Surf brand Billabong has officially announced their staggering losses from the last 12 months ending June 2013, with the value of the brand written down from $252 million to zero. Bloomberg announced that the 40-year-old surf brand is now worthless. Billabong recently posted its worst financial results ever, with a net loss of $772 million for its fiscal year, more than triple its previous years. The shock of full-year loss is reported at $860 million. They are struggling with weak demand for surf apparel after expanding its network of stores.
Chairman Ian Pollard reported to The Sidney Morning Herald that a prolonged battle between rival US private equity firms to recapitalise the struggling retailer meant CEO-designate Scott Olivet could now not begin his role at the company, at a time when a global downturn in sales, store closures and billions of dollars in destroyed goodwill was dragging the company deeper into the red.
“We’ve entered into a transaction with Altamont, which has already delivered important value to our shareholders and has enabled us to meet our financial commitments,” Pollard said.
Billabong International Limited announced on August 27th, 2013:
– Net Loss after Tax of $859.5 million (after $867.2 million of predominately non- cash significant items) for the year ended 30 June 2013
– Adjusted EBITDAI of $72.6 million – down $14.3 million in reported and in constant currency terms on the previous corresponding period (“pcp”). Adjusted EBITDAI is before significant items and after excluding Nixon from the prior year.
– Australasia and Americas full year Adjusted EBITDA were both ahead of the pcp driven by restructuring initiatives.
– European trading conditions remain weak and further impacted by $7.6 million of start-up losses for SurfStitch Europe.
– Refinancing nearing final stages as key focus returns to rebuilding the business and reinvigorating a world class portfolio of brandsReported EarningsGlobal sales revenue of $1,340 million was down 13.5% in reported terms (down 12.6% in constant currency terms) on the pcp.
– Billabong incurred a Net Loss after Tax for the year ended 30 June 2013 of $859.5 million. The result was impacted by $867.2 million of significant items, including $604.3 million non-cash impairment for goodwill, brands and other intangibles (of which $427.8 million was taken at 31 December 2012) and $129.6 million relating to a non-cash write down of its investment in Nixon (of which $106.6 million was taken at 31 December 2012).
– Adjusted EarningsGlobal sales revenue of $1,340 million was down 6.8% in reported terms (down 5.9% in constant currency terms) on the pcp and after excluding Nixon from the prior year.
– Adjusted Earnings Before Interest, Tax, Depreciation, Amortisation and Impairment (EBITDAI) was $72.6 million for the Group, a decrease of 16.4% compared to the pcp, after excluding significant items and Nixon from the prior year.