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Columbia Sportswear Company Reports Operating Results (10-Q)

May 07, 2010 | About:
10qk

10qk

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Columbia Sportswear Company (COLM) filed Quarterly Report for the period ended 2010-03-31.

Columbia Sportswear Company has a market cap of $1.79 billion; its shares were traded at around $53.08 with a P/E ratio of 26 and P/S ratio of 1.5. The dividend yield of Columbia Sportswear Company stocks is 1.3%. Columbia Sportswear Company had an annual average earning growth of 0.7% over the past 10 years.COLM is in the portfolios of Chuck Royce of Royce& Associates, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

General and administrative expenses increased $14.0 million, or 18%, to 30.9% of net sales for the first quarter of 2010 from 28.9% of net sales for the comparable period in 2009. The increase in general and administrative expenses as a percentage of net sales was primarily due to incremental operating costs in support of our expanded direct to consumer businesses in the United States, the EMEA region and Canada, the transition of sales organizations in-house in the United States, EMEA region and Canada and the reinstatement of personnel and benefit programs curtailed or postponed in 2009. Depreciation and amortization included in SG&A expense totaled $8.9 million for the first quarter of 2010, compared to $8.0 million for the same period in 2009.

Net Income: Net income increased $2.3 million, or 33%, to $9.2 million for the first quarter of 2010 from $6.9 million for the comparable period in 2009. Diluted earnings per share was $0.27 for the first quarter of 2010 compared to $0.20 for the first quarter of 2009.

Our primary ongoing funding requirements are for working capital, investing activities associated with the expansion of our global operations and general corporate needs. At March 31, 2010, we had total cash and cash equivalents of $365.9 million compared to $386.7 million at December 31, 2009. In addition, we had short-term investments of $49.9 million at March 31, 2010 compared to $22.8 million at December 31, 2009.

Net cash used in investing activities was $33.2 million for the three months ended March 31, 2010 compared to $10.3 million for the comparable period in 2009. For the 2010 period, net cash used in investing activities primarily consisted of $27.2 million for purchases of short-term investments and $9.1 million for capital expenditures, of which $3.0 million was incurred but not yet paid. For the 2009 period, net cash used in investing activities primarily consisted of $10.3 million for capital expenditures, of which $5.2 million was incurred but not yet paid, and $5.2 million for purchases of short-term investments.

Cash used in financing activities was $9.2 million for the three months ended March 31, 2010 compared to $5.6 million for the comparable period in 2009. For the 2010 period, net cash used in financing activities primarily consisted of a dividend payment of $6.1 million and the repurchase of common stock at an aggregate price of $3.8 million. For the 2009 period, net cash used in financing activities primarily consisted of a dividend payment of $5.4 million.

To fund our domestic working capital requirements, we have available unsecured revolving lines of credit with aggregate seasonal limits ranging from $50.0 million to $125.0 million, of which $25.0 million to $100.0 million is committed. At March 31, 2010 and 2009, no balance was outstanding under these lines of credit and we were in compliance with all associated covenants. Internationally, our subsidiaries have local currency operating lines in place guaranteed by us with a combined limit of approximately $102.1 million at March 31, 2010, of which $3.4 million is designated as a European customs guarantee. At March 31, 2010 and 2009, no balance was outstanding under these lines of credit.

Read the The complete Report

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10qk
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