Quiksilver, Inc. Reports First Quarter Fiscal 2012 Financial Results

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, select department stores and over the internet. 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, profit and EBITDA expectations and plans, new growth initiatives 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 , www.lib-tech.com and www.hawkclothing.com .

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended January 31,
In thousands, except per share amounts		2012				2011
Revenues, net		$	449,621			$	426,450
Cost of goods sold			221,671				202,980
Gross profit			227,950				223,470
Selling, general and administrative expense			230,415				210,436
Operating (loss) income			(2,465	)			13,034
Interest expense			15,045				28,968
Foreign currency gain			(1,850	)			(2,109	)
Loss before provision for income taxes			(15,660	)			(13,825	)
Provision for income taxes			5,250				1,251
Net loss			(20,910	)			(15,076	)
Less: net income attributable to non-controlling interest			(1,695	)			(1,192	)
Net loss attributable to Quiksilver, Inc.		$	(22,605	)		$	(16,268	)
Net loss per share attributable to Quiksilver, Inc.		$	(0.14	)		$	(0.10	)
Net loss per share attributable to Quiksilver, Inc., assuming dilution		$	(0.14	)		$	(0.10	)
Weighted average common shares outstanding			163,363				161,614
Weighted average common shares outstanding, assuming dilution			163,363				161,614

CONSOLIDATED BALANCE SHEETS (Unaudited)
In thousands		January 31,				January 31,
		2012				2011
ASSETS
Current assets:
Cash and cash equivalents		$	94,435			$	177,192
Trade accounts receivable, less allowance for doubtful accounts of $44,126 (2012) and $44,558 (2011)			321,785				287,458
Other receivables			23,226				35,404
Inventories			412,291				309,561
Deferred income taxes – short-term			23,844				40,110
Prepaid expenses and other current assets			33,602				27,550
Total current assets			909,183				877,275
Fixed assets, net			235,537				217,929
Intangibles, net			137,364				139,958
Goodwill			267,131				330,266
Other assets			58,981				50,479
Deferred income taxes – long-term			108,469				81,510
Total assets		$	1,716,665			$	1,697,417
LIABILITIES & EQUITY
Current liabilities:
Lines of credit		$	6,267			$	15,540
Accounts payable			225,439				211,148
Accrued liabilities			109,182				109,172
Current portion of long-term debt			4,444				5,594
Income taxes payable			14,553				719
Total current liabilities			359,885				342,173
Long-term debt			729,234				697,043
Other long-term liabilities			36,350				56,524
Total liabilities			1,125,469				1,095,740
Equity:
Common stock			1,683				1,675
Additional paid-in capital			539,387				518,347
Treasury stock			(6,778	)			(6,778	)
Accumulated deficit			(55,170	)			(27,575	)
Accumulated other comprehensive income			96,367				105,747
Total Quiksilver, Inc. stockholders’ equity			575,489				591,416
Non-controlling interest			15,707				10,261
Total equity			591,196				601,677
Total liabilities & equity		$	1,716,665			$	1,697,417

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

		Three Months Ended January 31,
In thousands		2012				2011
Revenues, net:
Americas		$	205,408			$	193,790
Europe			168,874				165,199
Asia/Pacific			74,593				67,001
Corporate operations			746				460
		$	449,621			$	426,450
Gross Profit:
Americas		$	87,928			$	89,466
Europe			101,772				97,300
Asia/Pacific			38,140				36,633
Corporate operations			110				71
		$	227,950			$	223,470
SG&A Expense:
Americas		$	89,481			$	82,994
Europe			86,096				80,417
Asia/Pacific			37,239				34,830
Corporate operations			17,599				12,195
		$	230,415			$	210,436
Operating (Loss) Income:
Americas		$	(1,553	)		$	6,472
Europe			15,676				16,883
Asia/Pacific			901				1,803
Corporate operations			(17,489	)			(12,124	)
		$	(2,465	)		$	13,034

GAAP TO PRO-FORMA RECONCILIATION (Unaudited)
		Three Months Ended
		January 31,
In thousands, except per share amounts		2012				2011
Net loss attributable to Quiksilver, Inc.		$	(22,605	)		$	(16,268	)
Restructuring charges (credits), net of tax of $0 (2012) and $0 (2011)			1,873				(2,118	)
Non-cash interest charges, net of tax of $0 (2012) and $4,618 (2011)			—				10,691
Pro-forma loss		$	(20,732	)		$	(7,695	)
Pro-forma loss per share		$	(0.13	)		$	(0.05	)
Pro-forma loss per share, assuming dilution		$	(0.13	)		$	(0.05	)
Weighted average common shares outstanding			163,363				161,614
Weighted average common shares outstanding, assuming dilution			163,363				161,614

ADJUSTED EBITDA and PRO-FORMA ADJUSTED EBITDA RECONCILIATION
(Unaudited)
		Three Months Ended
		January 31,
Amounts in thousands		2012				2011
Net loss attributable to Quiksilver, Inc.		$	(22,605	)		$	(16,268	)
Provision for income taxes			5,250				1,251
Interest expense			15,045				28,968
Depreciation and amortization			12,962				14,000
Non-cash stock-based compensation expense			6,977				2,410
Adjusted EBITDA		$	17,629			$	30,361
Restructuring charges (credits)			1,873				(2,118	)
Pro-forma Adjusted EBITDA		$	19,502			$	28,243

Definition of Adjusted EBITDA:

« First ‹ Previous 1 2 3 4 5 Next › Last »