Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Six Months ended 30th June 2013.

New York, 08/08/2013 (informazione.it - comunicati stampa - arte e cultura)

HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Six Months ended 30^th June 2013.

 

Amsterdam - 8^th August 2013 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a leading global manufacturer and marketer of sports equipment, announced the following results today.

 

Summary Unaudited Financial Information
EUR'000				For the three months ended June 30,						For the six months ended June 30,
				2013		2012		%		2013		2012		%
						(restated*)						(restated*)
Profit and Loss
Gross Sales:
	Winter Sports			9,047		9,258		-2.3%		22,303		22,810		-2.2%
	Racquet Sports			39,137		37,036		5.7%		81,412		79,266		2.7%
	Diving			15,379		15,658		-1.8%		28,408		28,401		0.0%
	Sportswear			1,411		1,272		10.9%		3,211		3,344		-4.0%
	Licensing			1,414		1,028		37.6%		2,710		2,581		5.0%
	Sales Deductions			(1,831)		(1,729)		5.9%		(3,847)		(3,801)		1.2%
Net Sales				64,557		62,523		3.3%		134,197		132,601		1.2%
Adjusted Operating Loss				(4,081)		(6,393)				(8,836)		(8,944)
% of Net Sales				-6.3%		-10.2%				-6.6%		-6.7%
Adjustments:
	ESOP (non-cash)			329		(182)				(414)		(368)
Reported Operating Loss				(3,752)		(6,575)				(9,250)		(9,311)
% of Net Sales				-5.8%		-10.5%				-6.9%		-7.0%
Interest and Other Finance Expense (exc Disagio)				(1,154)		(1,472)				(2,510)		(2,966)
Non-Cash Disagio Costs				(91)		(24)				(117)		(48)
Interest and Investment Income				111		231				223		456
Other Non-Operating Income (Expense)				401		(1,967)				(73)		(553)
Current Tax				(721)		(611)				(1,176)		(1,183)
Deferred Tax				1,634		2,576				3,258		3,562
Net Loss				(3,572)		(7,842)				(9,644)		(10,043)
Cash Flow
Net cash provided by operating activities				(10,811)		(11,746)				1,047		13,036
Purchase of property, plant and equipment				2,035		2,154				3,687		3,824
Balance Sheet
Cash and cash equivalents										14,883		35,066
Available for sale financial assets										5,018		4,975
Borrowings										74,585		102,695
Net Debt										54,684		62,654
Working Capital										120,122		124,846
Net Equity										161,921		162,867
* restated to take into account retrospective application of new IAS on accounting for employee benefits
for full details, see interim financial statements

 

Sales for the first six months of 2013 were up 1.2% compared to the prior year driven primarily by Racquet Sports, especially in North America, offset by exchange rate movements. At constant currency the sales for the first six months of 2013 would have increased by 2.0%.

 

Winter Sports sales for the first six months where behind the comparable period in 2012 by 2.2%. This, however, is not a key delivery period for the division and consists mainly of close out sales relating to the 2012/13 season and some deliveries of bindings under contract manufacturing agreements for the next season.

 

The sell-in for the 2012/13 season was challenging due to the very mild winter and late snow in both Europe and North America in 2011/12. The snow in 2012/13 improved and participation grew in the year. We believe that the increase in participation did not ultimately lead to a proportional increase in market consumption due to higher levels of rental and cautionary spending of consumers. Overall, whilst retailers are still somewhat cautious, our bookings at this stage for the 2013/14 season have improved compared to those achieved in the same period in 2012 by around 10%, but have yet to recover to the levels achieved in either 2010 or 2011.

 

The growth in our Racquet Sports division of 2.7% for the six months to June 2013 was mainly a result of higher tennis ball volumes particularly in North America. The sale would have been further increased by one percentage point had currencies been constant.

 

Our Diving sales for the first six months of 2013 remained flat as the European market remained challenging due to cold weather conditions and general continued economic uncertainties, but some growth was seen in North America and Asia.

 

Sportswear sales for the six months declined by 4.0%, or EUR0.1m, mainly due to lower bag sales in the UK market.

 

Gross margins for the six months to 30^th June 2013 have improved from 39.9% to 40.9% mainly due to lower cost of sales for our bindings and tennis balls.

 

Adjusted operating loss for the six months to 30^th June 2013 reduced marginally by EUR0.1m. The reduction in the loss was due to the higher sales and gross margins being nearly offset by higher selling and marketing costs.

 

Overall for the six months ended June 30, 2013 we had a net loss of EUR9.6m compared to EUR10.0m in the comparable 2012 period.

 

Net cash provided by operating activities declined by nearly EUR12.0m in the first six months mainly due to adverse working capital movements, as cash inflow from working capital for the first six months of 2013 amounted to EUR9.3m compared to EUR21.3m for the first six months of 2012.

 

Net debt decreased by EUR8.0m from 30^th June 2012 to 30^th June 2013 due to positive operating cash flows after investing activities in the second half of 2012. During the second quarter of 2013, the company redeemed its outstanding Senior Notes resulting in lower levels of long term debt in the company.

 

For 2013 we are anticipating a moderate growth in sales driven by further recovery of our Winter Sports Division but the impact of currency fluctuations, particularly the Yen, and some higher marketing and investment costs mean that overall we believe our operating results will be broadly in line with those achieved in 2012.

 

Our interim financial statements for the period ended 30^th of June 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

 

Analysts, investors, media and others seeking financial and general information, please contact:

 

Clare Vincent, Investor Relations

Tel: +44 207 499 7800

Fax: +44 207 491 7725

E-mail: [email protected]

 

Gunter Hagspiel, Chief Financial Officer

Tel: +43 5574 608

Fax: +43 5574 608 130

E-mail: [email protected]

 

 

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

 

 

The press release can also be downloaded from the following link:

 

 

 

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