Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Six Months ended 30th June 2013.
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Head N.V. /
Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three
and Six Months ended 30th June 2013.
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The issuer is solely responsible for the content of this announcement.
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
-------------------------------- ------------------------------
For the three months ended For the six months ended June
?'000 June 30, 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 ?0.1m, 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 ?0.1m. 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 ?9.6m
compared to ?10.0m in the comparable 2012 period.
Net cash provided by operating activities declined by nearly ?12.0m 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 ?9.3m compared to
?21.3m for the first six months of 2012.
Net debt decreased by ?8.0m 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: Investor-Relations(at)head.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: 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:
Results_Q2_2013:
http://hugin.info/133711/R/1721732/573468.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#1721732]
Unternehmensinformation / Kurzprofil:
Datum: 08.08.2013 - 08:59 Uhr
Sprache: Deutsch
News-ID 285872
Anzahl Zeichen: 12866
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 and Six Months ended 30th June 2013."
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