Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine Months ended 30th September 2013.
(Thomson Reuters ONE) -
Head N.V. /
Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three
and Nine Months ended 30th September 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 Nine
Months ended 30(th) September 2013.
Amsterdam - 7(th) November 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 nine months ended Sep
?'000 Sep 30, 30,
2013 2012 % 2013 2012 %
(restated*) (restated*)
------------------------------- ------------------------------
Profit and
Loss
Gross Sales:
Winter
Sports 49,166 52,518 -6.4% 71,469 75,328 -5.1%
Racquet
Sports 32,522 34,251 -5.0% 113,934 113,517 0.4%
Diving 12,021 11,127 8.0% 40,429 39,528 2.3%
Sportswear 1,056 985 7.1% 4,266 4,330 -1.5%
Licensing 1,061 992 6.9% 3,771 3,573 5.6%
Sales
Deductions (2,796) (2,904) -3.7% (6,643) (6,705) -0.9%
--------- ------------- --------- -------------
Net Sales 93,029 96,969 -4.1% 227,226 229,570 -1.0%
Adjusted
Operating
Profit
(Loss) 7,554 7,953 (1,282) (990)
% of Net
Sales 8.1% 8.2% -0.6% -0.4%
Adjustments:
ESOP (non-
cash) (10) (26) (424) (394)
--------- ------------- --------- -------------
Reported
Operating
Profit
(Loss) 7,544 7,927 (1,706) (1,384)
% of Net
Sales 8.1% 8.2% -0.8% -0.6%
Interest and
Other Finance
Expense (exc
Disagio) (798) (1,379) (3,308) (4,344)
Non-Cash
Disagio
Costs (64) (25) (182) (73)
Interest and
Investment
Income 75 149 298 604
Other Non-
Operating
Income
(Expense) 481 414 408 (139)
Current Tax (541) (407) (1,717) (1,589)
Deferred Tax (1,845) (1,648) 1,413 1,914
--------- ------------- --------- -------------
Net Profit
(Loss) 4,852 5,031 (4,792) (5,012)
Cash Flow
Net cash
provided by
(used for)
operating
activities (3,779) (6,063) (2,732) 6,973
Purchase of
property,
plant and
equipment 1,935 1,998 5,622 5,822
Balance
Sheet
Cash and
cash
equivalents 56,765 28,562
Available
for sale
financial
assets 5,009 5,000
Borrowings 122,142 104,333
--------- -------------
Net Debt 60,369 70,771
Working
Capital 131,570 138,895
Net Equity 165,359 166,984
* 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 nine months of 2013 were down 1.0% compared to the prior
year, but at constant currency the sales would have increased by 0.9%. At actual
and constant currencies, growth was achieved in the Racquet Sports, Diving and
Licensing divisions, but both the Winter Sports and Sportswear divisions
recorded lower sales than in the prior year.
Winter Sports sales for the first nine months were 5.1% behind the comparable
period in 2012. This was in part due to exchange rate movements and at constant
currencies the decline would have been 2.4%. By product, skis are ahead of prior
year but this was more than offset by declines in ski boots and snowboards,
although this fall is mainly due to the timing of shipments and should reverse
in the final quarter of the year.
Our Winter Sports bookings at this point in the year at constant currency are
still around 10% ahead of those achieved at the same point in the prior year,
but due to the exchange rate movements we believe that our full year sales
growth in Winter Sports will not fully reflect the increase in orders.
The growth in Racquet Sports division of 0.4% for the nine months to September
2013 was driven by higher volumes of tennis balls, mainly in North America and
an improved mix in tennis racquets, offset by currency movements.
Our Diving sales for the first nine months of 2013 were up slightly even though
the European market remained challenging due to cold weather conditions and
general continued economic uncertainties. Growth was seen in North America and
Asia.
Sportswear sales for the nine months declined by 1.5%, due in part to lower
sales of bags in the UK.
Gross margins for the nine months to 30(th) September 2013 have improved from
39.8% to 40.9% mainly due to lower cost of sales for our tennis balls, in
particular lower rubber prices, and lower cost of sales of our bindings.
Adjusted operating loss for the nine months to 30(th) September 2013 increased
by ?0.3m mainly due to higher selling and marketing costs offset by the higher
gross profit. The higher selling and marketing costs were due to higher
advertising in our Racquet Sports and Diving divisions and higher selling costs
in our Racquet Sports and Sportswear divisions.
The positive development of our financing costs due to lower interest from our
long term debt along with exchange rate gains offset by higher tax charges lead
to a slightly reduced net loss of ?4.8m compared to ?5.0m in the comparable
2012 period.
Net cash provided by operating activities declined by ?9.7m in the first nine
months mainly due to adverse working capital movements in the first nine months
of 2013 compared to the first nine months of 2012 as cash inflows from working
capital for the first nine months of 2012 amounted to ?6.8m compared to cash
outflows of ?3.1m in 2013.
Net debt decreased by ?10.4m from 30(th) September 2012 to 30(th) September
2013 due to positive operating cash flows after investing activities in the last
quarter of 2012.
During the second quarter of 2013, HTM Sport GmbH ("HTM") redeemed its
outstanding Senior Notes due 2014. In September 2013, HTM issued a new ?45.0m
bond which was subsequently increased to ?60.0m due to additional investor
demand. At the 30(th) September 2013 HTM held ?5.5m of the bond which was
available for resale. During October 2013, ?3.5m of the bond held by HTM was
sold.
For 2013 we are anticipating a modest 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 around those achieved in 2012.
Our interim financial statements for the period ended 30(th) of September 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
Bond:
ISIN: CH0222437011
Market: SIX Swiss Exchange
The press release can also be downloaded from the following link:
Results_Q3_2013:
http://hugin.info/133711/R/1741070/584815.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#1741070]
Unternehmensinformation / Kurzprofil:
Datum: 07.11.2013 - 08:59 Uhr
Sprache: Deutsch
News-ID 313798
Anzahl Zeichen: 13430
contact information:
Town:
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Kategorie:
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"Ad hoc: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine Months ended 30th September 2013."
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