Quiksilver trims debt to $878 million at end of second quarter

By Jennifer Lanning Drey

Portland, Ore., June 3 - Quiksilver, Inc. reduced its total debt to $878 million at April 30, or 4.5 times its last-12-months EBITDA, Joe Scirocco, the company's chief financial officer, said Thursday during the company's second-quarter earnings conference call.

The company has reduced its debt by $177 million over the last 12 months.

Quiksilver had $155 million of availability under its credit lines and $145 million of unrestricted cash at April 30.

For the second quarter, Quiksilver posted net revenues from continuing operations of $468.3 million, down from revenues of $494.2 million in the same period of 2009. Pro-forma adjusted EBITDA was $62.4 million, compared to $45.4 million in the second quarter of 2009.

"After successful restructuring efforts and improvements to our capital structure, a new Quiksilver is emerging, and the changes we've made have enabled new levels of performance, Robert McKnight Jr., the company's chief executive officer, said during the call.

The company believes it is now well positioned to benefit from improvements in consumer spending and world economies, he noted.

Based on current trends, third-quarter revenues are expected to be down in the low teens on a percentage basis, as compared to the same quarter a year ago, Scirocco said.

Quiksilver is an outdoor sports lifestyle company based in Huntington Beach, Calif.

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