US action sportswear company Volcom Inc has announced that for the fourth quarter ended December 31st 2005 total revenues increased 35.8 percent to $41.2 million, compared with $30.4 million in the fourth quarter of 2004.
Gross profit as a percentage of total revenues increased to 48.8 percent for the fourth quarter of 2005 from 47.8 percent in the fourth quarter of 2004.
Total revenues for the full year 2005 increased 41.3 percent to $160.0 million from $113.2 million in 2004. Gross profit as a percentage of total revenues increased to 50.8 percent for 2005 from 48.6 percent in 2004.
Richard Woolcott, Volcom's President and CEO, “Volcom has become a premier international action sports brand and our financial results for 2005 are testament to the strength of our company and our ability to remain connected to our core consumer base.”
“We intend to continue this momentum by maintaining our focus on running the business and carefully executing our plan for growth in the U.S. and abroad, while carrying on our commitment to staying true to the Volcom heritage,” Woolcott added.
The net income for the fourth quarter of 2005, which includes a provision for income taxes using a 27.2 percent tax rate, increased to $7.2 million. Net income for the full year 2005, which includes a provision for income taxes using a 26.3 percent tax rate, amounted $29.3 million.
In connection with the completion of its initial public offering, the company changed its tax status from an S corporation to a C corporation. As a result, the company recorded a provision for income taxes for the fourth quarter of 2005 using a 27.2 percent tax rate, which reflects the rate necessary to bring the year-to-date provision for income taxes in line with the company's annual tax rate of 26.3 percent.
marketing@alchempro.com
