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 Three Months Ended September 30, 2020 2019 crocs™ $ $ $ $ $ 361,736 154,967 (897) (119) (1,016) 153,951 $ 207,785 57.4% $ 206,769 $ 57.2% $ (in thousands) 312,766 $ 148,942 (3,678) (42) (3,720) 145,222 Nine Months Ended September 30, 2020 2019 167,544 53.6% $ $ 163,824 $ 52.4 % $ 974,445 $ 453,581 (2,636) (2,396) (119) (5,151) 448,430 $ $ 520,864 $ 53.5% 526,015 $ 54.0% 967,614 476,796 (7,981) (175) (8,156) 468,640 490,818 50.79 498,974 (1) Represents expenses, including expansion costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands. (2) Represents an inventory write-off in our Asia Pacific segment associated with the impact of COVID-19. 51.69 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 Other COVID-19 costs (2) Duplicate headquarters rent (3) Non-recurring expenses associated with cost reduction initiatives in 2019 Other (4) Total adjustments Non-GAAP selling, general and administrative expenses (5) (1) 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 September 30, Nine Months Ended September 30. 2020 2019 2020 2019 $ $ $ 361,736 $ 134,683 (50) 48 (183) (426) (1,652) (2,263) 132,420 37.2 % $ $ (in thousands) 312,766 $ 123,940 | | | | || (809) (809) 123,131 39.6% $ $ 974,445 $ 371,371 (9,970) (2,403) (4,433) (827) (1,120) (2,133) (20,886) 350,485 38.1 % $ $ 967,614 370,525 (1,698) (1,698) 368,827 38.3 38.1 36.6% 39.4% 36.0 % (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 ongoing duplicate rent costs associated with our move to our new headquarters in Broomfield, Colorado, while we conclude the lease for our former headquarters in Niwot, Colorado. (4) Represents non-recoverable duties, non-recurring costs related to the closure of company-owned retail stores in Australia, employee severance costs, and various other immaterial items. (5) Non-GAAP selling, general and administrative expenses are presented gross of tax. 26
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