Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three Months ended 31st March 2012.
(Thomson Reuters ONE) -
Head N.V. /
Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three
Months ended 31st March 2012.
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The issuer is solely responsible for the content of this announcement.
Amsterdam - 10(th) May 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
-----------------------------
For the three months ended
?'000 March 31,
2012 2011 %
-----------------------------
Profit and Loss
Gross Sales:
Winter Sports 13,552 13,011 4.2%
Racquet Sports* 42,230 34,819 21.3%
Diving 12,743 11,346 12.3%
Sportswear* 2,072 1,136 82.3%
Licensing 1,553 1,224 26.8%
Sales Deductions (2,071) (1,703) 21.6%
--------- ---------
Net Sales 70,078 59,833 17.1%
* 2011 adjusted due to a reclassification to
Sportswear
Adjusted Operating Loss (2,592) (5,504)
-3.7% -9.2%
Adjustments:
ESOP (non-cash) (185) 48
--------- ---------
Reported Operating Loss (2,777) (5,456)
-4.0% -9.1%
Interest and Other Finance Expense (1,494) (2,790)
Non-Cash Disagio Costs (24) (3,527)
Interest and Investment Income 224 168
Other Non-Operating Income 1,414 1,666
Current Tax (571) (163)
Deferred Tax 986 2,390
--------- ---------
Net Loss (2,243) (7,712)
Cash Flow
Net cash provided by operating activities 24,782 23,492
Purchase of property, plant and equipment 1,669 1,429
Balance Sheet
Cash and cash equivalents 47,371 55,284
Available for sale financial assets 4,913 7,133
Borrowings 100,704 97,062
--------- ---------
Net Debt 48,420 34,645
Working Capital 117,908 103,964
Net Equity 169,604 164,815
Sales for the first three months of 2012 were up 17.1% compared to the first
three months of the prior year driven by Racquet Sports and compounded by
favorable exchange rate movements and positive results from the other divisions.
At constant currency the sales for the first three months of 2012 were up 15.6%
compared to the first three months of 2011.
Winter Sports sales for the period where ahead of the comparable period in
2011. 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. The increase in the quarter was
mainly due to earlier shipment of the bindings under contract manufacturing.
The period is key for the Winter Sports Division in securing orders for the
forthcoming 2012/13 winter 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 this is impacting our pre-season orders for next year. We believe that
the worldwide winter sports market will be substantially down in 2012 and this
will significantly impact our winter sports sales in the year.
The warm weather that has impacted the winter sports market has had the opposite
effect on the racquet sports market which has started the year positively in
North America. In addition Japan also seems to have recovered from the impact of
the tsunami. Our Racquet Sports Division grew sales by 21.3% during the first
three months of 2012 compared to the first three months of 2011. Growth came
from both increases in volumes of racquets and balls and positive movements in
average selling prices. A number of new products were introduced in the first
quarter of the year, and we would not expect the current growth to continue
throughout the year.
Whilst the diving market remains tough in Italy and Southern Europe, Asia and
North America have developed favourably in 2012. This market growth and our
strong product lines in computers and regulators has resulted in sales growth
for our Diving Division of 12.3% during the three months to 31(st) March
compared to the comparable period in 2011. As the second quarter is more reliant
on our European sales we believe that this level of growth will be hard to
maintain.
Both Licensing and Sportswear Divisions increased in the period, but from a low
base.
Adjusted operating loss for the period improved by ?2.9m due to higher sales
being offset in part by higher selling and marketing costs. Gross margins stayed
flat, with higher raw material prices being compensated for by higher average
selling prices.
Net Interest decreased by ?1.3m in the three months ended March 31, 2012
compared to the first three months in 2011 as the interest rates for our new
financing agreements are lower than those of the Senior Secured Notes that we
had in place in 2011.
The non-cash disagio costs incurred in 2011 were due to the buy back of the
Senior Secured Notes in March of that year which led to the acceleration of the
amortization of the non-cash Disagio costs.
As a result of the foregoing factors, for the three months ended March
31, 2012, we had a net loss of ?2.2m, compared to a net loss of ?7.7m in the
comparable 2011 period.
Net cash provided by operating activities improved by ?1.3m in the first quarter
of 2012 compared to 2011 due to the net impact of higher profitability and
increased working capital.
Net debt increased by ?13.8m from 31(st) March 2011 to 31(st) March 2012 due
mainly to higher working capital needs.
Overall 2012 appears to have started well, but will be marred by the warm
weather at the beginning of the 2011/12 ski season and weak consumer demand. We
expect to see a slow down in our sales, especially in the third and fourth
quarters of the year and anticipate that this will cause operating results for
2012 to deteriorate compared to 2011.
Our interim financial statements for the period ended 31(st) of March 2012 can
be found on our website at
www.head.com/corporate/investors/quarterly_reports.php.
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 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
Email: headinvestors(at)aol.com
Gunter Hagspiel, Chief Financial Officer
Tel: +43 5574 608
Fax +43 5574 608 130
Email: 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 press release can also be downloaded from the following link:
Results Q1 2012:
http://hugin.info/133711/R/1610601/511962.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(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#1610601]
Unternehmensinformation / Kurzprofil:
Datum: 10.05.2012 - 09:01 Uhr
Sprache: Deutsch
News-ID 144890
Anzahl Zeichen: 12745
contact information:
Town:
Amsterdam
Kategorie:
Business News
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"Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three Months ended 31st March 2012."
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