Quiksilver, Inc. revenues grew 10 percent to $545.2 million for the fourth fiscal quarter ended Oct. 31, compared to $495.1 million in the fourth quarter of fiscal 2010 and grew 6 percent in constant currency.
The company earned Pro-forma Adjusted EBITDA of $57.1 million in the quarter compared to $59.5 million earned in the fourth quarter of fiscal 2010.
Pro-forma income from continuing operations was $10.8 million, or 6 cents per share, compared to $21.8 million, or 12 cents per share, in the fourth quarter of fiscal 2010. Pro-forma income for the fourth quarter of fiscal 2011 excludes $11.4 million of non-cash asset impairment charges, $8.0 million of restructuring costs and $76.6 million of income primarily related to the settlement of the company’s French tax audit. Including these pro-forma adjustments, income from continuing operations was $67.9 million, or 38 cents per share, compared to a loss of $23.1 million, or 15 cents per share, in the fourth quarter a year ago.
Consolidated net revenues for the full year of fiscal 2011 grew 6 percent to $1.95 billion compared to $1.84 billion in fiscal 2010 and grew 3 percent in constant currency. Pro-forma income from continuing operations for the full year of fiscal 2011 was $30.8 million, or 17 cents fper share, and excludes a net $52.1 million of special charges. Of this amount, $86.0 million represents non-cash asset impairment charges, $18.7 million represents valuation allowances provided against deferred tax assets, $10.7 million represents the write-off of deferred debt issuance costs associated with previous financings and $5.9 million represents restructuring costs. These charges were partially offset by $69.3
Including these amounts, loss from continuing operations was $21.3 million, or 13 cents per share, compared to $11.5 million, or 9 cents per share, for the full year of fiscal 2010. A reconciliation of GAAP results to pro-forma results is provided in the accompanying tables.
“We’re pleased to report another quarter of solid financial results and we exit 2011 in great shape to deliver improved performance in 2012 in line with our long-term plans,” said Robert B. McKnight, Jr., chairman of the board, chief executive officer and president of Quiksilver, Inc. “We made investments in fiscal 2011 to deliver better products from each of our brands, but we are most encouraged by the performance of our Roxy brand, which continues to gain traction in the marketplace and whose revenue performance compared to prior periods has improved steadily in each of the past five quarters. Additionally, despite particularly challenging consumer environments in parts of Europe and Australasia, we continue to see solid growth in our emerging and developing markets around the world.”
Net revenues in the Americas increased 13 percent during the fourth quarter of fiscal 2011 to $249.8 million from $221.8 million in the fourth quarter of fiscal 2010. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 11 percent during the fourth quarter of fiscal 2011 to $212.5 million from $190.7 million in the fourth quarter a year ago. In constant currency, European segment net revenues increased 6 percent compared to the fourth quarter of fiscal 2010. As measured in U.S. dollars and reported in the financial statements, Asia/Pacific net revenues increased 2 percent during the fourth quarter of fiscal 2011 to $81.8 million from $80.4 million in the fourth quarter of fiscal 2010. In constant currency, Asia/Pacific segment net revenues decreased 7 percent compared to the fourth quarter a year ago.
For the full year of fiscal 2011, net revenues in the Americas increased 8 percent to $914.4 million. As measured in U.S. dollars and reported in the financial statements, European net revenues increased 4 percent during the full year of fiscal 2011 to $761.1 million. In constant currency, European net revenues increased 1 percent compared to the prior year. As measured in U.S. dollars and reported in the financial statements, Asia/Pacific net revenues increased 5 percent to $272.5 million for the full year of fiscal 2011. In constant currency, Asia/Pacific net revenues decreased 8 percent compared to the prior year.
Consolidated inventories increased to $347.8 million at Oct. 31, 2011 as compared to$268.0 million at Oct. 31, 2010. Consolidated trade accounts receivable increased to $397.1 million at Oct. 31, 2011 from $368.4 million at Oct. 31, 2010.
Q4 Highlights
- The company’s same store sales in its Americas region were up 16 percent compared to the same quarter a year ago, continuing a run of strong performance in company-owned stores. Additionally, fourth quarter same-store sales in its European region turned positive for the first time in 6 fiscal quarters.
- The company’s Roxy brand continued to build momentum in the fourth quarter. Since refocusing the brand in the image of its original California surfing roots and making key changes within the brand management team, Roxy has delivered five consecutive quarters of continually improving revenue comparisons to prior year periods.
- Legendary Quiksilver team rider Kelly Slater clinched his unprecedented 11th ASP World Surf Championship as he dominated this year’s tour by winning three events and earning Top 5 finishes in each of the nine events that counted toward his championship point total.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended October 31, In thousands, except per share amounts 2011
2010
Revenues, net $ 545,201 $ 495,119 Cost of goods sold 262,124 230,040 Gross profit 283,077 265,079 Selling, general and administrative expense 247,593 222,335 Asset impairments 11,763 8,432 Operating income 23,721 34,312 Interest expense 14,081 50,567 Foreign currency loss 5,775 463 Income (loss) before (benefit) provision for income taxes 3,865 (16,718) (Benefit) provision for income taxes (64,252) 5,244 Income (loss) from continuing operations $ 68,117 $ (21,962) Income from discontinued operations - 1,009 Net income (loss) $ 68,117 $ (20,953) Less: net income attributable to non-controlling interest (219) (1,107) Net income (loss) attributable to Quiksilver, Inc. $ 67,898 $ (22,060) Income (loss) per share from continuing operations attributable to Quiksilver, Inc.
$ 0.42 $ (0.15) Income per share from discontinued operations attributable to Quiksilver, Inc. $ - $ 0.01 Net income (loss) per share attributable to Quiksilver, Inc.
$ 0.42 $ (0.14) Income (loss) per share from continuing operations attributable to Quiksilver, Inc., assuming dilution
$ 0.38 $ (0.15) Income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution $ - $ 0.01 Net income (loss) per share attributable to Quiksilver, Inc., assuming dilution
$ 0.38 $ (0.14)
