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Press Release: Skechers Announces Fourth Quarter -3-

· 02/04/2021 16:05
Prepaid expenses and other current assets 166,962 113,580 ---------------------------------------- --------- --------- Total current assets 3,344,351 2,819,591 Property, plant and equipment, net 935,441 738,925 Operating lease right-of-use assets 1,171,521 1,073,660 Deferred tax assets 63,884 49,088 Long-term investments 108,412 94,589 Goodwill 93,497 71,412 Other assets, net 95,263 45,678 ---------------------------------------- --------- --------- Total non-current assets 2,468,018 2,073,352 ---------------------------------------- --------- --------- TOTAL ASSETS $5,812,369 $4,892,943 ======================================== ========= ========= LIABILITIES AND EQUITY Current liabilities: Current installments of long-term borrowings $ 52,250 $ 66,234 Short-term borrowings 3,297 5,789 Accounts payable 744,077 764,844 Operating lease liabilities 204,370 191,129 Accrued expenses 208,712 210,235 ---------------------------------------- --------- --------- Total current liabilities 1,212,706 1,238,231 Long-term borrowings, excluding current installments 679,415 49,183 Long-term operating lease liabilities 1,065,069 966,011 Deferred tax liabilities 11,439 322 Other long-term liabilities 118,077 103,089 ---------------------------------------- --------- --------- Total non-current liabilities 1,874,000 1,118,605 ---------------------------------------- --------- --------- Total liabilities 3,086,706 2,356,836 Stockholders' equity: Preferred Stock -- -- Class A Common Stock 134 131 Class B Common Stock 21 22 Additional paid-in capital 372,165 306,669 Accumulated other comprehensive loss (27,285) (29,993) Retained earnings 2,136,400 2,037,836 ---------------------------------------- --------- --------- Skechers U.S.A., Inc. equity 2,481,435 2,314,665 Noncontrolling interests 244,228 221,442 ---------------------------------------- --------- --------- Total stockholders' equity 2,725,663 2,536,107 ---------------------------------------- --------- --------- TOTAL LIABILITIES AND EQUITY $5,812,369 $4,892,943 ======================================== ========= ========= SKECHERS U.S.A., INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) Three Months Ended Year Ended December 31, December 31, ----------------------- ----------------------- (in thousands, except per share data) 2020 2019 2020 2019 ---------------------- ---------- ---------- ---------- ---------- Sales $1,324,711 $1,330,732 $4,597,414 $5,220,051 Cost of sales 676,284 692,983 2,407,633 2,728,894 ----------------------- --------- --------- --------- --------- Gross profit 648,427 637,749 2,189,781 2,491,157 Royalty income 4,955 4,666 16,017 22,493 ----------------------- --------- --------- --------- --------- 653,382 642,415 2,205,798 2,513,650 ---------------------- --------- --------- --------- --------- Operating expenses: Selling 97,875 88,664 318,097 369,901 General and administrative 497,788 459,669 1,754,017 1,625,306 ----------------------- --------- --------- --------- --------- Selling, general and administrative 595,663 548,333 2,072,114 1,995,207 ----------------------- --------- --------- --------- --------- Earnings from operations 57,719 94,082 133,684 518,443 ----------------------- --------- --------- --------- --------- Other income (expense): Interest income 173 2,282 5,912 11,782 Interest expense (4,899) (2,315) (16,327) (7,509) Other, net 15,577 1,917 31,460 (6,711) ----------------------- --------- --------- --------- --------- Total other income (expense) 10,851 1,884 21,045 (2,438) ----------------------- --------- --------- --------- --------- Earnings before income tax expense 68,570 95,966 154,729 516,005 Income tax (benefit) expense (9,602) 13,465 8,502 88,753 ----------------------- --------- --------- --------- --------- Net earnings 78,172 82,501 146,227 427,252 Less: Net earnings attributable to noncontrolling interests 24,891 22,969 47,663 80,692 ----------------------- --------- --------- --------- --------- Net earnings attributable to Skechers U.S.A., Inc. $ 53,281 $ 59,532 $ 98,564 $ 346,560 ======================= ========= ========= ========= ========= Net earnings per share attributable to Skechers U.S.A., Inc.: Basic $ 0.34 $ 0.39 $ 0.64 $ 2.26 ======================= ========= ========= ========= ========= Diluted $ 0.34 $ 0.39 $ 0.64 $ 2.25 ======================= ========= ========= ========= ========= Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.: Basic 154,548 153,379 154,184 153,392 ======================= ========= ========= ========= ========= Diluted 155,397 154,630 154,894 154,151 ======================= ========= ========= ========= ========= SKECHERS U.S.A., INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) Three Months Ended Year Ended December 31, Change December 31, Change ---------------------- ------------ ---------------------- -------------- (in millions) 2020 2019 $ % 2020 2019 $ % ------------------- -------- -------- ----- ---- -------- -------- ------ ----- Domestic Wholesale Sales $ 299.4 $ 295.9 3.5 1.2 $1,126.6 $1,247.6 (121.0) (9.7) Gross margin 37.7% 35.0% 264 bps 38.3% 36.7% 160 bps International Wholesale Sales $ 654.1 $ 638.4 15.7 2.5 $2,257.8 $2,462.6 (204.8) (8.3) Gross margin 46.9% 46.4% 51 bps 45.3% 46.0% (71 )bps Direct-to-Consumer Sales $ 371.2 $ 396.4 (25.2) (6.4) $1,213.0 $1,509.9 (296.9) (19.7) Gross margin 61.7% 60.0% 164 bps 60.6% 59.6% 101 bps Total Sales $1,324.7 $1,330.7 (6.0) (0.5) $4,597.4 $5,220.1 (622.7) (11.9) Gross margin 48.9% 47.9% 102 bps 47.6% 47.7% (9 )bps

SKECHERS U.S.A., INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES (Unaudited)

Adjusted Earnings and Adjusted Diluted Earnings Per Share

We believe that Adjusted Earnings and Adjusted Diluted Earnings Per Share provide meaningful supplemental information to investors in evaluating our business performance for the quarter and year ended December 31, 2020. Adjusted Earnings and Adjusted Diluted Earnings Per Share are not measures of financial performance under GAAP and should be considered in addition to, and not a substitute for, Net Earnings and Diluted Net Earnings Per Share which are the most comparable GAAP measures. Our method of determining non-GAAP financial measures may differ from other companies' methods and therefore may not be comparable to those used by other companies. The tables below include adjustments for a one-time tax benefit, in the fourth quarter, due to the combination of an international restructuring and the CARES Act as well as the non-cash compensation charge related to the cancellation of restricted share grants in the year-to-date results.

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February 04, 2021 16:05 ET (21:05 GMT)