Crocs Investor Presentation Deck slide image

Crocs Investor Presentation Deck

NON-GAAP RECONCILIATION Non-GAAP cost of sales, gross profit, and gross margin reconciliation: GAAP revenues GAAP cost of sales New distribution centers (1) COVID-19 inventory write-off (2) Other Total adjustments Non-GAAP cost of sales GAAP gross profit GAAP gross margin Non-GAAP gross profit Non-GAAP gross margin (2) Three Months Ended December 31, crocs™ $ $ $ 2020 $ 411,506 182,422 (1,550) $ (1,550) $ 180,872 $ $ 229,084 $ 55.7% 2019 (in thousands) 262,979 $ 1,385,951 136,741 (3,413) Year Ended December 31, 84 (3,329) 133,412 $ $ 636,003 (4,186) (2,396) (119) (6,701) 629,302 126,238 $ 48.0 % 2020 749,948 54.1 % $ 1,230,593 $ $ 2019 $ 613,537 (11,394) 230,634 $ 56.0 % 129,567 $ 49.3 % 756,649 $ 54.6% 51.19 (1) Represents expenses, including expansion costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands and initial costs for our new third-party operated distribution center in Chiba, Japan. Represents an inventory write-off in our Asia Pacific segment associated with the impact of COVID-19. (91) (11,485) 602,052 617,056 50.1 % 628,541 Non-GAAP selling, general and administrative expenses reconciliation: GAAP revenues GAAP selling, general and administrative expenses Donations of inventory COVID-19 severance costs COVID-19 impact of bad debt expense (1) Other COVID-19 costs (2) Asset impairments (3) (4) Duplicate headquarters rent Non-recurring expenses associated with cost reduction initiatives in 2019 Offering fees (5) Other (6) Total adjustments GAAP selling, general and administrative expenses as a percent of revenues Non-GAAP selling, general and administrative expenses (7) Non-GAAP selling, general and administrative expenses as a percent of revenues (5) (6) Three Months Ended December 31, $ $ $ 2020 411,506 164,453 70 315 (18) (21,071) (154) 8 (20,850) 143,603 40.0 % $ $ $ 117,882 $ 2019 (in thousands) 262,979 $ 1,385,951 (584) (589) (1,173) 116,709 44.8% Year Ended December 31. 2019 2020 Represents non-recoverable duties, non -recurring costs related to the closure of company severance costs, and various other immaterial items. (7) Non-GAAP selling, general and administrative expenses are presented gross of tax. 535,824 (9,900) (2,403) (4,118) (845) (21,071) (1,274) $ 1,230,593 38.7% $ 488,407 (2,125) (41,736) $ 494,088 $ (2,282) (589) 34.9% 44.4% 35.6% 39.5 9 (¹) Represents bad debt expense associated with the impact of COVID-19 on wholesale partners in our Asia Pacific and Americas segments. (2) Represents costs incurred in response to the COVID-19, including hazard pay, cleaning costs, and legal costs. (3) Represents impairments to our long -lived assets for a retail store in New York City and for our former corporate headquarters in Niwot, Colorado. (2,871) 485,536 (4) Represents ongoing duplicate rent costs associated with our move to our new headquarters in Broomfield, Colorado, while we conclude the lease for our former headquarters. 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 our stock to Morgan Stanley & Co. LLC. We did not receive any proceeds from this sale. -owned retail stores in Australia, employee 27 39.79
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