QUIKSILVER INC - FORM 8-K - EX-99.1 - June 25, 2010

Attached files

file filename
8-K - FORM 8-K - QUIKSILVER INCa56547e8vk.htm
EX-99.2 - EX-99.2 - QUIKSILVER INCa56547exv99w2.htm
EX-99.3 - EX-99.3 - QUIKSILVER INCa56547exv99w3.htm
EX-10.1 - EX-10.1 - QUIKSILVER INCa56547exv10w1.htm
EX-23.1 - EX-23.1 - QUIKSILVER INCa56547exv23w1.htm
Exhibit 99.1
Item 6. SELECTED FINANCIAL DATA
The statement of operations and balance sheet data shown below were derived from our consolidated financial statements. Our consolidated financial statements as of October 31, 2009 and 2008 and for each of the three years in the period ended October 31, 2009, included herein, have been audited by Deloitte & Touche LLP, our independent registered public accounting firm. You should read this selected financial data together with our consolidated financial statements and related notes, as well as the discussion under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

1

 

                                         
Amounts in thousands, except ratios   Year Ended October 31,  
and per share data   2009(1)(2)(6)     2008(1)(2)(6)     2007(1)(2)     2006(1)(2)     2005(2)  
Statements of Operations Data
                                        
Revenues, net
   $ 1,977,526     $ 2,264,636     $ 2,047,072     $ 1,722,150     $ 1,562,417  
(Loss) income before provision for income taxes
     (3,622 )     99,261       151,159       122,862       143,305  
(Loss) income from continuing operations attributable to Quiksilver, Inc.
     (73,215 )     65,544       116,727       89,376       96,155  
(Loss) income from discontinued operations attributable to Quiksilver, Inc.
     (118,827 )     (291,809 )     (237,846 )     3,640       10,965  
Net (loss) income attributable to Quiksilver, Inc.
     (192,042 )     (226,265 )     (121,119 )     93,016       107,120  
(Loss) income per share from continuing operations attributable to Quiksilver, Inc. (3)
     (0.58 )     0.52       0.94       0.73       0.81  
(Loss) income per share from discontinued operations attributable to Quiksilver, Inc. (3)
     (0.94 )     (2.32 )     (1.92 )     0.03       0.09  
Net (loss) income per share attributable to Quiksilver, Inc. (3)
     (1.51 )     (1.80 )     (0.98 )     0.76       0.90  
(Loss) income per share from continuing operations attributable to Quiksilver, Inc., assuming dilution (3)
     (0.58 )     0.51       0.90       0.70       0.77  
(Loss) income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution (3)
     (0.94 )     (2.25 )     (1.83 )     0.03       0.09  
Net (loss) income per share, attributable to Quiksilver, Inc., assuming dilution (3)
     (1.51 )     (1.75 )     (0.93 )     0.73       0.86  
Weighted average common shares outstanding (3)
     127,042       125,975       123,770       122,074       118,920  
Weighted average common shares outstanding, assuming dilution (3)
     127,042       129,485       129,706       127,744       124,335  
 
                                        
Balance Sheet Data
                                        
Total assets
   $ 1,852,608     $ 2,170,265     $ 2,662,064     $ 2,447,378     $ 2,158,601  
Working capital
     561,697       631,315       631,857       598,714       458,857  
Lines of credit
     32,592       238,317       124,634       61,106       35,158  
Long-term debt
     1,006,661       822,001       732,812       598,434       536,436  
Quiksilver, Inc. stockholders’ equity
     456,595       599,966       886,613       881,127       732,882  
 
Other Data
                                        
Adjusted EBITDA(4)
   $ 131,532     $ 278,945     $ 260,786     $ 221,687     $ 194,331  
Current ratio
     2.3       1.9       1.7       1.8       1.7  
Return on average stockholders’ equity(5)
     (13.9 )%     8.8 %     13.2 %     11.1 %     14.6 %

2

 

 
(1)   Fiscal 2009, 2008, 2007 and 2006 include stock compensation expense related to the adoption of ASC 718, “Stock Compensation.” See footnote (4) to the table below.
 
(2)   Fiscal 2009, 2008, 2007, 2006 and 2005 reflect the operations of Rossignol and Cleveland Golf, which were acquired in 2005, as discontinued operations. See note 18 of our consolidated financial statements.
 
(3)   Per share amounts and shares outstanding have been adjusted to reflect a two-for-one stock split effected on May 11, 2005.
 
(4)   Adjusted EBITDA is defined as income or loss from continuing operations attributable to Quiksilver, Inc. before (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization, (iv) non-cash stock-based compensation expense and (v) asset impairments. Adjusted EBITDA is not defined under generally accepted accounting principles (“GAAP”), and it may not be comparable to similarly titled measures reported by other companies. We use Adjusted EBITDA, along with GAAP measures, as a measure of profitability because Adjusted EBITDA helps us to compare our performance on a consistent basis by removing from our operating results the impact of our capital structure, the effect of operating in different tax jurisdictions, the impact of our asset base, which can differ depending on the book value of assets, the accounting methods used to compute depreciation and amortization, the existence or timing of asset impairments and the effect of non-cash stock-based compensation expense. We believe EBITDA is useful to investors as it is a widely used measure of performance and the adjustments we make to EBITDA provide further clarity on our results of operations. We remove the effect of non-cash stock-based compensation from our earnings which can vary based on share price, share price volatility and expected life of the equity instruments we grant. In addition, this stock-based compensation expense does not result in cash payments by us. We remove the effect of asset impairments from Adjusted EBITDA for the same reason that we remove depreciation and amortization as it is part of the impact of our asset base. Adjusted EBITDA has limitations as a profitability measure in that it does not include the interest expense on our debts, our provisions for income taxes, the effect of our expenditures for capital assets and certain intangible assets, the effect of non-cash stock-based compensation expense and the effect of asset impairments. The following is a reconciliation of our (loss) income from continuing operations attributable to Quiksilver, Inc. to Adjusted EBITDA:
                                         
    Year Ended October 31,  
Amounts in thousands   2009     2008     2007     2006     2005  
(Loss) income from continuing operations attributable to Quiksilver, Inc.
   $ (73,215 )   $ 65,544     $ 116,727     $ 89,376     $ 96,155  
Income taxes
     66,667       33,027       34,506       33,181       46,588  
Interest
     63,924       45,327       46,571       41,317       16,945  
Depreciation and amortization
     55,004       57,231       46,852       37,851       34,643  
Non-cash stock-based compensation expense
     8,415       12,019       16,130       19,962       —  
Non-cash asset impairments
     10,737       65,797       —       —       —  
 
                              
Adjusted EBITDA
   $ 131,532     $ 278,945     $ 260,786     $ 221,687     $ 194,331  
 
                              
 
(5)   Computed based on (loss) income from continuing operations attributable to Quiksilver, Inc. divided by the average of beginning and ending Quiksilver, Inc. stockholders’ equity.
 
(6)   Fiscal 2009 includes fixed asset impairments of $10.7 million and fiscal 2008 includes goodwill and fixed asset impairments of $65.8 million.

3

Stock widget

Investing forum

QUIKSILVER INC Reports