Volcom Reports 2009 First Quarter Results

josh hunter

• April 30 2009
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Total Consolidated Revenues Were $68.3 Million;
Consolidated Net income of $4.2 Million, or $0.17 Per Diluted Share –
COSTA MESA, CA – April 30, 2009 – Volcom, Inc. (NASDAQ: VLCM) today announced financial results for the first quarter ended March 31, 2009.

For the 2009 first quarter, total consolidated revenues were $68.3 million compared with $80.6 million in the first quarter of 2008. Total revenues in the company’s U.S. segment, which includes revenues from the U.S., Canada, Japan and most other international territories outside of Europe, as well as the company’s branded retail stores, were $42.4 million compared with $49.2 million in the prior year period. Total revenues in the company’s Europe segment were $21.7 million compared with $25.2 million in the same period in 2008. Total revenues in the company’s Electric segment were $4.2 million compared with $6.2 million last year.

“We continue to make solid progress aligning our business with the new realities of the retail environment given the current state of the economy,” said Richard Woolcott, Volcom’s chairman and chief executive officer. “Overall, the first quarter was slightly ahead of our expectations in all three of our business segments. The core Volcom business is well intact, bolstered by innovative product and a strong global brand. We are working diligently to maintain our competitive edge and position the company to remain financially strong and creatively energized.”

Consolidated gross profit for the 2009 first quarter was $34.4 million, equal to 50.3% of total revenues, compared with $42.2 million, or 52.4% of total revenues, in the first quarter of 2008.
Selling, general and administrative expenses on a consolidated basis were $28.0 million in the 2009 first quarter versus $27.8 million in the comparable period in 2008.

Volcom 2009 First Quarter Financial Results

Total operating income for the first quarter of 2009 on a consolidated basis was $6.3 million, compared with $14.4 million last year. Operating margin for the first quarter of 2009 was 9.3%, compared with 17.9% in the first quarter of 2008.

The company’s consolidated effective tax rate for the 2009 first quarter was 35% compared with 36.5% for the first quarter of 2008.

Consolidated net income for the 2009 first quarter was $4.2 million, or $0.17 per diluted share, compared with $9.3 million, or $0.38 per diluted share in the comparable period in 2008.

At March 31, 2009, the company had approximately $85.0 million in cash, cash equivalents and short-term investments, no significant debt and stockholders’ equity of approximately $195.2 million. Net cash provided by operating activities was $6.0 million compared with $5.6 million for the same period a year ago.

2009 Second Quarter Financial Outlook

In putting forth its financial guidance for the 2009 second quarter, the company noted it continues to operate in a weak economic environment. As such, the company currently expects total consolidated revenues for the 2009 second quarter of approximately $47 million to $50 million, and earnings are expected in the range of breakeven to a loss of approximately $0.03 per share.