Weyco Reports First Quarter Sales and Earnings
Weyco Group, Inc. (NASDAQ: WEYS) reported financial results for Q1 2021, with net sales of $46.9 million, down from $63.6 million in Q1 2020. Net earnings increased to $1.3 million, up from $1.2 million, with diluted earnings per share at $0.14 compared to $0.12 last year. The North American Wholesale Segment saw net sales of $33.4 million, a decrease from $52.7 million in the prior year, impacted by the pandemic. Conversely, BOGS brand sales rose 32%. The company declared a cash dividend of $0.24 per share and will hold a conference call on May 5, 2021.
- Net earnings increased to $1.3 million from $1.2 million in Q1 2020.
- Diluted earnings per share rose to $0.14 from $0.12 in the prior year.
- Sales of the BOGS outdoor brand rose 32% in Q1 2021.
- Gross margins improved to 34.5% of net sales from 31.8% in Q1 2020.
- Net sales from Florsheim Australia grew by 39% in Q1 2021.
- Net sales fell to $46.9 million from $63.6 million in Q1 2020.
- North American Wholesale Segment sales dropped to $33.4 million from $52.7 million.
- Earnings from operations decreased to $1.4 million from $2.8 million.
MILWAUKEE, May 04, 2021 (GLOBE NEWSWIRE) -- Weyco Group, Inc. (NASDAQ: WEYS) (the “Company”) today announced financial results for the quarter ended March 31, 2021.
First Quarter 2021
Net sales were
North American Wholesale Segment
Net sales were
Gross earnings were
North American Retail Segment
Net sales were
Other
Other net sales, which include the wholesale and retail sales of Florsheim Australia and Florsheim Europe, were
“As expected, sales of our legacy brands remained depressed in the first quarter as a result of the ongoing pandemic,” stated Thomas W. Florsheim, Jr., the Company’s Chairman and CEO. “However, we are seeing signs of improvement, as orders accelerated within our wholesale business late in the quarter. At retail our performance was strong due to the growth in e-commerce, and we are also seeing a resurgence in sales overseas, particularly at Florsheim Australia. We look forward to building on this momentum as we move throughout the year.”
On May 4, 2021, the Company’s Board of Directors declared a cash dividend of
Conference Call Details:
Weyco Group will host a conference call on May 5, 2021, at 11:00 a.m. Eastern Time to discuss the first quarter financial results in more detail. To participate in the call, you will first need to pre-register online. Pre-registration takes only a few minutes and you may pre-register at any time, including up to and after the call start time. To pre-register please go to: http://www.directeventreg.com/registration/event/4483678. The pre-registration process will provide the conference call phone number and a passcode required to enter the call. A replay will be available for one year beginning about two hours after the completion of the call at the following webcast link: https://edge.media-server.com/mmc/p/yw2xz7h4. A recording of the conference call will also be available in the investor relations section of Weyco Group’s website at www.weycogroup.com.
About Weyco Group:
Weyco Group, Inc., designs and markets quality and innovative footwear principally for men, but also for women and children, under a portfolio of well-recognized brand names including: Florsheim, Nunn Bush, Stacy Adams, BOGS, and Rafters. The Company’s products can be found in leading footwear, department, and specialty stores, as well as on e-commerce websites worldwide. Weyco Group also operates Florsheim stores in the United States and Australia, as well as in a variety of international markets.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Various factors could cause the results of Weyco Group to be materially different from any future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the Company’s ability to: (i) successfully market and sell its products in a highly competitive industry and in view of changing consumer trends, consumer acceptance of products and other factors affecting retail market conditions; (ii) procure its products from independent manufacturers; and (iii) other factors, including those detailed from time to time in Weyco Group’s filings made with the SEC. With respect to the COVID-19 pandemic, numerous factors will determine the extent and length of the impact on the Company, including the extent and duration of the pandemic and its impact on the global economy; actions taken by governments, such as stay-at-home and similar orders that, among other effects, require retail store closures or limit foot traffic; the financial health of the Company’s customers and business partners, including the effects of any bankruptcy proceedings by such parties; the performance/resiliency of the Company’s supply chain; and the health and welfare of the Company’s employees. Weyco Group undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
For more information, contact:
John Wittkowske
Senior Vice President and Chief Financial Officer
414-908-1880
WEYCO GROUP, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (UNAUDITED) | |||||||||
Three Months Ended March 31, | |||||||||
2021 | 2020 | ||||||||
(In thousands, except per share amounts) | |||||||||
Net sales | $ | 46,900 | $ | 63,584 | |||||
Cost of sales | 27,595 | 40,407 | |||||||
Gross earnings | 19,305 | 23,177 | |||||||
Selling and administrative expenses | 17,671 | 21,836 | |||||||
Earnings from operations | 1,634 | 1,341 | |||||||
Interest income | 131 | 149 | |||||||
Interest expense | (7 | ) | (51 | ) | |||||
Other income, net | 138 | 407 | |||||||
Earnings before provision for income taxes | 1,896 | 1,846 | |||||||
Provision for income taxes | 571 | 684 | |||||||
Net earnings | $ | 1,325 | $ | 1,162 | |||||
Weighted average shares outstanding | |||||||||
Basic | 9,680 | 9,781 | |||||||
Diluted | 9,686 | 9,786 | |||||||
Earnings per share | |||||||||
Basic | $ | 0.14 | $ | 0.12 | |||||
Diluted | $ | 0.14 | $ | 0.12 | |||||
Cash dividends declared (per share) | $ | 0.24 | $ | 0.24 | |||||
Comprehensive income (loss) | $ | 1,365 | $ | (1,258 | ) | ||||
WEYCO GROUP, INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) | |||||||
March 31, | December 31, | ||||||
2021 | 2020 | ||||||
(Dollars in thousands) | |||||||
ASSETS: | |||||||
Cash and cash equivalents | $ | 24,860 | $ | 32,476 | |||
Investments, at fair value | 20,011 | - | |||||
Marketable securities, at amortized cost | 1,483 | 2,215 | |||||
Accounts receivable, net | 32,317 | 34,631 | |||||
Income tax receivable | 853 | 1,374 | |||||
Inventories | 47,340 | 59,025 | |||||
Prepaid expenses and other current assets | 3,951 | 4,610 | |||||
Total current assets | 130,815 | 134,331 | |||||
Marketable securities, at amortized cost | 11,804 | 12,800 | |||||
Deferred income tax benefits | 1,218 | 1,235 | |||||
Property, plant and equipment, net | 30,196 | 30,759 | |||||
Operating lease right-of-use assets | 10,538 | 9,613 | |||||
Goodwill | 11,112 | 11,112 | |||||
Trademarks | 32,868 | 32,868 | |||||
Other assets | 24,164 | 24,001 | |||||
Total assets | $ | 252,715 | $ | 256,719 | |||
LIABILITIES AND EQUITY: | |||||||
Accounts payable | $ | 6,605 | $ | 8,444 | |||
Operating lease liabilities | 4,048 | 4,245 | |||||
Accrued liabilities | 10,640 | 11,656 | |||||
Total current liabilities | 21,293 | 24,345 | |||||
Deferred income tax liabilities | 3,001 | 2,914 | |||||
Long-term pension liability | 33,191 | 33,534 | |||||
Operating lease liabilities | 8,565 | 7,734 | |||||
Other long-term liabilities | 245 | 267 | |||||
Total liabilities | 66,295 | 68,794 | |||||
Common stock | 9,735 | 9,797 | |||||
Capital in excess of par value | 67,723 | 67,178 | |||||
Reinvested earnings | 136,927 | 138,955 | |||||
Accumulated other comprehensive loss | (27,965 | ) | (28,005 | ) | |||
Total equity | 186,420 | 187,925 | |||||
Total liabilities and equity | $ | 252,715 | $ | 256,719 | |||
WEYCO GROUP, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||
Three Months Ended March 31, | |||||||||
2021 | 2020 | ||||||||
(Dollars in thousands) | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net earnings | $ | 1,325 | $ | 1,162 | |||||
Adjustments to reconcile net earnings to net cash | |||||||||
provided by operating activities - | |||||||||
Depreciation | 623 | 733 | |||||||
Amortization | 82 | 71 | |||||||
Bad debt expense | 17 | 145 | |||||||
Deferred income taxes | 39 | 360 | |||||||
Net foreign currency transaction gains | (115 | ) | (356 | ) | |||||
Share-based compensation expense | 545 | 351 | |||||||
Pension expense | - | 111 | |||||||
Increase in cash surrender value of life insurance | (150 | ) | (135 | ) | |||||
Changes in operating assets and liabilities - | |||||||||
Accounts receivable | 2,273 | 4,878 | |||||||
Inventories | 11,700 | 18,704 | |||||||
Prepaid expenses and other assets | 572 | 2,176 | |||||||
Accounts payable | (1,839 | ) | (8,477 | ) | |||||
Accrued liabilities and other | (1,425 | ) | (5,410 | ) | |||||
Accrued income taxes | 522 | 680 | |||||||
Net cash provided by operating activities | 14,169 | 14,993 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Proceeds from maturities of marketable securities | 1,720 | 4,510 | |||||||
Purchases of investment securities | (20,011 | ) | - | ||||||
Purchases of property, plant and equipment | (73 | ) | (1,797 | ) | |||||
Net cash (used for) provided by investing activities | (18,364 | ) | 2,713 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Cash dividends paid | (2,319 | ) | (4,694 | ) | |||||
Shares purchased and retired | (1,079 | ) | (1,304 | ) | |||||
Proceeds from bank borrowings | - | 11,883 | |||||||
Repayments of bank borrowings | - | (18,932 | ) | ||||||
Net cash used for financing activities | (3,398 | ) | (13,047 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (23 | ) | (277 | ) | |||||
Net (decrease) increase in cash and cash equivalents | $ | (7,616 | ) | $ | 4,382 | ||||
CASH AND CASH EQUIVALENTS at beginning of period | 32,476 | 9,799 | |||||||
CASH AND CASH EQUIVALENTS at end of period | $ | 24,860 | $ | 14,181 | |||||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||
Income taxes paid, net of refunds | $ | 24 | $ | 235 | |||||
Interest paid | $ | 7 | $ | 51 | |||||
FAQ
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