HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine Months ended 30th September 2014.
(Thomson Reuters ONE) -
Head N.V. /
HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine
Months ended 30th September 2014.
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The issuer is solely responsible for the content of this announcement.
Amsterdam - 6(th) November 2014 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a
leading global manufacturer and marketer of sports equipment, announced the
following results today.
Net sales for the first nine months of 2014 were up 5.0% compared to the prior
year driven by growth in all divisions. At constant currencies the sales growth
would have been higher at 6.5%.
Winter Sports sales for the first nine months were up 8.6% versus the comparable
period in 2013. At constant currencies, this increase would have been 9.4%. The
growth was mainly due to the rise in volumes of both skis and ski boots which
were delivered earlier in 2014 than in the prior year.
Our Winter Sports bookings for the year to date are around 5% ahead of those
achieved by the same point last year. We do not however anticipate that this
growth in bookings will be fully reflected in an equivalent full year sales
increase. This is due to bookings being affected by a number of timing issues
and also the fact that full year sales are dependent upon reorders in the 4th
quarter which are closely linked to weather conditions.
The growth in the Racquet Sports division of 1.3% for the nine months to
September 2014 was driven by higher volumes in tennis balls and higher revenues
in accessories partly offset by exchange rate movements.
Our Diving sales for the first nine months of 2014 were up 5.4% due to the sales
from our newly acquired SSI business offset by declines in equipment sales due
to tough market conditions.
Sportswear sales for the first nine months of 2014 increased by ?0.5m or 11.0%
mainly due to an increase in the sale of winter sportswear offset by a decline
in bag sales in the UK.
Licensing revenues for the first nine months of 2014 increased by ?1.3m or
34.8% due to increased reported sales from our licensees.
Gross margins for the nine months to 30(th) September 2014 have improved from
40.9% to 43.7% mainly due to higher licensing income, the mix in our diving
business due to the new acquired SSI business and lower costs of sales in our
bindings and tennis ball businesses.
The adjusted operating results improved from a loss of ?1.3m for the nine months
to 30(th) September 2013 to a profit of ?1.7m for the nine months to 30(th)
September 2014. This improvement of ?3.0m was due to the higher sales and
improved margins offset by an increase in selling and marketing costs of ?5.5m
(mainly higher advertising and departmental selling costs for our winter and
diving divisions) and an increase in general and administrative expenses of
?1.8m (mainly due to the inclusion of the newly acquired SSI business).
The higher level of long and short-term debt has resulted in an increase in
interest and other financial expenses of ?1.2m or 34.7% for the period to
30(th) September 2014 compared to the prior year.
Net cash used for operating activities increased by ?10.0m in the first nine
months mainly due to adverse working capital movements in the first nine months
of 2014 compared to the first nine months of 2013.
Net debt increased by ?46.6m from 30(th) September 2013 to 30(th) September
2014 predominantly due to the share buy back that took place in the second
quarter of 2014 (?23.8m) and the payments for the acquisitions in the period
(?9.7m) in addition to the cash used in operations over the twelve months
period.
Net debt will be further impacted in the fourth quarter of 2014 by the results
of our recent tender where 4,844,162 shares were tendered at a price of ?1.60
amounting to a cost of ?7.8m to the Company.
We continue to forecast a modest growth in sales this year based on our current
order books along with the contribution of our acquisition. However the impact
of currency fluctuations and some higher marketing and investment costs mean
that overall we believe our operating results will be broadly in line with those
achieved in 2013.
Our interim financial statements for the period ended 30(th) of September 2014
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 and SSI (diving) 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
Results Q3 2014:
http://hugin.info/133711/R/1869077/657064.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1869077]
Unternehmensinformation / Kurzprofil:
Datum: 06.11.2014 - 09:00 Uhr
Sprache: Deutsch
News-ID 350224
Anzahl Zeichen: 8888
contact information:
Town:
Amsterdam
Kategorie:
Business News
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"HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine Months ended 30th September 2014."
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