Delaware (State or other jurisdiction of incorporation) |
001-14229 (Commission File Number) |
33-0199426 (IRS Employer Identification Number) |
15202 Graham Street, Huntington Beach, CA | 92649 | |
(Address of principal executive offices) | (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)) |
Exhibit No. | Exhibit Title or Description | |
99.1
|
Press Release dated June 2, 2011, issued by Quiksilver, Inc. |
2
Dated: June 2, 2011 | Quiksilver, Inc. | |||
(Registrant) | ||||
By: | /s/ Joseph Scirocco
|
|||
Chief Financial and Operating Officer |
3
Exhibit No. | Exhibit Title or Description | |
99.1
|
Press Release, dated June 2, 2011, issued by Quiksilver, Inc. |
4
Company Contact: | Bruce Thomas | |||
Vice President, Investor Relations | ||||
Quiksilver, Inc. | ||||
+ 1 (714) 889-2200 |
| Revenues of $478 million grew 2% compared to Q2 last year | |
| Gross Profit of $262 million grew 5% compared to Q2 last year | |
| Gross Margin expanded 160 bps to a Q2 record 54.8% of revenues | |
| Pro-forma Adjusted EBITDA of $62 million was ahead of plan | |
| Net Debt at April 30 reduced 19% from a year ago to $594 million |
| Quiksilver announced the re-signing of 25-year-old surfer Dane Reynolds to a 6-year deal to continue riding for the Quiksilver surf team and to contribute to the design and development of a new signature line of products. Dane is thought by many to be the most influential surfer in the world today. |
| Quiksilver also announced the re-signing of 23-year old French surfer Jeremy Flores to a new endorsement contract. Sponsored by Quiksilver since the age of 9, Jeremy was the youngest surfer ever to qualify for the ASP (Association of Surfing Professionals) World Tour in 2007. In December, Jeremy became the first European surfer to win the prestigious Pipe Masters contest in Hawaii, which helped him to finish 9th in the ASP World Tour rankings last year. |
| Australian Roxy surfer Sally Fitzgibbons has won two of the first five events in the 2011 ASP Womens World Tour and is currently ranked #2 in the world. Sallys next opportunity to improve upon her current standing will be in July at the Roxy Pro in Biarritz, France. |
| The Street League DC Pro Tour had a very successful kick-off in Seattle to its second season of skateboarding competitions. The finals were carried live on ESPN and the next event is slated for June 11-12 in Kansas City. |
Three Months Ended April 30, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Revenues, net |
$ | 478,093 | $ | 468,289 | ||||
Cost of goods sold |
215,924 | 219,002 | ||||||
Gross profit |
262,169 | 249,287 | ||||||
Selling, general and administrative expense |
216,748 | 213,416 | ||||||
Asset impairments |
74,610 | | ||||||
Operating (loss) income |
(29,189 | ) | 35,871 | |||||
Interest expense |
15,096 | 21,039 | ||||||
Foreign currency gain |
(2,321 | ) | (4,614 | ) | ||||
Other income |
| (5 | ) | |||||
(Loss) income before provision for income taxes |
(41,964 | ) | 19,451 | |||||
Provision for income taxes |
39,690 | 9,419 | ||||||
(Loss) income from continuing operations |
(81,654 | ) | 10,032 | |||||
Income from discontinued operations |
| 602 | ||||||
Net (loss) income |
(81,654 | ) | 10,634 | |||||
Less: net income attributable to non-controlling interest |
(1,671 | ) | (1,210 | ) | ||||
Net (loss) income attributable to Quiksilver, Inc. |
$ | (83,325 | ) | $ | 9,424 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc. |
$ | (0.51 | ) | $ | 0.07 | |||
Income per share from discontinued operations attributable
to Quiksilver, Inc. |
$ | | $ | 0.00 | ||||
Net (loss) income per share attributable to Quiksilver, Inc. |
$ | (0.51 | ) | $ | 0.07 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc., assuming dilution |
$ | (0.51 | ) | $ | 0.06 | |||
Income per share from discontinued operations attributable
to Quiksilver, Inc., assuming dilution |
$ | | $ | 0.00 | ||||
Net (loss) income per share attributable to Quiksilver,
Inc., assuming dilution |
$ | (0.51 | ) | $ | 0.06 | |||
Weighted average common shares outstanding |
162,268 | 128,090 | ||||||
Weighted average common shares outstanding, assuming
dilution |
162,268 | 145,376 | ||||||
Amounts attributable to Quiksilver, Inc.: |
||||||||
(Loss) income from continuing operations |
$ | (83,325 | ) | $ | 8,822 | |||
Income from discontinued operations |
| 602 | ||||||
Net (loss) income |
$ | (83,325 | ) | $ | 9,424 | |||
Six Months Ended April 30, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Revenues, net |
$ | 904,543 | $ | 901,026 | ||||
Cost of goods sold |
418,904 | 429,590 | ||||||
Gross profit |
485,639 | 471,436 | ||||||
Selling, general and administrative expense |
427,184 | 416,576 | ||||||
Asset impairments |
74,610 | | ||||||
Operating (loss) income |
(16,155 | ) | 54,860 | |||||
Interest expense |
44,064 | 42,912 | ||||||
Foreign currency gain |
(4,430 | ) | (6,593 | ) | ||||
(Loss) income before provision for income taxes |
(55,789 | ) | 18,541 | |||||
Provision for income taxes |
40,941 | 13,093 | ||||||
(Loss) income from continuing operations |
$ | (96,730 | ) | $ | 5,448 | |||
Income from discontinued operations |
| 678 | ||||||
Net (loss) income |
(96,730 | ) | 6,126 | |||||
Less: net income attributable to non-controlling interest |
(2,863 | ) | (2,056 | ) | ||||
Net (loss) income attributable to Quiksilver, Inc. |
$ | (99,593 | ) | $ | 4,070 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc. |
$ | (0.62 | ) | $ | 0.03 | |||
Income per share from discontinued operations attributable
to Quiksilver, Inc. |
$ | | $ | 0.01 | ||||
Net (loss) income per share attributable to Quiksilver, Inc. |
$ | (0.62 | ) | $ | 0.03 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc., assuming dilution |
$ | (0.62 | ) | $ | 0.02 | |||
Income per share from discontinued operations attributable
to Quiksilver, Inc., assuming dilution |
$ | | $ | 0.00 | ||||
Net (loss) income per share attributable to Quiksilver,
Inc., assuming dilution |
$ | (0.62 | ) | $ | 0.03 | |||
Weighted average common shares outstanding |
161,879 | 127,875 | ||||||
Weighted average common shares outstanding, assuming
dilution |
161,879 | 139,622 | ||||||
Amounts attributable to Quiksilver, Inc.: |
||||||||
(Loss) income from continuing operations |
$ | (99,593 | ) | $ | 3,392 | |||
Income from discontinued operations |
| 678 | ||||||
Net (loss) income |
$ | (99,593 | ) | $ | 4,070 | |||
In thousands | April 30, 2011 | April 30, 2010 | ||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 138,592 | $ | 145,329 | ||||
Trade accounts receivable, less
allowance for doubtful accounts of
$51,772 (2011) and $52,177 (2010) |
341,781 | 333,267 | ||||||
Other receivables |
27,347 | 30,253 | ||||||
Income taxes receivable |
111 | | ||||||
Inventories |
289,538 | 226,419 | ||||||
Deferred income taxes short-term |
24,426 | 45,569 | ||||||
Prepaid expenses and other current assets |
31,270 | 41,912 | ||||||
Current assets held for sale |
| 178 | ||||||
Total current assets |
853,065 | 822,927 | ||||||
Fixed assets, net |
234,645 | 220,586 | ||||||
Intangibles, net |
139,614 | 141,397 | ||||||
Goodwill |
277,608 | 322,096 | ||||||
Other assets |
52,658 | 71,334 | ||||||
Deferred income taxes long-term |
80,291 | 54,259 | ||||||
Total assets |
$ | 1,637,881 | $ | 1,632,599 | ||||
LIABILITIES & EQUITY |
||||||||
Current liabilities: |
||||||||
Lines of credit |
$ | 4,792 | $ | 14,886 | ||||
Accounts payable |
178,559 | 137,354 | ||||||
Accrued liabilities |
128,748 | 84,456 | ||||||
Current portion of long-term debt |
5,824 | 45,198 | ||||||
Income taxes payable |
| 5,739 | ||||||
Current liabilities of assets held for sale |
| 260 | ||||||
Total current liabilities |
317,923 | 287,893 | ||||||
Long-term debt |
722,271 | 817,896 | ||||||
Other long-term liabilities |
63,171 | 41,563 | ||||||
Total liabilities |
1,103,365 | 1,147,352 | ||||||
Equity: |
||||||||
Common stock |
1,677 | 1,355 | ||||||
Additional paid-in capital |
521,148 | 381,267 | ||||||
Treasury stock |
(6,778 | ) | (6,778 | ) | ||||
(Accumulated deficit) retained earnings |
(110,900 | ) | 2,447 | |||||
Accumulated other comprehensive income |
117,438 | 97,462 | ||||||
Total Quiksilver, Inc. stockholders equity |
522,585 | 475,753 | ||||||
Non-controlling interest |
11,931 | 9,494 | ||||||
Total equity |
534,516 | 485,247 | ||||||
Total liabilities & equity |
$ | 1,637,881 | $ | 1,632,599 | ||||
Three Months Ended April 30, | ||||||||
In thousands | 2011 | 2010 | ||||||
Revenues, net: |
||||||||
Americas |
$ | 210,669 | $ | 199,733 | ||||
Europe |
206,941 | 208,708 | ||||||
Asia/Pacific |
58,140 | 58,645 | ||||||
Corporate operations |
2,343 | 1,203 | ||||||
$ | 478,093 | $ | 468,289 | |||||
Gross Profit: |
||||||||
Americas |
$ | 103,501 | $ | 92,997 | ||||
Europe |
128,332 | 125,108 | ||||||
Asia/Pacific |
30,862 | 31,400 | ||||||
Corporate operations |
(526 | ) | (218 | ) | ||||
$ | 262,169 | $ | 249,287 | |||||
SG&A Expense: |
||||||||
Americas |
$ | 85,139 | $ | 81,191 | ||||
Europe |
84,569 | 85,960 | ||||||
Asia/Pacific |
37,817 | 32,259 | ||||||
Corporate operations |
9,223 | 14,006 | ||||||
$ | 216,748 | $ | 213,416 | |||||
Asset Impairments: |
||||||||
Americas |
$ | 465 | $ | | ||||
Europe |
| | ||||||
Asia/Pacific |
74,145 | | ||||||
Corporate operations |
| | ||||||
$ | 74,610 | $ | | |||||
Operating Income (Loss): |
||||||||
Americas |
$ | 17,897 | $ | 11,806 | ||||
Europe |
43,763 | 39,148 | ||||||
Asia/Pacific |
(81,100 | ) | (859 | ) | ||||
Corporate operations |
(9,749 | ) | (14,224 | ) | ||||
$ | (29,189 | ) | $ | 35,871 | ||||
Six Months Ended April 30, | ||||||||
In thousands | 2011 | 2010 | ||||||
Revenues, net: |
||||||||
Americas |
$ | 404,459 | $ | 386,694 | ||||
Europe |
372,140 | 386,585 | ||||||
Asia/Pacific |
125,141 | 125,697 | ||||||
Corporate operations |
2,803 | 2,050 | ||||||
$ | 904,543 | $ | 901,026 | |||||
Gross Profit: |
||||||||
Americas |
$ | 192,967 | $ | 174,012 | ||||
Europe |
225,632 | 229,361 | ||||||
Asia/Pacific |
67,495 | 68,443 | ||||||
Corporate operations |
(455 | ) | (380 | ) | ||||
$ | 485,639 | $ | 471,436 | |||||
SG&A Expense: |
||||||||
Americas |
$ | 168,133 | $ | 157,552 | ||||
Europe |
164,986 | 171,764 | ||||||
Asia/Pacific |
72,647 | 63,636 | ||||||
Corporate operations |
21,418 | 23,624 | ||||||
$ | 427,184 | $ | 416,576 | |||||
Asset Impairments: |
||||||||
Americas |
$ | 465 | $ | | ||||
Europe |
| | ||||||
Asia/Pacific |
74,145 | | ||||||
Corporate operations |
| | ||||||
$ | 74,610 | $ | | |||||
Operating Income (Loss): |
||||||||
Americas |
$ | 24,369 | $ | 16,460 | ||||
Europe |
60,646 | 57,597 | ||||||
Asia/Pacific |
(79,297 | ) | 4,807 | |||||
Corporate operations |
(21,873 | ) | (24,004 | ) | ||||
$ | (16,155 | ) | $ | 54,860 | ||||
Three Months Ended | ||||||||
April 30, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
(Loss) income from continuing operations attributable to Quiksilver, Inc. |
$ | (83,325 | ) | $ | 8,822 | |||
Non-cash asset impairment charges |
74,610 | | ||||||
Effect of APAC tax valuation allowance |
25,980 | | ||||||
Restructuring charges, net of tax of $0 (2011) and $20 (2010) |
| 2,870 | ||||||
Stock compensation expense |
| 5,240 | ||||||
Gain from sale of Raisins trademarks |
| (1,252 | ) | |||||
Pro-forma income from continuing operations |
$ | 17,265 | $ | 15,680 | ||||
Pro-forma income per share from continuing operations |
$ | 0.11 | $ | 0.12 | ||||
Pro-forma income per share from continuing operations, assuming dilution |
$ | 0.09 | $ | 0.11 | ||||
Weighted average common shares outstanding |
162,268 | 128,090 | ||||||
Weighted average common shares outstanding, assuming dilution |
182,037 | 145,376 | ||||||
Six Months Ended | ||||||||
April 30, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
(Loss) income from continuing operations
attributable to Quiksilver, Inc. |
$ | (99,593 | ) | $ | 3,392 | |||
Non-cash asset impairment charges |
74,610 | | ||||||
Effect of APAC tax valuation allowance |
25,980 | | ||||||
Non-cash interest charges, net of tax of $4,618
(2011) and $0 (2010) |
10,691 | | ||||||
Restructuring (credits) charges, net of tax of $0
(2011) and $107 (2010) |
(2,118 | ) | 5,847 | |||||
Stock compensation expense |
| 5,240 | ||||||
Gain from sale of Raisins trademarks |
| (1,252 | ) | |||||
Pro-forma income from continuing operations |
$ | 9,570 | $ | 13,227 | ||||
Pro-forma income per share from continuing operations |
$ | 0.06 | $ | 0.10 | ||||
Pro-forma income per share from continuing
operations, assuming dilution |
$ | 0.05 | $ | 0.09 | ||||
Weighted average common shares outstanding |
161,879 | 127,875 | ||||||
Weighted average common shares outstanding,
assuming dilution |
182,289 | 139,622 | ||||||
Three Months Ended | ||||||||
April 30, | ||||||||
Amounts in thousands | 2011 | 2010 | ||||||
(Loss) income from continuing operations
attributable to Quiksilver, Inc. |
$ | (83,325 | ) | $ | 8,822 | |||
Provision for income taxes |
39,690 | 9,419 | ||||||
Interest expense |
15,096 | 21,039 | ||||||
Depreciation and amortization |
13,470 | 13,453 | ||||||
Non-cash stock-based compensation expense |
2,571 | 8,003 | ||||||
Non-cash asset impairments |
74,610 | | ||||||
Adjusted EBITDA |
$ | 62,112 | $ | 60,736 | ||||
Restructuring and other special charges |
| 1,638 | ||||||
Pro-forma Adjusted EBITDA |
$ | 62,112 | $ | 62,374 | ||||
Six Months Ended | ||||||||
April 30, | ||||||||
Amounts in thousands | 2011 | 2010 | ||||||
(Loss) income from continuing operations
attributable to Quiksilver, Inc. |
$ | (99,593 | ) | $ | 3,392 | |||
Provision for income taxes |
40,941 | 13,093 | ||||||
Interest expense |
44,064 | 42,912 | ||||||
Depreciation and amortization |
27,470 | 27,023 | ||||||
Non-cash stock-based compensation expense |
4,981 | 10,135 | ||||||
Non-cash asset impairments |
74,610 | | ||||||
Adjusted EBITDA |
$ | 92,473 | $ | 96,555 | ||||
Restructuring and other special (credits) charges |
(2,118 | ) | 4,702 | |||||
Pro-forma Adjusted EBITDA |
$ | 90,355 | $ | 101,257 | ||||
Americas | Europe | Asia/Pacific | Corporate | Total | ||||||||||||||||||
Historical currency (as reported) |
||||||||||||||||||||||
April 30, 2010 |
199,733 | 208,708 | 58,645 | 1,203 | 468,289 | |||||||||||||||||
April 30, 2011 |
210,669 | 206,941 | 58,140 | 2,343 | 478,093 | |||||||||||||||||
Percentage increase (decrease) |
5 | % | (1 | %) | (1 | %) | 2 | % | ||||||||||||||
Constant currency (current year
exchange rates) |
||||||||||||||||||||||
April 30, 2010 |
199,733 | 215,852 | 66,200 | 1,203 | 482,989 | |||||||||||||||||
April 30, 2011 |
210,669 | 206,941 | 58,140 | 2,343 | 478,093 | |||||||||||||||||
Percentage increase (decrease) |
5 | % | (4 | %) | (12 | %) | (1 | %) |