Steve Madden Announces Third Quarter 2016 Results
For the Third Quarter 2016:
-
Net sales decreased 1.2% to
$408.4 million compared to$413.5 million in the same period of 2015. - Gross margin expanded 180 basis points to 37.8% as compared to 36.0% in the same period last year.
- Operating expenses as a percentage of sales were 23.5% compared to 21.6% of sales in the same period of 2015.
-
Operating income totaled
$63.8 million , or 15.6% of net sales, compared with operating income of$66.3 million , or 16.0% of net sales, in the same period of 2015. -
Net income was
$43.8 million , or$0.74 per diluted share, compared to$42.9 million , or$0.70 per diluted share, in the prior year's third quarter.
Third Quarter 2016 Segment Results
Net sales for the wholesale business were
Retail net sales in the third quarter were
During the third quarter, the Company opened four full price stores and three outlet locations, and closed one full price store. The Company ended the quarter with 186 company-operated retail locations, including four Internet stores.
The effective tax rate for the third quarter of 2016 was 32.3% compared to 34.1% in the third quarter of the prior year.
Balance Sheet and Cash Flow
During the third quarter of 2016, the Company repurchased 736,730 shares
of the Company’s common stock for approximately
As of
Company Outlook
For fiscal year 2016, the Company continues to expect that net sales
will increase 0% to 1% over net sales in 2015. Diluted EPS for fiscal
year 2016 is now expected to be in the range of
Conference Call Information
Interested stockholders are invited to listen to the third quarter
earnings conference call scheduled for today,
About
Safe Harbor
This press release and oral statements made from time to time by
representatives of the Company contain certain “forward looking
statements” as that term is defined in the federal securities laws. The
events described in forward looking statements may not occur. Generally,
these statements relate to business plans or strategies, projected or
anticipated benefits or other consequences of the Company's plans or
strategies, projected or anticipated benefits from acquisitions to be
made by the Company, or projections involving anticipated revenues,
earnings or other aspects of the Company's operating results. The words
"may," "will," "expect," "believe," "anticipate," "project," "plan,"
"intend," "estimate," and "continue," and their opposites and similar
expressions are intended to identify forward looking statements. The
Company cautions you that these statements concern current expectations
about the Company’s future results and condition and are not guarantees
of future performance or events and are subject to a number of
uncertainties, risks and other influences, many of which are beyond the
Company's control, that may influence the accuracy of the statements and
the projections upon which the statements are based. Factors which may
affect the Company's results include, but are not limited to, the risks
and uncertainties discussed in the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed
with the
STEVEN MADDEN, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS DATA (In thousands, except per share amounts) Unaudited |
|||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||
Net sales | $ | 408,384 | $ | 413,462 | $ | 1,063,143 | $ | 1,060,989 | |||||||||
Cost of sales | 253,876 | 264,691 | 671,388 | 684,694 | |||||||||||||
Gross profit | 154,508 | 148,771 | 391,755 | 376,295 | |||||||||||||
Commission and licensing fee income, net | 5,358 | 6,643 | 10,355 | 13,689 | |||||||||||||
Operating expenses | 96,100 | 89,130 | 272,574 | 253,991 | |||||||||||||
Impairment charge | - | - | - | 3,045 | |||||||||||||
Income from operations | 63,766 | 66,284 | 129,536 | 132,948 | |||||||||||||
Interest and other income, net | 747 | (895 | ) | 1,117 | 273 | ||||||||||||
Income before provision for income taxes | 64,513 | 65,389 | 130,653 | 133,221 | |||||||||||||
Provision for income taxes | 20,810 | 22,298 | 38,212 | 45,428 | |||||||||||||
Net income | 43,703 | 43,091 | 92,441 | 87,793 | |||||||||||||
Net income attributable to noncontrolling interest | (64 | ) | 206 | 278 | 578 | ||||||||||||
Net income attributable to Steven Madden, Ltd. | $ | 43,767 | $ | 42,885 | $ | 92,163 | $ | 87,215 | |||||||||
Basic income per share | $ | 0.77 | $ | 0.73 | $ | 1.61 | $ | 1.47 | |||||||||
Diluted income per share | $ | 0.74 | $ | 0.70 | $ | 1.54 | $ | 1.42 | |||||||||
Basic weighted average common shares outstanding |
56,869 | 58,911 | 57,334 | 59,271 | |||||||||||||
Diluted weighted average common shares outstanding |
59,329 | 61,060 | 59,772 | 61,516 |
STEVEN MADDEN, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET DATA (In thousands) |
|||||||||||
As of | |||||||||||
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
(Unaudited) | (Unaudited) | ||||||||||
Cash and cash equivalents | $ | 62,723 | $ | 72,414 | $ | 38,654 | |||||
Marketable securities (current & non current) | 120,737 | 120,889 | 112,539 | ||||||||
Accounts receivables, net | 269,853 | 198,384 | 284,835 | ||||||||
Inventories | 111,952 | 102,080 | 123,768 | ||||||||
Other current assets | 45,426 | 52,517 | 37,965 | ||||||||
Property and equipment, net | 74,382 | 72,010 | 71,162 | ||||||||
Goodwill and intangibles, net | 282,920 | 286,855 | 291,269 | ||||||||
Other assets | 8,375 | 9,236 | 9,693 | ||||||||
Total assets | $ | 976,368 | $ | 914,385 | $ | 969,885 | |||||
Accounts payable | $ | 102,095 | $ | 79,790 | $ | 130,556 | |||||
Contingent payment liability (current & non current) | 16,682 | 24,775 | 33,179 | ||||||||
Other current liabilities | 78,994 | 78,246 | 90,480 | ||||||||
Other long term liabilities | 54,957 | 52,911 | 30,408 | ||||||||
Total Steven Madden, Ltd. stockholders' equity | 723,363 | 678,404 | 684,887 | ||||||||
Noncontrolling interest | 277 | 259 | 375 | ||||||||
Total liabilities and stockholders' equity | $ | 976,368 | $ | 914,385 | $ | 969,885 |
STEVEN MADDEN, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED CASH FLOW DATA (In thousands) Unaudited |
||||||||||
Nine Months Ended | ||||||||||
September 30, 2016 | September 30, 2015 | |||||||||
Net cash provided by operating activities | $ | 73,470 | $ | 50,148 | ||||||
Investing Activities |
||||||||||
Purchases of property and equipment | (12,908 | ) | (13,524 | ) | ||||||
Acquisitions, net of cash acquired | - | (9,129 | ) | |||||||
Sales of marketable securities, net | 2,736 | 4,627 | ||||||||
Repayment of notes receivable | 249 | 342 | ||||||||
Net cash used in investing activities | (9,923 | ) | (17,684 | ) | ||||||
Financing Activities |
||||||||||
Common stock share repurchases for treasury | (66,394 | ) | (103,892 | ) | ||||||
Purchase of noncontrolling interest | (3,665 | ) | - | |||||||
Payment of contingent liability | (8,048 | ) | (2,950 | ) | ||||||
Proceeds from exercise of stock options | 4,869 | 21,154 | ||||||||
Tax benefit from the exercise of stock options | - | 10,428 | ||||||||
Net cash used in financing activities | (73,238 | ) | (75,260 | ) | ||||||
Net (decrease) in cash and cash equivalents | (9,691 | ) | (42,796 | ) | ||||||
Cash and cash equivalents - beginning of period | 72,414 | 81,450 | ||||||||
Cash and cash equivalents - end of period | $ | 62,723 | $ | 38,654 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20161101005463/en/
Source:
ICR, Inc.
Investor Relations
Jean Fontana/Megan Crudele
203-682-8200
www.icrinc.com