K•Swiss Inc., which in January entered into an agreement to be acquired by E.Land World, reported a net loss of $14.5 million, or 41 cents a share, in the fourth quarter, versus a loss of $25.2 million, or 71 cents, a year ago. For the fourth quarter of 2012, total worldwide revenues decreased 17.8
percent to $41.2 million compared with $50.2 million in the prior-year
period.

Domestic revenues decreased 31.4 percent to $14,011,000 in the
fourth quarter, and international revenues decreased 8.5 percent to
$27,219,000 for the same period.

Net loss for the year ended December 31, 2012, was $34,779,000, or $0.98 per diluted share, compared with a net loss of $70,471,000, or $1.98 per diluted share, for the year ended December 31, 2011.

Total worldwide revenues for 2012 decreased 17.0 percent to $222,851,000 from $268,357,000 for 2011. Domestic revenues decreased 35.0 percent to $75,872,000 in 2012, and international revenues decreased 3.0 percent to $146,979,000.

Futures Orders

Worldwide futures orders with start ship dates from January through June 2013 increased 4.6 percent to $76,471,000 at December 31, 2012, from $73,138,000 the previous year. Domestic futures orders increased 1.3 percent to $22,158,000 at December 31, 2012, from $21,879,000 the previous year. International futures orders increased 6.0 percent to $54,313,000 at December 31, 2012, from $51,259,000 the previous year.

Proposed Merger with E.Land

On January 16, 2013, the Company entered into a definitive agreement, which was unanimously approved by K•Swiss Board of Directors, pursuant to which E.Land World will acquire all of the outstanding common stock of K•Swiss for $4.75 per share in cash, or a total equity value of approximately $170 million. The merger, which is expected to close during the second quarter of 2013, requires the approval of 80 percent of K•Swiss outstanding voting power and applicable regulatory approvals in addition to other customary closing conditions.