Quiksilver, Inc. consolidated net revenues for the fourth quarter of fiscal 2005 increased 82% to $637.4 million from $350.3 million in the fourth quarter of fiscal 2004. Consolidated net income for the fourth quarter of fiscal 2005 increased 35% to $33.6 million from $24.9 million the year before. Fourth quarter fully diluted earnings per share was 27 cents versus 20 cents for the fourth quarter of fiscal 2004, both amounts as adjusted for the two-for-one stock split that took effect in May 2005.
Consolidated net revenues for the full year of fiscal 2005 increased 41% to $1.78 billion from $1.27 billion in fiscal 2004. Net income for fiscal 2005 increased 32% to $107.1 million from $81.4 million in fiscal 2004, and diluted net income per share for fiscal 2005 increased 26% to $0.86 from $0.68 in fiscal 2004.
Net revenues from the companys newly acquired Rossignol and Cleveland Golf businesses totaled $214.5 million during the fourth quarter of fiscal 2005 since the effective date of the acquisition on July 31, 2005.
Robert B. McKnight, Jr., Chairman of the Board and Chief Executive Officer of Quiksilver, Inc., commented, “We are pleased to have completed another landmark year in our companys development with record-breaking sales and earnings, and more importantly, tremendous strategic advances. We are confident that our acquisition of Rossignol is transforming Quiksilver from a dominant player in the global action sports market into the worlds leading outdoor sports lifestyle company. Our long-term growth prospects, across a number of new brands and product categories, are incredibly compelling, and we remain committed to fully capitalizing on the many opportunities that lie ahead.”
Bernard Mariette, President of Quiksilver, Inc., commented, “Fiscal 2005 marks another strong year for Quiksilver. We have accomplished a great deal over the past year. However, we believe that we have only scratched the surface in terms of our true potential. The integration of Rossignol is proceeding purposefully and smoothly, and we expect to drive profitability and enhance the market position of the Rossignol, Dynastar, Look, Lange and Cleveland Golf brands. We are also moving toward leveraging our brands into new categories, as the new capabilities of our platform allow. We have many opportunities to organically grow our business and increase our efficiencies and look forward to further demonstrating that our ability to identify and execute strategic prospects is a major part of what sets us apart as a leader in our industry.”
Net revenues in the Americas increased 84% during the fourth quarter of fiscal 2005 to $288.9 million from $157.2 million in the fourth quarter of fiscal 2004. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 101% during the fourth quarter of fiscal 2005 to $269.9 million from $134.4 million in the fourth quarter of fiscal 2004. As measured in euros, European net revenues increased 103% for those same periods. Asia/Pacific net revenues increased 37% to $77.0 million in the fourth quarter of fiscal 2005 from $56.1 million in the fourth quarter of fiscal 2004. As measured in Australian dollars, Asia/Pacific net revenues increased 29% for those same periods.
Net revenues in the Americas for the full year of fiscal 2005 increased 37% to $843.7 million from $616.8 million in fiscal 2004. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 44% during the full year of fiscal 2005 to $712.3 million from $496.3 million in fiscal 2004. As measured in euros, European net revenues increased 39% for the year. Asia/Pacific net revenues increased 49% to $220.9 million from $148.7 million in fiscal 2004. As measured in Australian dollars, Asia/Pacific net revenues increased 41% for the year.
Inventories totaled $386.4 million at October 31, 2005, which includes $197.9 million from the newly acquired Rossignol and Cleveland Golf businesses. Inventories related to the companys other businesses grew 5% to $188.5 million at October 31, 2005 from $179.6 million at October 31, 2004. Accounts receivable totaled $599.5 million at October 31, 2005, which includes $247.2 million from the newly acquired Rossignol and Cleveland Golf businesses. Accounts receivable related to the companys other businesses increased 25% to $352.3 million at October 31, 2005 from $281.3 million at October 31, 2004.
Mr. Mariette continued, “Id like to thank our entire global team for another outstanding year. We believe that we have the best people in the industry, and we continue to grow in our depth and capabilities. In addition to having streamlined our structure in order to more effectively manage by region and by brand, we are pleased and proud to welcome several new additions to our organization. Among them, and there are many, we are especially excited to have retained Nick Adcock as President of DC Shoes and Andrea Mainardi as Design Director for Rossignol Apparel. We expect great things from each of them.”
Mr. McKnight concluded, “We believe that we are poised to begin a new, dynamic and rewarding stage in our history. Never has the range and depth of our growth prospects been so clear and so compelling. We are all eager to demonstrate that we can take this opportunity to further enhance our business and bring significant value to all of the many stakeholders in Quiksilver.”
