Delaware (State or other jurisdiction of incorporation) |
001-14229 (Commission File Number) |
33-0199426 (IRS Employer Identification Number) |
15202 Graham Street, Huntington Beach, CA (Address of principal executive offices) |
92649 (Zip Code) |
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. |
Item 9.01 | Financial Statements and Exhibits. |
(c) | Exhibits |
Exhibit No. | Exhibit Title or Description | |||
99.1 | Press Release dated March 10, 2011, issued by Quiksilver, Inc. |
2
Dated: March 10, 2011 | Quiksilver, Inc. (Registrant) |
|||
By: | /s/ Joseph Scirocco | |||
Joseph Scirocco | ||||
Chief Financial and Operating Officer | ||||
3
Exhibit No. | Exhibit Title or Description | |||
99.1 | Press Release, dated March 10, 2011, issued by Quiksilver, Inc. |
4
Company Contact:
|
Bruce Thomas Vice President, Investor Relations Quiksilver, Inc. +1 (714)889-2200 |
- | Revenues of $426 million were ahead of plan and up compared to last year in constant currency | |
- | Gross Profit surpasses prior year as margin expands | |
- | Pro-forma Adjusted EBITDA in line with plan and on track for full fiscal year | |
- | Net Debt at January 31 reduced $237 million to $541 million |
| Quiksilver and the Association of Surfing Professionals (ASP) announced the Quiksilver Pro New York surf competition, set to take place on Long Islands Long Beach from September 4-15. The Quiksilver Pro New York will be the 6th stop on the ASP 2011 World Tour and the first-ever World Championship Tour stop on the east coast of the United States. The surf contest will coincide with a series of events for enthusiasts of surf, skate, art and music who are expected to gather in New York as summer comes to a close. The Quiksilver Pro New York will expand the Quiksilver Pro Global Series, which also includes the Quiksilver Pro Gold Coast in Australia (February 26-March 9) and the Quiksilver Pro France (October 4-15). |
| Quiksilver announced the signing of 4-time defending ASP Womens World Champion surfer Stephanie Gilmore to a 5-year endorsement agreement. Gilmore joined the Quiksilver surf team and has become a brand ambassador representing Quiksilvers lines for women. The addition of Gilmore coincides with the recent debut of Quiksilvers new global girls line, targeting 18-24-year-old females. |
| DC Shoes announced the signing of Chris Cole, one of the best and most influential skaters of his generation. Cole, who has now joined the DC skate team, is only the second skater to become Thrasher Magazines Skater of the Year twice after DCs Danny Way and he has also been honored with TransWorld SKATEboarding Magazines Readers Choice Award. |
Three Months Ended January 31, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Revenues, net |
$ | 426,450 | $ | 432,737 | ||||
Cost of goods sold |
202,980 | 210,588 | ||||||
Gross profit |
223,470 | 222,149 | ||||||
Selling, general and administrative expense |
210,436 | 203,160 | ||||||
Operating income |
13,034 | 18,989 | ||||||
Interest expense |
28,968 | 21,873 | ||||||
Foreign currency gain |
(2,109 | ) | (1,979 | ) | ||||
Other expense |
| 5 | ||||||
Loss before provision for income taxes |
(13,825 | ) | (910 | ) | ||||
Provision for income taxes |
1,251 | 3,674 | ||||||
Loss from continuing operations |
(15,076 | ) | (4,584 | ) | ||||
Income from discontinued operations |
| 76 | ||||||
Net loss |
(15,076 | ) | (4,508 | ) | ||||
Less: net income attributable to non-controlling
interest |
(1,192 | ) | (846 | ) | ||||
Net loss attributable to Quiksilver, Inc. |
$ | (16,268 | ) | $ | (5,354 | ) | ||
Loss per share from continuing operations
attributable to Quiksilver, Inc. |
$ | (0.10 | ) | $ | (0.04 | ) | ||
Income per share from discontinued operations
attributable to Quiksilver, Inc. |
$ | | $ | 0.00 | ||||
Net loss per share attributable to
Quiksilver, Inc. |
$ | (0.10 | ) | $ | (0.04 | ) | ||
Loss per share from continuing operations
attributable to Quiksilver, Inc., assuming dilution |
$ | (0.10 | ) | $ | (0.04 | ) | ||
Income per share from discontinued operations
attributable to Quiksilver, Inc., assuming dilution |
$ | | $ | 0.00 | ||||
Net loss per share attributable to Quiksilver, Inc.,
assuming dilution |
$ | (0.10 | ) | $ | (0.04 | ) | ||
Weighted average common shares outstanding |
161,614 | 127,648 | ||||||
Weighted average common shares outstanding,
assuming dilution |
161,614 | 127,648 | ||||||
Amounts attributable to Quiksilver, Inc.: |
||||||||
Loss from continuing operations |
$ | (16,268 | ) | $ | (5,430 | ) | ||
Income from discontinued operations |
| 76 | ||||||
Net loss |
$ | (16,268 | ) | $ | (5,354 | ) | ||
January 31, | January 31, | |||||||
In thousands | 2011 | 2010 | ||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 177,192 | $ | 149,561 | ||||
Restricted cash |
| 49,352 | ||||||
Trade accounts receivable, less allowance
for doubtful accounts of $44,558 (2011)
and $48,156 (2010) |
287,458 | 322,959 | ||||||
Other receivables |
35,404 | 28,832 | ||||||
Inventories |
309,561 | 301,216 | ||||||
Deferred income taxes short-term |
40,110 | 63,220 | ||||||
Prepaid expenses and other current assets |
27,550 | 40,698 | ||||||
Current assets held for sale |
| 86 | ||||||
Total current assets |
877,275 | 955,924 | ||||||
Fixed assets, net |
217,929 | 225,320 | ||||||
Intangibles, net |
139,958 | 141,995 | ||||||
Goodwill |
330,266 | 324,431 | ||||||
Other assets |
50,479 | 76,017 | ||||||
Deferred income taxes long-term |
81,510 | 58,586 | ||||||
Total assets |
$ | 1,697,417 | $ | 1,782,273 | ||||
LIABILITIES & EQUITY |
||||||||
Current liabilities: |
||||||||
Lines of credit |
$ | 15,540 | $ | 24,927 | ||||
Accounts payable |
211,148 | 203,232 | ||||||
Accrued liabilities |
109,172 | 91,222 | ||||||
Current portion of long-term debt |
5,594 | 93,314 | ||||||
Income taxes payable |
719 | 14,202 | ||||||
Current liabilities of assets held for sale |
| 324 | ||||||
Total current liabilities |
342,173 | 427,221 | ||||||
Long-term debt |
697,043 | 858,324 | ||||||
Other long-term liabilities |
56,524 | 40,573 | ||||||
Total liabilities |
1,095,740 | 1,326,118 | ||||||
Equity: |
||||||||
Common stock |
1,675 | 1,318 | ||||||
Additional paid-in capital |
518,347 | 370,878 | ||||||
Treasury stock |
(6,778 | ) | (6,778 | ) | ||||
Accumulated deficit |
(27,575 | ) | (6,977 | ) | ||||
Accumulated other comprehensive income |
105,747 | 89,424 | ||||||
Total Quiksilver, Inc. stockholders equity |
591,416 | 447,865 | ||||||
Non-controlling interest |
10,261 | 8,290 | ||||||
Total equity |
601,677 | 456,155 | ||||||
Total liabilities & equity |
$ | 1,697,417 | $ | 1,782,273 | ||||
Three Months Ended January 31, | ||||||||
In thousands | 2011 | 2010 | ||||||
Revenues, net: |
||||||||
Americas |
$ | 193,790 | $ | 186,961 | ||||
Europe |
165,199 | 177,877 | ||||||
Asia/Pacific |
67,001 | 67,052 | ||||||
Corporate operations |
460 | 847 | ||||||
$ | 426,450 | $ | 432,737 | |||||
Gross Profit: |
||||||||
Americas |
$ | 89,466 | $ | 81,015 | ||||
Europe |
97,300 | 104,253 | ||||||
Asia/Pacific |
36,633 | 37,043 | ||||||
Corporate operations |
71 | (162 | ) | |||||
$ | 223,470 | $ | 222,149 | |||||
SG&A Expense: |
||||||||
Americas |
$ | 82,994 | $ | 76,361 | ||||
Europe |
80,417 | 85,804 | ||||||
Asia/Pacific |
34,830 | 31,377 | ||||||
Corporate operations |
12,195 | 9,618 | ||||||
$ | 210,436 | $ | 203,160 | |||||
Operating Income (Loss): |
||||||||
Americas |
$ | 6,472 | $ | 4,654 | ||||
Europe |
16,883 | 18,449 | ||||||
Asia/Pacific |
1,803 | 5,666 | ||||||
Corporate operations |
(12,124 | ) | (9,780 | ) | ||||
$ | 13,034 | $ | 18,989 | |||||
Three Months Ended | ||||||||
January 31, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Loss from continuing operations attributable to
Quiksilver, Inc. |
$ | (16,268 | ) | $ | (5,430 | ) | ||
Restructuring (credits) charges, net of tax of $0
(2011) and $87 (2010) |
(2,118 | ) | 2,977 | |||||
Non-cash interest charges, net of tax of $4,618
(2011) and $0 (2010) |
10,691 | | ||||||
Pro-forma loss from continuing operations |
$ | (7,695 | ) | $ | (2,453 | ) | ||
Pro-forma loss per share from continuing operations |
$ | (0.05 | ) | $ | (0.02 | ) | ||
Pro-forma loss per share from continuing
operations, assuming dilution |
$ | (0.05 | ) | $ | (0.02 | ) | ||
Weighted average common shares outstanding |
161,614 | 127,648 | ||||||
Weighted average common shares outstanding,
assuming dilution |
161,614 | 127,648 | ||||||
Three Months Ended | ||||||||
January 31, | ||||||||
Amounts in thousands | 2011 | 2010 | ||||||
Loss from continuing operations attributable to
Quiksilver, Inc. |
$ | (16,268 | ) | $ | (5,430 | ) | ||
Provision for income taxes |
1,251 | 3,674 | ||||||
Interest expense |
28,968 | 21,873 | ||||||
Depreciation and amortization |
14,000 | 13,570 | ||||||
Non-cash stock-based compensation expense |
2,410 | 2,132 | ||||||
Adjusted EBITDA |
$ | 30,361 | $ | 35,819 | ||||
Restructuring (credits) charges |
(2,118 | ) | 3,064 | |||||
Pro-forma Adjusted EBITDA |
$ | 28,243 | $ | 38,883 | ||||
Historical currency (as reported) | Americas | Europe | Asia/Pacific | Corporate | Total | |||||||||||||||
January 31, 2010 |
186,961 | 177,877 | 67,052 | 847 | 432,737 | |||||||||||||||
January 31, 2011 |
193,790 | 165,199 | 67,001 | 460 | 426,450 | |||||||||||||||
Percentage increase (decrease) |
4 | % | (7 | %) | (0 | %) | (1 | %) | ||||||||||||
Constant currency (current year
exchange rates) |
||||||||||||||||||||
January 31, 2010 |
186,961 | 163,607 | 73,143 | 847 | 424,558 | |||||||||||||||
January 31, 2011 |
193,790 | 165,199 | 67,001 | 460 | 426,450 | |||||||||||||||
Percentage increase (decrease) |
4 | % | 1 | % | (8 | %) | 0 | % |
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