Weyco (US:WEYS)2023-03-13 20:03Financial Performance - Consolidated net sales for 2022 reached a record $351.7 million, up 31% from $267.6 million in 2021[85] - Florsheim's net sales increased by 43% in 2022, while Stacy Adams and Nunn Bush saw increases of 49% and 40%, respectively[81] - The North American Wholesale segment net sales were $283.2 million, a 38% increase from $205.4 million in 2021[88] - Retail segment net sales rose 16% to $36.7 million in 2022, driven by strong e-commerce performance[93] - Operating earnings for the company reached a record $40.4 million in 2022, up 57% from $25.7 million in 2021[85] - Gross earnings for 2022 were $144.4 million, up 34.4% from $107.4 million in 2021[137] - Net earnings increased to $29.5 million in 2022, compared to $20.6 million in 2021, reflecting a 43.5% growth[137] - Comprehensive income for 2022 was $34.1 million, an increase from $23.8 million in 2021[139] - Basic earnings per share rose from $2.13 in 2021 to $3.09 in 2022, reflecting an increase of approximately 45.0%[241] - Total net sales increased from $267,641 thousand in 2021 to $351,737 thousand in 2022, marking a growth of approximately 31.4%[247] Inventory and Assets - Inventory levels increased to $128.0 million at December 31, 2022, up from $71.0 million at the end of 2021[100] - Total assets increased to $326,620,000 in 2022 from $277,667,000 in 2021, representing an increase of 17.6%[141] - Total inventories increased to $127,976,000 in 2022 from $71,026,000 in 2021, reflecting a growth of approximately 80.5%[193] - Finished shoes inventory included in-transit amounts of $33.2 million in 2022, down from $52.6 million in 2021[195] - Property, plant, and equipment net value decreased slightly to $28,812,000 in 2022 from $29,202,000 in 2021[197] Liabilities and Equity - Total current liabilities increased to $67,535,000 in 2022 from $34,508,000 in 2021, an increase of 95.9%[141] - The company had outstanding borrowings of approximately $31.1 million on its line of credit at an interest rate of 5.77%[107] - The unfunded benefit obligation decreased to $16.1 million in 2022 from $28.3 million in 2021[118] - Total equity increased to $223,905,000 in 2022 from $201,395,000 in 2021, reflecting an increase of 11.2%[141] Cash Flow and Dividends - The company paid cash dividends of $7.0 million in 2022, down from $9.3 million in 2021, due to a change in the quarterly dividend payment schedule[104] - Cash and cash equivalents decreased to $16,876,000 in 2022 from $19,711,000 in 2021, a decline of 9.3%[144] - The company believes its available liquidity will support cash needs for at least one year, including capital expenditures and acquisitions[109] Capital Expenditures and Investments - Capital expenditures were $2.3 million in 2022, with plans for 2023 expenditures between $2.0 million and $4.0 million[103] - The company acquired Forsake, Inc. for approximately $2.6 million, with an additional estimated contingent payment of $1.3 million, totaling an investment of approximately $3.9 million[183] - Forsake's net sales for the year ended December 31, 2022, totaled approximately $2.9 million, with $1.7 million recognized in the wholesale segment and $1.2 million in the retail segment[185] Taxation - The effective tax rate for 2022 was 25.7%, compared to 24.8% in 2021[99] - The total provision for income taxes increased from $6,790 thousand in 2021 to $10,199 thousand in 2022, representing an increase of approximately 50.5%[232] Pension and Employee Benefits - The projected benefit obligation for the defined benefit pension plan decreased from $52.5 million in 2021 to $39.6 million in 2022, a reduction of approximately 24.5%[221] - The funded status of the defined benefit pension plan improved from a liability of $7.9 million in 2021 to a liability of $3.7 million in 2022[221] - Contributions to the defined contribution plan were $1.0 million in 2022, up from $850,000 in 2021[229] Share Repurchase and Stock Options - The company repurchased 171,397 shares at a total cost of $4.2 million in 2022, compared to 125,204 shares for $2.5 million in 2021[106] - Share-based compensation expense recognized was approximately $1.5 million in 2022, compared to $1.6 million in 2021[252] - The total intrinsic value of stock options exercised in 2022 was $251,000, compared to $8,000 in 2021[259]