On Tuesday, Heelys Inc. (HLYS), a provider of innovative, action sports-inspired products, announced financial results for the fourth quarter, reporting earnings that jumped 700% from last year driven by strong demand for its wheeled footwear in the United States along with higher net sales in several key international markets. Net income for the fourth quarter was $11.5 million, up 700% from $1.4 million in the year-ago quarter. Earnings per share surged 633% to $0.44 from $0.06 in the prior year quarter. On average, four analysts polled by First Call/Thomson Financial expected the company to earn $0.28 per share for the fourth quarter.Heelys said its net sales climbed 377% to $71.1 million from $14.9 million in the same quarter of last year. Gross profit for the fourth quarter was $25.1 million or 35.3% of net sales, compared to $5.1 million or 34.2% of net sales in the previous year quarter.For the full year 2006, net income jumped 571% to $29.2 million from $4.3 million in the prior year. Earnings per share soared 582% to $1.16 from $0.17 in last year. Four analysts projected earnings per share of $0.95 for 2006. The company's net sales climbed 328% to $188.2 million from $44.0 million in the preceding year.Looking ahead, the company does not offer specific guidance for quarterly or annual earnings, but does have a stated objective to provide annual net sales and net income growth of 20-25% over the next several years.On December 13, 2006, the company completed an initial public offering of 7.39 million shares of common stock at $21.00 per share, of which 3.13 million shares were sold by the company and 4.26 million shares were sold by certain selling stockholders. The company incurred direct expenses of $2.2 million in connection with the offering.The company said it received net proceeds of about $61.0 million after deducting $4.6 million in underwriting discounts and commissions. The company used $8.5 million of the proceeds from the offering to repay amounts outstanding under its revolving credit facility and $8.5 million of the proceeds for other working capital purposes. The company plans to use the remaining proceeds to fund infrastructure improvements, including expanding and upgrading IT systems, hire new employees, marketing and advertising programs, product development, working capital needs and other general corporate purposes.HLYS closed Tuesday's regular trading session at $35.64, up $1.92 or 5.69%. However, in the after-hours, the shares lost $1.19 or 3.34% to settle at $34.45.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.