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8-K - FORM 8-K - QUIKSILVER INC | a59645e8vk.htm |
Exhibit 99.1
Company Contact: | Bruce Thomas | |||
Vice President, Investor Relations | ||||
Quiksilver, Inc. | ||||
+ 1 (714) 889-2200 |
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
| Revenues of $478 million grew 2% compared to Q2 last year | |
| Gross Profit of $262 million grew 5% compared to Q2 last year | |
| Gross Margin expanded 160 bps to a Q2 record 54.8% of revenues | |
| Pro-forma Adjusted EBITDA of $62 million was ahead of plan | |
| Net Debt at April 30 reduced 19% from a year ago to $594 million |
Huntington Beach, California, June 2, 2011Quiksilver, Inc. (NYSE:ZQK) today announced operating
results for the second fiscal quarter ended April 30, 2011. Revenues grew 2% to $478.1 million as
compared to $468.3 million in the second quarter of fiscal 2010. Consolidated gross profit of
$262.2 million increased 5% compared to the second quarter of fiscal 2010 as gross margin expanded
160 basis points to a second quarter record of 54.8% of revenues. Pro-forma Adjusted EBITDA of
$62.1 million was higher than the companys expectations and was roughly the same as a year ago.
Pro-forma income from continuing operations was $17.3 million, or $0.09 per share, compared to
$15.7 million in the second quarter of fiscal 2010. Pro-forma income for the second quarter of
fiscal 2011 primarily excludes a $74.1 million non-cash goodwill impairment charge and
valuation allowances provided against tax assets totaling $26.0 million related to the Asia Pacific
region. Including the impairment charges and valuation allowances, the loss was $83.3 million, or
$0.51 per share, compared to income from continuing operations of $8.8 million, or $0.06
per share, for the second quarter of fiscal 2010. A reconciliation of GAAP results to pro-forma
results is provided in the accompanying tables.
Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of
Quiksilver, Inc., commented, We are pleased with our operating results for the quarter, and in
particular with our return to overall revenue growth and our record gross margins. Our Americas
and European businesses delivered strong performances, although our business in Asia Pacific was
affected by the natural disasters occurring in several of our markets. While global markets remain
uneven, we are seeing some really encouraging signs for the future. For example, this was our
second consecutive quarter of strong double digit comp store sales in the U.S., and, for the first
time in a while, we are seeing growth in our fall/winter order books for Roxy, which remains the
worlds largest and most respected girls action sports brand. So the initiatives weve set into
motion are gaining traction and we remain on track to successfully transition to stronger growth in
the future.
Net revenues in the Americas increased 5% during the second quarter of fiscal 2011 to $210.7
million from $199.7 million in the second quarter of fiscal 2010. As measured in U.S. dollars and
reported in the financial statements, European net revenues decreased 1% during the second quarter
of fiscal 2011 to $206.9 million from $208.7 million in the second quarter of fiscal 2010. In
constant currency, European segment net revenues decreased 4% compared to the prior year. As
measured in U.S. dollars and reported in the financial statements, Asia/Pacific net revenues
decreased 1% during the second quarter of fiscal 2011 to $58.1 million from $58.6 million in the
second quarter of fiscal 2010. In constant currency, Asia/Pacific segment net revenues decreased
12% compared to the prior year. Please refer to the accompanying tables in order to better
understand the impact of foreign currency exchange rates on revenue trends in the European and
Asia/Pacific segments.
The company reduced its net debt by 19% to $594 million compared to $733 million a year ago.
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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June 2, 2011
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Q2 Brand Highlights
| Quiksilver announced the re-signing of 25-year-old surfer Dane Reynolds to a 6-year deal to continue riding for the Quiksilver surf team and to contribute to the design and development of a new signature line of products. Dane is thought by many to be the most influential surfer in the world today. |
| Quiksilver also announced the re-signing of 23-year old French surfer Jeremy Flores to a new endorsement contract. Sponsored by Quiksilver since the age of 9, Jeremy was the youngest surfer ever to qualify for the ASP (Association of Surfing Professionals) World Tour in 2007. In December, Jeremy became the first European surfer to win the prestigious Pipe Masters contest in Hawaii, which helped him to finish 9th in the ASP World Tour rankings last year. |
| Australian Roxy surfer Sally Fitzgibbons has won two of the first five events in the 2011 ASP Womens World Tour and is currently ranked #2 in the world. Sallys next opportunity to improve upon her current standing will be in July at the Roxy Pro in Biarritz, France. |
| The Street League DC Pro Tour had a very successful kick-off in Seattle to its second season of skateboarding competitions. The finals were carried live on ESPN and the next event is slated for June 11-12 in Kansas City. |
About Quiksilver:
Quiksilver, Inc. (NYSE:ZQK) is the worlds leading outdoor sports lifestyle company, which designs,
produces and distributes a diversified mix of branded apparel, footwear, accessories, snowboards
and related products. The companys apparel and footwear brands represent a casual lifestyle for
young-minded people that connect with its boardriding culture and heritage.
The reputation of Quiksilvers brands is based on outdoor action sports. The companys Quiksilver,
Roxy, DC, Lib Tech and Hawk brands are synonymous with the heritage and culture of surfing,
skateboarding and snowboarding.
The companys products are sold in over 90 countries in a wide range of distribution, including
surf shops, skate shops, snow shops, its proprietary Boardriders Club shops and other company-owned
retail stores, other specialty stores and select department stores. Quiksilvers corporate and
Americas headquarters are in Huntington Beach, California, while its European headquarters are in
St. Jean de Luz, France, and its Asia/Pacific headquarters are in Torquay, Australia.
Forward looking statements:
This
press release contains forward-looking statements including but not
limited to statements regarding the companys new growth initiatives and other future activities. These forward-looking
statements are subject to risks and uncertainties, and actual results may differ materially.
Please refer to Quiksilvers SEC filings for more information on the risk factors that could cause
actual results to differ materially from expectations, specifically the sections titled Risk
Factors and Forward-Looking Statements in Quiksilvers Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q.
* * * * *
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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June 2, 2011
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NOTE: For further information about Quiksilver, Inc., you are invited to take a look at our
world at www.quiksilver.com, www.roxy.com, www.dcshoes.com,
www.lib-tech.com and www.hawkclothing.com.
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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June 2, 2011
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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended April 30, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Revenues, net |
$ | 478,093 | $ | 468,289 | ||||
Cost of goods sold |
215,924 | 219,002 | ||||||
Gross profit |
262,169 | 249,287 | ||||||
Selling, general and administrative expense |
216,748 | 213,416 | ||||||
Asset impairments |
74,610 | | ||||||
Operating (loss) income |
(29,189 | ) | 35,871 | |||||
Interest expense |
15,096 | 21,039 | ||||||
Foreign currency gain |
(2,321 | ) | (4,614 | ) | ||||
Other income |
| (5 | ) | |||||
(Loss) income before provision for income taxes |
(41,964 | ) | 19,451 | |||||
Provision for income taxes |
39,690 | 9,419 | ||||||
(Loss) income from continuing operations |
(81,654 | ) | 10,032 | |||||
Income from discontinued operations |
| 602 | ||||||
Net (loss) income |
(81,654 | ) | 10,634 | |||||
Less: net income attributable to non-controlling interest |
(1,671 | ) | (1,210 | ) | ||||
Net (loss) income attributable to Quiksilver, Inc. |
$ | (83,325 | ) | $ | 9,424 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc. |
$ | (0.51 | ) | $ | 0.07 | |||
Income per share from discontinued operations attributable
to Quiksilver, Inc. |
$ | | $ | 0.00 | ||||
Net (loss) income per share attributable to Quiksilver, Inc. |
$ | (0.51 | ) | $ | 0.07 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc., assuming dilution |
$ | (0.51 | ) | $ | 0.06 | |||
Income per share from discontinued operations attributable
to Quiksilver, Inc., assuming dilution |
$ | | $ | 0.00 | ||||
Net (loss) income per share attributable to Quiksilver,
Inc., assuming dilution |
$ | (0.51 | ) | $ | 0.06 | |||
Weighted average common shares outstanding |
162,268 | 128,090 | ||||||
Weighted average common shares outstanding, assuming
dilution |
162,268 | 145,376 | ||||||
Amounts attributable to Quiksilver, Inc.: |
||||||||
(Loss) income from continuing operations |
$ | (83,325 | ) | $ | 8,822 | |||
Income from discontinued operations |
| 602 | ||||||
Net (loss) income |
$ | (83,325 | ) | $ | 9,424 | |||
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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June 2, 2011
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CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended April 30, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
Revenues, net |
$ | 904,543 | $ | 901,026 | ||||
Cost of goods sold |
418,904 | 429,590 | ||||||
Gross profit |
485,639 | 471,436 | ||||||
Selling, general and administrative expense |
427,184 | 416,576 | ||||||
Asset impairments |
74,610 | | ||||||
Operating (loss) income |
(16,155 | ) | 54,860 | |||||
Interest expense |
44,064 | 42,912 | ||||||
Foreign currency gain |
(4,430 | ) | (6,593 | ) | ||||
(Loss) income before provision for income taxes |
(55,789 | ) | 18,541 | |||||
Provision for income taxes |
40,941 | 13,093 | ||||||
(Loss) income from continuing operations |
$ | (96,730 | ) | $ | 5,448 | |||
Income from discontinued operations |
| 678 | ||||||
Net (loss) income |
(96,730 | ) | 6,126 | |||||
Less: net income attributable to non-controlling interest |
(2,863 | ) | (2,056 | ) | ||||
Net (loss) income attributable to Quiksilver, Inc. |
$ | (99,593 | ) | $ | 4,070 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc. |
$ | (0.62 | ) | $ | 0.03 | |||
Income per share from discontinued operations attributable
to Quiksilver, Inc. |
$ | | $ | 0.01 | ||||
Net (loss) income per share attributable to Quiksilver, Inc. |
$ | (0.62 | ) | $ | 0.03 | |||
(Loss) income per share from continuing operations
attributable to Quiksilver, Inc., assuming dilution |
$ | (0.62 | ) | $ | 0.02 | |||
Income per share from discontinued operations attributable
to Quiksilver, Inc., assuming dilution |
$ | | $ | 0.00 | ||||
Net (loss) income per share attributable to Quiksilver,
Inc., assuming dilution |
$ | (0.62 | ) | $ | 0.03 | |||
Weighted average common shares outstanding |
161,879 | 127,875 | ||||||
Weighted average common shares outstanding, assuming
dilution |
161,879 | 139,622 | ||||||
Amounts attributable to Quiksilver, Inc.: |
||||||||
(Loss) income from continuing operations |
$ | (99,593 | ) | $ | 3,392 | |||
Income from discontinued operations |
| 678 | ||||||
Net (loss) income |
$ | (99,593 | ) | $ | 4,070 | |||
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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June 2, 2011
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CONSOLIDATED BALANCE SHEETS (Unaudited)
In thousands | April 30, 2011 | April 30, 2010 | ||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 138,592 | $ | 145,329 | ||||
Trade accounts receivable, less
allowance for doubtful accounts of
$51,772 (2011) and $52,177 (2010) |
341,781 | 333,267 | ||||||
Other receivables |
27,347 | 30,253 | ||||||
Income taxes receivable |
111 | | ||||||
Inventories |
289,538 | 226,419 | ||||||
Deferred income taxes short-term |
24,426 | 45,569 | ||||||
Prepaid expenses and other current assets |
31,270 | 41,912 | ||||||
Current assets held for sale |
| 178 | ||||||
Total current assets |
853,065 | 822,927 | ||||||
Fixed assets, net |
234,645 | 220,586 | ||||||
Intangibles, net |
139,614 | 141,397 | ||||||
Goodwill |
277,608 | 322,096 | ||||||
Other assets |
52,658 | 71,334 | ||||||
Deferred income taxes long-term |
80,291 | 54,259 | ||||||
Total assets |
$ | 1,637,881 | $ | 1,632,599 | ||||
LIABILITIES & EQUITY |
||||||||
Current liabilities: |
||||||||
Lines of credit |
$ | 4,792 | $ | 14,886 | ||||
Accounts payable |
178,559 | 137,354 | ||||||
Accrued liabilities |
128,748 | 84,456 | ||||||
Current portion of long-term debt |
5,824 | 45,198 | ||||||
Income taxes payable |
| 5,739 | ||||||
Current liabilities of assets held for sale |
| 260 | ||||||
Total current liabilities |
317,923 | 287,893 | ||||||
Long-term debt |
722,271 | 817,896 | ||||||
Other long-term liabilities |
63,171 | 41,563 | ||||||
Total liabilities |
1,103,365 | 1,147,352 | ||||||
Equity: |
||||||||
Common stock |
1,677 | 1,355 | ||||||
Additional paid-in capital |
521,148 | 381,267 | ||||||
Treasury stock |
(6,778 | ) | (6,778 | ) | ||||
(Accumulated deficit) retained earnings |
(110,900 | ) | 2,447 | |||||
Accumulated other comprehensive income |
117,438 | 97,462 | ||||||
Total Quiksilver, Inc. stockholders equity |
522,585 | 475,753 | ||||||
Non-controlling interest |
11,931 | 9,494 | ||||||
Total equity |
534,516 | 485,247 | ||||||
Total liabilities & equity |
$ | 1,637,881 | $ | 1,632,599 | ||||
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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Information related to operating segments is as follows (unaudited):
Three Months Ended April 30, | ||||||||
In thousands | 2011 | 2010 | ||||||
Revenues, net: |
||||||||
Americas |
$ | 210,669 | $ | 199,733 | ||||
Europe |
206,941 | 208,708 | ||||||
Asia/Pacific |
58,140 | 58,645 | ||||||
Corporate operations |
2,343 | 1,203 | ||||||
$ | 478,093 | $ | 468,289 | |||||
Gross Profit: |
||||||||
Americas |
$ | 103,501 | $ | 92,997 | ||||
Europe |
128,332 | 125,108 | ||||||
Asia/Pacific |
30,862 | 31,400 | ||||||
Corporate operations |
(526 | ) | (218 | ) | ||||
$ | 262,169 | $ | 249,287 | |||||
SG&A Expense: |
||||||||
Americas |
$ | 85,139 | $ | 81,191 | ||||
Europe |
84,569 | 85,960 | ||||||
Asia/Pacific |
37,817 | 32,259 | ||||||
Corporate operations |
9,223 | 14,006 | ||||||
$ | 216,748 | $ | 213,416 | |||||
Asset Impairments: |
||||||||
Americas |
$ | 465 | $ | | ||||
Europe |
| | ||||||
Asia/Pacific |
74,145 | | ||||||
Corporate operations |
| | ||||||
$ | 74,610 | $ | | |||||
Operating Income (Loss): |
||||||||
Americas |
$ | 17,897 | $ | 11,806 | ||||
Europe |
43,763 | 39,148 | ||||||
Asia/Pacific |
(81,100 | ) | (859 | ) | ||||
Corporate operations |
(9,749 | ) | (14,224 | ) | ||||
$ | (29,189 | ) | $ | 35,871 | ||||
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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Six Months Ended April 30, | ||||||||
In thousands | 2011 | 2010 | ||||||
Revenues, net: |
||||||||
Americas |
$ | 404,459 | $ | 386,694 | ||||
Europe |
372,140 | 386,585 | ||||||
Asia/Pacific |
125,141 | 125,697 | ||||||
Corporate operations |
2,803 | 2,050 | ||||||
$ | 904,543 | $ | 901,026 | |||||
Gross Profit: |
||||||||
Americas |
$ | 192,967 | $ | 174,012 | ||||
Europe |
225,632 | 229,361 | ||||||
Asia/Pacific |
67,495 | 68,443 | ||||||
Corporate operations |
(455 | ) | (380 | ) | ||||
$ | 485,639 | $ | 471,436 | |||||
SG&A Expense: |
||||||||
Americas |
$ | 168,133 | $ | 157,552 | ||||
Europe |
164,986 | 171,764 | ||||||
Asia/Pacific |
72,647 | 63,636 | ||||||
Corporate operations |
21,418 | 23,624 | ||||||
$ | 427,184 | $ | 416,576 | |||||
Asset Impairments: |
||||||||
Americas |
$ | 465 | $ | | ||||
Europe |
| | ||||||
Asia/Pacific |
74,145 | | ||||||
Corporate operations |
| | ||||||
$ | 74,610 | $ | | |||||
Operating Income (Loss): |
||||||||
Americas |
$ | 24,369 | $ | 16,460 | ||||
Europe |
60,646 | 57,597 | ||||||
Asia/Pacific |
(79,297 | ) | 4,807 | |||||
Corporate operations |
(21,873 | ) | (24,004 | ) | ||||
$ | (16,155 | ) | $ | 54,860 | ||||
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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GAAP TO PRO-FORMA RECONCILIATION
(Unaudited)
(Unaudited)
Three Months Ended | ||||||||
April 30, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
(Loss) income from continuing operations attributable to Quiksilver, Inc. |
$ | (83,325 | ) | $ | 8,822 | |||
Non-cash asset impairment charges |
74,610 | | ||||||
Effect of APAC tax valuation allowance |
25,980 | | ||||||
Restructuring charges, net of tax of $0 (2011) and $20 (2010) |
| 2,870 | ||||||
Stock compensation expense |
| 5,240 | ||||||
Gain from sale of Raisins trademarks |
| (1,252 | ) | |||||
Pro-forma income from continuing operations |
$ | 17,265 | $ | 15,680 | ||||
Pro-forma income per share from continuing operations |
$ | 0.11 | $ | 0.12 | ||||
Pro-forma income per share from continuing operations, assuming dilution |
$ | 0.09 | $ | 0.11 | ||||
Weighted average common shares outstanding |
162,268 | 128,090 | ||||||
Weighted average common shares outstanding, assuming dilution |
182,037 | 145,376 | ||||||
Six Months Ended | ||||||||
April 30, | ||||||||
In thousands, except per share amounts | 2011 | 2010 | ||||||
(Loss) income from continuing operations
attributable to Quiksilver, Inc. |
$ | (99,593 | ) | $ | 3,392 | |||
Non-cash asset impairment charges |
74,610 | | ||||||
Effect of APAC tax valuation allowance |
25,980 | | ||||||
Non-cash interest charges, net of tax of $4,618
(2011) and $0 (2010) |
10,691 | | ||||||
Restructuring (credits) charges, net of tax of $0
(2011) and $107 (2010) |
(2,118 | ) | 5,847 | |||||
Stock compensation expense |
| 5,240 | ||||||
Gain from sale of Raisins trademarks |
| (1,252 | ) | |||||
Pro-forma income from continuing operations |
$ | 9,570 | $ | 13,227 | ||||
Pro-forma income per share from continuing operations |
$ | 0.06 | $ | 0.10 | ||||
Pro-forma income per share from continuing
operations, assuming dilution |
$ | 0.05 | $ | 0.09 | ||||
Weighted average common shares outstanding |
161,879 | 127,875 | ||||||
Weighted average common shares outstanding,
assuming dilution |
182,289 | 139,622 | ||||||
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
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ADJUSTED EBITDA and PRO-FORMA ADJUSTED EBITDA RECONCILIATION
(Unaudited)
(Unaudited)
Three Months Ended | ||||||||
April 30, | ||||||||
Amounts in thousands | 2011 | 2010 | ||||||
(Loss) income from continuing operations
attributable to Quiksilver, Inc. |
$ | (83,325 | ) | $ | 8,822 | |||
Provision for income taxes |
39,690 | 9,419 | ||||||
Interest expense |
15,096 | 21,039 | ||||||
Depreciation and amortization |
13,470 | 13,453 | ||||||
Non-cash stock-based compensation expense |
2,571 | 8,003 | ||||||
Non-cash asset impairments |
74,610 | | ||||||
Adjusted EBITDA |
$ | 62,112 | $ | 60,736 | ||||
Restructuring and other special charges |
| 1,638 | ||||||
Pro-forma Adjusted EBITDA |
$ | 62,112 | $ | 62,374 | ||||
Six Months Ended | ||||||||
April 30, | ||||||||
Amounts in thousands | 2011 | 2010 | ||||||
(Loss) income from continuing operations
attributable to Quiksilver, Inc. |
$ | (99,593 | ) | $ | 3,392 | |||
Provision for income taxes |
40,941 | 13,093 | ||||||
Interest expense |
44,064 | 42,912 | ||||||
Depreciation and amortization |
27,470 | 27,023 | ||||||
Non-cash stock-based compensation expense |
4,981 | 10,135 | ||||||
Non-cash asset impairments |
74,610 | | ||||||
Adjusted EBITDA |
$ | 92,473 | $ | 96,555 | ||||
Restructuring and other special (credits) charges |
(2,118 | ) | 4,702 | |||||
Pro-forma Adjusted EBITDA |
$ | 90,355 | $ | 101,257 | ||||
Definition of Adjusted EBITDA:
Adjusted EBITDA is defined as income (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 other
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 profitability. 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
Quiksilver, Inc. Reports Fiscal 2011 Second Quarter Financial Results
June 2, 2011
Page 11 of 11
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.
SUPPLEMENTAL EXCHANGE RATE INFORMATION
(Unaudited)
(Unaudited)
In order to better understand growth rates in our foreign operating segments, we make reference to
constant currency. Constant currency reporting improves visibility into actual growth rates as it
adjusts for the effect of changing foreign currency exchange rates from period to period. Constant
currency is calculated by taking the ending foreign currency exchange rate (for balance sheet
items) or the average foreign currency exchange rate (for income statement items) used in
translation for the current period and applying that same rate to the prior period. Our European
segment is translated into constant currency using euros and our Asia/Pacific segment is translated
into constant currency using Australian dollars as these are the primary functional currencies of
each reporting segment. As such, this methodology does not account for movements in individual
currencies within an operating segment (for example, non-euro currencies within our European
segment and Japanese yen within our Asia/Pacific segment). A constant currency translation
methodology that accounts for movements in each individual currency could yield a different result
compared to using only euros and Australian dollars. The following table presents revenues by
segment in both historical currency and constant currency for the three months ended April 30, 2010
and 2011 (in thousands):
Americas | Europe | Asia/Pacific | Corporate | Total | ||||||||||||||||||
Historical currency (as reported) |
||||||||||||||||||||||
April 30, 2010 |
199,733 | 208,708 | 58,645 | 1,203 | 468,289 | |||||||||||||||||
April 30, 2011 |
210,669 | 206,941 | 58,140 | 2,343 | 478,093 | |||||||||||||||||
Percentage increase (decrease) |
5 | % | (1 | %) | (1 | %) | 2 | % | ||||||||||||||
Constant currency (current year
exchange rates) |
||||||||||||||||||||||
April 30, 2010 |
199,733 | 215,852 | 66,200 | 1,203 | 482,989 | |||||||||||||||||
April 30, 2011 |
210,669 | 206,941 | 58,140 | 2,343 | 478,093 | |||||||||||||||||
Percentage increase (decrease) |
5 | % | (4 | %) | (12 | %) | (1 | %) |