Quiksilver, Inc. (NYSE:ZQK) today announced financial results for the fiscal 2013 fourth quarter and full year ended October 31, 2013.
“We made solid progress on key elements of our Profit Improvement Plan over the last few months,” said Andy Mooney, President and Chief Executive Officer of Quiksilver, Inc. “During the fourth quarter, we continued right-sizing our global operations, closing underperforming retail stores, trimming our global athlete roster, divesting non-core operations and making important headway in establishing global controls in the supply chain management processes. In November, we acquired full ownership of our high-growth operations in Brazil and Mexico and entered into our first substantial licensing agreement.
“I am pleased that our cost reduction efforts generated an increase of $3 million and $7 million in pro forma adjusted EBITDA for the fourth quarter and second half of fiscal 2013, respectively, versus the comparable prior year periods,” continued Mooney. “While net revenues were lower due to the expected decrease in DC brand sales, we generated higher gross margin and drove down selling, general and administrative expenses.”
As previously announced, the company sold its snowboard business, Mervin Manufacturing, and intends to pursue the divestiture of other non-core businesses. As a result, Quiksilver has reclassified the current and prior year operating results of Mervin and the other non-core businesses as discontinued operations. All of the results presented below represent the company’s continuing operations.Please refer to the accompanying tables for a reconciliation of GAAP results from continuing operations to certain non-GAAP results from continuing operations, including pro-forma income/(loss), pro-forma income/(loss) per share attributable to Quiksilver, Inc., adjusted EBITDA and pro-forma adjusted EBITDA, for the fourth quarter and full year ended October 31, 2013 and 2012, net revenues in historical and constant currency, and a definition of our emerging markets. Fiscal 2013 Fourth Quarter Review: The following comparisons refer to results of continuing operations for the fourth quarter of fiscal 2013 versus the fourth quarter of fiscal 2012.