Arte e Cultura
Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three Months ended 31st March 2013.
HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three Months ended 31 March 2013.
Amsterdam - 10 May 2013 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a leading global manufacturer and marketer of sports equipment, announced the following results today.
Sales for the first three months of 2013 were down slightly (0.6%) compared to the same period in 2012 but at constant currency sales would have been slightly up.
Winter Sports sales for the period were behind the comparable period in 2012. This, however, is not a key delivery period for the division and consists mainly of close out sales and some deliveries of bindings under contract manufacturing agreements for the next season.
Whilst not a key delivery period for the Winter Sports Division it is a critical period for securing orders for the forthcoming 2013/14 winter season. The key driver of pre-season sales is the sell out by retailers in the prior season. During 2012/13, weather conditions were generally good across Europe and Japan although snow arrived late in the US and here the season was below average.
In Europe visitor numbers were up but we believe retail equipment sales did not grow inline. The lower closing retail inventory at the end of the current season due to lower pre-season ordering in 2012/13 has however mitigated the impact on our pre-season bookings for 2013/14.
The cooler weather in Europe has had the inverse impact on the racquet sports market which, we believe, has had a slower start to the year both in Europe and in the US. Overall reported sales for the first quarter were broadly flat, but at constant currency would have been up slightly at 1.2% driven by stronger ball sales offset by weaker racquet sales.
Whilst the diving market remains tough in Italy and Southern Europe, Asia and North America have continued to develop favourably in 2013. This market growth and our strong product lines in computers and regulators resulted in sales growth for our Diving Division of 2.2% during the three months to 31 March compared to the comparable period in 2012.
Sportswear sales for the first quarter 2013 declined by 13.1% compared to the first quarter in 2012 due to lower sales of tenniswear in part as a result of the cool weather in Europe and the resulting slow start to the tennis season.
Adjusted operating loss for the period increased by EUR2.2m due mainly to lower gross margins as a result of mix and higher advertising and departmental selling costs and foreign exchange losses in the period compared to foreign exchange gains in the comparable 2012 period.
Non-cash ESOP costs increased as a result of our higher share price in March 2013 compared to December 2012 which increases the liability for our cash-settled stock option plans.
Overall for the three months ended March 31, 2013, we had a net loss of EUR6.1m, compared to a net loss of EUR2.2m in the comparable 2012 period.
Net cash provided by operating activities decreased by EUR12.9m in the first quarter of 2013 compared to 2012 due to the lower profitability in the period and reduced cash inflow from accounts receivable.
Net debt decreased by EUR6.1m from 31 March 2012 to 31 March 2013 due mainly to lower working capital balances at the end of the first quarter 2013 compared to the first quarter 2012. On 5 June 2013, we plan to redeem our Senior Notes. The details of the redemption can be found on our website in our press release dated 6 May 2013.
Our interim financial statements for the period ended 31 of March 2013 can be found on our website at www.head.com/corporate/investors/quarterly_reports.php .
About Head
HEAD NV is a leading global manufacturer and marketer of premium sports equipment and apparel.
HEAD NV's ordinary shares are listed on the Vienna Stock Exchange ("HEAD").
Our business is organized into five divisions: Winter Sports, Racquet Sports, Diving, Sportswear and Licensing. We sell products under the HEAD (alpine skis, ski bindings, ski boots, snowboard and protection products, tennis, racquetball, paddle and squash racquets, tennis balls and tennis footwear, sportswear and swimming products), Penn (tennis balls and racquetball balls), Tyrolia (ski bindings) and Mares (diving equipment) brands.
For more information, please visit our website: www.head.com
Clare Vincent, Investor Relations
Tel: +44 207 499 7800
Fax: +44 207 491 7725
E-mail: headinvestors@aol.com
Gunter Hagspiel, Chief Financial Officer
Tel: +43 5574 608
Fax: +43 5574 608 130
E-mail: g.hagspiel@head.com
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases, including references to assumptions, as they relate to Head NV, its management or third parties, identify forward-looking statements. Forward-Looking statements include statements regarding Head NV's business strategy, financial condition, results of operations, and market data, as well as any other statements that are not historical facts. These statements reflect beliefs of Head NV's management as well as assumptions made by its management and information currently available to Head NV. Although Head NV believes that these beliefs and assumptions are reasonable, the statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These Factors include, but are not limited to, the following: global economic turmoil, weather and other factors beyond our control, competitive pressures and trends in the sporting goods industry, our ability to implement our business strategy, our liquidity and capital expenditures, our ability to obtain financing, our ability to compete, including internationally, our ability to introduce new and innovative products, legal proceedings and regulatory matters, our ability to fund our future capital needs, and general economic conditions. These factors, risks and uncertainties expressly qualify all subsequent oral and written forward-looking statements attributable to Head NV or persons acting on its behalf.
Head NV
Prins Bernhardplein 200,
1097 JB Amsterdam
Shares:
ISIN: NL0000238301
Stock Market: Official Market of the Vienna Stock Exchange
Notes:
HTM Senior Notes ISIN: XS0184717956 and XS0184719143
Listing: Luxembourg Stock Exchange
The press release can also be downloaded from the following link:
Copyright Thomson Reuters
Attachment(s)
http://hugin.info/133711/R/1700487/561318.pdf
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