Volcom Reports Financial Results For 2008 First Quarter
* First-Quarter Consolidated Revenues Increased 58.5% to $80.6 Million
* Net Income Increased 70.4% to $9.3 Million, Equal to $0.38 Per Diluted Share
* Company Raises Revenue and Earnings Guidance for 2008
Costa Mesa, CA – Volcom, Inc. (NASDAQ: VLCM) announced that total consolidated revenues for the first quarter ended March 31, 2008 increased 58.5% to $80.6 million, compared with $50.8 million in the first quarter of 2007.
“It has been an exciting start to the year with our first quarter exceeding our expectations in nearly all aspects of our business,” said Richard Woolcott, Volcom’s president and chief executive officer. “Given the current slow retail environment, we believe these results are a reflection of the power of the brand and our team’s relentless effort to maximize our opportunities in the U.S. and abroad.”
In the 2008 first quarter, gross profit as a percentage of total revenues on a consolidated basis was 52.4%, compared with 52.0% in the first quarter of 2007.
Operating income for the first quarter of 2008 increased 78.6% to $14.4 million, compared with $8.1 million for the first quarter of 2007. Operating margin for the first quarter of 2008 was 17.9%, compared with 15.9% in the first quarter of 2007.
Net income for the first quarter of 2008 increased 70.4% to $9.3 million, or $0.38 per diluted share, compared with $5.5 million, or $0.22 per diluted share for the first quarter of 2007.
2008 Financial Outlook
In casting its financial outlook for the second quarter and the full year, Volcom noted a continued overall soft retail environment. Additionally, the company said the strong consolidated results in the first quarter reflected, in part, a shift in planned product shipments from the 2008 second quarter to the first quarter. As such, for the current second quarter, the company anticipates total consolidated revenues of approximately $69 million to $70 million, representing an increase of approximately 20% to 21%. Fully diluted earnings per share are expected to be in the range of $0.16 to $0.17.
For the full year of 2008, Volcom has increased its financial outlook and now expects consolidated revenue of between $343 million to $347 million, from previously issued guidance of between $339 million to $344 million. This estimate includes the financial contribution from the acquisition of Electric Visual Evolution in January 2008, as well as a full year’s contribution from the company’s European operation, which was up and running at full capacity in the third quarter of 2007. Earnings per diluted share are expected to be in the range of $1.56 to $1.59, an increase from the previously issued guidance or between $1.50 and $1.53
About Volcom, Inc.
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 volcom.com.
Thursday, May 01st 2008 @ 07:59 AM.
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