Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Crocs CEO John McCarvel To Retire; Reports Financial Partnership With Blackstone

RELATED NEWS
Trade CROX now with 

Crocs, Inc. (CROX: Quote) announced the financial partnership with Blackstone (BX: Quote). Crocs also revealed that John McCarvel planned to retire as president, chief executive officer and board member on or about April 30, 2014. The company said that the board has begun an outside search for McCarvel's replacement.

The company said that an investment fund affiliated with Blackstone has agreed to buy $200 million of newly issued series A convertible preferred stock.

In connection with the investment, Crocs intends to revise its capital structure to accommodate a $350 million stock repurchase program approved by its board of directors. Consummation of the investment is expected to close in January 2014.

Crocs also updated its fourth quarter 2013 outlook and currently expects revenue to be at the low end of prior guidance range of $220 million and $225 million, and loss per share to be at the low end (meaning the higher loss) of the previously provided guidance range of $0.20 and $0.23.

On average, nine analysts polled by Thomson Reuters expected the company to report revenues of $222.25 million for the fourth quarter. Analysts' estimates typically exclude special items.

Excluded from this outlook are all costs and expenses associated with the Blackstone transaction. The company expects the aggregate charges in the fourth quarter to be in a range of $47 million to $52 million, which is an additional loss per diluted share of $0.45 to $0.50.

"As we look forward, 2014 will be a significant transition period for the company. We will recruit a new CEO who will work with the reconstituted board to refine our short-term and long-term strategic plans, which will include a sharper focus on earnings growth with less emphasis on top-line growth. We will focus on improving financial performance, particularly in the Americas and Japan, as well as enhancing our global retail execution", said Thomas J. Smach, Crocs chairman of the board.

Register
To receive FREE breaking news email alerts for Crocs Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Stocks are turning in a lackluster performance in early trading on Wednesday after moving sharply higher over the past few sessions. The major averages have been bouncing back and forth across the unchanged line, unable to sustain any significant moves. Consumer prices in the U.S. unexpectedly showed a modest increase in the month of September, according to a report released by the Labor Department on Wednesday, with higher prices for food and shelter offsetting a continued decline in energy prices. The European Parliament has given its strong support to the new European Commission with 423 votes in favor, 209 against and 67 abstentions. The approval was crucial for the Juncker Commission to start a five-year term on 1 November. Today's vote marks the last step in the process leading up to the new European Commission. The European Cabinet has a representative each from all 28 EU member states
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.