In the footsteps of Crocs, which continues to make major inroads internationally, Heelys, the American supplier of wheeled footwear created by Roger Adams, has rolled onto the U.S. stock market, filing an IPO on Sept. 1. The company, valued at about $115 million, is now trading on the NASDAQ under “HLYS.” Proceeds from the offering are being used to help pay off $4 million owed on a $5 million note and outstanding debt on its $25 million revolving credit line. Any money left over will be invested in advertising, marketing, and improvements in infrastructure.
For the 1st half of 2006, ended June 30, the company’s net income grew by 262 percent to $5,880,000 on a revenue increase of 177 percent to $44,596,000. Sales outside of the USA were up by 59.5 percent to $5.4 million, driven by strong growth in Canada, the UK and Ireland, partially offset by waning sales in Japan and in the Iberian peninsula. At home, turnover rose by 207.9 percent to $39.2 million, with two retailers - The Sports Authority and Journeys - respectively accounting for 15.1 percent and 12.9 percent of total sales.
For Heelys’ full 2005 financial year, turnover jumped by 106 percent to $43.95 million, with sales outside of the USA of $7.5 million. The gross margin for the year expanded by 230 basis points to 34.1 percent, while net income soared by 441 percent to $4.3 million.
