Ad hoc: HEAD NV Announces The Unaudited Preliminary Results for the Twelve Months ended 31st December 2009.
(Thomson Reuters ONE) -
Head N.V. / Ad hoc: HEAD NV Announces The Unaudited Preliminary Results for the Twelve Months ended 31st December 2009. processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Amsterdam - 25th February 2010 - Head N.V. (VSX: HEAD; U.S. OTC: HEDYY.PK), a
leading global manufacturer and marketer of sports equipment, announced the
following results today.
As anticipated for the full year 2009, our sales are slightly lower than last
year's. The tough economic conditions have continued to impact our results -
particularly in diving where we saw a decline of 12% for the year due to this
industry's link to travel and the relatively high price points of the products.
We do not expect to see a quick recovery in this market.
Winter Sports for the full year decreased by 3.9% - this was driven by a decline
in volumes in all our core product categories; Skis 9%, Boots 6%, and Bindings
5% due to the tough trading conditions, especially in North America, offset by
some improvement in mix, positive exchange rate movements and some growth in
non-core products.
Racquet sports experienced a sales growth of 3.9% for the year. The volumes of
racquets declined by over 9% whilst ball volumes increased by nearly 3%. The
improvement in the average selling price of both racquets and balls due to
positive exchange rate movements and an enhanced mix resulted in the overall
growth in sales for the division.
The impact of our recent restructuring programmes have positively influenced the
operating profit in 2009 which, on an adjusted level, increased by ?11.1m to
?12.0m. The adjustments include the now largely completed restructuring
programs, the 2009 costs consist of transferring tennis ball production to China
and the reorganisation of ski production. Further adjustments have been made for
the share-based compensation plans and the one-off sale of trademarks in Korea.
In addition, to our manufacturing restructuring projects, the company has also
restructured part of its borrowings during 2009. Through a private exchange
offer, ?85.7m of existing Senior Notes were exchanged for ?43.7m Senior Secured
Notes plus 22,491,278 ordinary shares in the company. The new Senior Secured
Notes are secured by pledges or charges over certain inventory, trade
receivables and in some circumstances cash of the company. The transaction,
which reduces the company's net debt and interest payments also resulted in a
gross gain of ?40.3m reduced by ?11.0m deferred tax expense resulting from the
utilization of tax losses carried forward which is included in net income for
the year.
As a condition of the exchange offer, the company secured a working capital
facility of ?10m for 2009. The facility was provided by a company ultimately
controlled by Mr. Johan Eliasch and in consideration for the undertaking Head
Sports Holdings and its shareholders received 28,343,298 shares. Of these shares
25,892,075 were newly issued shares and 2,451,223 were transferred from treasury
shares. At the 31st December 2009, the company had 88,204,030 issued shares up
from 39,820,677 at 31st December 2008. The shares issued as part of the bond
exchange are not yet listed, but the company is working towards listing these
shares during the first half of 2010. Once these shares are listed they will be
fungible with our existing listed shares.
Operating cash flow for the year improved by over ?34m due to the successful
implementation of working capital reduction plans, our improved net income and
lower interest payments. Capital expenditure was also lower due to its cyclical
nature and while we anticipate that this will increase over the next years we
expect our average capital expenditure to be lower than it has historically
been.
It is too early in the year to predict the company's performance in 2010, but
the cost base has been brought in line with the current sales levels and the
infrastructure is in place to allow the company to grow should the markets start
to recover.
The 2009 Annual Report will be released on or around the 20 April 2010 and the
Head NV AGM will be held on the 27 May 2010.
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 four divisions: Winter Sports, Racquet Sports,
Diving and Licensing. We sell products under the HEAD (tennis, squash and
racquetball racquets, tennis balls, tennis footwear, badminton products, alpine
skis, ski bindings and ski boots, snowboards, bindings and boots), Penn (tennis
and racquetball balls), Tyrolia (ski bindings), and Mares/Dacor (diving
equipment) brands.
We hold leading positions in all of our product markets and our products are
endorsed by some of the world's top athletes including Andre Agassi, Hermann
Maier, Bode Miller, Lindsey Vonn, Amelie Mauresmo, Svetlana Kuznetsova,Novak
Djokovic, Andrew Murray, Ivan Ljubicic, Didier Cuche, Marco Büchel, Patrick
Staudacher, Maria Riesch and Sarka Zahbrovska.
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
This press release should be read in conjunction with the company's report for
the three and none months ended 30 September 2009.
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 N.V., its
management or third parties, identify forward-looking statements.
Forward-looking statements include statements regarding Head N.V.'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 N.V.'s management as well as assumptions made by its management
and information currently available to Head N.V. Although Head N.V. 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 impact of the current 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 realize the cost savings expected from the cost
reduction program, 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
N.V. or persons acting on its behalf.
Head N.V.
Rokin 55
NL 1012 KK Amsterdam
ISIN: NL0000238301
Stock Market: Official Market of the Vienna Stock Exchange
HTM Sport GmbH
Tyroliaplatz 1
A 2320 Schwechat
ISIN: XS0184717956 / XS0184719143
Stock Market: Luxembourg Stock Exchange
The full press release including tables can be downloaded from the following
link:
[HUG#1388395]
--- End of Message ---
Head N.V.
Rokin 55 Amsterdam Niederlande
WKN: 577203 ;ISIN: NL0000238301;
Preliminary Results 2009: http://hugin.info/133711/R/1388395/346599.pdf
Unternehmensinformation / Kurzprofil:
Datum: 25.02.2010 - 08:30 Uhr
Sprache: Deutsch
News-ID 12915
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Town:
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Kategorie:
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