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 17, 2009

Quiksilver, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-14229	33-0199426
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

15202 Graham Street, Huntington Beach, CA	92649
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:
(714) 889-2200

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 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 17, 2009 announcing its financial results for the quarter and year ended October 31, 2009. The press release is attached hereto as Exhibit 99.1.

In addition to Quiksilver’s GAAP financial information, the press release furnished with this report as Exhibit 99.1 reports pro-forma income from continuing operations and pro-forma diluted earnings per share from continuing operations, each excluding restructuring and retail store impairment charges, which are considered non-GAAP financial measures. Quiksilver believes that this non-GAAP information provides consistency and comparability with its past financial reports. Quiksilver has chosen to provide this information to investors to enable them to perform additional analyses of past, present and future operating performance and as a supplemental means to evaluate Quiksilver’s operations.

The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP or other pro-forma measures used by other companies.

The information in this Form 8-K and Exhibit shall not be deemed filed for purposes of Section 18 of Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

     (c) Exhibits

     The following exhibits are being furnished herewith:

Exhibit No.	Exhibit Title or Description
99.1	Press Release dated December 17, 2009, issued by Quiksilver, Inc.

2

SIGNATURES

     Pursuant to the requirements of the Securities 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 17, 2009	Quiksilver, Inc. (Registrant)
	By:	/s/ Joseph Scirocco
		Joseph Scirocco
		Chief Financial Officer

3

INDEX TO EXHIBITS

Exhibit No.	Exhibit Title or Description
99.1	Press Release, dated December 17, 2009, issued by Quiksilver, Inc.

4

EX-99.1

Exhibit 99.1

Company Contact:    Bruce Thomas
Vice President, Investor Relations
Quiksilver, Inc.
(714) 889-2200

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results

• 4th Quarter 2009 Pro-Forma Income from Continuing Operations of $0.02 per share

• 4th Quarter 2009 Loss from Continuing Operations of $0.12 per share

• Fiscal 2009 Pro-Forma Income from Continuing Operations of $0.04 per share

• Fiscal 2009 Loss from Continuing Operations of $0.58 per share

Huntington Beach, California, December 17, 2009—Quiksilver, Inc. (NYSE: ZQK) today announced operating results for the fourth quarter and full year ended October 31, 2009. Consolidated net revenues for the fourth quarter of fiscal 2009 decreased 11% to $538.7 million compared to $606.9 million in the fourth quarter of fiscal 2008. Fourth quarter pro-forma income from continuing operations was $3.2 million or $0.02 per share, and excludes $22.3 million in restructuring and retail store impairment charges, partially offset by a tax adjustment of $3.3 million. A reconciliation of GAAP results to pro-forma results is provided in the accompanying tables. Including these charges, the loss from continuing operations for the fourth quarter was $15.7 million or $0.12 per share, compared to a loss of $13.8 million or $0.11 per share in the same quarter a year ago. Net revenues and income from continuing operations for all periods exclude the results of the Rossignol wintersports and golf equipment businesses which are reported as discontinued operations.

Consolidated net revenues for the full year of fiscal 2009 decreased 13% to $1.98 billion compared to $2.26 billion in fiscal 2008. Full year pro-forma income from continuing operations for fiscal 2009, adjusted to exclude restructuring and impairment charges and tax credits, was $4.6 million or $0.04 per share. For the full year, the loss from continuing operations for fiscal 2009, including these charges and credits, was $73.2 million or $0.58 per share, compared to income of $65.5 million or $0.51 per share in fiscal 2008. A reconciliation of GAAP results to pro-forma results is provided in the accompanying tables.

Robert B. McKnight, Jr., Chairman of the Board, President and Chief Executive Officer of Quiksilver, Inc., commented, “Our fourth quarter was very challenging, as retailers bought conservatively for the holiday season and traffic in our own retail stores remained sluggish through October. In that context, we were pleased that our results were somewhat better than we expected. We also accomplished a number of important business objectives in the quarter. We reinforced our product leadership, maintained and even expanded our leading market share positions and staged a number of major events further connecting our brands with the broad group of consumers that either participate in or are inspired by action sports.”

Net revenues in the Americas segment decreased 22% during the fourth quarter of fiscal 2009 to $239.5 million from $306.9 million in the fourth quarter of fiscal 2008. In constant currency, European segment net revenues decreased 4% compared to the prior year. As reported in the financial statements, European segment net revenues decreased 2% during the fourth quarter of fiscal 2009 to $211.4 million from $216.3 million in the fourth quarter of fiscal 2008. In constant currency, Asia/Pacific segment net revenues decreased 4% compared to the prior year. As reported in the financial statements, Asia/Pacific segment net revenues increased 5% to $86.6 million in the fourth quarter of fiscal 2009 from $82.6 million in the fourth quarter of fiscal 2008. Please refer to the accompanying tables in order to better understand the impact of foreign currency on revenue trends in our Europe and Asia/Pacific segments.

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 2 of 10

Net revenues in the Americas for the full year of fiscal 2009 decreased 12% to $929.7 million. In constant currency, European segment net revenues decreased 7% compared to the prior year. As reported in the financial statements, European segment net revenues decreased 15% during the full year of fiscal 2009 to $792.6 million. In constant currency, Asia/Pacific segment net revenues increased 9% compared to the prior year. As reported in the financial statements, Asia/Pacific net revenues decreased 5% to $251.6 million in fiscal 2009.

Consolidated inventories decreased 14% to $267.7 million at October 31, 2009 from $312.1 million at October 31, 2008. Inventories decreased 22% in constant currency. Consolidated trade accounts receivable decreased 8% to $430.9 million at October 31, 2009 from $470.1 million at October 31, 2008. Trade accounts receivable decreased 16% in constant currency.

Addressing its outlook for continuing operations, the company stated that based on current trends, first quarter revenues are expected to be down approximately 7% compared to the same quarter a year ago and that it expects to incur a loss per share between $0.12 and $0.15 per share. The company indicated that longer term visibility into revenues and earnings remains limited due to global economic conditions.

The company had approximately $143 million of availability under its credit lines in addition to approximately $100 million of unrestricted cash at the end of the fourth quarter.

About Quiksilver:

Quiksilver, Inc. (NYSE:ZQK) is the world’s leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, footwear, accessories and related products. The Company’s apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage.

The reputation of Quiksilver’s brands is based on different outdoor sports. The Company’s Quiksilver, Roxy, DC and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding, and its beach and water oriented swimwear brands include Raisins, Radio Fiji and Leilani.

The Company’s products are sold in over 90 countries in a wide range of distribution, including surf shops, skate shops, snow shops, its proprietary Boardriders Club shops and other company-owned retail stores, other specialty stores and select department stores. Quiksilver’s corporate and Americas’ headquarters are in Huntington Beach, California, while its European headquarters are in St. Jean de Luz, France, and its Asia/Pacific headquarters are in Torquay, Australia.

Forward looking statements:

This press release contains forward-looking statements including but not limited to statements regarding the Company’s revenue guidance, diluted earnings per share guidance and other future activities. 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 sections titled “Risk Factors” and “Forward-Looking Statements” in Quiksilver’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

* * * * *

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

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 3 of 10

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended October 31,
In thousands, except per share amounts	2009			2008
Revenues, net	$	538,681		$	606,899
Cost of goods sold		282,295			315,008
Gross profit		256,386			291,891
Selling, general and administrative expense		230,568			231,629
Goodwill impairment		—			55,400
Retail store impairments		10,737			10,047
Operating income (loss)		15,081			(5,185	)
Interest expense		20,871			9,482
Foreign currency loss (gain)		1,804			(5,298	)
Minority interest and other expense		1,955			701
Loss before provision for income taxes		(9,549	)		(10,070	)
Provision for income taxes		6,162			3,754
Loss from continuing operations	$	(15,711	)	$	(13,824	)
Income from discontinued operations	$	13,936		$	12,869
Net loss	$	(1,775	)	$	(955	)
Loss per share from continuing operations	$	(0.12	)	$	(0.11	)
Income per share from discontinued operations	$	0.11		$	0.10
Net loss per share	$	(0.01	)	$	(0.01	)
Loss per share from continuing operations, assuming dilution	$	(0.12	)	$	(0.11	)
Income per share from discontinued operations, assuming dilution	$	0.11		$	0.10
Net loss per share, assuming dilution	$	(0.01	)	$	(0.01	)
Weighted average common shares outstanding		127,577			127,067
Weighted average common shares outstanding, assuming dilution		127,577			127,067

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 4 of 10

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Fiscal Year Ended October 31,
In thousands, except per share amounts	2009			2008
Revenues, net	$	1,977,526		$	2,264,636
Cost of goods sold		1,046,495			1,144,050
Gross profit		931,031			1,120,586
Selling, general and administrative expense		851,746			915,933
Goodwill impairment		—			55,400
Retail store impairments		10,737			10,397
Operating income		68,548			138,856
Interest expense		63,924			45,327
Foreign currency loss (gain)		8,633			(5,761	)
Minority interest and other expense		2,539			719
(Loss) income before provision for income taxes		(6,548	)		98,571
Provision for income taxes		66,667			33,027
(Loss) income from continuing operations	$	(73,215	)	$	65,544
Loss from discontinued operations	$	(118,827	)	$	(291,809	)
Net loss	$	(192,042	)	$	(226,265	)
(Loss) income per share from continuing operations	$	(0.58	)	$	0.52
Loss per share from discontinued operations	$	(0.94	)	$	(2.32	)
Net loss per share	$	(1.51	)	$	(1.80	)
(Loss) income per share from continuing operations, assuming dilution	$	(0.58	)	$	0.51
Loss per share from discontinued operations, assuming dilution	$	(0.94	)	$	(2.25	)
Net loss per share, assuming dilution	$	(1.51	)	$	(1.75	)
Weighted average common shares outstanding		127,042			125,975
Weighted average common shares outstanding, assuming dilution		127,042			129,485

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 5 of 10

Information related to geographic segments is as follows (unaudited):

	Three Months Ended
	October 31,
Amounts in thousands	2009			2008
Revenues, net:
Americas	$	239,510		$	306,879
Europe		211,404			216,349
Asia/Pacific		86,617			82,573
Corporate operations		1,150			1,098
	$	538,681		$	606,899
Gross Profit:
Americas	$	92,230		$	125,294
Europe		117,868			122,168
Asia/Pacific		46,449			43,649
Corporate operations		(161	)		780
	$	256,386		$	291,891
SG&A Expense:
Americas	$	91,427		$	98,290
Europe		100,223			96,735
Asia/Pacific		31,914			28,558
Corporate operations		7,004			8,046
	$	230,568		$	231,629
Asset Impairments:
Americas	$	10,092		$	8,967
Europe		645			692
Asia/Pacific		—			55,788
Corporate operations		—			—
	$	10,737		$	65,447
Operating (Loss) Income:
Americas	$	(9,289	)	$	18,037
Europe		17,000			24,741
Asia/Pacific		14,535			(40,697	)
Corporate operations		(7,165	)		(7,266	)
	$	15,081		$	(5,185	)

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 6 of 10

Information related to geographic segments (continued):

	Fiscal Year Ended
	October 31,
Amounts in thousands	2009			2008
Revenues, net:
Americas	$	929,691		$	1,061,370
Europe		792,627			933,119
Asia/Pacific		251,596			265,067
Corporate operations		3,612			5,080
	$	1,977,526		$	2,264,636
Gross Profit:
Americas	$	349,526		$	445,381
Europe		446,801			532,034
Asia/Pacific		135,591			140,168
Corporate operations		(887	)		3,003
	$	931,031		$	1,120,586
SG&A Expense:
Americas	$	364,727		$	371,958
Europe		341,780			380,374
Asia/Pacific		112,418			117,219
Corporate operations		32,821			46,382
	$	851,746		$	915,933
Asset Impairments:
Americas	$	10,092		$	9,317
Europe		645			692
Asia/Pacific		—			55,788
Corporate operations		—			—
	$	10,737		$	65,797
Operating (Loss) Income:
Americas	$	(25,293	)	$	64,106
Europe		104,376			150,968
Asia/Pacific		23,173			(32,839	)
Corporate operations		(33,708	)		(43,379	)
	$	68,548		$	138,856

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 7 of 10

GAAP TO PRO-FORMA RECONCILIATION (UNAUDITED)

	Three Months Ended
In thousands, except per share amounts	October 31, 2009
Loss from continuing operations	$	(15,711	)
Restructuring charges, net of tax		11,743
Retail asset impairment, net of tax		10,522
Tax adjustment		(3,312	)
Pro-forma income from continuing operations	$	3,242
Pro-forma income per share from continuing operations	$	0.03
Pro-forma income per share from continuing operations, assuming dilution	$	0.02
Weighted average common shares outstanding		127,577
Weighted average common shares outstanding, assuming dilution		135,347

GAAP TO PRO-FORMA RECONCILIATION (UNAUDITED)

	Fiscal Year Ended
In thousands, except per share amounts	October 31, 2009
Loss from continuing operations	$	(73,215	)
Restructuring charges, net of tax		26,847
First quarter effect of U.S. tax valuation allowance		50,778
Tax adjustments		(10,315	)
Retail asset impairment, net of tax		10,522
Pro-forma income from continuing operations	$	4,617
Pro-forma income per share from continuing operations	$	0.04
Pro-forma income per share from continuing operations, assuming dilution	$	0.04
Weighted average common shares outstanding		127,042
Weighted average common shares outstanding, assuming dilution		128,089

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 8 of 10

ADJUSTED EBITDA and PRO-FORMA ADJUSTED EBITDA RECONCILIATION

	Three Months Ended
	October 31,
Amounts in thousands	2009			2008
Loss from continuing operations	$	(15,711	)	$	(13,824	)
Provision for income taxes		6,162			3,754
Interest expense		20,871			9,482
Depreciation and amortization		14,616			14,296
Non-cash stock-based compensation expense		996			2,148
Non-cash asset impairments		10,737			65,447
Adjusted EBITDA	$	37,671		$	81,303
Restructuring charges		12,254			—
Pro-forma Adjusted EBITDA	$	49,925		$	81,303

	Twelve Months Ended
	October 31,
Amounts in thousands	2009			2008
(Loss) income from continuing operations	$	(73,215	)	$	65,544
Provision for income taxes		66,667			33,027
Interest expense		63,924			45,327
Depreciation and amortization		55,004			57,231
Non-cash stock-based compensation expense		8,415			12,019
Non-cash asset impairments		10,737			65,797
Adjusted EBITDA	$	131,532		$	278,945
Restructuring charges		28,775			—
Pro-forma Adjusted EBITDA	$	160,307		$	278,945

Definition of Adjusted EBITDA:

Adjusted EBITDA is defined as income from continuing operations before (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization, (iv) non-cash stock-based compensation expense and (v) asset impairments. Adjusted EBITDA is not defined under generally accepted accounting principles (“GAAP”), and it may not be comparable to similarly titled measures reported by other companies. We use Adjusted EBITDA, along with other GAAP measures, as a measure of profitability because Adjusted EBITDA helps us to compare our performance on a consistent basis by removing from our operating results the impact of our capital structure, the effect of operating in different tax jurisdictions, the impact of our asset base, which can differ depending on the book value of assets, the accounting methods used to compute depreciation and amortization, the existence or timing of asset impairments and the effect of non-cash stock-based compensation expense. We believe EBITDA is useful to investors as it is a widely used measure of performance and the adjustments we make to EBITDA provide further clarity on our profitability. We remove the effect of non-cash stock-based compensation from our earnings which can vary based on share price, share price volatility and expected life of the equity instruments we grant. In addition, this stock-based compensation expense does not result in cash payments by us. We remove the effect of asset impairments from Adjusted EBITDA for the same reason that we remove depreciation and amortization as it is part of the impact of our asset base. Adjusted EBITDA has limitations as a profitability measure in that it does not include the interest expense on our debts, our provisions for income taxes, the effect of our expenditures for capital assets and certain intangible assets, the effect of non-cash stock-based compensation expense and the effect of asset impairments.

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 9 of 10

SUPPLEMENTAL EXCHANGE RATE INFORMATION
(UNAUDITED)

In order to better understand growth rates in our foreign operating segments, we make reference to constant currency. Constant currency improves visibility into actual growth rates as it adjusts for the effect of changing foreign currency exchange rates from period to period. For income statement items, constant currency is calculated by taking the average foreign currency exchange rate used in translation for the current period and applying that same rate to the prior period. Our European segment is translated into constant currency using euros and our Asia/Pacific segment is translated into constant currency using Australian dollars, as these are the primary functional currencies of each reporting segment. A constant currency translation based upon each individual currency would yield a different result compared to using only euros and Australian dollars. The following table presents revenues by segment in both historical currency and constant currency for the three months ended October 31, 2008 and 2009:

Amounts in thousands

Historical currency (as reported)	Americas			Europe			Asia/Pacific			Corporate		Total
October 31, 2008	$	306,879		$	216,349		$	82,573		$	1,098	$	606,899
October 31, 2009		239,510			211,404			86,617			1,150		538,681
Percentage (decrease) increase		(22	%)		(2	%)		5	%				(11	%)
Constant currency (current year exchange rates)
October 31, 2008	$	306,879		$	221,222		$	90,429		$	1,098	$	619,628
October 31, 2009		239,510			211,404			86,617			1,150		538,681
Percentage decrease		(22	%)		(4	%)		(4	%)				(13	%)
The following table presents revenues by segment in both historical currency and constant currency for the years ended October 31, 2008 and 2009:
Amounts in thousands
Historical currency (as reported)	Americas			Europe			Asia/Pacific			Corporate		Total
October 31, 2008	$	1,061,370		$	933,119		$	265,067		$	5,080	$	2,264,636
October 31, 2009		929,691			792,627			251,596			3,612		1,977,526
Percentage decrease		(12	%)		(15	%)		(5	%)				(13	%)
Constant currency (current year exchange rates)
October 31, 2008	$	1,061,370		$	849,423		$	231,137		$	5,080	$	2,147,010
October 31, 2009		929,691			792,627			251,596			3,612		1,977,526
Percentage (decrease) increase		(12	%)		(7	%)		9	%				(8	%)

Quiksilver, Inc. Reports Fourth Quarter and Fiscal Year 2009 Results
December 17, 2009
Page 10 of 10

CONSOLIDATED SELECTED BALANCE SHEET INFORMATION (UNAUDITED)

	October 31,
Amounts in thousands	2009		2008
Cash and cash equivalents	$	99,516	$	53,042
Restricted cash		52,706		46,475
Trade accounts receivable, net		430,884		470,059
Inventories		267,730		312,138
Lines of credit and long-term debt		1,039,253		1,060,318

Principal payments on lines of credit and long-term debt are due approximately as follows:

	Fiscal Year Ended October 31,
Amounts in thousands	2009		2008
Uncommitted debt	$	32,592	$	166,519
2009		—		103,701
2010		95,231		284,403
2011		105,759		81,946
2012		101,321		20,227
2013		164,000		3,522
2014		140,350		—
2015		400,000		400,000
	$	1,039,253	$	1,060,318