Quiksilver, Inc. announced consolidated revenues for the fourth quarter of fiscal 2003 ended October 31, 2003
increased 37% to $269.2 million as compared to fiscal 2002 fourth quarter consolidated revenues of $196.1 million. Consolidated net income for the fourth quarter of fiscal 2003 increased 43% to $17.4 million as compared to $12.2 million. Fourth quarter fully diluted earnings per share was $0.30 versus $0.25 for the fourth quarter of fiscal 2002.
Consolidated revenues for the full year of fiscal 2003 increased
38% to $975.0 as compared to fiscal 2002 full year consolidated
revenues of $705.5. Consolidated net income for the full year of
fiscal 2003 increased 56% to $58.5 million as compared to $37.6 in
fiscal 2002, and diluted earnings per share for the full year
increased 34% to $1.03 versus $0.77 for the full year of fiscal 2002.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive
Officer of Quiksilver, commented, “We are pleased to have exceeded our
plan for the fourth quarter, and we finished the year with clean
inventories, continued strong sell through rates, and an excellent
strategic position in the marketplace. As we close in on the $1
billion revenue mark in the upcoming year, we are excited about our
prospects both domestically and around the world.”
Revenues in the Americas increased 15% during the fourth quarter
of fiscal 2003 to $125.6 million as compared to fiscal 2002 fourth
quarter revenues of $109.7 million. As measured in U.S. dollars and
reported in the financial statements, European revenues increased 25%
during the fourth quarter of fiscal 2003 to $106.7 million as compared
to fiscal 2002 fourth quarter European revenues of $85.3 million. As
measured in euros, European revenues increased 8% for those same
periods. Revenues in the Asia/Pacific segment, which was added in the
first quarter of fiscal 2003, totaled $36.7 million. In constant
dollars, overall Spring bookings increased 6% over the previous year.
Revenues in the Americas for the full year of fiscal 2003
increased 18% to $492.4 as compared to fiscal 2002 revenues of $418.0
million. As measured in U.S. dollars and reported in the financial
statements, European revenues increased 37% during the full year of
fiscal 2003 to $386.2 million as compared to fiscal 2002 results of
$282.7 million. As measured in euros, European revenues increased 15%
for the full year. The Asia/Pacific division added $94.2 million to
consolidated revenues in fiscal 2003.
McKnight continued, “Over the course of the year, we have been
able to properly align our marketing strategies, our product lines,
our operations, and our management team to go forward with a singular
vision for the future. Clearly, the power of our youth-oriented
lifestyle view and the culture of boardsports is resonating with
consumers everywhere.”
Inventories in the Americas increased 25% to 86.4 million at
October 31, 2003 from $69.0 million at October 31, 2002, while
decreasing $2.1 million from July 31, 2003. European inventories
increased 38% in euros and increased 63% in U.S. dollars, totaling
$43.8 million at October 31, 2003 compared to $26.9 million at October
31, 2002. Inventories in the newly acquired Asia/Pacific division
totaled $16.2 million at October 31, 2003. Consolidated inventories
increased 53% to $146.4 million at October 31, 2003 from $95.9 million
at October 31, 2002 which is an increase of 45% after adjusting for
the effect of the stronger euro in comparison to the prior year.
Consolidated trade accounts receivable increased 33% to $224.4
million at October 31, 2003 from $168.2 million at October 31, 2002.
Accounts receivable grew more slowly than sales as average days sales
outstanding decreased about three days.
Bernard Mariette, President of Quiksilver, Inc., commented, “As we
move forward into the new year, we are benefiting from a continued
position as the leading youth brand in the United States, Europe and
Australia, and we have excellent prospects for growth in a variety of
markets in Eastern Europe. We are focused on leveraging the strength
of our brands and our superior operating platform to take advantage of
these opportunities.”
Also today, the company increased its guidance to new ranges of
$1.06 billion to $1.08 billion for revenues and $1.18 to $1.22 for
earnings per share.
McKnight concluded, “These results represent our 8th consecutive
quarter of exceeding both internal and external expectations, and
importantly, we have been able to accomplish all of this in a
challenging retail climate. At the same time, we have successfully
integrated a number of new businesses that will provide additional
growth into the future. The benefits of our strong brands and
diversified operating model are clear and compelling, and the
combination of innovative product, unique marketing, a cohesive
management structure, and world-class execution will allow us to
expand our business and drive significant value to our shareholders
into the future.”
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
October 31,
-------------------------
In thousands, except per share amounts 2003 2002
----------- -----------
Revenues $ 269,217 $ 196,058
Cost of goods sold 143,185 110,601
----------- -----------
Gross profit 126,032 85,457
Selling, general and administrative expense 96,704 64,038
----------- -----------
Operating income 29,328 21,419
Interest expense 1,812 1,886
Foreign currency loss 627 133
Other expense 78 26
----------- -----------
Income before provision for income taxes 26,811 19,374
Provision for income taxes 9,411 7,177
----------- -----------
Net income $ 17,400 $ 12,197
=========== ===========
Net income per share $0.31 $0.26
=========== ===========
Net income per share, assuming dilution $0.30 $0.25
=========== ===========
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Fiscal Year Ended
October 31,
-------------------------
In thousands, except per share amounts 2003 2002
----------- -----------
Revenues $ 975,005 $ 705,484
Cost of goods sold 541,753 419,155
----------- -----------
Gross profit 433,252 286,329
Selling, general and administrative expense 332,187 216,625
----------- -----------
Operating income 101,065 69,704
Interest expense 8,267 8,640
Foreign currency loss 2,243 729
Other expense 488 349
----------- -----------
Income before provision for income taxes 90,067 59,986
Provision for income taxes 31,551 22,395
----------- -----------
Net income $ 58,516 $ 37,591
=========== ===========
Net income per share $1.08 $0.80
=========== ===========
Net income per share, assuming dilution $1.03 $0.77
