Volcom, Inc. (NASDAQ: VLCM – News) announced its financial results for the second quarter ended June 30, 2010 today in which it reported that total consolidated revenues were up 15.3% compared to the same period in 2009. Consolidated gross earning for the quarter were up 12.8%, however the company reported net income for the 2010 second quarter was a mere $68,000, or breakeven per diluted share, compared with $872,000, or $0.04 per diluted share, in the second quarter of 2009. This was primarily due to higher selling, general, and administrative costs, which climbed 15%, and reduced margins.
Analysts on average were expecting earnings of 4 cents per share on revenue of $62.5 million, according to Thomson Reuters and the company’s stock is currently trading down nearly 2% on the news.
Stay tuned for more from the conference call taking place this afternoon.
Here’s the full release:
For the 2010 second quarter, total consolidated revenues were $62.5 million, compared with $54.2 million in the second quarter of 2009. 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 $50.8 million, compared with $43.6 million in the prior-year period. Total revenues in the company's Europe segment were $5.1 million, compared with $5.9 million in the same period in 2009. Total revenues in the company's Electric segment were $6.6 million, compared with $4.7 million in 2009.
"On a consolidated basis, our business in the second quarter was right in line with our plan," said Richard Woolcott, Volcom's chairman and chief executive officer. "The strength of the Volcom and Electric brands is clearly evident, and there is good momentum underway. Our teams are working hard to maximize every opportunity and align the company to continue to gain market share. I am very pleased with Volcom's current position and believe we are on track to achieve our short and long term goals."
Consolidated gross profit for the 2010 second quarter was $29.8 million, equal to 47.7% of total revenues, compared with $26.4 million, equal to 48.6% of total revenues, in the second quarter of 2009.
Selling, general and administrative expenses on a consolidated basis were $29.8 million in the 2010 second quarter versus $25.9 million in the comparable period in 2009.
Net income for the 2010 second quarter was $68,000, or breakeven per diluted share, compared with $872,000, or $0.04 per diluted share, in the second quarter of 2009.
At June 30, 2010 the company had cash, cash equivalents and short-term investments totaling $110 million, and no long-term debt.
2010 Third Quarter Financial Outlook
For the 2010 third quarter, the company currently expects total consolidated revenues of approximately $102 million to $105 million and fully diluted earnings per share amounts to range of $0.47 to $0.51.
Conference Call Information
The company will host a conference call today at approximately 4:30 p.m. ET to discuss its financial results and outlook in further detail. The conference call will be available to interested parties through a live audio Internet broadcast at www.volcom.com. A telephone playback of the conference call also will be available through 11:59 p.m. ET, Thursday, August 5. Listeners should call (800) 642-1687 (domestic) or (706) 645-9291 (international) and use reservation number 82808859.