8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): June 5, 2003

QUIKSILVER, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	0-15131	33-0199426
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

15202 Graham Street, Huntington Beach, CA	92649
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, including Area Code: (714) 889-2200

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

TABLE OF CONTENTS

	Item 7. FINANCIAL STATEMENTS AND EXHIBITS
	Item 9. REGULATION FD DISCLOSURE
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1

Item 7. FINANCIAL STATEMENTS AND EXHIBITS

(a)	Not Applicable
(b)	Not Applicable
(c)	Exhibits
99.1	Press Release, dated June 5, 2003, issued by Quiksilver, Inc.

Item 9. REGULATION FD DISCLOSURE (Information is being provided under Form 8-K Item 12 — Results of Operations and Financial Condition)

     The following information is disclosed pursuant to Item 12 - Results of Operations and Financial Condition. It is being furnished under Item 9 of this Form 8-K in accordance with interim guidance issued by the SEC in Release No. 33-8216; 34-47583.

     The purpose of this Current Report on Form 8-K is to furnish, as required by Item 12 of Form 8-K, the Press Release issued by Quiksilver, Inc. on June 5, 2003. The Release is attached hereto as Exhibit 99.1.

SIGNATURES

     Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: June 5, 2003	QUIKSILVER, INC.
	By:	/s/ Steven L. Brink
		Steven L. Brink
		Chief Financial Officer and Treasurer

2

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION
99.1	Press Release, dated June 5, 2003, issued by Quiksilver, Inc.

3 EX-99.1 3 a90714exv99w1.htm EXHIBIT 99.1

Exhibit 99.1

PRESS RELEASE	Company Contact:	Robert B. McKnight, Jr. Chairman & CEO Steven L. Brink Chief Financial Officer (714) 889-2200
FOR IMMEDIATE RELEASE
	Investor Relations:	James Palczynski/Chad A. Jacobs Integrated Corporate Relations (203) 222-9013

QUIKSILVER, INC. REPORTS 2003 SECOND QUARTER OPERATING RESULTS

— Consolidated Sales Increase 40% —
— Earnings Per Share increase 43% to $0.40
— Fall Bookings Increase 11% —

     HUNTINGTON BEACH, CALIFORNIA, JUNE 5, 2003 - - - Quiksilver, Inc. (NYSE:ZQK), today announced operating results for the second quarter ended April 30, 2003.

     Consolidated net sales for the second quarter of fiscal 2003 increased 40% to $262.2 million as compared to fiscal 2002 second quarter consolidated net sales of $187.4 million. Consolidated net income for the second quarter of fiscal 2003 was $22.6 million as compared to $13.5 million. Second quarter, fully diluted earnings per share was $0.40 versus $0.28 for the second quarter of fiscal 2002.

     Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, commented, “We are very pleased to have increased our top and bottom line by 40% and 43%, respectively, during the quarter. We experienced solid growth in each of our main categories and territories, with particular strength in Europe. The positive momentum we have experienced in the first two quarters of fiscal 2003 is encouraging, and we believe we are well positioned to continue our success in the second half of the year.”

     Net sales in the Americas increased 15% during the second quarter of fiscal 2003 to $127.5 million as compared to fiscal 2002 second quarter net sales of $111.2 million. As measured in U.S. dollars and reported in the financial statements, European net sales increased 45% during the second quarter of fiscal 2003 to $108.5 million as compared to fiscal 2002 second quarter European net sales of $74.8 million. As measured in euros, European net sales

-more-

2003 Second Quarter
June 5, 2003 — Page 2

increased 18% for those same periods. Excluding the newly added Asia/Pacific division, overall Fall bookings increased 11% over the previous year.

     Mr. McKnight continued, “Our strong bookings trend for fall, despite a generally challenging market environment, gives us comfort with our forecasts for the remainder of the year. We believe that it reflects the compelling nature of our lifestyle brand, the timeliness of our product designs, and the effectiveness of our global marketing activities.”

     Consolidated inventories increased 58% to $120.8 million at April 30, 2003 from $76.3 million at April 30, 2002. Consolidated trade accounts receivable increased 32% to $227.0 million at April 30, 2003 from $171.7 million at April 30, 2002. Inventory growth was 49% on a constant dollar basis. Inventories in the Americas and Europe grew 36% on a constant dollar basis with the new Asia/Pacific division accounting for the balance of the growth. Accounts receivable grew more slowly than sales as average days sales outstanding decreased about five days.

     Bernard Mariette, President of Quiksilver Inc., commented, “After a series of successful mergers and acquisitions over the past year, our main focus is to now further harmonize the various aspects of our operating platform in order to unlock additional synergies, efficiencies and incremental growth opportunities. We now have the right pieces in place and a world-class management team to execute our long-term strategy. We remain committed to maximizing our leadership position around the globe.”

     Mr. McKnight concluded, “Our consistent performance is the result of prudent planning and effective execution. It also underscores the strength of our business model and the validity of our multi-brand, multi-channel operating strategy. We are becoming, on many levels, a truly global lifestyle company, and we are dedicated to capitalizing on the many opportunities this posture has created for our company.”

2003 Second Quarter
June 5, 2003 — Page 3

About Quiksilver:

     Quiksilver designs, produces and distributes clothing, accessories and related products for young-minded people and develops brands that represent a casual lifestyle-driven from a boardriding heritage. Quiksilver’s authenticity is evident in its innovative products, events and retail environments across the globe.

     Quiksilver’s primary focus is apparel for young men and young women under the Quiksilver, Roxy, Raisins, and Radio Fiji labels. Quiksilver also manufactures apparel for boys (Quiksilver Boys and Hawk Clothing), girls (Roxy Girl, Teenie Wahine and Raisins Girls), men (Quiksilveredition and Fidra) and women (Leilani swimwear), as well as snowboards, snowboard boots and bindings under the Lib Technologies, Gnu, Supernatural Mfg. and Bent Metal labels. Quiksilver’s products are sold throughout the world, primarily in surf shops and specialty stores that provide an authentic retail experience for our customers.

Safe Harbor Language

This Press Release contains forward-looking statements. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Please refer to Quiksilver’s SEC filings for more information on the risk factors that could cause actual results to differ materially from expectations, specifically the section titled “Forward Looking Statements” in Quiksilver’s Annual Report on Form 10-K.

* * * * *

NOTE: For further information about Quiksilver, Inc., you are invited to take a look at our world at http://www.quiksilver.com, http://www.roxy.com, and http://www.fidragolf.com

2003 Second Quarter
June 5, 2003 — Page 4

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

		Three Months Ended April 30,
In thousands, except per share amounts		2003		2002
Revenues		$	262,210	$	187,423
Cost of goods sold			143,627		111,684
	Gross profit		118,583		75,739
Selling, general and administrative expenses			81,374		51,569
Operating income			37,209		24,170
Interest expense			2,107		2,287
Foreign currency loss			264		356
Other expense			97		55
Income before provision for income taxes			34,741		21,472
Provision for income taxes			12,111		8,009
Net income		$	22,630	$	13,463
Net income per share		$	0.42	$	0.29
Net income per share, assuming dilution		$	0.40	$	0.28
Weighted average common shares outstanding			54,514		46,608
Weighted average common shares outstanding, assuming dilution			56,846		48,826

2003 Second Quarter
June 5, 2003 — Page 5

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

		Six Months Ended April 30,
		2003		2002
Revenues		$	454,290	$	334,382
Cost of goods sold			254,199		203,863
	Gross profit		200,091		130,519
Selling, general and administrative expense			149,799		98,752
Operating income			50,292		31,767
Interest expense			4,223		4,715
Foreign currency loss			815		362
Other expense			264		215
Income before provision for income taxes			44,990		26,475
Provision for income taxes			15,792		9,926
Net income		$	29,198	$	16,549
Net income per share		$	0.55	$	0.36
Net income per share, assuming dilution		$	0.53	$	0.34
Weighted average common shares outstanding			53,196		46,506
Weighted average common shares outstanding, assuming dilution			55,558		48,308

2003 Second Quarter
June 5, 2003 — Page 6

CONSOLIDATED BALANCE SHEETS (Unaudited)

			April 30, 2003			October 31, 2002
Amounts in thousands
ASSETS
Current assets:
	Cash and cash equivalents		$	21,388		$	2,597
	Trade accounts receivable, less allowance for doubtful accounts of $8,155 (2003) and $6,667 (2002)			227,028			168,237
	Other receivables			7,264			7,415
	Inventories			120,775			95,872
	Prepaid expenses and other current assets			28,314			20,708
		Total current assets		404,769			294,829
Property and equipment, net				90,340			73,182
Intangibles, net				60,820			51,134
Goodwill				101,891			26,978
Other assets				7,032			4,466
Total assets			$	664,852		$	450,589
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
	Lines of credit		$	105,388		$	32,498
	Accounts payable			52,321			47,279
	Accrued liabilities			35,281			40,137
	Current portion of long-term debt			18,669			10,680
	Income taxes payable			6,414			3,717
		Total current liabilities		218,073			134,311
Long-term debt				46,872			43,405
Deferred income taxes				3,360			—
		Total liabilities		268,305			177,716
Stockholders’ equity:
	Preferred stock			—			—
	Common stock			563			247
	Additional paid-in capital			148,386			66,769
	Treasury stock			(6,778	)		(6,778	)
	Retained earnings			248,236			219,038
	Accumulated other comprehensive income(loss)			6,140			(6,403	)
		Total stockholders’ equity		396,547			272,873
Total liabilities & stockholders’ equity			$	664,852		$	450,589

2003 Second Quarter
June 5, 2003 — Page 7

Information related to geographic segments is as follows:

		Three Months Ended April 30,
Amounts in thousands		2003			2002
Revenues:
	Americas	$	127,537		$	111,215
	Europe		108,464			74,754
	Asia/Pacific		25,557			—
	Corporate Operations		652			1,454
		$	262,210		$	187,423
Gross Profit:
	Americas	$	54,925		$	40,371
	Europe		51,590			33,914
	Asia/Pacific		11,416			—
	Corporate Operations		652			1,454
		$	118,583		$	75,739
SG&A Expense:
	Americas	$	37,298		$	28,720
	Europe		30,409			19,890
	Asia/Pacific		7,603			—
	Corporate Operations		6,064			2,959
		$	81,374		$	51,569
Operating Income:
	Americas	$	17,627		$	11,651
	Europe		21,181			14,024
	Asia/Pacific		3,813			—
	Corporate Operations		(5,412	)		(1,505	)
		$	37,209		$	24,170

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EX-99.1

Quiksilver, Inc.