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) |
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 September 1, 2011, issued by Quiksilver, Inc. |
2
Dated: September 1, 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 September 1, 2011, issued by Quiksilver, Inc. |
4
Company Contact: | Bruce Thomas Vice President, Investor Relations Quiksilver, Inc. +1(714)889-2200 |
| Revenues of $503 million grew 14% compared to Q3 last year |
| Company earns Pro-forma Adjusted EBITDA of $53 million |
| Company unites with city of Long Beach to run Quiksilver Pro New York after Hurricane Irene |
| Legendary Quiksilver team rider and defending 10-time ASP World Surf Champion Kelly Slater won the US Open of Surfing in Huntington Beach, CA, as well as the ASP tour event in Tahiti, vaulting him into first place in the points standings in the race to become the 2011 World Surf Champion. |
| Quiksilver held the grand opening of its newest Boardriders Store in Ericeira, Portugal. The modern-style facility offers a large selection of products representing each of the companys brands and includes the countrys largest skate park. |
| Australian Roxy surfer Sally Fitzgibbons won for the third time on the 2011 ASP Womens World Tour in capturing the womens title at the US Open of Surfing. Sally has finished the year ranked #2 in the world for the second time in just three years on tour. |
| DC co-founder and World Rally Championship driver Ken Block released the fourth installment of his Gymkhana precision driving series and it rapidly became the fastest-spreading viral video on the Internet with over 7 million views in its first two weeks. The entire Gymkhana franchise has now generated over 120 million views and has fueled the sales of DCs TeamWorks collection which includes shoes, shirts, hats and jackets inspired by Kens rally car livery. |
| The Street League DC Pro Tour completed a second very successful season of skateboarding competitions this past week with the season finale carried on ESPN2. The tour attracted the worlds best skaters including Nyjah Houston, Chris Cole, Sean Malto, Ryan Sheckler, Chaz Ortiz, Shane ONeill, Billy Marks, Paul Rodriguez and Mikey Taylor. |
| DC held the grand opening of the DC Embassy in Barcelona, Spain. This unique industrial-inspired space includes large showroom areas designed to showcase DCs expanding product line. The complex sits atop a 1300 square meter skate park that will serve as the headquarters for the European members of the DC skate team. |
3
Three Months Ended July 31, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Revenues, net |
$ | 503,317 | $ | 441,475 | ||||
Cost of goods sold |
248,199 | 210,742 | ||||||
Gross profit |
255,118 | 230,733 | ||||||
Selling, general and administrative expense |
221,172 | 193,155 | ||||||
Asset impairments |
| 3,225 | ||||||
Operating income |
33,946 | 34,353 | ||||||
Interest expense |
15,663 | 20,630 | ||||||
Foreign currency (gain) loss |
(1,456 | ) | 213 | |||||
Income before provision for income taxes |
19,739 | 13,510 | ||||||
Provision for income taxes |
8,996 | 5,096 | ||||||
Income from continuing operations |
10,743 | 8,414 | ||||||
Income from discontinued operations |
| 143 | ||||||
Net income |
10,743 | 8,557 | ||||||
Less: net income attributable to non-controlling interest |
(306 | ) | (251 | ) | ||||
Net income attributable to Quiksilver, Inc. |
$ | 10,437 | $ | 8,306 | ||||
Income per share from continuing operations attributable
to Quiksilver, Inc. |
$ | 0.06 | $ | 0.06 | ||||
Income per share from discontinued operations
attributable to Quiksilver, Inc. |
$ | | $ | 0.00 | ||||
Net income per share attributable to Quiksilver, Inc. |
$ | 0.06 | $ | 0.06 | ||||
Income per share from continuing operations attributable
to Quiksilver, Inc., assuming dilution |
$ | 0.06 | $ | 0.05 | ||||
Income per share from discontinued operations
attributable to Quiksilver, Inc., assuming dilution |
$ | | $ | 0.00 | ||||
Net income per share attributable to Quiksilver, Inc.,
assuming dilution |
$ | 0.06 | $ | 0.06 | ||||
Weighted average common shares outstanding |
162,822 | 129,756 | ||||||
Weighted average common shares outstanding,
assuming dilution |
183,488 | 150,188 | ||||||
Amounts attributable to Quiksilver, Inc.: |
||||||||
Income from continuing operations |
$ | 10,437 | $ | 8,163 | ||||
Income from discontinued operations |
| 143 | ||||||
Net income |
$ | 10,437 | $ | 8,306 | ||||
Nine Months Ended July 31, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Revenues, net |
$ | 1,407,860 | $ | 1,342,501 | ||||
Cost of goods sold |
667,103 | 640,332 | ||||||
Gross profit |
740,757 | 702,169 | ||||||
Selling, general and administrative expense |
648,356 | 609,731 | ||||||
Asset impairments |
74,610 | 3,225 | ||||||
Operating income |
17,791 | 89,213 | ||||||
Interest expense |
59,727 | 63,542 | ||||||
Foreign currency gain |
(5,886 | ) | (6,380 | ) | ||||
(Loss) income before provision for income taxes |
(36,050 | ) | 32,051 | |||||
Provision for income taxes |
49,937 | 18,189 | ||||||
(Loss) income from continuing operations |
(85,987 | ) | 13,862 | |||||
Income from discontinued operations |
| 821 | ||||||
Net (loss) income |
(85,987 | ) | 14,683 | |||||
Less: net income attributable to non-controlling interest |
(3,169 | ) | (2,307 | ) | ||||
Net (loss) income attributable to Quiksilver, Inc. |
$ | (89,156 | ) | $ | 12,376 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc. |
$ | (0.55 | ) | $ | 0.09 | |||
Income per share from discontinued operations
attributable to Quiksilver, Inc. |
$ | | $ | 0.01 | ||||
Net (loss) income per share attributable to Quiksilver, Inc. |
$ | (0.55 | ) | $ | 0.10 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc., assuming dilution |
$ | (0.55 | ) | $ | 0.08 | |||
Income per share from discontinued operations
attributable to Quiksilver, Inc., assuming dilution |
$ | | $ | 0.01 | ||||
Net (loss) income per share attributable to Quiksilver,
Inc., assuming dilution |
$ | (0.55 | ) | $ | 0.09 | |||
Weighted average common shares outstanding |
162,198 | 128,000 | ||||||
Weighted average common shares outstanding,
assuming dilution |
162,198 | 143,623 | ||||||
Amounts attributable to Quiksilver, Inc.: |
||||||||
(Loss) income from continuing operations |
$ | (89,156 | ) | $ | 11,555 | |||
Income from discontinued operations |
| 821 | ||||||
Net (loss) income |
$ | (89,156 | ) | $ | 12,376 | |||
July 31, | July 31, | |||||||
In thousands | 2011 | 2010 | ||||||
ASSETS | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 126,210 | $ | 155,653 | ||||
Trade accounts receivable, less allowance
for doubtful accounts of $54,381 (2011)
and $49,292 (2010) |
385,927 | 340,921 | ||||||
Other receivables |
16,657 | 26,933 | ||||||
Income taxes receivable |
4,674 | 5,249 | ||||||
Inventories |
364,833 | 270,854 | ||||||
Deferred income taxes short-term |
18,134 | 39,871 | ||||||
Prepaid expenses and other current assets |
31,787 | 41,968 | ||||||
Total current assets |
948,222 | 881,449 | ||||||
Fixed assets, net |
237,138 | 217,528 | ||||||
Intangible assets, net |
138,934 | 140,762 | ||||||
Goodwill |
273,549 | 318,418 | ||||||
Other assets |
56,868 | 67,568 | ||||||
Deferred income taxes long-term |
72,855 | 53,514 | ||||||
Total assets |
$ | 1,727,566 | $ | 1,679,239 | ||||
Current liabilities: |
||||||||
Lines of credit |
$ | 8,928 | $ | 24,651 | ||||
Accounts payable |
238,866 | 208,515 | ||||||
Accrued liabilities |
134,365 | 96,628 | ||||||
Current portion of long-term debt |
4,820 | 59,089 | ||||||
Current liabilities of assets held for sale |
¯ | 799 | ||||||
Total current liabilities |
386,979 | 389,682 | ||||||
Long-term debt, net of current portion |
733,415 | 759,339 | ||||||
Other long-term liabilities |
56,056 | 43,066 | ||||||
Total liabilities |
1,176,450 | 1,192,087 | ||||||
Equity: |
||||||||
Common stock |
1,680 | 1,357 | ||||||
Additional paid-in capital |
527,122 | 379,538 | ||||||
Treasury stock |
(6,778 | ) | (6,778 | ) | ||||
(Accumulated deficit) retained earnings |
(100,463 | ) | 10,753 | |||||
Accumulated other comprehensive income |
117,318 | 92,620 | ||||||
Total Quiksilver, Inc. stockholders equity |
538,879 | 477,490 | ||||||
Non-controlling interest |
12,237 | 9,662 | ||||||
Total equity |
551,116 | 487,152 | ||||||
Total liabilities & equity |
$ | 1,727,566 | $ | 1,679,239 | ||||
Three Months Ended July 31, | ||||||||
In thousands | 2011 | 2010 | ||||||
Revenues, net: |
||||||||
Americas |
$ | 260,159 | $ | 234,630 | ||||
Europe |
176,438 | 151,675 | ||||||
Asia/Pacific |
65,495 | 54,504 | ||||||
Corporate operations |
1,225 | 666 | ||||||
$ | 503,317 | $ | 441,475 | |||||
Gross Profit: |
||||||||
Americas |
$ | 115,065 | $ | 109,594 | ||||
Europe |
106,451 | 91,939 | ||||||
Asia/Pacific |
34,347 | 28,728 | ||||||
Corporate operations |
(745 | ) | 472 | |||||
$ | 255,118 | $ | 230,733 | |||||
SG&A Expense: |
||||||||
Americas |
$ | 87,984 | $ | 79,964 | ||||
Europe |
85,402 | 76,215 | ||||||
Asia/Pacific |
36,314 | 29,168 | ||||||
Corporate operations |
11,472 | 7,808 | ||||||
$ | 221,172 | $ | 193,155 | |||||
Asset Impairments: |
||||||||
Americas |
$ | ¯ | $ | 1,939 | ||||
Europe |
¯ | 100 | ||||||
Asia/Pacific |
¯ | 1,186 | ||||||
Corporate operations |
¯ | ¯ | ||||||
$ | ¯ | $ | 3,225 | |||||
Operating Income (Loss): |
||||||||
Americas |
$ | 27,081 | $ | 27,691 | ||||
Europe |
21,049 | 15,624 | ||||||
Asia/Pacific |
(1,967 | ) | (1,626 | ) | ||||
Corporate operations |
(12,217 | ) | (7,336 | ) | ||||
$ | 33,946 | $ | 34,353 | |||||
Nine Months Ended July 31, | ||||||||
In thousands | 2011 | 2010 | ||||||
Revenues, net: |
||||||||
Americas |
$ | 664,618 | $ | 621,324 | ||||
Europe |
548,578 | 538,260 | ||||||
Asia/Pacific |
190,636 | 180,201 | ||||||
Corporate operations |
4,028 | 2,716 | ||||||
$ | 1,407,860 | $ | 1,342,501 | |||||
Gross Profit: |
||||||||
Americas |
$ | 308,032 | $ | 283,606 | ||||
Europe |
332,083 | 321,300 | ||||||
Asia/Pacific |
101,842 | 97,171 | ||||||
Corporate operations |
(1,200 | ) | 92 | |||||
$ | 740,757 | $ | 702,169 | |||||
SG&A Expense: |
||||||||
Americas |
$ | 256,117 | $ | 237,516 | ||||
Europe |
250,388 | 247,979 | ||||||
Asia/Pacific |
108,961 | 92,804 | ||||||
Corporate operations |
32,890 | 31,432 | ||||||
$ | 648,356 | $ | 609,731 | |||||
Asset Impairments: |
||||||||
Americas |
$ | 465 | $ | 1,939 | ||||
Europe |
¯ | 100 | ||||||
Asia/Pacific |
74,145 | 1,186 | ||||||
Corporate operations |
¯ | ¯ | ||||||
$ | 74,610 | $ | 3,225 | |||||
Operating Income (Loss): |
||||||||
Americas |
$ | 51,450 | $ | 44,151 | ||||
Europe |
81,695 | 73,221 | ||||||
Asia/Pacific |
(81,264 | ) | 3,181 | |||||
Corporate operations |
(34,090 | ) | (31,340 | ) | ||||
$ | 17,791 | $ | 89,213 | |||||
Three Months Ended | ||||||||
July 31, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Income from continuing operations attributable to Quiksilver, Inc. |
$ | 10,437 | $ | 8,163 | ||||
Restructuring charges, net of tax of $0 (2011) and $164 (2010) |
¯ | 1,765 | ||||||
Non-cash asset impairment charges, net of tax of
$0 (2011) and $616 (2010) |
¯ | 2,609 | ||||||
Pro-forma income from continuing operations |
$ | 10,437 | $ | 12,537 | ||||
Pro-forma income per share from continuing operations |
$ | 0.06 | $ | 0.10 | ||||
Pro-forma income per share from continuing operations,
assuming dilution |
$ | 0.06 | $ | 0.08 | ||||
Weighted average common shares outstanding |
162,822 | 129,756 | ||||||
Weighted average common shares outstanding, assuming dilution |
183,488 | 150,188 | ||||||
Nine Months Ended | ||||||||
July 31, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
(Loss) income from continuing operations attributable to
Quiksilver, Inc. |
$ | (89,156 | ) | $ | 11,555 | |||
Non-cash asset impairment charges, net of tax of $0
(2011) and $616 (2010) |
74,610 | 2,609 | ||||||
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 $271 (2010) |
(2,118 | ) | 7,612 | |||||
Stock compensation expense |
¯ | 5,240 | ||||||
Gain from sale of Raisins trademarks |
¯ | (1,252 | ) | |||||
Pro-forma income from continuing operations |
$ | 20,007 | $ | 25,764 | ||||
Pro-forma income per share from continuing operations |
$ | 0.12 | $ | 0.20 | ||||
Pro-forma income per share from continuing operations,
assuming dilution |
$ | 0.11 | $ | 0.18 | ||||
Weighted average common shares outstanding |
162,198 | 128,000 | ||||||
Weighted average common shares outstanding, assuming dilution |
182,688 | 143,623 | ||||||
Three Months Ended | ||||||||
July 31, | ||||||||
In thousands | 2011 | 2010 | ||||||
Income from continuing operations attributable to Quiksilver, Inc. |
$ | 10,437 | $ | 8,163 | ||||
Provision for income taxes |
8,996 | 5,096 | ||||||
Interest expense |
15,663 | 20,630 | ||||||
Depreciation and amortization |
12,684 | 13,192 | ||||||
Non-cash stock-based compensation expense |
4,935 | 1,279 | ||||||
Non-cash asset impairments |
¯ | 3,225 | ||||||
Adjusted EBITDA |
$ | 52,715 | $ | 51,585 | ||||
Restructuring and other special charges |
¯ | 1,929 | ||||||
Pro-forma Adjusted EBITDA |
$ | 52,715 | $ | 53,514 | ||||
Nine Months Ended | ||||||||
July 31, | ||||||||
In thousands | 2011 | 2010 | ||||||
(Loss) income from continuing operations attributable
to Quiksilver, Inc. |
$ | (89,156 | ) | $ | 11,555 | |||
Provision for income taxes |
49,937 | 18,189 | ||||||
Interest expense |
59,727 | 63,542 | ||||||
Depreciation and amortization |
40,154 | 40,215 | ||||||
Non-cash stock-based compensation expense |
9,916 | 11,414 | ||||||
Non-cash asset impairments |
74,610 | 3,225 | ||||||
Adjusted EBITDA |
$ | 145,188 | $ | 148,140 | ||||
Restructuring and other special (credits) charges |
(2,118 | ) | 6,631 | |||||
Pro-forma Adjusted EBITDA |
$ | 143,070 | $ | 154,771 | ||||
Historical currency (as reported) |
Americas | Europe | Asia/Pacific | Corporate | Total | |||||||||||||||
July 31, 2010 |
234,630 | 151,675 | 54,504 | 666 | 441,475 | |||||||||||||||
July 31, 2011 |
260,159 | 176,438 | 65,495 | 1,225 | 503,317 | |||||||||||||||
Percentage increase |
11 | % | 16 | % | 20 | % | 14 | % |
Constant currency (current year exchange rates) |
||||||||||||||||||||
July 31, 2010
|
234,630 | 173,647 | 67,199 | 666 | 476,142 | |||||||||||||||
July 31, 2011
|
260,159 | 176,438 | 65,495 | 1,225 | 503,317 | |||||||||||||||
Percentage increase (decrease)
|
11 | % | 2 | % | (3 | %) | 6 | % |