FULL YEAR 2020 FINANCIAL GUIDANCE slide image

FULL YEAR 2020 FINANCIAL GUIDANCE

NON-GAAP RECONCILIATION (CONT'D) Non-GAAP earnings per share reconciliation: (1) Three Months Ended Numerator: December 31, 2019 2018 Year Ended December 31, 2019 2018 (in thousands, except per share data) Three Months Ended December 31, 2019 Year Ended December 31, 2019 2018 2018 (in thousands, except per share data) GAAP net income (loss) attributable to common stockholders $ Preferred share dividends and dividend equivalents (2) 19,913 $ (118,685) $ 107,799 119,497 $ (69,216) 119,653 GAAP net income (loss) per common share: Basic $ Diluted $ 0.29 $ 0.29 $ (1.72) $ (1.72) $ 1.70 $ 1.66 $ (1.01) (1.01) Non-GAAP cost of sales adjustments (3) 3,329 11,485 Non-GAAP selling, general and administrative expenses adjustments (4) Pro forma interest (5) Non-GAAP net income (loss) per common share: 1,173 4,556 (1,407) 2,871 21,100 (5,628) Basic (11) $ 0.13 $ (0.10) $ 1.64 $ 0.88 Diluted (12) $ 0.12 $ (0.10) $ 1.61 $ 0.86 Non-GAAP income tax adjustment (6) (15,781) (18,244) Non-GAAP net income (loss) attributable to common stockholders $ 8,634 $ (7,737) $ 115,609 $ 65,909 Denominator: GAAP weighted average common shares outstanding - basic 68,441 69,010 70,357 68,421 Plus: GAAP dilutive effect of stock options and unvested restricted stock units in both periods and Series A Preferred in 2018 1,402 1,414 GAAP weighted average common shares outstanding - diluted 69,843 69,010 71,771 68,421 GAAP weighted average common shares outstanding - basic 69,010 68,421 Non-GAAP weighted average converted common shares outstanding adjustment (7) 4,723 6,349 Non-GAAP weighted average common shares outstanding basic (8) 73,733 74,770 Plus: dilutive effect of stock options and unvested restricted stock units (9) 1,936 Non-GAAP weighted average common shares outstanding diluted (10) 73,733 76,706 crocs™ (1) Non-GAAP earnings per share calculation for the three months and year ended December 31, 2018 assumes the repurchase and conversion of the Series A Convertible Preferred Stock occurred on December 31, 2017 ("the Conversion"). (2) Adjustment adds back dividends and dividend equivalents for Series A Convertible Preferred Stock in calculating non -GAAP net income attributable to common stockholders for the three months and year ended December 31, 2018. (3) See 'Non-GAAP cost of sales and gross margin reconciliation' above for more information. (4) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more information. (5) Pro forma interest for the three months and year ended December 31, 2018 assumes borrowings of $120.0 million on were outstan ding for all of 2018 at a rate of 4.69% to partially finance the Conversion. Calculation assumes no repayments and no financing fees. (6) See 'Non-GAAP income tax expense (benefit) and effective tax rate reconciliation' above for more information. (7) Adjustment represents the incremental increase in weighted average common shares outstanding for the three months and year en ded December 31, 2018 resulting from the Conversion. (8) Non-GAAP weighted average common shares outstanding - basic for the three months and year ended December 31, 2018 assumes the Conversion. (9) Adjustment reflects the dilutive impact of stock options and restricted stock units for the three months and year ended December 31, 2018. (10) Non-GAAP weighted average common shares outstanding - diluted for the three months and year ended December 31, 2018 assumes the Conversion. (11) Non-GAAP net income (loss) per common share - basic for the three months and years ended December 31, 2019 and 2018 uses the non- GAAP income (loss) attributable to common stockholders and for the year ended December 31, 2018 assumes the Conversion. (12) Non-GAAP net income (loss) per common share - diluted for the three months and years ended December 31, 2019 and 2018 uses the non-GAAP income (loss) attributable to common stockholders and for the year ended December 31, 2018 assumes the Conversion. 26 46
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