View printer-friendly version | << Back | Movado Group, Inc. Announces Fourth Quarter and Fiscal Year 2016 Results |
~ Adjusted Fourth Quarter Diluted EPS of $0.40 and Adjusted Full Year
Diluted EPS of $2.06 ~
~ Company Introduces Fiscal 2017 Guidance ~
~ Board Approves 18% Increase in the Company’s Regular Quarterly
Dividend ~
PARAMUS, N.J.--(BUSINESS WIRE)--Mar. 31, 2016--
Movado Group, Inc. (NYSE:MOV) today announced fourth quarter and fiscal
year 2016 results for the periods ended January 31, 2016.
Efraim Grinberg, Chairman and Chief Executive Officer, stated, “We are
very pleased to end fiscal 2016 with a solid fourth quarter and to have
delivered on the annual revenue and earnings targets that we set at the
beginning of the year. Our sales increase of 5.5% on a constant currency
basis, gross margin expansion and adjusted operating income growth of
3.7% in fiscal 2016 reflect our ability to navigate and execute in a
challenging retail environment. Both our fourth quarter and fiscal 2016
performance demonstrate the strength of our Movado brand and licensed
brand portfolio, which continue to outperform the overall watch market,
as well as the early success of our new collection launches. We are
proud of the strong execution by our teams around the world.”
Mr. Grinberg continued, “We remain confident in the positioning of our
brands and businesses as we begin fiscal 2017. We expect our owned and
licensed brands to continue to benefit from our strong innovation
pipeline and our investments in our global infrastructure, which are
expected to fuel continued growth despite our expectation that the
environment will remain challenging. Notably, we are pleased to have
announced today our increase in ownership to 100% in our joint venture
subsidiaries in France and Germany, which will allow us to maximize the
potential for our brands in these key markets. Our plans for fiscal 2017
call for a challenged global economy and retail environment, yet we are
continuing to invest for the long-term growth of the company. We expect
the continued implementation of our stated strategy by our talented team
to result in sustained long-term profitable growth for our company and
increased value for our shareholders.”
Mr. Grinberg added, “Our balance sheet remains exceptionally strong,
with approximately $228 million in cash and inventory down over the
prior year. Our strong financial position allowed us to repurchase close
to 1,860,000 shares for $48.7 million in fiscal 2016. Additionally, we
are pleased to announce that our Board of Directors authorized a new $50
million share repurchase program and has also approved an 18% increase
in our quarterly dividend to $0.13 per share.”
In a separate press release issued today, the Company also announced
that Rick Coté, Vice Chairman and Chief Operating Officer, will retire
in June 2016. Mr. Coté will remain on the Board of Directors of Movado
Group, in which capacity he will continue to serve as a trusted advisor
to the Company. The Company does not plan to replace the Chief Operating
Officer role.
Efraim Grinberg, Chairman and Chief Executive Officer, commented, “I
want to thank Rick for his significant contributions to Movado Group. He
has assisted the Company in developing the operating strategy that has
led to our consistent growth. He has been a great partner and friend and
I am pleased to have Rick continue as a member of our Board.”
During the fourth quarter of fiscal 2016, the Company recorded a $1.3
million pre-tax charge, or $0.06 per diluted share, related to
previously announced operating efficiency initiatives and other items.
During the first quarter of fiscal 2016, the Company recorded a $2.7
million pre-tax charge, or $0.10 per diluted share, also related to
operating efficiency initiatives and other items. The Company reported
no unusual items for the fourth quarter and full fiscal year of 2015.
Fourth Quarter Fiscal 2016 Results (See
attached table for GAAP and non-GAAP measures)
-
Net sales increased 7.0% to $143.3 million compared to $133.9 million
in the fourth quarter of fiscal 2015. Net sales on a constant dollar
basis increased 10.1% compared to net sales in the fourth quarter of
fiscal 2015.
-
Gross profit was $75.4 million, or 52.6% of sales, compared to $67.4
million, or 50.3% of sales in the same period last year. Adjusted
gross profit for the fourth quarter of fiscal 2016, which excludes a
$0.1 million adjustment in charges related to operating efficiency
initiatives and other items, was $75.3 million, or 52.5% of sales. The
increase in adjusted gross margin percentage was primarily driven by a
favorable shift in channel and product mix, selective price increases
and certain sourcing improvements, partially offset by the unfavorable
impact of changes in foreign currency exchange rates.
-
Operating expenses increased $6.5 million or 11.3% to $63.8 million in
the fourth quarter of fiscal 2016 from $57.3 million in the fourth
quarter last year. For the fourth quarter of fiscal 2016, adjusted
operating expenses were $62.4 million, which excludes $1.4 million of
expenses related to operating efficiency initiatives and other items.
The increase in adjusted operating expenses was primarily the result
of an increase in compensation and benefit expenses, higher marketing
expenses and an increase in other operating expenses, partially offset
by the impact of foreign currency exchange rates.
-
Operating income in the fourth quarter was $11.5 million compared to
operating income of $10.1 million in the prior year period. Adjusted
operating income for the fourth quarter of fiscal 2016, excluding $1.3
million of expenses related to operating efficiency initiatives and
other items, was $12.9 million.
-
Both the tax provision and the adjusted tax provision for income tax
was $2.9 million compared to a tax provision of $33,000 in the fourth
quarter of fiscal 2015.
-
Net income was $7.9 million, or $0.34 per diluted share, compared to
net income of $10.1 million, or $0.40 per diluted share, for the same
period in the prior year. Adjusted net income in the fourth quarter of
fiscal 2016, excluding $1.3 million of expenses, net of tax, related
to operating efficiency initiatives and other items, was $9.2 million,
or $0.40 per diluted share.
Full Year Fiscal 2016 Results (See attached
table for GAAP and Non-GAAP measures)
-
Net sales increased 1.4% to $594.9 million compared to net sales of
$587.0 million in fiscal 2015. Net sales on a constant dollar basis
increased 5.5% compared to net sales in fiscal 2015.
-
Gross profit was $316.9 million, or 53.3% of sales, compared to gross
profit of $310.0 million, or 52.8% of sales, last year. Adjusted gross
profit for fiscal 2016, which excludes $0.6 million in charges related
to operating efficiency initiatives and other items, was $317.6
million, or 53.4% of sales. The increase in adjusted gross margin
percentage was primarily driven by a favorable shift in channel and
product mix, selective price increases and certain sourcing
improvements, mostly offset by the unfavorable impact of changes in
foreign currency exchange rates.
-
Operating expenses increased $8.3 million or 3.5% to $246.8 million in
fiscal 2016 from operating expenses of $238.5 million last year. For
fiscal 2016, adjusted operating expenses were $243.4 million, which
excludes $3.4 million of expenses related to operating efficiency
initiatives and other items. The increase in adjusted operating
expenses was primarily the result of an increase in compensation and
benefit expenses, higher marketing expenses, and an increase in other
operating expenses, partially offset by the impact of foreign currency
exchange rates.
-
Operating income for fiscal 2016 was $70.1 million as compared to
operating income of $71.5 million for fiscal 2015. Adjusted operating
income for fiscal 2016, excluding $4.0 million of expenses related to
operating efficiency initiatives and other items, was $74.1 million.
-
The effective tax rate for fiscal 2016 was 33.8%. The adjusted
effective tax rate for fiscal 2016 was 32.1% as compared to the
effective tax rate of 27.1% in fiscal 2015. The increase in the
adjusted effective tax rate is primarily due to the tax impact of
fluctuations in losses incurred by certain foreign operations.
-
Net income was $45.1 million, or $1.90 per diluted share, for fiscal
2016 compared to net income of $51.8 million, or $2.02 per diluted
share, for the prior year. Adjusted net income in fiscal 2016, which
excludes $3.9 million of expenses, net of tax, related to operating
efficiency initiatives and other items, was $49.0 million or $2.06 per
diluted share.
Mr. Grinberg concluded, “Our fiscal 2017 guidance reflects our
expectation that the retail environment will remain challenging.
Additionally, as we continue to expand our brands globally, our
strategic growth plans for fiscal 2017 include continued investments in
marketing, brand building programs and our connected watch initiatives.
As a result, we are planning for sales of $585 million to $600 million
and diluted earnings per share of $1.85 to $2.00.”
Fiscal 2017 Guidance
In fiscal 2017, the Company anticipates that net sales will be in a
range of $585.0 million to $600.0 million and operating income will be
approximately $65.0 million to $70.0 million. The Company anticipates
net income in fiscal 2017 to be approximately $43.3 million to $46.7
million, or $1.85 to $2.00 per diluted share, reflecting a 32%
anticipated effective tax. The Company's guidance also assumes no
further significant fluctuations from prevailing foreign currency
exchange rates.
The Company anticipates recording an approximate $2.0 million pre-tax
charge for the immediate vesting of stock awards and certain other
compensation related to Rick Coté’s retirement in fiscal 2017. The
Company expects this charge, which is excluded from its guidance, to be
recorded in the first quarter of fiscal 2017.
Quarterly Dividend Increase and Share
Repurchase Program
The Company also announced that the Board of Directors approved an 18%
increase in the Company’s quarterly cash dividend to $0.13 for each
share of the Company’s outstanding common stock and class A common
stock. This dividend will be paid on April 26, 2016 to all shareholders
of record as of the close of business on April 12, 2016.
On March 31, 2016, the Board of Directors authorized a new share buyback
program in the amount of $50 million. The authorization expires on
September 30, 2017, subject to extension or earlier termination by the
Board. Under this share buyback program, the Company may purchase its
outstanding common shares from time to time in open-market and/or
privately negotiated transactions in accordance with applicable
securities laws and regulations, including Rule 10b-18 of the Securities
Exchange Act of 1934, and repurchases may be executed pursuant to Rule
10b5-1 under the Securities Exchange Act of 1934. The extent to which
the Company repurchases its shares, and the timing of such transactions,
will depend upon a variety of factors, including market and industry
conditions, share price, regulatory requirements and other corporate
considerations, as determined by the Company from time to time. The
authorization may be suspended or discontinued at any time without
notice.
During the fourth quarter of fiscal 2016, the Company repurchased
approximately 111,000 shares under its previous $100 million share
repurchase program which expired on January 31, 2016.
Conference Call
The Company’s management will host a conference call and audio webcast
to discuss its results today, March 31st, at 9:00 a.m.
Eastern Time. The conference call may be accessed by dialing (888)
299-7209. Additionally, a live webcast of the call can be accessed at www.movadogroup.com.
The webcast will be archived on the Company’s website approximately
one hour after the conclusion of the call. Additionally, a telephonic
re-play of the call will be available from 12:00 p.m. ET on March 31,
2016 until 11:59 p.m. ET on April 7, 2016 and can be accessed by dialing
(877) 870-5176 and entering replay pin number 1871874.
Movado Group, Inc. designs, sources, and distributes MOVADO®, EBEL®,
CONCORD®, ESQ® Movado, COACH®, TOMMY HILFIGER®, HUGO BOSS®, JUICY
COUTURE®, LACOSTE® and SCUDERIA FERRARI® watches worldwide, and operates
Movado company stores in the United States.
In this release, the Company presents certain financial measures that
are not calculated according to generally accepted accounting principles
in the United States (“GAAP”). Specifically, the Company is presenting
adjusted gross profit, adjusted gross margin and adjusted operating
expenses, which are gross profit, gross margin and operating expenses,
respectively, under GAAP, adjusted to eliminate charges for operating
efficiency initiatives and other unusual items. The Company is also
presenting adjusted operating income and adjusted tax provision, which
is operating income and tax provision under GAAP, adjusted to eliminate
charges for operating efficiency initiatives and other unusual items.
The Company believes these adjusted measures are useful because they
give investors information about the Company’s financial performance
without the effect of certain items that the Company believes are not
characteristic of its usual operations. The Company is also presenting
adjusted net income, adjusted earnings per share and adjusted effective
tax rate, which are net income, earnings per share and effective tax
rate, respectively, under GAAP, adjusted to eliminate the after tax
impact of the charges for operating efficiency initiatives and other
unusual items. The Company believes that adjusted net income, adjusted
earnings per share and adjusted effective tax rate are useful measures
of performance because they give investors information about the
Company’s financial performance without the effect of certain items that
the Company believes are not characteristic of its usual operations.
Additionally, the Company is presenting constant currency information to
provide a framework to assess how its business performed excluding the
effects of foreign currency exchange rate fluctuations in the current
year. Comparisons of financial results on a constant dollar basis are
calculated by translating each foreign currency at the same US dollar
exchange rate as in effect for the prior-year period for both periods
being compared. The Company believes this information is useful
to investors to facilitate comparisons of operating results. These
non-GAAP financial measures are designed to complement the GAAP
financial information presented in this release. The non-GAAP financial
measures presented should not be considered in isolation from or as a
substitute for the comparable GAAP financial measures, and the methods
of their calculation may differ substantially from similarly titled
measures used by other companies.
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The
Company has tried, whenever possible, to identify these forward-looking
statements using words such as “expects,” “anticipates,” “believes,”
“targets,” “goals,” “projects,” “intends,” “plans,” “seeks,”
“estimates,” “may,” “will,” “should” and variations of such words and
similar expressions. Similarly, statements in this press release that
describe the Company's business strategy, outlook, objectives, plans,
intentions or goals are also forward-looking statements. Accordingly,
such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause the Company's actual
results, performance or achievements and levels of future dividends to
differ materially from those expressed in, or implied by, these
statements. These risks and uncertainties may include, but are not
limited to general economic and business conditions which may impact
disposable income of consumers in the United States and the other
significant markets (including Europe) where the Company’s products are
sold, uncertainty regarding such economic and business conditions,
trends in consumer debt levels and bad debt write-offs, general
uncertainty related to possible terrorist attacks, natural disasters,
the stability of the European Union and defaults on or downgrades of
sovereign debt and the impact of any of those events on consumer
spending, changes in consumer preferences and popularity of particular
designs, new product development and introduction, the ability of the
Company to successfully implement its business strategies, competitive
products and pricing, the impact of “smart” watches and other wearable
tech products on the traditional watch market, seasonality, availability
of alternative sources of supply in the case of the loss of any
significant supplier or any supplier’s inability to fulfill the
Company’s orders, the loss of or curtailed sales to significant
customers, the Company’s dependence on key employees and officers, the
ability to successfully integrate the operations of acquired businesses
without disruption to other business activities, the continuation of the
company’s major warehouse and distribution centers, the continuation of
licensing arrangements with third parties, losses possible from pending
or future litigation, the ability to secure and protect trademarks,
patents and other intellectual property rights, the ability to lease new
stores on suitable terms in desired markets and to complete construction
on a timely basis, the ability of the Company to successfully manage its
expenses on a continuing basis, information systems failure or breaches
of network security, the continued availability to the Company of
financing and credit on favorable terms, business disruptions, disease,
general risks associated with doing business outside the United States
including, without limitation, import duties, tariffs, quotas, political
and economic stability, changes to existing laws or regulations, and
success of hedging strategies with respect to currency exchange rate
fluctuations, and the other factors discussed in the Company’s Annual
Report on Form 10-K and other filings with the Securities and Exchange
Commission. These statements reflect the Company's current beliefs and
are based upon information currently available to it. Be advised that
developments subsequent to this press release are likely to cause these
statements to become outdated with the passage of time. The Company
assumes no duty to update its forward looking statements and this
release shall not be construed to indicate the assumption by the Company
of any duty to update its guidance in the future.
(Tables to follow)
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MOVADO GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
|
|
|
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|
|
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|
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Three Months Ended
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Twelve Months Ended
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January 31,
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January 31,
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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2016
|
|
2015
|
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|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$143,264
|
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|
$133,911
|
|
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|
$594,923
|
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|
$586,980
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|
|
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|
|
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|
|
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|
Cost of sales
|
|
|
67,913
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|
66,528
|
|
|
|
277,993
|
|
|
276,998
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|
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|
Gross profit
|
|
|
75,351
|
|
|
67,383
|
|
|
|
316,930
|
|
|
309,982
|
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|
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Operating expenses
|
|
|
63,807
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|
57,318
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246,823
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238,495
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Operating income
|
|
|
11,544
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|
10,065
|
|
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|
70,107
|
|
|
71,487
|
|
|
|
|
|
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|
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|
|
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Interest expense
|
|
|
(382
|
)
|
|
(217
|
)
|
|
|
(1,109
|
)
|
|
(489
|
)
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Interest income
|
|
|
22
|
|
|
69
|
|
|
|
127
|
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|
166
|
|
|
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|
Income before income taxes
|
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|
11,184
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|
|
9,917
|
|
|
|
69,125
|
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|
71,164
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|
|
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|
|
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|
|
|
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Provision for income taxes
|
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|
2,902
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|
|
33
|
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|
23,360
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|
|
19,264
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|
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|
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|
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|
|
|
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Net income
|
|
|
8,282
|
|
|
9,884
|
|
|
|
45,765
|
|
|
51,900
|
|
|
|
|
|
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Less: Net income / (loss) attributed to noncontrolling interests
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394
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|
(167
|
)
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|
671
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124
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Net income attributed to Movado Group, Inc.
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|
$7,888
|
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|
$10,051
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|
$45,094
|
|
|
$51,776
|
|
|
|
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|
|
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|
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Per Share Information:
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|
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|
Net income attributed to Movado Group, Inc.
|
|
|
$0.34
|
|
|
$0.40
|
|
|
|
$1.90
|
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|
$2.02
|
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Weighted diluted average shares outstanding
|
|
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23,317
|
|
|
25,326
|
|
|
|
23,774
|
|
|
25,581
|
|
|
|
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|
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MOVADO GROUP, INC.
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GAAP AND NON-GAAP MEASURES
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|
(In thousands, except for percentage data)
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|
(Unaudited)
|
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As Reported
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% Change
|
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|
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Three Months Ended
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|
% Change
|
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Constant
|
|
|
|
|
|
|
|
|
January 31,
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As Reported
|
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|
Dollar
|
|
|
|
|
|
|
|
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|
|
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|
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|
|
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|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net sales
|
|
|
|
|
|
|
$143,264
|
|
|
$133,911
|
|
|
7.0%
|
|
|
10.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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As Reported
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|
% Change
|
|
|
|
|
|
|
|
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Twelve Months Ended
|
|
|
% Change
|
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|
Constant
|
|
|
|
|
|
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|
|
January 31,
|
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As Reported
|
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|
Dollar
|
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|
|
|
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|
|
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|
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|
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|
|
|
2016
|
|
|
2015
|
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|
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|
|
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|
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|
|
|
|
|
|
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Total Net sales
|
|
|
|
|
|
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$594,923
|
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|
$586,980
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|
1.4%
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|
|
5.5%
|
|
|
|
|
|
MOVADO GROUP, INC.
|
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GAAP AND NON-GAAP MEASURES
|
|
(In thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
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Net Sales
|
|
Gross Profit
|
|
Operating Income
|
|
Pre-tax Income
|
|
Net Income
Attributed to
Movado Group,
Inc.
|
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EPS
|
|
Three Months Ended January 31, 2016
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|
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|
|
|
|
|
|
|
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|
As Reported (GAAP)
|
|
|
$143,264
|
|
$75,351
|
|
|
$11,544
|
|
$11,184
|
|
$7,888
|
|
$0.34
|
|
Operating Efficiency Initiatives and Other Items (1)
|
|
|
-
|
|
(72
|
)
|
|
1,326
|
|
1,326
|
|
1,333
|
|
0.06
|
|
Adjusted Results (Non-GAAP)
|
|
|
$143,264
|
|
$75,279
|
|
|
$12,870
|
|
$12,510
|
|
$9,221
|
|
$0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended January 31, 2015
|
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|
|
|
|
|
|
|
|
|
|
|
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|
As Reported (GAAP)
|
|
|
$133,911
|
|
$67,383
|
|
|
$10,065
|
|
$9,917
|
|
$10,051
|
|
$0.40
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended January 31, 2016
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported (GAAP)
|
|
|
$594,923
|
|
$316,930
|
|
|
$70,107
|
|
$69,125
|
|
$45,094
|
|
$1.90
|
|
Operating Efficiency Initiatives and Other Items (1)
|
|
|
-
|
|
621
|
|
|
3,996
|
|
3,996
|
|
3,869
|
|
0.16
|
|
Adjusted Results (Non-GAAP)
|
|
|
$594,923
|
|
$317,551
|
|
|
$74,103
|
|
$73,121
|
|
$48,963
|
|
$2.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended January 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported (GAAP)
|
|
|
$586,980
|
|
$309,982
|
|
|
$71,487
|
|
$71,164
|
|
$51,776
|
|
$2.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Related to a charge for severance, occupancy expenses and the
write-off of certain fixed assets.
|
|
|
|
|
|
|
|
|
|
MOVADO GROUP, INC.
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
(In thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 31,
|
|
|
|
January 31,
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
$228,188
|
|
|
|
$199,852
|
|
|
|
Trade receivables, net
|
|
|
|
|
|
71,030
|
|
|
|
74,106
|
|
|
|
Inventories
|
|
|
|
|
|
162,465
|
|
|
|
170,788
|
|
|
|
Other current assets
|
|
|
|
|
|
27,352
|
|
|
|
34,097
|
|
|
|
Total current assets
|
|
|
|
|
|
489,035
|
|
|
|
478,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
|
38,553
|
|
|
|
46,673
|
|
|
|
Deferred and non-current income taxes
|
|
|
|
|
|
20,323
|
|
|
|
19,985
|
|
|
|
Other non-current assets
|
|
|
|
|
|
37,259
|
|
|
|
37,522
|
|
|
|
Total assets
|
|
|
|
|
|
$585,170
|
|
|
|
$583,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans payable to bank, current
|
|
|
|
|
|
$5,000
|
|
|
|
$-
|
|
|
|
Accounts payable
|
|
|
|
|
|
27,308
|
|
|
|
27,767
|
|
|
|
Accrued liabilities
|
|
|
|
|
|
28,570
|
|
|
|
25,921
|
|
|
|
Accrued payroll and benefits
|
|
|
|
|
|
11,047
|
|
|
|
5,012
|
|
|
|
Income taxes payable
|
|
|
|
|
|
6,257
|
|
|
|
7,147
|
|
|
|
Total current liabilities
|
|
|
|
|
|
78,182
|
|
|
|
65,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans payable to bank
|
|
|
|
|
|
35,000
|
|
|
|
-
|
|
|
|
Deferred and non-current income taxes payable
|
|
|
|
|
|
2,640
|
|
|
|
3,695
|
|
|
|
Other non-current liabilities
|
|
|
|
|
|
28,201
|
|
|
|
29,196
|
|
|
|
Noncontrolling interests
|
|
|
|
|
|
595
|
|
|
|
2,076
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
440,552
|
|
|
|
482,209
|
|
|
|
Total liabilities and equity
|
|
|
|
|
|
$585,170
|
|
|
|
$583,023
|
|
|
|
|
|
|
|
MOVADO GROUP, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
January 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$45,765
|
|
|
|
$51,900
|
|
|
Depreciation and amortization
|
|
|
|
|
13,156
|
|
|
|
12,469
|
|
|
Other non-cash adjustments
|
|
|
|
|
5,367
|
|
|
|
15,675
|
|
|
Operating efficiency initiatives and other items
|
|
|
|
|
3,996
|
|
|
|
-
|
|
|
Changes in working capital
|
|
|
|
|
5,290
|
|
|
|
(20,216
|
)
|
|
Changes in non-current assets and liabilities
|
|
|
|
|
1,016
|
|
|
|
(232
|
)
|
|
Net cash provided by operating activities
|
|
|
|
|
74,590
|
|
|
|
59,596
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(8,070
|
)
|
|
|
(11,132
|
)
|
|
Proceeds from short-term investments
|
|
|
|
|
-
|
|
|
|
33,736
|
|
|
Long-term investments
|
|
|
|
|
(435
|
)
|
|
|
(1,200
|
)
|
|
Other investing
|
|
|
|
|
(650
|
)
|
|
|
189
|
|
|
Net cash (used in) / provided by investing activities
|
|
|
|
|
(9,155
|
)
|
|
|
21,593
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from bank borrowings
|
|
|
|
|
50,000
|
|
|
|
-
|
|
|
Repayments of bank borrowings
|
|
|
|
|
(10,000
|
)
|
|
|
-
|
|
|
Dividends paid
|
|
|
|
|
(10,312
|
)
|
|
|
(10,104
|
)
|
|
Stock repurchase
|
|
|
|
|
(48,748
|
)
|
|
|
(26,382
|
)
|
|
Purchase of incremental ownership of joint venture with TWC
|
|
|
|
|
(4,267
|
)
|
|
|
-
|
|
|
Other financing
|
|
|
|
|
(395
|
)
|
|
|
306
|
|
|
Net cash (used in) financing activities
|
|
|
|
|
(23,722
|
)
|
|
|
(36,180
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
(13,377
|
)
|
|
|
(2,816
|
)
|
|
Net change in cash and cash equivalents
|
|
|
|
|
28,336
|
|
|
|
42,193
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
|
|
199,852
|
|
|
|
157,659
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
|
|
|
$228,188
|
|
|
|
$199,852
|
|
|

View source version on businesswire.com: http://www.businesswire.com/news/home/20160331005384/en/
Source: Movado Group, Inc.
ICR, Inc. Rachel Schacter/Allison Malkin 203-682-8200
|
 |
|