963
Prepaid expense 53,205 42,130 46,128
Prepaid income taxes 28,015 12,353 51
Deferred income taxes 15,431 21,633 16,712
Derivative assets 153 176 186
------------ --------------- -----------------
Total current assets 554,991 648,771 507,824
------------ --------------- -----------------

Property, plant and
equipment, net 91,961 94,640 83,225

Deferred income taxes 21,674 18,553 3,752

Goodwill and intangible
assets, net 99,798 87,582 81,103

Other assets, net 12,816 10,831 11,926
------------ --------------- -----------------

Total assets $771,240 $860,377 $687,830
============ =============== =================

Liabilities and
Stockholders" Equity
Current liabilities
Accounts payable $ 80,604 $110,031 $ 92,286
Accrued expense and
other current
liabilities 89,476 122,734 77,131
Income taxes payable 884 49,938 -
Derivative
liabilities 2,890 2,925 5,000
------------ --------------- -----------------
Total current
liabilities 173,854 285,628 174,417
------------ --------------- -----------------

Deferred compensation
and other long-term
liabilities 41,413 13,064 13,400

Stockholders" equity 555,973 561,685 500,013
------------ --------------- -----------------

Total liabilities and
stockholders" equity $771,240 $860,377 $687,830
============ =============== =================

THE TIMBERLAND COMPANY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Per Share Data)

For the Quarter For the Six Months
Ended Ended
-------------------- --------------------
June 30, June 30,
2006 2006
June 29, (As June 29, (As
2007 Restated) 2007 Restated)
-------- ----------- --------- ----------
Revenue $224,126 $226,605 $560,455 $576,416
Cost of goods sold 124,959 123,854 299,709 299,735
-------- ----------- --------- ----------

Gross profit 99,167 102,751 260,746 276,681
-------- ----------- --------- ----------

Operating expense
Selling 99,547 95,119 209,630 199,868
General and administrative 30,091 27,376 61,442 56,010
Restructuring costs 988 431 7,514 912
-------- ----------- --------- ----------
Total operating expense 130,626 122,926 278,586 256,790
-------- ----------- --------- ----------

Operating income/(loss) (31,459) (20,175 ) (17,840 ) 19,891
-------- ----------- --------- ----------

Other income
Interest income, net 666 666 1,796 1,771
Other income/(expense), net 1,441 (6,382 ) 818 (6,953)
-------- ----------- --------- ----------
Total other
income/(expense) 2,107 (5,716 ) 2,614 (5,182)
-------- ----------- --------- ----------

Income/(loss) before
provision/(benefit) for
income taxes (29,352) (25,891 ) (15,226 ) 14,709

Provision/(benefit) for
income taxes (10,126) (9,269 ) (5,253 ) 5,266
-------- ----------- --------- ----------

Net income/(loss) $(19,226) $(16,622 )$( 9,973 ) $ 9,443
======== =========== ========= ==========

Earnings/(loss) per share
Basic $ (.31) $ (.26) $ (.16) $ .15
Diluted $ (.31) $ (.26) $ (.16) $ .15

Weighted-average shares
outstanding
Basic 61,473 63,035 61,288 63,308
Diluted 61,473 63,035 61,288 64,566

THE TIMBERLAND COMPANY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)

For the Six Months
Ended
-------------------
June 30,
2006
June 29, (As
2007 Restated)
-------- ----------
Cash flows from operating activities:
Net income/(loss) $( 9,973) $ 9,443
Adjustments to reconcile net income/(loss) to
net cash used by operating activities:
Deferred income taxes 3,080 8,515
Share-based compensation 4,458 10,154
Depreciation and other amortization 15,634 13,309
Tax benefit from share-based compensation, net
of excess benefit 608 1,494
Unrealized (gain)/loss on derivatives (12) 10,858
Non-cash charges/(credits), net (1,695) (2,269)
Increase/(decrease) in cash from changes in
working capital:
Accounts receivable 71,005 47,979
Inventory (28,512) (42,415)
Prepaid expense (10,069) (11,328)
Accounts payable (29,520) (6,136)
Accrued expense (33,032) (27,749)
Income taxes prepaid and payable, net (39,389) (47,465)
-------- ----------
Net cash used by operating activities (57,417) (35,610)
-------- ----------

Cash flows from investing activities:
Acquisition of business, net of cash acquired (12,813) (30)
Additions to property, plant and equipment (11,601) (12,613)
Other (1,303) (3,655)
-------- ----------
Net cash used by investing activities (25,717) (16,298)
-------- ----------

Cash flows from financing activities:
Common stock repurchases (13,527) (69,919)
Issuance of common stock 11,693 12,128
Excess tax benefit from share-based compensation 1,071 2,305
-------- ----------
Net cash used by financing activities (763) (55,486)
-------- ----------

-------- ----------
Effect of exchange rate changes on cash and
equivalents (271) 2,296
-------- ----------

Net decrease in cash and equivalents (84,168) (105,098)
Cash and equivalents at beginning of period 181,698 213,163
-------- ----------
Cash and equivalents at end of period $ 97,530 $ 108,065
======== ==========

THE TIMBERLAND COMPANY
UNAUDITED REVENUE ANALYSIS
(Amounts in Thousands)

For the Quarter Ended For the Six Months Ended
-------------------------- ---------------------------
June 29, June 30, June 29, June 30,
2007 2006 Change 2007 2006 Change
--------- --------- ------ --------- ---------- ------
Revenue by
Segment:
U.S.
Wholesale $ 78,541 $ 88,216 -11.0% $183,756 $215,572 -14.8%
U.S. Consumer
Direct 32,557 33,239 -2.1% 66,548 66,299 0.4%
--------- --------- --------- ----------
Total U.S. 111,098 121,455 -8.5% 250,304 281,871 -11.2%

International $113,028 $105,150 7.5% $310,151 $294,545 5.3%

Revenue by
Product:
Footwear $154,511 $150,764 2.5% $390,148 $404,712 -3.6%
Apparel and
Accessories 66,503 71,527 -7.0% 161,909 162,927 -0.6%
Royalty and
Other 3,112 4,314 -27.9% 8,398 8,777 -4.3%

Revenue by
Channel:
Wholesale $150,912 $156,072 -3.3% $409,949 $435,634 -5.9%
Consumer
Direct 73,214 70,533 3.8% 150,506 140,782 6.9%

Comparable
Store Sales:
Domestic
Retail -4.2% -6.6% -1.2% -9.8%
Global Retail -6.2% -5.6% -3.8% -8.2%

THE TIMBERLAND COMPANY

UNAUDITED RECONCILIATION OF TOTAL AND INTERNATIONAL REVENUE INCREASES/(DECREASES) TO CONSTANT DOLLAR REVENUE INCREASES/(DECREASES)

(Amounts in Thousands)

Total Company Revenue Reconciliation:

For the Quarter For the Six
Ended Months Ended
June 29, 2007 June 29, 2007
----------------- ------------------
$Change % Change $Change % Change
----------------- ------------------
Revenue decrease (GAAP) $(2,479) -1.1% $(15,961) -2.8%
Increase due to foreign exchange
rate changes 4,329 1.9% 16,119 2.8%
----------------- ------------------
Revenue decrease in constant
dollars $(6,808) -3.0% $(32,080) -5.6%

International Revenue Reconciliation:

For the Quarter For the Six
Ended June 29, Months Ended
2007 June 29, 2007
----------------- -----------------
$Change % Change $Change % Change
------- --------- -----------------
Revenue increase (GAAP) $ 7,878 7.5% $15,606 5.3%
Increase due to foreign exchange
rate changes 4,329 4.1% 16,119 5.5%
------- --------- -----------------
Revenue increase/(decrease) in
constant dollars $ 3,549 3.4% $ ( 513) -0.2%

THE TIMBERLAND COMPANY
UNAUDITED RECONCILIATION OF DILUTED EPS TO
DILUTED EPS EXCLUDING RESTRUCTURING AND RELATED COSTS

For the For the
Quarter Quarter
Ended Ended
June June
29, 30,
2007 2006
--------- ---------
Diluted EPS (GAAP) $(.31) $(.26)
Per share impact of restructuring and related costs .01 -
--------- ---------
Diluted EPS excluding restructuring and related
costs $(.30) $(.26)
========= =========

UNAUDITED RECONCILIATION OF NET LOSS TO
NET LOSS EXCLUDING RESTRUCTURING AND RELATED COSTS
(Dollars in Thousands)

For the For the
Quarter Quarter
Ended Ended
June June
29, 30,
2007 2006
--------- ---------
Net loss (GAAP) $(19,226) $(16,622)
Restructuring and related costs, net of tax 647 277
--------- ---------
Net loss excluding restructuring and related costs $(18,579) $(16,345)
========= =========

UNAUDITED RECONCILIATION OF OPERATING LOSS TO
OPERATING LOSS EXCLUDING RESTRUCTURING AND RELATED COSTS
(Dollars in Thousands)

For the For the
Quarter Quarter
Ended Ended
June June
29, 30,
2007 2006
--------- ---------
Operating loss (GAAP) $(31,459) $(20,175)
Restructuring and related costs 988 431
--------- ---------
Operating loss excluding restructuring and related
costs $(30,471) $(19,744)
========= =========


Contact:

The Timberland Company
Karen Blomquist, 603-773-1212
Senior Manager, Investor Relations
Nach oben scrollen
ECOreporter Journalistenpreise
Anmelden
x