Outdoor financials: Quiksilver reverses year-ago loss in Q2, gets $150 million term loan; plus Deckers, Cabela's, Jarden
Quiksilver reversed a year-ago loss in Q2, Deckers' board approved a stock repurchase program, Cabela's said it renewed a funding facility, and Jarden stockholders approved all three agenda proposals at its annual meeting of stockholders.
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Quiksilver reverses year-ago loss in Q2, gets $150 million term loan
Quiksilver (NYSE: ZQK) swung into the black profit-wise, reversing a year-ago loss, which included hefty costs related to the now-discontinued Rossignol operations. The company also said it negotiated a $150 million term loan and $200 million line of credit to improve its liquidity.
Profit for the quarter ended April 30 totaled $2.8 million, or $0.02 per share, compared with a loss last year of $206.2 million, or $1.59 per share, which included losses from the discontinued Rossignol operations of $244.9 million.
Excluding one-time items, including a $1.7 million severance charge, net income totaled $0.05 per share in the latest period.
Revenue fell 17 percent to $494.2 million from $596.3 million last year.
“With customers proceeding cautiously in this uncertain market, orders for the second half are building more slowly than in past periods and we continue to look for opportunities to streamline the business and improve profitability,” CEO Robert McKnight said in a statement.
Looking forward, third-quarter revenue is expected to be down in the mid-teen percentage range.
Quiksilver also received a $150 million, five-year term loan from private equity firm Rhone. It said the deal will allow it to refocus its attention on its core Quiksilver, Roxy and DC brands and improving profitability. As part of the deal, Quiksilver will appoint two directors designated by Rhone to its board.
Quiksilver also refinanced its credit facility in the form of a new three-year, $200 million asset-based facility from Bank of American and GE Capital.
Deckers’ board approves stock repurchase program
Deckers Outdoor (Nasdaq: DECK), parent of Teva, Ugg, Simple and Ahnu, said its board of directors approved the repurchase of up to $50 million of the company’s common stock in the open market or in privately negotiated transactions.
It noted that the program doesn’t obligate the company to acquire any particular amount of common stock and the program may be suspended at any time at its discretion. The purchases will be funded from available working capital.
Also, during its annual stockholders meeting, shareholders re-elected the eight directors nominated, all of whom were then serving as directors of the company.
They also ratified the appointment of KPMG LLP as the company’s independent registered public accounting firm for 2009. In addition, the stockholders approved a proposal to amend the company’s Restated Certificate of Incorporation to increase the number of authorized shares of common stock of the company to 50 million from 20 million shares.
Cabela’s renews funding facility
Cabela’s (NYSE: CAB) said Wachovia Bank, National Association has renewed its $225 million commitment under an outstanding series of variable funding notes issued by Cabela’s Credit Card Master Note Trust. The commitment is for one year.
Jarden stockholders approve agenda proposals
At its annual meeting of stockholders, Jarden (NYSE: JAH) said attendees approved all three proposals put forth, including the re-election of Martin E. Franklin, Rene-Pierre Azria and Michael S. Gross to serve on the board of directors for a term of three years; the adoption of the 2009 stock incentive plan; and the appointment of PricewaterhouseCoopers as the company’s independent registered public accounting firm.
Jarden is the parent of Coleman, K2 and Marmot, among others
–Compiled by Wendy Geister
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