Quiksilver, Inc.'s revenues decreased 10.7% in the first quarter ending Jan. 31, to $443.3 million from $496.6 million a year ago. The net loss was $194.4 million,or $1.53 a share, including charges and losses from the sold Rossignol business. The pro-forma continuing loss before charges was $9.0 million, or 7 cents a share, against income of $7.6 million, or 6 cents, a year ago.
CEO, President and Chairman of the Board Robert B. McKnight, Jr., commented, �While our performance in the quarter was in line with our overall expectations, deteriorating macro conditions made for a very difficult operating environment. Weak consumer traffic drove lower sales and margin compression which resulted in a loss for the quarter.�
Net revenues in the Americas decreased 13.4% during the first quarter of fiscal 2009 to $203.4 million from $234.9 million in the first quarter of fiscal 2008. As measured in U.S. dollars and reported in the financial statements, European net revenues decreased 9.3% during the first quarter of fiscal 2009 to $181.7 million from $200.3 million in the first quarter of fiscal 2008. Changes in foreign currency exchange rates accounted for a decrease in European revenues of approximately $20.1 million for those same periods. As measured in U.S. dollars and reported in the financial statements, Asia/Pacific net revenues decreased 4.6% to $57.6 million in the first quarter of fiscal 2009 from $60.4 million in the first quarter of fiscal 2008. Changes in foreign currency exchange rates accounted for a decrease in Asia/Pacific�s revenues of approximately $14.7 million for those same periods.
Consolidated inventories increased 4.4% to $380.5 million at Jan. 31, 2009 from $364.4 million at Jan. 31, 2008. Consolidated trade accounts receivable decreased 7.2% to $373.4 million at Jan. 31, 2009 from $402.5 million at Jan. 31, 2008.
Quiksilver has been exploring a wide range of strategic and financing alternatives with the objective of improving its liquidity position and capital structure. To accommodate the timing of a potential transaction, the Company�s European banks extended the maturity of its �55 million line of credit from March 14 to June 30, 2009.
McKnight added, �Increasing liquidity and improving our capital structure continue to be our highest priority initiatives. Even though the credit markets remain difficult, we continue to make good progress on these objectives. And as we monitor the global retail environment, we remain committed to taking appropriate actions to adjust our business where necessary.�
Addressing its outlook for continuing operations, the company stated that based on current trends second quarter revenues will likely be down in the mid-teens on a percentage basis compared to the same quarter a year ago and that diluted earnings per share are expected to be in the mid-single-digit range. The company indicated that longer term visibility into revenues and earnings remains limited at the present time.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||
Three Months Ended January 31, | ||||||||
In thousands, except per share amounts | 2009 | 2008 | ||||||
Revenues, net | $ | 443,278 | $ | 496,581 | ||||
Cost of goods sold | 236,115 | 253,057 | ||||||
Gross profit | 207,163 | 243,524 | ||||||
Selling, general and administrative expense | 206,818 | 221,410 | ||||||
Operating income | 345 | 22,114 | ||||||
Interest expense | 14,154 | 11,048 | ||||||
Foreign currency loss (gain) | 1,430 | (616 | ) | |||||
Minority interest and other expense | 42 | 74 | ||||||
(Loss) income before provision for income taxes | (15,281 | ) | 11,608 | |||||
Provision for income taxes | 50,581 | 4,038 | ||||||
(Loss) income from continuing operations | $ | (65,862 | ) | $ | 7,570 | |||
Loss from discontinued operations | (128,564 | ) | (29,510 | ) | ||||
Net Loss | $ | (194,426 | ) | $ | (21,940 | ) | ||
(Loss) income per share from continuing operations | $ | (0.52 | ) | $ | 0.06 | |||
Loss per share from discontinued operations | $ | (1.01 | ) | $ | (0.24 | ) | ||
Net loss per share | $ | (1.53 | ) | $ | (0.18 | ) | ||
(Loss) income per share from continuing | $ | (0.52 | ) | $ | 0.06 | |||
Loss per share from discontinued operations, | $ | (1.01 | ) | $ | (0.23 | ) | ||
Net loss per share, assuming dilution | $ | (1.53 | ) | $ | (0.17 | ) | ||
Weighted average common shares outstanding | 127,039 | 124,508 | ||||||
Weighted average common shares outstanding, | 127,039 | 129,149 | ||||||
