Ad hoc: HEAD NV Announces the Unaudited Preliminary Results for the Twelve Months ended 31st December 2011.
(Thomson Reuters ONE) -
Head N.V. /
Ad hoc: HEAD NV Announces the Unaudited Preliminary Results for the Twelve
Months ended 31st December 2011.
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The issuer is solely responsible for the content of this announcement.
Amsterdam - 23(rd) February 2012 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a
leading global manufacturer and marketer of sports equipment, announced the
following results today.
The year ended down 1.3% in sales compared to the prior year driven by a decline
in Winter Sports sales in the last quarter and exchange rate movements, with the
US $ weakening against the Euro. On a constant currency basis sales would have
been broadly flat.
Winter Sports sales declined by 3.0% for the full year due to poor snow during
the critical pre-Christmas sales period. During the last quarter, sales were
down 7.4% as re-orders by retails in the key markets were lower than prior years
due to soft consumer demand. The delayed start to the 2011/12 season is expected
to have a negative impact on the pre-order sales for the 2012/2013 season.
The success of the HEAD race team has however supported the sales and average
prices of our wintersport equipment.
The Racquet Sports division reported a decline in sales of 1.7% for the year,
but in constant currency terms, sales would have grown slightly. Racquets
performed well with sales momentum improving over the year particularly in the
tour racquets segment where Novak Djokovic, the number one player in the world
endorses our product. In contrast, the tennis ball business suffered from the
continued increase in rubber prices that significantly impacts margins.
As anticipated 2011 was a tough year for the Diving Division with further
natural disasters and political unrest around the world, particularly in key
dive destinations. Reported sales fell 0.5%, but in constant currencies the
division would have reported a small growth.
Adjusted operating profit fell by ?8.3m due to a combination of lower sales and
lower margins due predominantly to higher raw material prices and sourcing
costs. In 2011 the company recorded non-cash expense of ?0.4m relating to the
Executive Stock Option Plans (ESOP) compared to an income of ?3.1m in 2010 due
to the increase in the share price in 2011.
Compounding the lower operating profit, net income was also adversely affected
by higher non-cash amortisation in the year. During 2011 the Company bought back
and ultimately redeemed the balance of its outstanding Senior Secured Notes due
2012, this resulted in the acceleration of the amortisation of the non-cash
disagio costs which in total amounted to ?8.5m (2010: ?3.9m). Net income was
positively impacted by deferred tax income in the year (?5.5m) compared to an
expense in 2010 of ?1.1m.
Net cash provided by operating activities fell by ?14.0m in 2011 compared to
2010, due in part to lower profitability and also to increases in working
capital which have mainly arisen due to higher winter sports inventory. The
lower cash generated along with the planned higher capital expenditures and the
share buy backs (?9.2m) have resulted in an increase in net debt at the year end
of ?20.8m.
2012 will be marred by the warm weather at the beginning of the 2011/12 ski
season and weak consumer demand, however we will continue to invest in our
business through athletic endorsements, a commitment to technological
advancement and the growth of new segments such as sportswear in order to
improve our profitability.
The 2011 Annual Report will be released on, or around, April 12(th) 2012 and the
Head NV Annual General Meeting will be held on the 24(th) May 2012.
About Head
HEAD NV is a leading global manufacturer and marketer of premium sports
equipment.
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 (tennis,
squash and racquetball racquets, tennis balls, tennis footwear, alpine skis, ski
bindings and ski boots, snowboards, bindings and boots and sportswear), Penn
(tennis 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:headinvestors(at)aol.com
Gunter Hagspiel, Chief Financial Officer
Tel: +43 5574 608
Fax +43 5574 608 130
E-mail:g.hagspiel(at)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: 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 full press release including tables can be downloaded from the following
link:
Preliminary Results 2011:
http://hugin.info/133711/R/1588360/498429.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Head N.V. via Thomson Reuters ONE
[HUG#1588360]
Unternehmensinformation / Kurzprofil:
Datum: 23.02.2012 - 09:00 Uhr
Sprache: Deutsch
News-ID 117697
Anzahl Zeichen: 8306
contact information:
Town:
Amsterdam
Kategorie:
Business News
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