Crocs Investor Presentation Deck slide image

Crocs Investor Presentation Deck

NON-GAAP RECONCILIATION Non-GAAP cost of sales and gross margin reconciliation: GAAP revenues GAAP cost of sales New distribution centers (1) Other Total adjustments Non-GAAP cost of sales GAAP gross margin GAAP gross margin as a percent of revenues $ crocs™ $ $ $ Three Months Ended December 31, $ 2019 262,979 $ 136,741 (3,413) 84 (3,329) 133,412 $ $ 126,238 $ 48.0% 2018 (in thousands) 215,989 $ 129,567 $ 116,167 $ 116,167 $ 99,822 $ 46.2% Year Ended December 31, 2019 99,822 $ 1,230,593 $ Non-GAAP gross margin Non-GAAP gross margin as a percent of revenues 49.3% 46.2% 51.1% (1) Primarily represents expenses related to our new distribution centers in Dayton, Ohio and Dordrecht, the Netherlands. 617,056 $ 613,537 $ (11,394) (91) (11,485) 602,052 $ 528,051 50.1% 2018 628,541 $ 1,088,205 528,051 560,154 51.5% 560,154 51.5% Non-GAAP selling, general and administrative expenses reconciliation: GAAP revenues (4) $ GAAP selling, general and administrative expenses Closure of manufacturing and distribution facilities (1) Non-recurring expenses associated with cost reduction initiatives (2) Accelerated depreciation of assets (3) Offering fees (4) Total adjustments Non-GAAP selling, general and administrative expenses (5) GAAP selling, general and administrative expenses as a percent of revenues $ Non-GAAP selling, general and administrative expenses as a percent of revenues $ Three Months Ended December 31, 2019 262,979 117,882 (584) $ 44.8% $ (589) (1,173) 116,709 $ 113,759 2018 (in thousands) 215,989 $ 1,230,593 $ 1,088,205 (741) (2,509) (1,306) (4,556) 109,203 $ 52.7% $ Year Ended December 31, 2018 50.6% 2019 488,407 (2,282) $ (589) (2,871) 485,536 $ 39.7% 497,210 (13,712) (6,082) (1,306) (21,100) 476,110 45.7% 44.4% 39.5% (1) Represents non-recurring expenses associated with the 2018 closures of Mexico and Italy manufacturing and distribution facilities. (2) Represents non-recurring expenses associated with cost reduction initiatives in 2019 and our SG&A reduction plan in 2018. (3) Represents non-recurring expenses related to the relocation of the Crocs corporate headquarters planned for March 2020. (4) Represents fees associated with the November 4, 2019 underwritten public offering, in which certain investment funds affiliated with The Blackstone Group Inc. sold 6.9 million shares of the Company's stock to Morgan Stanley & Co. LLC. The Company did not receive any proceeds from this sale. (5) Non-GAAP selling, general and administrative expenses are presented gross of tax. 43.8% 24
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