Weyco Group Inc. (NASDAQ:WEYS) filed Annual Report for the period ended 2010-12-31.
Weyco Group Inc. has a market cap of $262.1 million; its shares were traded at around $23.18 with a P/E ratio of 19.3 and P/S ratio of 1.1. The dividend yield of Weyco Group Inc. stocks is 2.8%. Weyco Group Inc. had an annual average earning growth of 4.9% over the past 10 years.
Highlight of Business Operations:EXECUTIVE OVERVIEW Sales and Earnings Highlights Consolidated net sales in 2010 were $229.2 million, up 2% compared with $225.3 million in 2009. Earnings from operations were $18.8 million in 2010, up 12% compared with $16.8 million in 2009. During 2010, the Company achieved higher gross earnings as a percent of net sales at its wholesale, retail and other business operations.
Wholesale net sales in 2010 were down $2.7 million, due to slightly lower wholesale sales and reduced licensing revenues in 2010. Wholesale operating earnings were down approximately $800,000 compared with 2009, mainly due to the decrease in licensing revenues in 2010. Retail sales were up approximately $500,000 in 2010, and retail operating earnings were up $1.1 million, primarily due to $800,000 of lower impairment charges in 2010 compared with 2009. Net sales and operating earnings of the Companys other businesses were up $6.1 million and $1.7 million, respectively, in 2010 compared with 2009, mainly due to increases at Florsheim Australia.
Net earnings attributable to Weyco Group, Inc. in 2010 were $13.7 million, up 7% compared with $12.8 million in 2009. Diluted earnings were $1.19 per share for 2010 and $1.11 per share in 2009.
Financial Position Highlights At December 31, 2010, the Companys cash and marketable securities totaled $70.2 million and there were $5.0 million of borrowings under its revolving line of credit. At December 31, 2009, the Companys cash and marketable securities totaled $76.8 million and there was no debt outstanding. During 2010, the Company used cash in an effort to build inventories from the historically low levels at the end of 2009, and also to increase its stock of core styles in anticipation of possible price increases from overseas manufacturers.
On March 2, 2011, the Company acquired 100% of the outstanding shares of The Combs Company (Combs) for $29.4 million in cash plus assumed debt of approximately $3.5 million and contingent payments after two and five years, which are dependent on Combs achieving certain performance measures. Combs designs and markets boots, shoes and sandals for men, women and children, under the BOGS and Rafters brand names. Their products are sold across the agricultural, industrial, outdoor specialty, outdoor sport, lifestyle and fashion markets. Combs sales for its most recent fiscal year were approximately $27 million. The Company expects the acquisition to be accretive to earnings in 2011, excluding the impact of certain purchase accounting adjustments as well as transaction and integration costs. See Note 19 of the Notes to Consolidated Financial Statements.
Retail selling and administrative expenses were down approximately $750,000 in 2010 compared with 2009. As a percent of net retail sales, retail selling and administrative expenses were 66.1% in 2010 compared with 70.9% in 2009. These decreases mostly reflect lower depreciation expense and lower impairment charges this year compared with last year. In 2010 and 2009, selling and administrative expenses included a charge of $310,000 and $1.1 million, respectively, to
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