Quiksilver, Inc.reported that consolidated revenues for the fourth quarter of fiscal 2004 ended October 31, 2004 increased 30% to $350.3 million as compared to fiscal 2003 fourth quarter consolidated revenues of $269.2 million. Consolidated net income increased 43% to $24.9 million, or 41 cents per diluted share, as compared to $17.4 million, or 30 cents per diluted share, in theyear-ago quarter.
Consolidated revenues for the full year of fiscal 2004 increased 30% to $1.27 billion as compared to fiscal 2003 full year consolidated revenues of $975 million. Consolidated net income for the full year of fiscal 2004 increased 39% to $81.4 million as compared to $58.5 in fiscal 2003, and diluted earnings per share for the full year increased 32% to $1.36 versus $1.03 for the full year of fiscal 2003.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, commented, “Our strong fourth quarter performance allowed us to exceed expectations for the 12th consecutive quarter and represents a tremendous finish to an outstanding year for our company. Fiscal 2004 was highlighted by several significant accomplishments and milestones, most notably our acquisition of DC Shoes and surpassing $1 billion in total sales. As we begin 2005, we remain committed to building on our positive momentum and capitalizing on the many opportunities that lie ahead.”
Revenues in the Americas increased 25% during the fourth quarter of fiscal 2004 to $157.2 million as compared to fiscal 2003 fourth quarter revenues of $125.6 million. As measured in U.S. dollars and reported in the financial statements, European revenues increased 26% during the fourth quarter of fiscal 2004 to $134.4 million as compared to fiscal 2003 fourth quarter European revenues of $106.7 million. As measured in euros, European revenues increased 16% for those same periods. Asia/Pacific revenues increased 53% to $56.1 million in the fourth quarter of fiscal 2004 compared to $36.7 million in the fourth quarter of 2003. As measured in Australian dollars, Asia/Pacific revenues increased 43%.
Revenues in the Americas for the full year of fiscal 2004 increased 25% to $616.8 as compared to fiscal 2003 revenues of $492.4 million. As measured in U.S. dollars and reported in the financial statements, European revenues increased 29% during the full year of fiscal 2004 to $496.3 million as compared to fiscal 2003 results of $386.2 million. As measured in euros, European revenues increased 16% for the full year. Asia/Pacific revenues increased 58% to $148.7 million as compared to fiscal 2003 results of $94.2 million. As measured in Australian dollars, Asia/Pacific revenues increased 38% for the full year.
Consolidated inventories increased 23% to $179.6 million at October 31, 2004 from $146.4 million at October 31, 2003, which is an increase of 18% after adjusting for the effect of changes in foreign currency translation rates. Inventories in the Americas increased 21% to $104.6 million at October 31, 2004 from $86.4 million at October 31, 2003. European inventories increased 12% in euros and increased 23% in U.S. dollars, totaling $53.7 million at October 31, 2004 compared to $43.8 million at October 31, 2003. Asia/Pacific inventories increased 23% in Australian dollars and 31% in U.S. dollars, totaling $21.3 million at October 31, 2004 from $16.2 million at October 31, 2003.
Consolidated trade accounts receivable increased 25% to $281.3 million at October 31, 2004 from $224.4 million at October 31, 2003. Accounts receivable grew more slowly than sales as average days sales outstanding decreased about one day.
Bernard Mariette, President of Quiksilver, Inc., commented, “Fiscal 2004 has been one of the best years in the history of Quiksilver. Our financial results are, once again, outstanding and at record levels. DC Shoes has been integrated ahead of schedule, our athletes and contests continue to lead their categories, and our products continue to perform in all regions. Our people have achieved success locally and individually, but most importantly, as a team. I want to thank everybody around the world for their ongoing hard work and dedication.”
Mr. McKnight concluded, “Over the past few years we have worked extremely hard to integrate our strategic acquisitions and add important components to our business in order to expand our global reach and further develop our leadership position in the marketplace. The results of our efforts have translated into improved financial performance, in particular, significant increases in sales and profits, market capitalization, and shareholder value. We move forward with a strong portfolio of leading brands, a solid infrastructure to support our growth plans both domestically and abroad, and a world class organization dedicated to executing at the highest level.”
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
October 31,
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In thousands, except per share amounts 2004 2003
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Revenues, net $350,288 $269,217
Cost of goods sold 183,248 143,185
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Gross profit 167,040 126,032
Selling, general and administrative expense 127,975 96,704
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Operating income 39,065 29,328
Interest expense 1,827 1,812
Foreign currency loss 802 627
Other (income) expense (206) 78
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Income before provision for income taxes 36,642 26,811
Provision for income taxes 11,767 9,411
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Net income $24,875 $17,400
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Net income per share $0.42 $0.31
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Net income per share, assuming dilution $0.41 $0.30
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Fiscal Year Ended
October 31
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In thousands, except per share amounts 2004 2003
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Revenues, net $1,266,939 $975,005
Cost of goods sold 688,780 541,753
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Gross profit 578,159 433,252
Selling, general and administrative expense 446,221 332,187
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Operating income 131,938 101,065
Interest expense 6,390 8,267
Foreign currency loss 2,861 2,243
Other expense 695 488
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Income before provision for income taxes 121,992 90,067
Provision for income taxes 40,623 31,551
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Net income $81,369 $58,516
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Net income per share $1.42 $1.08
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Net income per share, assuming dilution $1.36 $1.03
