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COSTA MESA, Calif.--(BUSINESS WIRE) --
Volcom, Inc. (NASDAQ:VLCM - News) today announced financial results for the first quarter ended March 31, 2010.
For the 2010 first quarter, total consolidated revenues were $77.4 million, compared with $68.3 million in the first quarter of 2009.
Total revenues in the company’s U.S. segment, which includes revenues from the U.S., Canada, Japan and most other international territories outside of Europe, as well as the company’s branded retail stores, were $48.2 million, compared with $42.4 million in the prior-year period. Total revenues in the company’s Europe segment were $23.6 million, compared with $21.7 million in the same period in 2009. Total revenues in the company’s Electric segment were $5.6 million, compared with $4.2 million in 2009.
“Our results for the quarter were stronger than we had anticipated, representing a solid start to the year and continued strength for both the Volcom and Electric brands,” said Richard Woolcott, Volcom’s chairman and chief executive officer.
“Combined with great product, focused marketing and solid distribution, we believe we are well positioned to capitalize on the many opportunities before us and pave the way for continued growth and success.”
Consolidated gross profit for the 2010 first quarter was $42.0 million, equal to 54.2% of total revenues, compared with $34.4 million, equal to 50.3% of total revenues, in the first quarter of 2009.
Selling, general and administrative expenses on a consolidated basis were $31.0 million in the 2010 first quarter versus $28.0 million in the comparable period in 2009.
Net income for the 2010 first quarter was $7.5 million, equal to $0.31 per diluted share, compared with $4.2 million, or $0.17 per diluted share, in the first quarter of 2009
At March 31, 2010 the company had cash, cash equivalents and short-term investments totaling $109 million, and no long-term debt.
2010 Second Quarter Financial Outlook
For the 2010 second quarter, the company currently expects total consolidated revenues of approximately $59 million to $62 million and per share amounts to range from a loss of $0.02 to earnings of $0.02.
Conference Call Information
The company will host a conference call today at approximately 4:30 p.m. ET to discuss its financial results and outlook in further detail. The conference call will be available to interested parties through a live audio Internet broadcast at www.volcom.com. A telephone playback of the conference call also will be available through 11:59 p.m. ET, Thursday, May 6. Listeners should call (877) 941-6009 (domestic) or (480) 629-9770 (international) and use reservation number 4282599.
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 www.volcom.com.
Safe Harbor Statement
Certain statements in this press release and oral statements made from time to time by representatives of the company are forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including statements in connection with or related to any discussion of or reference to Volcom’s future operations, opportunities or financial performance. In particular, statements regarding the company’s guidance and future financial performance contained under the section entitled 2010 Second Quarter Financial Outlook and Mr. Woolcott’s comments regarding the company being “well positioned to capitalize on the many opportunities before us” and his comments regarding “continued growth and success.”
These forward-looking statements are based on management’s current expectations but they involve a number of risks and uncertainties. Volcom’s actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of risks and uncertainties, including, without limitation, further softening of the retail environment, sales of our products by key retailers, including Pacific Sunwear and Zumiez, changes in fashion trends and consumer preferences, general economic conditions, the impact of sourcing costs, and additional factors which are detailed in our filings with the Securities and Exchange Commission, including the Risk Factors contained in the company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) and the subsequently filed Quarterly Reports on Form 10-Q, all of which are available at www.sec.gov.
Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Volcom is under no obligation, and expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
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VOLCOM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS