Quiksilver Inc. said it expects fiscal fourth-quarter revenue will decline less than its previous warning while also announcing refinancing plans. Revenues for its quarter ended Oct. 31 are expected to range between $492 million to $497 million, down 7.7% to 8.7% from last year's $538.7 million but ahead of its downbeat September prediction of a mid-teen percentage decline.


It also affirmed its previous profit outlook. Pro-forma adjusted EBITDA is expected to climb between 10% and 20% higher than pro-forma adjusted EBITDA of $49.9 million a year ago. The  year-ago loss from continuing operations for the fourth quarter was $15.7 million. The company, which also owns the Roxy and DC  Shoes brands, maintained its outlook for fourth quarter earnings per share on a diluted basis in the mid-single-digit cents range.


For the full year, net revenues for fiscal 2010 were approximately $1.84 billion, down about 7.0% from $1.98 billion for fiscal 2009. Full-year pro-form adjusted EBITDA for fiscal 2010 is expected to be up at least 30% from pro-forma adjusted EBITDA of $160.3 million for fiscal 2009. The loss from continuing operations for fiscal 2009 was $73.2 million.


With respect to fiscal 2011, Quiksilver currently expects that pro-forma adjusted EBITDA for the full fiscal year will be approximately in line with that of fiscal 2010. However, pro-forma adjusted EBITDA in the first quarter of fiscal 2011 is expected to be approximately $5 million to $10 million lower than in the first quarter of fiscal 2010. The quarter's decline is due primarily to increased spending in brand development, including the new Quiksilver Girls collection and higher overall marketing spend, as well as the effects of selling a few minor brands last year and the impact of foreign currency translation.


Quiksilver said capital expenditures during fiscal 2011 could be approximately $15 million to $20 million higher than that of fiscal 2010 due to  investments in retail stores and its initial investment in a global enterprise resource planning system.


The company also said its European unit, Boardriders SA, plans to offer €200 million ($264 million) of seven-year notes. Proceeds will be used to repay term loans. Quiksilver expects to record about $13 million of charges in its fourth quarter after writing off debt-issuance costs related to the term loans.