) recently amended its existing revolving credit agreement. The
amendment increased the size of the revolving credit line from
$70 million to $100 million and has extended the maturity period
from four years to five years. Moreover, the company expects to
lower the borrowing costs based on the 50 basis points reduction
in interest rate as compared with the previous credit agreement
The revolving credit facility is arranged by PNC Bank, N.A., a
The PNC Financial Services Group, Inc.
), JPMorgan Chase Bank- a part of
JPMorgan Chase & Co.
) and Wells Fargo Bank- an associate of
Wells Fargo & Company
Crocs' Chief Financial Officer, Jeff Lasher, was pleased with the
favorable fee structure, which resulted from the amendment. He
opined that the new agreement will create immediate savings and
help in easy execution of business with increased credit size and
extended term. Additionally, the shoe manufacturer will now be
able to invest more into its business for growth and enhance
shareholder value as well.
In October 2011, Crocs released its third-quarter 2012 financial
results. The company earned 49 cents per share in the third
quarter of 2012, ahead of the Zacks Consensus Estimate of 43
cents per share as well as last year's 33 cents per share.
Quarterly revenues jumped 7.5% year over year to $295.6 million,
driven by strong sales growth in Asia (up 11.3%) and America (up
7.4%), partially offset by soft business in Europe (down 2.9%)
owing to the challenging macroeconomic conditions. Sales grew
1.5% at wholesale and 17.7% at Retail. Gross profit enhanced 9.2%
to $160.7 million.
For the fourth quarter of 2012, the company expects break-even
earnings per share on revenue of $220 million.
Based in Niwot, Colorado, Crocs is a rapidly growing designer,
manufacturer and marketer of footwear for men, women and children
under the CROCS brand. We currently maintain our long-term
'Underperform' recommendation on the stock. Moreover, Crocs has a
Zacks #4 Rank, which translates into a short-term (1-3 months)
CROCS INC (CROX): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis
PNC FINL SVC CP (PNC): Free Stock Analysis
WELLS FARGO-NEW (WFC): Free Stock Analysis
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