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): December 18, 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, PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS
	Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1

Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS

(a) Not Applicable

(b) Not Applicable

(c) The following exhibit is being furnished herewith:

99.1 Press Release, dated December 18, 2003, issued by Quiksilver, Inc.

Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     The purpose of this Current Report on Form 8-K is to furnish the press release issued by Quiksilver, Inc. on December 18, 2003 announcing its financial results for the fiscal year ended October 31, 2003. The press release is attached hereto as Exhibit 99.1.

     The information contained in this Item 12 and the exhibit hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference in any filing with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, whether made before or after the date hereof and irrespective of any general incorporation language in any filings, except as shall be expressly set forth by specific reference in such filing.

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: December 18, 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 December 18, 2003, issued by Quiksilver, Inc.

3 EX-99.1 3 a95281exv99w1.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 FOURTH QUARTER
AND FULL YEAR 2003 OPERATING RESULTS

— Quarterly Consolidated Revenues Increase 37% —
— Quarterly Earnings Per Share Increase 20% to $0.30 —
— Fiscal Year Revenues Total $975 million —
— FY04 EPS Guidance Increases to New Range of $1.18 to $1.22 —

     HUNTINGTON BEACH, CALIFORNIA, DECEMBER 18, 2003 — Quiksilver, Inc. (NYSE:ZQK), today announced operating results for the fourth quarter and full year ended October 31, 2003.

     Consolidated revenues for the fourth quarter of fiscal 2003 increased 37% to $269.2 million as compared to fiscal 2002 fourth quarter consolidated revenues of $196.1 million. Consolidated net income for the fourth quarter of fiscal 2003 increased 43% to $17.4 million as compared to $12.2 million. Fourth quarter fully diluted earnings per share was $0.30 versus $0.25 for the fourth quarter of fiscal 2002.

     Consolidated revenues for the full year of fiscal 2003 increased 38% to $975.0 as compared to fiscal 2002 full year consolidated revenues of $705.5. Consolidated net income for the full year of fiscal 2003 increased 56% to $58.5 million as compared to $37.6 in fiscal 2002, and diluted earnings per share for the full year increased 34% to $1.03 versus $0.77 for the full year of fiscal 2002.

     Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, commented, “We are pleased to have exceeded our plan for the fourth quarter, and we finished the year with clean inventories, continued strong sell through rates, and an excellent strategic position in the marketplace. As we close in on the $1 billion revenue mark in the upcoming year, we are excited about our prospects both domestically and around the world.”

-more-

2003 Full Year Operating Results
December 18, 2003 — Page 2

     Revenues in the Americas increased 15% during the fourth quarter of fiscal 2003 to $125.6 million as compared to fiscal 2002 fourth quarter revenues of $109.7 million. As measured in U.S. dollars and reported in the financial statements, European revenues increased 25% during the fourth quarter of fiscal 2003 to $106.7 million as compared to fiscal 2002 fourth quarter European revenues of $85.3 million. As measured in euros, European revenues increased 8% for those same periods. Revenues in the Asia/Pacific segment, which was added in the first quarter of fiscal 2003, totaled $36.7 million. In constant dollars, overall Spring bookings increased 6% over the previous year.

     Revenues in the Americas for the full year of fiscal 2003 increased 18% to $492.4 as compared to fiscal 2002 revenues of $418.0 million. As measured in U.S. dollars and reported in the financial statements, European revenues increased 37% during the full year of fiscal 2003 to $386.2 million as compared to fiscal 2002 results of $282.7 million. As measured in euros, European revenues increased 15% for the full year. The Asia/Pacific division added $94.2 million to consolidated revenues in fiscal 2003.

     Mr. McKnight continued, “Over the course of the year, we have been able to properly align our marketing strategies, our product lines, our operations, and our management team to go forward with a singular vision for the future. Clearly, the power of our youth-oriented lifestyle view and the culture of boardsports is resonating with consumers everywhere.”

     Inventories in the Americas increased 25% to 86.4 million at October 31, 2003 from $69.0 million at October 31, 2002, while decreasing $2.1 million from July 31, 2003. European inventories increased 38% in euros and increased 63% in U.S. dollars, totaling $43.8 million at October 31, 2003 compared to $26.9 million at October 31, 2002. Inventories in the newly acquired Asia/Pacific division totaled $16.2 million at October 31, 2003. Consolidated inventories increased 53% to $146.4 million at October 31, 2003 from $95.9 million at October 31, 2002 which is an increase of 45% after adjusting for the effect of the stronger euro in comparison to the prior year.

     Consolidated trade accounts receivable increased 33% to $224.4 million at October 31, 2003 from $168.2 million at October 31, 2002. Accounts receivable grew more slowly than sales as average days sales outstanding decreased about three days.

2003 Full Year Operating Results
December 18, 2003 — Page 3

     Bernard Mariette, President of Quiksilver, Inc., commented, “As we move forward into the new year, we are benefiting from a continued position as the leading youth brand in the United States, Europe and Australia, and we have excellent prospects for growth in a variety of markets in Eastern Europe. We are focused on leveraging the strength of our brands and our superior operating platform to take advantage of these opportunities.”

     Also today, the company increased its guidance to new ranges of $1.06 billion to $1.08 billion for revenues and $1.18 to $1.22 for earnings per share.

     Mr. McKnight concluded, “These results represent our 8th consecutive quarter of exceeding both internal and external expectations, and importantly, we have been able to accomplish all of this in a challenging retail climate. At the same time, we have successfully integrated a number of new businesses that will provide additional growth into the future. The benefits of our strong brands and diversified operating model are clear and compelling, and the combination of innovative product, unique marketing, a cohesive management structure, and world-class execution will allow us to expand our business and drive significant value to our shareholders into the future.”

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.

2003 Full Year Operating Results
December 18, 2003 — Page 4

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,
http://www.fidragolf.com, and http://www.quiksilveredition.com

2003 Full Year Operating Results
December 18, 2003 — Page 5

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

		Three Months Ended October 31,
In thousands, except per share amounts		2003		2002
Revenues		$	269,217	$	196,058
Cost of goods sold			143,185		110,601
	Gross profit		126,032		85,457
Selling, general and administrative expense			96,704		64,038
Operating income			29,328		21,419
Interest expense			1,812		1,886
Foreign currency loss			627		133
Other expense			78		26
Income before provision for income taxes			26,811		19,374
Provision for income taxes			9,411		7,177
Net income		$	17,400	$	12,197
Net income per share		$	0.31	$	0.26
Net income per share, assuming dilution		$	0.30	$	0.25
Weighted average common shares outstanding			55,456		47,592
Weighted average common shares outstanding, assuming dilution			57,831		49,624

2003 Full Year Operating Results
December 18, 2003 — Page 6

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

		Fiscal Year Ended October 31
In thousands, except per share amounts		2003		2002
Revenues		$	975,005	$	705,484
Cost of goods sold			541,753		419,155
	Gross profit		433,252		286,329
Selling, general and administrative expense			332,187		216,625
Operating income			101,065		69,704
Interest expense			8,267		8,640
Foreign currency loss			2,243		729
Other expense			488		349
Income before provision for income taxes			90,067		59,986
Provision for income taxes			31,551		22,395
Net income		$	58,516	$	37,591
Net income per share		$	1.08	$	0.80
Net income per share, assuming dilution		$	1.03	$	0.77
Weighted average common shares outstanding			54,224		46,918
Weighted average common shares outstanding, assuming dilution			56,635		48,944

2003 Full Year Operating Results
December 18, 2003 — Page 7

CONSOLIDATED BALANCE SHEETS (Unaudited)

			October 31, 2003			October 31, 2002
Amounts in thousands
ASSETS
Current assets:
	Cash and cash equivalents		$	27,866		$	2,597
	Trade accounts receivable, less allowance for doubtful accounts of $8,700 (2003) and $6,667 (2002)			224,418			168,237
	Other receivables			7,617			7,415
	Inventories			146,440			95,872
	Prepaid expenses and other current assets			27,204			20,708
		Total current assets		433,545			294,829
Property and equipment, net				99,299			73,182
Intangibles, net				65,577			51,134
Goodwill				98,833			26,978
Other assets				10,716			4,466
Total assets			$	707,970		$	450,589
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
	Lines of credit		$	81,863		$	32,498
	Accounts payable			64,537			47,279
	Accrued liabilities			41,759			40,137
	Current portion of long-term debt			8,877			10,680
	Income taxes payable			10,796			3,717
		Total current liabilities		207,832			134,311
Long-term debt				53,630			43,405
		Total liabilities		261,462			177,716
Stockholders’ equity:
	Preferred stock			—			—
	Common stock			570			247
	Additional paid-in capital			155,310			66,769
	Treasury stock			(6,778	)		(6,778	)
	Retained earnings			277,554			219,038
	Accumulated other comprehensive income (loss)			19,852			(6,403	)
		Total stockholders’ equity		446,508			272,873
Total liabilities & stockholders’ equity			$	707,970		$	450,589

2003 Full Year Operating Results
December 18, 2003 — Page 8

Information related to geographic segments is as follows:

		Fiscal Year Ended October 31,
Amounts in thousands		2003			2002
Revenues:
	Americas	$	492,442		$	418,008
	Europe		386,226			282,684
	Asia/Pacific		94,187			—
	Corporate Operations		2,150			4,792
		$	975,005		$	705,484
Gross Profit:
	Americas	$	197,434		$	153,561
	Europe		189,462			127,976
	Asia/Pacific		44,206			—
	Corporate Operations		2,150			4,792
		$	433,252		$	286,329
SG&A Expense:
	Americas	$	151,700		$	118,184
	Europe		127,521			86,649
	Asia/Pacific		32,038			—
	Corporate Operations		20,928			11,792
		$	332,187		$	216,625
Operating Income:
	Americas	$	45,734		$	35,377
	Europe		61,941			41,327
	Asia/Pacific		12,168			—
	Corporate Operations		(18,778	)		(7,000	)
		$	101,065		$	69,704

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EX-99.1

Exhibit 99.1