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Movado Group, Inc. Announces Second Quarter Results

~ Net Sales Increase 5.1% to $182.8 million ~

~ Net Sales Increase 10.5% on Constant Currency Basis ~

~ Operating Income Increases to $30.7 million from $24.6 million ~

~ EPS of $1.05 and Adjusted EPS of $1.07 ~

~ Board Declares Quarterly Dividend ~

Movado Group, Inc. (NYSE: MOV) today announced second quarter and six-month results for the periods ended July 31, 2022.

Fiscal 2023 Second Quarter Highlights (See table below for GAAP and Non-GAAP measures)

  • Delivered topline growth of 5.1% or 10.5% on a constant dollar basis over second quarter fiscal 2022;
  • Expanded gross margin by 190 basis points;
  • Improved operating expenses as a percent of sales by 80 bps to 41.7%;
  • Generated operating income of $30.7 million, or 16.8% of sales;
  • Delivered an increase in diluted earnings per share of 27.8% as compared to the prior year period; and
  • Maintained strong balance sheet at quarter end, including cash of $203.1 million and no debt.

Efraim Grinberg, Chairman and Chief Executive Officer, stated, “We are very pleased with our strong second quarter results given the macroeconomic environment, highlighted by sales growth of 5.1%, or 10.5% on a constant currency basis, gross margin expansion of 190 basis points and an almost 25% increase in operating income. The quarter saw us deliver against our strategic initiatives centered on introducing compelling designs in watches and jewelry and continuing to elevate our digital marketing initiatives, which drove consumer demand for our powerful portfolio of brands around the world. To this end, even with foreign exchange headwinds, we generated a 15% increase in our international business with particular strength in Latin America, India, and Europe.”

Mr. Grinberg continued, “We are very excited about our product innovation pipeline and marketing campaigns for the all-important holiday season. As we look ahead, we will remain disciplined in executing our strategy as we navigate an increased level of uncertainty in the second half of our fiscal year including global inflation, currency headwinds, rising interest rates and the elimination of domestic stimulus programs. The strength of our balance sheet and our variable expense-management approach position us well for the rest of the year and beyond, as we remain focused on delivering long-term sustainable growth.”

Non-GAAP Items (See attached table for GAAP and Non-GAAP measures)

Second quarter fiscal 2023 results of operations included the following items:

  • a $0.6 million pre-tax charge, or $0.5 million after tax, representing $0.02 per diluted share, associated with the amortization of acquired intangible assets related to the acquisition of Olivia Burton; and
  • a $0.1 million pre-tax and after tax charge, representing $0.00 per diluted share, associated with the amortization of acquired intangible assets and deferred compensation related to the acquisition of MVMT.

Second quarter fiscal 2022 results of operations included the following items:

  • a $0.7 million pre-tax charge, or $0.6 million after tax, representing $0.03 per diluted share, associated with the amortization of acquired intangible assets related to the acquisition of Olivia Burton; and
  • a $0.1 million pre-tax and after-tax charge, representing $0.00 per diluted share, associated with the amortization of acquired intangible assets and deferred compensation related to the acquisition of MVMT.

In this press release, reference to “adjusted” results exclude the impact of the above charges and the charges described in the Non-GAAP Items section of the Company’s earnings release for the first quarter of fiscal year 2023 in deriving the adjusted results for the six months ending July 31, 2022 and July 31, 2021. Please refer to the attached GAAP and Non-GAAP measures table for a detailed reconciliation of the Company’s reported results to its adjusted, non-GAAP results.

Second Quarter Fiscal 2023 (See attached table for GAAP and Non-GAAP measures)

  • Net sales increased 5.1% (10.5% on a constant dollar basis) to $182.8 million compared to $173.9 million in the second quarter of fiscal 2022. The increase in net sales reflected growth in wholesale customers’ brick and mortar stores and in Movado Company Stores. International net sales increased 15.3% as compared to the second quarter of last year. U.S. net sales decreased 5.4% as compared to the second quarter of last year.
  • Gross profit was $106.9 million, or 58.5% of sales, compared to $98.5 million, or 56.6% of sales, in the second quarter of fiscal 2022. The increase in gross margin percentage was primarily the result of favorable changes in channel and product mix, partially offset by the unfavorable impact of foreign currency exchange rates.
  • Operating expenses were $76.3 million compared to $73.8 million in the second quarter of fiscal 2022. Adjusted operating expenses were $75.6 million for the second quarter of fiscal 2023 and $73.0 million in the second quarter of fiscal 2022. This increase was primarily due to higher marketing expenses, payroll related costs and certain other operating expenses to support the increase in net sales. As a percent of sales, adjusted operating expenses decreased to 41.3% of sales from 42.0% in the prior year period primarily due to improved sales leverage.
  • Operating income was $30.7 million compared to $24.6 million in the second quarter of fiscal 2022. Adjusted operating income for the second quarter of fiscal 2023 was $31.4 million compared to an adjusted operating income of $25.5 million in the second quarter of fiscal 2022.
  • The Company recorded a tax provision of $6.4 million compared to a tax provision of $5.3 million in the second quarter of fiscal 2022. The Company recorded an adjusted tax provision in the second quarter of fiscal 2023 of $6.6 million compared to an adjusted tax provision of $5.5 million in the second quarter of fiscal 2022.
  • Net income was $24.0 million, or $1.05 per diluted share, compared to net income of $19.4 million, or $0.82 per diluted share, in the second quarter of fiscal 2022. Adjusted net income for the fiscal 2023 period was $24.6 million, or $1.07 per diluted share. This compares to adjusted net income in the second quarter of fiscal 2022 of $20.1 million, or $0.85 per diluted share.

First Half Fiscal 2023 (See attached table for GAAP and Non-GAAP measures)

  • Net sales for the first six months of fiscal 2023 increased 12.2% to $346.2 million (16.5% on a constant dollar basis) compared to $308.7 million in the first six months of fiscal 2022. The increase in net sales reflected growth in wholesale customers’ brick and mortar stores and in Movado Company Stores. International net sales increased 24.1% as compared to the same period last year. U.S. net sales decreased 0.2% as compared to the prior year period.
  • Gross profit was $203.6 million, or 58.8% of sales, compared to $172.7 million, or 55.9% of sales in the first six months of fiscal 2022. The increase in gross margin percentage was primarily the result of favorable changes in channel and product mix partially offset by increased shipping costs and the unfavorable impact of foreign currency exchange rates.
  • Operating expenses were $147.7 million as compared to $134.8 million in the first six months of fiscal 2022. Adjusted operating expenses were $146.2 million compared to $133.1 million in the first six months of fiscal 2022. This increase was primarily due to higher marketing expenses, payroll related costs and certain other operating expenses to support the increase in net sales. As a percent of sales, adjusted operating expenses decreased to 42.2% of sales from 43.1% in the prior year period primarily due to improved sales leverage.
  • Operating income was $56.0 million compared to operating income of $37.9 million in the first six months of fiscal 2022. Adjusted operating income was $57.4 million compared to $39.6 million in the prior year period.
  • The Company recorded a tax provision in the first six months of fiscal 2023 of $12.4 million as compared to a provision of $8.6 million in the first six months of fiscal 2022. The Company recorded an adjusted tax provision of $12.7 million compared to an adjusted tax provision of $9.0 million for the first half of fiscal 2022.
  • Net income was $42.5 million, or $1.83 per diluted share, compared to net income of $28.8 million, or $1.21 per diluted share, in the first six months of last year. In the first half of fiscal 2023, adjusted net income was $43.7 million, or $1.89 per diluted share compared to adjusted net income of $30.2 million, or $1.27 per diluted share.

Fiscal 2023 Outlook

Given the prevailing foreign exchange headwinds, the Company currently expects net sales to be $780 million to $790 million versus its previous outlook range of $780 million to $800 million. Based on the strong results for the first half of fiscal 2023, the Company now expects operating income to be at the high end of its previous outlook of $125 million to $130 million.

Specifically:

  • Fiscal 2023 net sales are currently expected to be in the range of approximately $780 million to $790 million. This represents growth of 6.5% to 8.0% from fiscal 2022 net sales.
  • Gross profit is expected to continue to be approximately 58.0% of net sales.
  • Operating income is expected to be at the high end of its previous outlook range of $125 million to $130 million.
  • In addition, the Company anticipates an effective tax rate of approximately 25%, assuming no changes to the current tax regulations.
  • The outlook excludes approximately $3.0 million of amortization of acquired intangible assets and deferred compensation for fiscal 2023 related to the Olivia Burton and MVMT brands.
  • This outlook does not contemplate significant further impact of increasing inflation, geopolitical unrest or extended negative impact to supply chain and shipping costs, and assumes no further significant fluctuations from prevailing foreign currency exchange rates.

Quarterly Dividend and Share Repurchase Program

The Company also announced today that on August 25, 2022, the Board of Directors approved the payment on September 21, 2022 of a cash dividend in the amount of $0.35 for each share of the Company’s outstanding common stock and class A common stock held by shareholders of record as of the close of business on September 7, 2022.

During the second quarter of fiscal 2023, the Company repurchased approximately 208,200 shares under its November 23, 2021 share repurchase program. As of July 31, 2022, the Company had $30.9 million remaining available under the share repurchase program.

Conference Call

The Company’s management will host a conference call and audio webcast to discuss its results today, August 25, 2022 at 9:00 a.m. Eastern Time. The conference call may be accessed by dialing (877) 407-0784. 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 August 25, 2022 until 11:59 p.m. ET on September 8, 2022 and can be accessed by dialing (844) 512-2921 and entering replay pin number 13732416.

Movado Group, Inc. designs, sources, and distributes MOVADO®, MVMT®, OLIVIA BURTON®, EBEL®, CONCORD®, CALVIN KLEIN®, COACH®, TOMMY HILFIGER®, HUGO BOSS®, and LACOSTE®, watches, and, to a lesser extent jewelry and other accessories, and operates Movado Company Stores in the United States and Canada.

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, adjusted operating expenses and adjusted operating income, which are gross profit, gross margin, operating expenses and operating income, respectively, under GAAP, adjusted to eliminate the amortization of acquisition accounting adjustments related to the Olivia Burton and MVMT acquisitions. The Company is also presenting adjusted tax provision, which is the tax provision under GAAP, adjusted to eliminate the impact of charges for the Olivia Burton and MVMT acquisitions. 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 amortization of acquisition accounting adjustments related to the Olivia Burton and MVMT acquisitions. 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 period. Comparisons of financial results on a constant dollar basis are calculated by translating each foreign currency at the same U.S. 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, including inflation, increased commodity prices and tightness in the labor market, trends in consumer debt levels and bad debt write-offs, general uncertainty related to possible terrorist attacks, natural disasters and pandemics, including the effect of the COVID-19 pandemic and other diseases on travel and traffic in the Company’s retail stores and the stores of its wholesale customers, supply disruptions, delivery delays and increased shipping costs, adverse impact on the Company’s wholesale customers and customer traffic in the Company’s stores as a result of increased uncertainty and economic disruption caused by the COVID-19 pandemic, the impact of international hostilities, including the Russian invasion of Ukraine, on global markets, economies and consumer spending, on energy and shipping costs and on the Company’s supply chain and suppliers, 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, decrease in mall traffic and increase in e-commerce, the ability of the Company to successfully implement its business strategies, competitive products and pricing, including price increases to offset increased costs, 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 possible impairment of acquired intangible assets, risks associated with the Company’s minority investments in early-stage growth companies and venture capital funds that invest in such companies; 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 and administrative proceedings, 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, complex and quickly-evolving regulations regarding privacy and data protection, the continued availability to the Company of financing and credit on favorable terms, business disruptions, and general risks associated with doing business outside the United States including, without limitation, import duties, tariffs (including retaliatory 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 outlook in the future.

(Tables to follow)

MOVADO GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
       
       
Three Months Ended   Six Months Ended
July 31,   July 31,
     

2022

 

2021

 

2022

 

2021

       
Net sales

 $

      182,804

 

 $

      173,874

 

 $

      346,228

 

 $

      308,672

       
Cost of sales

 

           75,877

 

 

           75,421

 

 

         142,616

 

 

         136,017

       
Gross profit

 

         106,927

 

 

           98,453

 

 

         203,612

 

 

         172,655

       
Total operating expenses 

 

           76,270

 

 

           73,820

 

 

         147,661

 

 

         134,766

       
Operating income

 

           30,657

 

 

           24,633

 

 

           55,951

 

 

           37,889

       
Non-operating income/(expense):      
Other income

 

                199

 

 

                257

 

 

                282

 

 

                357

Interest expense

 

              (101)

 

 

              (174)

 

 

              (213)

 

 

              (449)

       
Income before income taxes 

 

           30,755

 

 

           24,716

 

 

           56,020

 

 

           37,797

       
Provision for income taxes 

 

             6,418

 

 

             5,315

 

 

           12,429

 

 

             8,645

       
Net income

 

           24,337

 

 

           19,401

 

 

           43,591

 

 

           29,152

       
Less: Net income/(loss) attributable to noncontrolling interests

 

                334

 

 

                  (9)

 

 

             1,075

 

 

                333

       
Net income attributable to Movado Group, Inc. 

 $

        24,003

 

 $

        19,410

 

 $

        42,516

 

 $

        28,819

       
Diluted Income Per Share Information       
Net income attributable to Movado Group, Inc.

 $

            1.05

 

 $

            0.82

 

 $

            1.83

 

 $

            1.21

       
Weighted diluted average shares outstanding

 

           22,966

 

 

           23,739

 

 

           23,176

 

 

           23,736

MOVADO GROUP, INC.
GAAP AND NON-GAAP MEASURES
(In thousands, except for percentage data)
(Unaudited)
   
   
As Reported  
Three Months Ended  
July 31,   % Change
   

2022

 

2021

 
   
Total net sales, as reported

 $

      182,804

 

 $

      173,874

 

5.1%

   
Total net sales, constant dollar basis

 $

      192,082

 

 $

      173,874

 

10.5%

   
   
   
As Reported  
Six Months Ended  
July 31,   % Change
   

2022

 

2021

 
   
Total net sales, as reported

 $

      346,228

 

 $

      308,672

 

12.2%

   
Total net sales, constant dollar basis

 $

      359,663

 

 $

      308,672

 

16.5%

MOVADO GROUP, INC.
GAAP AND NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)
                 
  Net Sales   Gross Profit   Total Operating Expenses   Operating Income   Pre-tax Income   Provision for Income Taxes   Net Income Attributable to Movado Group, Inc.   Diluted EPS
Three Months Ended July 31, 2022                
As Reported (GAAP)  

 $

     182,804

 

 $

     106,927

 

 $

            76,270

 

 $

           30,657

 

 $

          30,755

 

 $

                    6,418

 

 $

                     24,003

 

 $

           1.05

Olivia Burton Costs (1)  

 

                  -  

 

 

                  -  

 

 

                  (637)

 

 

                   637

 

 

                  637

 

 

                          120

 

 

                             517

 

 

              0.02

MVMT Costs (2)  

 

                  -  

 

 

                  -  

 

 

                    (75)

 

 

                     75

 

 

                    75

 

 

                            18

 

 

                               57

 

 

              0.00

Adjusted Results (Non-GAAP)  

 $

     182,804

 

 $

     106,927

 

 $

            75,558

 

 $

           31,369

 

 $

          31,467

 

 $

                    6,556

 

 $

                     24,577

 

 $

           1.07

                 
                 
Three Months Ended July 31, 2021                
As Reported (GAAP)  

 $

     173,874

 

 $

       98,453

 

 $

            73,820

 

 $

           24,633

 

 $

          24,716

 

 $

                    5,315

 

 $

                     19,410

 

 $

           0.82

Olivia Burton Costs (1)  

 

                  -  

 

 

                  -  

 

 

                  (726)

 

 

                   726

 

 

                  726

 

 

                          138

 

 

                             588

 

 

              0.03

MVMT Costs (2)  

 

                  -  

 

 

                  -  

 

 

                  (101)

 

 

                   101

 

 

                  101

 

 

                            25

 

 

                               76

 

 

              0.00

Adjusted Results (Non-GAAP)  

 $

     173,874

 

 $

       98,453

 

 $

            72,993

 

 $

           25,460

 

 $

          25,543

 

 $

                    5,478

 

 $

                     20,074

 

 $

           0.85

                 
                 
  Net Sales   Gross Profit   Total Operating Expenses   Operating Income   Pre-tax Income   Provision for Income Taxes   Net Income Attributable to Movado Group, Inc.   Diluted EPS
Six Months Ended July 31, 2022                
As Reported (GAAP)  

 $

     346,228

 

 $

     203,612

 

 $

          147,661

 

 $

           55,951

 

 $

          56,020

 

 $

                  12,429

 

 $

                     42,516

 

 $

           1.83

Olivia Burton Costs (1)  

 

                  -  

 

 

                  -  

 

 

               (1,324)

 

 

                1,324

 

 

               1,324

 

 

                          251

 

 

                          1,073

 

 

              0.05

MVMT Costs (2)  

 

                  -  

 

 

                  -  

 

 

                  (157)

 

 

                   157

 

 

                  157

 

 

                            38

 

 

                             119

 

 

              0.01

Adjusted Results (Non-GAAP)  

 $

     346,228

 

 $

     203,612

 

 $

          146,180

 

 $

           57,432

 

 $

          57,501

 

 $

                  12,718

 

 $

                     43,708

 

 $

           1.89

                 
                 
Six Months Ended July 31, 2021                
As Reported (GAAP)  

 $

     308,672

 

 $

     172,655

 

 $

          134,766

 

 $

           37,889

 

 $

          37,797

 

 $

                    8,645

 

 $

                     28,819

 

 $

           1.21

Olivia Burton Costs (1)  

 

                  -  

 

 

                  -  

 

 

               (1,447)

 

 

                1,447

 

 

               1,447

 

 

                          275

 

 

                          1,172

 

 

              0.05

MVMT Costs (2)  

 

                  -  

 

 

                  -  

 

 

                  (232)

 

 

                   232

 

 

                  232

 

 

                            58

 

 

                             174

 

 

              0.01

Adjusted Results (Non-GAAP)  

 $

     308,672

 

 $

     172,655

 

 $

          133,087

 

 $

           39,568

 

 $

          39,476

 

 $

                    8,978

 

 $

                     30,165

 

 $

           1.27

                             
                 

(1) Related to the amortization of acquired intangible assets for Olivia Burton.

         

(2) Related to the amortization of acquired intangible assets and the MVMT brand's deferred compensation, where applicable.

     
MOVADO GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31,   January 31,   July 31,

2022

 

2022

 

2021

ASSETS    
     
     
Cash and cash equivalents

 $

         203,109

 

 $

         277,128

 

 $

         199,721

Trade receivables, net

 

            100,697

 

 

              91,558

 

 

              89,710

Inventories

 

            215,038

 

 

            160,283

 

 

            183,289

Other current assets

 

              21,588

 

 

              16,974

 

 

              23,144

Income taxes receivable

 

                9,691

 

 

                7,941

 

 

                8,602

Total current assets

 

            550,123

 

 

            553,884

 

 

            504,466

     
Property, plant and equipment, net

 

              17,956

 

 

              19,470

 

 

              19,656

Operating lease right-of-use assets

 

              76,818

 

 

              68,599

 

 

              71,253

Deferred and non-current income taxes

 

              44,480

 

 

              42,596

 

 

              41,579

Other intangibles, net

 

              10,946

 

 

              13,507

 

 

              15,550

Other non-current assets

 

              65,813

 

 

              63,104

 

 

              58,394

Total assets

 $

         766,136

 

 $

         761,160

 

 $

         710,898

     
LIABILITIES AND EQUITY    
     
     
Accounts payable

 $

           51,981

 

 $

           46,011

 

 $

           45,670

Accrued liabilities

 

              58,475

 

 

              48,522

 

 

              50,329

Accrued payroll and benefits

 

              11,383

 

 

              25,117

 

 

              13,864

Current operating lease liabilities

 

              16,904

 

 

              13,693

 

 

              14,863

Income taxes payable

 

              20,875

 

 

              18,123

 

 

              10,379

Total current liabilities

 

            159,618

 

 

            151,466

 

 

            135,105

     
Deferred and non-current income taxes payable

 

              15,788

 

 

              19,614

 

 

              20,185

Non-current operating lease liabilities

 

              67,241

 

 

              62,730

 

 

              64,520

Other non-current liabilities

 

              47,633

 

 

              50,264

 

 

              51,686

     
Redeemable noncontrolling interest

 

                2,305

 

 

                2,311

 

 

                2,443

     
Shareholders' equity

 

            470,836

 

 

            472,808

 

 

            434,567

     
Noncontrolling interest

 

                2,715

 

 

                1,967

 

 

                2,392

Total equity

 

            473,551

 

 

            474,775

 

 

            436,959

     
Total liabilities, redeemable noncontrolling interest and equity

 $

         766,136

 

 $

         761,160

 

 $

         710,898

MOVADO GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Six Months Ended 
  July 31,  
 

2022

 

2021

 

Cash flows from operating activities:
Net income

 $

        43,591

 

 $

        29,152

 

Depreciation and amortization

 

             5,635

 

 

 

             6,283

 

Other non-cash adjustments

 

             3,346

 

 

             5,363

 

Changes in working capital

 

         (74,366

)

 

         (18,802

)

Changes in non-current assets and liabilities

 

           (3,598

)

 

                682

 

Net cash (used in)/provided by operating activities

 

         (25,392

)

 

           22,678

 

 
Cash flows from investing activities:
Capital expenditures

 

           (2,987

)

 

           (1,786

)

Long-term investments

 

           (2,283

)

 

                  -

 

Trademarks and other intangibles

 

                (57

)

 

              (133

)

Net cash used in investing activities

 

           (5,327

)

 

           (1,919

)

 
Cash flows from financing activities:
Repayment of bank borrowings

 

                  -

 

 

         (21,140

)

Dividends paid

 

         (15,797

)

 

         (11,618

)

Stock repurchase

 

         (21,539

)

 

           (9,975

)

Stock awards and options exercised and other changes 

 

              (405

)

 

           (1,030

)

Other 

 

                (85

)

 

                  -

 

Net cash used in financing activities

 

         (37,826

)

 

         (43,763

)

 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

           (5,489

)

 

           (1,096

)

Net change in cash, cash equivalents, and restricted cash

 

         (74,034

)

 

         (24,100

)

Cash, cash equivalents, and restricted cash at beginning of period

 

         277,716

 

 

         224,423

 

 
Cash, cash equivalents, and restricted cash at end of period

 $

      203,682

 

 $

      200,323

 

 
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents

 $

      203,109

 

 $

      199,721

 

Restricted cash included in other non-current assets

 

                573

 

 

                602

 

Cash, cash equivalents, and restricted cash

 $

      203,682

 

 $

      200,323

 

 

Contacts

ICR, Inc.

Rachel Schacter/Allison Malkin

203-682-8200

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