Quiksilver, Inc. said that based on preliminary data, the company estimates that revenues for its fourth quarter ended Oct. 31 were between $492 million and $497 million, compared to net revenues of $538.7 million a year ago. Pro-forma adjusted EBITDA was between 10% and 20% higher than pro-forma adjusted EBITDA of $49.9 million a year ago.
The loss from continuing operations for the fourth quarter was $15.7 million.
Also based on preliminary data, the company estimates that full-year net revenues for fiscal 2010 were approximately $1.84 billion, compared to net revenues of $1.98 billion for fiscal 2009, and that full-year pro-forma Adjusted EBITDA for fiscal 2010 was up at least 30% from pro-forma Adjusted EBITDA of $160.3 million for fiscal 2009. Loss from continuing operations for fiscal 2009 was $73.2 million.
The company said these preliminary estimated results are higher than the most recent outlook provided in September, at which time the company had expected fourth quarter revenues to be down in the mid-teens on a percentage basis compared to the same quarter a year ago and anticipated that full-year fiscal 2010 pro-forma Adjusted EBITDA would be up approximately 25% when compared to fiscal 2009. However, at this time the company is maintaining its outlook for fourth quarter earnings per share on a diluted basis in the mid-single-digit cents range, pending determination of final results.
With respect to fiscal 2011, the company 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. This anticipated near-term period-over-period decline in pro-forma Adjusted EBITDA 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 effects of foreign currency translation.
The company plans to issue a press release disclosing fiscal 2010 fourth quarter financial results soon after the close of market on Thursday, Dec. 16, 2010.
Boardriders S.A. to Issue Eurobonds
Separately, Quiksilver announced that its wholly-owned European subsidiary, Boardriders S.A. plans to offer €200 million aggregate principal amount of Senior Notes due 2017. The Notes will be general senior obligations of Boardriders and will be fully and unconditionally guaranteed on a senior basis by Quiksilver and certain of Quiksilver's current and future U.S. and non-U.S. subsidiaries, subject to certain exceptions.
Quiksilver intends to use the proceeds of the offering to refinance existing European term loans and to pay related fees and expenses. As a result of such refinancing, Quiksilver expects to recognize non-cash, non-operating charges during the fiscal quarter ending Jan. 31, 2011 of approximately $13.0 million representing the write-off of debt issuance costs related to such term loans.
