Columbia Sportswear Company (Nasdaq:COLM) today announced record net sales of $97.2 million for its second quarter ended June 30, 2000, an increase of 36.1 per cent over the $71.4 million of net sales for the same period last year.

Net income for the period was $3.6 million, or $0.14 per share (diluted) on 26.1 million weighted average shares outstanding for the second quarter, compared to a net loss of $238,000, or $0.01 per share (diluted), on 25.5 million weighted average shares outstanding for the same period last year.

The company attributed the increase in net sales for the quarter primarily to continued strength in its domestic, European, and Japanese businesses, which reported sales growth for the second quarter of 35.0 per cent, 58.0 per cent, and 65.7 per cent, respectively, when compared to the second quarter of 1999. Net income was stronger than previously anticipated due to a number of factors that developed during the period, including: unscheduled early domestic shipments of high margin outerwear for the fall 2000 season in response to customer demand; improved gross margins on spring merchandise closeouts due, in part, to healthy sell-through activity for the Company's spring merchandise at retail stores, and improvements in operating efficiencies including benefits from the fully operational North American distribution center expansion.

Tim Boyle, Columbia's president and chief executive officer, commented: "The strong second quarter results reflect the Columbia brand's growing popularity among consumers on a year-round basis as we continue providing high-quality, multi-seasonal merchandise. Categorically, both sportswear and footwear continue to perform well in all key markets around the world and, although it is too early to provide specific guidance regarding the first half of fiscal 2001, at this point we are optimistic about the impact spring 2000 will have on our pre-season orders for next spring."

The conference call can be accessed on-line at www.columbia.com/investor or www.streetfusion.com until August 8th.

Columbia Sportswear Company is a global leader in the design, manufacture, marketing and distribution of active outdoor apparel. As one of the largest outerwear manufacturers in the world and the leading seller of skiwear in the United States, the company has developed an international reputation across an expanding product line for quality, performance, functionality and value. To learn more about Columbia Sportswear, please visit the Company website at www.columbia.com.

This press release contains forward-looking statements, including Mr Boyle's stated optimism about the impact spring 2000 will have on the Company's pre-season orders for spring 2001. Actual results could differ materially from those projected in these forward-looking statements as a result of a number of risk factors, including those set forth in the Company's Annual Report on Form 10-K dated March 30, 2000 under the heading ``Factors That May Affect Our Business.'' These risk factors include, but are not limited to, the Company's reliance on product acceptance, effects of weather, dependence on independent manufacturers and suppliers, seasonality and fluctuations in operating results, effectiveness of the Company's sales and marketing efforts, and intense competition in the industry, which the Company believes will increase. Additional risk factors include the Company's ability to achieve and manage growth effectively, unfavorable economic conditions generally, international risks including trade disruptions, political instability in foreign markets, exchange rate fluctuations, quotas and tariffs, the financial health of customers, effective implementation and expansion of the Company's distribution facilities, operations of the Company's and third party computer systems, and the Company's ability to establish and protect its intellectual property. Although forward-looking statements are intended to help provide complete information about the Company, investors should keep in mind that forward-looking statements are inherently less reliable than historical information.

COLUMBIA SPORTSWEAR COMPANY CONSOLIDATED BALANCE SHEETS
(In thousands)
     
Current Assets:
Cash and cash equivalents
$ 12,851
$ 4,578
Accounts receivable...
$5,413
3,309
... net of allowance
77,574
77,640
Inventories
132,121
107,991
Deferred tax asset
11,839
8,719
Prepaid expenses and other current assets
4,326
5,242
 
Total current assets
238,711
204,170
 
Property, plant and equipment, net
65,591
70,442
Intangibles and other assets
1,820
2,336
 
Total assets
$306,122
$276,948
 
 
Current Liabilities:
Notes payable
$ 29,344
$ 39,131
Accounts payable
37,636
42,106
Accrued liabilities
16,446
14,167
Current portion of long-term debt
263
241
 
Total current liabilities
83,689
95,645
 
Long-term debt
26,189
26,795
Deferred tax liability
3,863
4,105
Shareholders' equity
192,381
150,403
 
Total liabilities and shareholders' equity
$306,122
$276,948

 

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)
         
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2000
1999
2000
1999
 
Net sales
$ 97,155
$ 71,416
$205,592
$160,630
Cost of sales
53,426
40,116
115,325
96,716
Gross profit
43,729
31,300
90,267
63,914
 
45.0%
43.8%
43.9%
39.8%
 
Selling, general, and administrative
36,933
30,659
77,311
62,247
Income from operations
6,796
641
12,956
1,667
Interest expense, net
740
1,037
1,424
1,663
Income (loss) before income tax
6,056
(396)
11,532
4
Income tax provision (benefit)
2,438
(158)
4,642
2
Net income (loss)
$ 3,618
$ (238)
$ 6,890
$ 2
 
Net income (loss) per share:
Basic
$ 0.14
$ (0.01)
$ 0.27
$ 0.00
Diluted
$ 0.14
$ (0.01)
$ 0.27
$ 0.00
 
Weighted average shares outstanding:
Basic
25,432
25,291
25,428
25,286

Diluted

26,126
25,515
25,981
25,515