Significant Long-Term Growth Potential in Sandals slide image

Significant Long-Term Growth Potential in Sandals

NON-GAAP RECONCILIATION (cont'd) Non-GAAP income from operations and operating margin reconciliation: Non-GAAP earnings per share reconciliation: 2020 Three Months Ended March 31, 2019 2020 GAAP revenues GAAP income from operations $ (in thousands) 281,160 $ 295,949 Three Months Ended March 31, 2019 (in thousands, except per share data) Numerator: 20,812 $ Non-GAAP cost of sales adjustments (1) 927 32,578 1,275 GAAP net income $ 11,091 $ 24,710 Non-GAAP selling, general and administrative expenses adjustments (2) 4,613 685 Non-GAAP income from operations $ 26,352 $ 34,538 Non-GAAP cost of sales adjustments Non-GAAP selling, general and administrative expenses adjustments Tax effect of non-GAAP operating adjustments (1) 927 1,275 (2) 4,613 685 (3) (1,385) Non-GAAP net income S 15,246 $ 26,670 GAAP operating margin 7.4% 11.0% Denominator: Non-GAAP operating margin 9.4% 11.7% GAAP weighted average common shares outstanding - basic 67,931 73,009 (1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more details. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more details. Plus: GAAP dilutive effect of stock options and unvested restricted stock units GAAP weighted average common shares outstanding - diluted 1,287 1,866 69,218 74,875 GAAP net income per common share: Basic Diluted 0.16 $ 0.34 $ 0.16 $ 0.33 Non-GAAP net income per common share: Basic $ 0.22 $ 0.37 Diluted $ 0.22 $ 0.36 (1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more information. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation" above for more information. (3) crocs™ In the three months ended March 31, 2019, non-GAAP operating adjustments were in jurisdictions subject to a full valuation allowance, and thus had no material net tax impact. 27 27
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