Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine Months ended 30th September 2012. HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three an...

New York, 08/11/2012 (informazione.it - comunicati stampa - arte e cultura)

HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine Months ended 30^th September 2012.

 

Amsterdam - 8^th November 2012 - 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 3 months ended Sep 30,						For the 9 months ended Sep 30,
				2012		2011		%		2012		2011		%
Profit and Loss
Gross Sales:
	Winter Sports			52,518		59,527		-11.8%		75,328		81,760		-7.9%
	Racquet Sports			34,251		30,356		12.8%		113,517		98,880		14.8%
	Diving			11,127		11,063		0.6%		39,528		37,691		4.9%
	Sportswear			985		1,421		-30.6%		4,330		3,770		14.9%
	Licensing			992		934		6.2%		3,573		3,221		10.9%
	Sales Deductions			(2,904)		(3,565)		-18.5%		(6,705)		(7,264)		-7.7%
Net Sales				96,969		99,736		-2.8%		229,570		218,058		5.3%
Adjusted Operating Profit (Loss)				7,912		9,595				(1,114)		871
				8.2%		9.6%				-0.5%		0.4%
Adjustments:
	ESOP (non-cash)			(26)		19				(394)		87
Reported Operating Profit (Loss)				7,886		9,613				(1,507)		958
				8.1%		9.6%				-0.7%		0.4%
Interest and Other Finance Expense (exc Disagio)				(1,379)		(2,255)				(4,344)		(7,070)
Non-Cash Disagio Costs				(25)		(4,131)				(73)		(8,465)
Interest and Investment Income				149		153				604		496
Other Non-Operating Income (Expense)				414		(458)				(139)		110
Current Tax				(407)		(433)				(1,589)		(1,182)
Deferred Tax				(1,648)		(1,855)				1,914		2,793
Net Income (Loss)				4,990		634				(5,136)		(12,361)
Cash Flow
Net cash provided by (used for) operating activities				(6,063)		(12,324)				6,973		(3,918)
Purchase of property, plant and equipment				1,998		2,353				5,822		6,288
Balance Sheet
Restricted Cash										4,240		32,737
Cash and cash equivalents										24,322		22,139
Available for sale financial assets										5,000		5,010
Borrowings										104,333		137,439
Net Debt										70,771		77,554
Working Capital										138,895		140,207
Net Equity										168,333		158,751

 

Sales for the first nine months of 2012 were up 5.3% compared to the first nine months of the prior year driven by Racquet Sports, especially in North America, and compounded by favourable exchange rate movements but offset by lower sales in Winter Sports. At constant currency the sales for the first nine months of 2012 were up 1.5% compared to the first nine months of 2011.

 

Winter Sports sales for the first nine months where behind the comparable period in 2011 by 7.9%. This change from a growth in the first six months to a decline in the third quarter was anticipated as we start to deliver for the 2012/13 season.

 

Due to the very mild winter and late snow in both Europe and North America in 2011/12, sell out at retail was considerably down and some International retail chains therefore reduced pre-season orders by 20% to 25% marketwide. We have now collected our pre-season orders and whilst our declines are not as dramatic, we still anticipate around a 10% deterioration in sales for 2012 compared to the prior year, with skis and snowboards having suffered more than boots.

 

Racquet Sports sales for the first nine months increased by 14.8% compared to the first nine months of 2011. The increase was driven by higher volumes and improved product mix of both racquets and balls in North America and compounded by favourable exchange rates. Growth has been achieved by external market growth, our new product launches and the success of our ambassadors.

 

Our Diving sales for the first nine months of 2012 grew by 4.9% due to market growth in North America and Asia offset by softer sales in Europe, although we believe that we continue to outperform the market in Europe and take market share.  

 

Sportswear sales for the nine months improved by 14.9% due to higher sales of Summer Sportswear offset by lower Winter Sportswear sales.

 

Gross margins for the nine months to 30^th September 2012 have declined from 41.4% to 39.8% due to higher cost of sales driven in part by lower utilization of our Alpine production facilities, increased labour rates and further investment in our Sportswear Division. In addition, exchange rate movements, whilst improving our sales have also increased our cost of sales of our sourced products impacting our gross margins.

 

Adjusted operating loss for the nine months to 30^th September 2012 increased by EUR2.0m. The increase in the loss was due to the higher sales being more than offset by lower gross margins and higher selling and marketing costs.

 

For the nine months to 30^th September 2012 interest and other financial costs (excluding Disagio costs) decreased by EUR2.7m due primarily to the restructuring of our debt in 2011 which has reduced our interest rates. The buy back and redemption of the Senior Secured Notes in 2011 resulted in the non-cash Disagio charge in that year.

 

As a result of the foregoing factors, for the nine months ended September 30, 2012 we had a net loss of EUR5.1m compared to a net loss of EUR12.4m in the comparable 2011 period.

 

Net cash provided by operating activities improved by EUR10.9m in the first nine months mainly due to lower cash outflow for inventories and lower interest costs in 2012 compared to 2011.

 

Net debt decreased by EUR6.8m from 30^th September 2011 to 30^th September 2012 due mainly to lower working capital and financing costs.  

  

We continue to expect to see a slow down in our sales in the fourth quarter of the year compared to the prior year due to lower Winter Sports sales and anticipate that this will cause operating results for 2012 to deteriorate compared to 2011.

 

Our interim financial statements for the period ended 30^th of September 2012 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 and squash racquets, tennis balls and tennis footwear and sportswear), 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: the still possible impact of the 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

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