Columbia Sportswear Company is a global leader in design, sourcing, marketing and distribution of active outdoor apparel and footwear, with operations in North America, Europe and Asia. As one of the largest outerwear companies in the world and the leading seller of skiwear in the United States, the company has developed an international reputation across an expanding product line for quality, performance, functionality and value.
Industry:TEXTILE-APPAREL Sector: Consumer Discretionary Fiscal Year End:December Last Reported Quarter:06/30/10 Next EPS Date:10/21/10
Capital Structure Solvency and Cash Flow
Balance Sheet
The company ended 4Q09 with approximately $409.4 million in cash and short-term investments, compared with approximately $253.1 million in 4Q08. COLM has a robust balance sheet, with nearly $12.13 in net cash per share and no debt during the quarter. Accounts receivable declined $73.1 million, or 24%, to $226.5 million, and Days sales outstanding improved to 56 days from 76 days, compared with 4Q08.
Net cash provided by operations improved by 47.9% y/y to $214.4 million in FY09.
Management remains impressed by COLM’s balance sheet, a substantially improved working capital position, and zero long term debt. Management anticipates that a renewed focus on product innovation driven by consumer insights is elevating each of the major brands, together with a strong balance sheet, positions the Company well for growth.
Share Repurchases
During 4Q09, the company repurchased approximately 67,500 shares of common stock at an aggregate purchase price of $2.6 million. Through December 31, 2009, the company has repurchased a total of approximately 8.9 million shares at an aggregate purchase price of $407.4 million since the inception of the stock repurchase program in 2004, and approximately $92.6 million remains under the current repurchase authorization. The repurchase program does not obligate the Company to acquire any specific number of shares or to acquire shares over any specified period of time.
Inventories
Consolidated inventories were $222.2 million in 4Q09, down $34.1 million, or 13%, compared with 4Q08, and down $79.3 million, or 26%, compared with 3Q09.
Capital Expenditure
During 4Q09, capital expenditure was approximately $11.0 million and was $41.0 million in FY09 consisting of approximately $26 million for expansion and $15 million for maintenance and infrastructure.
Last edited Thu Mar 11, 2010 01:53 AM by MadhubantiMaitra (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
1) Gross margins are expected to remain under pressure, given the need to liquidate high inventory levels. Moreover, the sportswear business has lower margins and its inventory increased as a result of adverse weather.
2) Increasing competition, rising commodity costs, further consolidation in the retail channel, and weak backlog will affect the Company’s profitability.
3) COLM’s FY09 outlook lacks visibility with weakness likely to be exacerbated by continued soft consumer demand and challenging macroeconomic conditions.
Last edited Thu Mar 11, 2010 01:53 AM by MadhubantiMaitra (Zacks Investment Research)
Created by: WikiMigrationBot.
Last Modification: Thursday 03 of June, 2010 06:38:59 CDT by WikiMigrationBot.
