Head N.V. : Ad hoc: HEAD NV and HTM Sport GmbH Announce the Audited Results for the Twelve Months Ended 31st December 2012 Head N.V. / Ad hoc: HEAD NV and HTM Sport GmbH Announce the Audited Results for the Twelve Months Ended 31st December 2012 . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement. HEAD NV and HTM Sport GmbH Announce the Audited Results for the Twelve Months Ended 31^st December 2012, the Filing of Head NV's Annual Report for the Year ended 31^st December 2012 and the details of the 2013 AGM. Amsterdam - 14^th March 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 Audited Financial Information €'000 For the years ended Dec 31, 2012 2011 % Profit and Loss Gross Sales: Winter Sports 146,621 164,585 -10.9% Racquet Sports 142,281 126,430 12.5% Diving 51,808 48,469 6.9% Sportswear 5,837 5,601 4.2% Licensing 5,778 4,792 20.6% Sales Deductions (9,112) (10,773) -15.4% Net Sales 343,214 339,103 1.2% Adjusted Operating Profit 9,908 14,383 2.9% 4.2% Adjustments: Restructuring -- 3 ESOP (non-cash) 101 (415) Reported Operating Profit 10,009 13,971 2.9% 4.1% Interest and Other Finance Expense (exc Disagio) (5,785) (8,904) Non-Cash Disagio Costs (99) (8,493) Interest and Investment Income 776 678 Other Non-Operating Income (Expense) 134 (1,414) Current Tax (2,080) (1,041) Deferred Tax (571) 5,542 Net Income 2,384 338 Cash Flow Net cash provided by operating activities 24,796 6,183 Purchase of property, plant and equipment 8,507 8,788 Balance Sheet Cash and cash equivalents 41,153 24,909 Available for sale financial assets 5,011 4,875 Borrowings 99,734 101,913 Net Debt 53,570 72,129 Working Capital 130,598 145,961 Net Equity 174,468 173,217 Sales for the full year ended up 1.2% compared to the prior year driven by growth in all the divisions except Winter Sports. Sales were positively impacted by exchange rate movements in the year, and at constant currencies sales would have declined by 1.6% for the year. Winter Sports sales declined by 10.9% for the full year due to poor snow during the 2011/12 season which reduced pre-season orders as retails held excess stock. The 2012/13 season has started reasonably well in Europe with warm temperatures around Christmas, and poor in North America which resulted in lower than expected additional sales in 2012 but should however clear the excess inventory at retail and we anticipate that the industry should show some recovery in 2013. The continued investment in, and success of our race team along with continued strong product offering should allow the company to capitalise on this anticipated recovery in 2013. The Racquet Sports division reported an increase in sales of 12.5% for the year. This growth has been achieved mainly through increased volumes and improved mix in both balls and racquets in North America compounded by favourable exchange rate movements. Whilst trading conditions were tough in Europe for Diving, the division managed to increase sales overall by 6.9% due to higher sales in North America and Asia along with favourable exchange rates. Sportswear continued to grow, but was impacted by the difficult market conditions in Winter Sports. Although sales were marginally up overall for the year, adjusted operating profit for the group fell by nearly €4.5m in 2012 due to a combination of lower gross margins and higher costs. Gross margins fell by 1.3 percentage points mainly due to higher raw material prices, lower utilisation of our Winter Sports factories and higher R&D as a result of investments in Sportswear which together impacted profitability by €2.9m. Selling and Marketing costs increased by €1.3m due mainly to higher advertising costs in Winter Sports and General and Administrative costs increased by €0.6m due mainly to higher business administration and warehouse costs. The resulting adjusted operating profit for the year to 31^st December 2012 was €9.9m compared to €14.4m in 2011. Interest and Other Finance Expenses were lowered mainly as a result of the redemption of the Senior Secured Notes in 2011 which were replaced with lower interest loans. The redemption of these Senior Secured Notes also caused the high Non-Cash Disagio Costs in 2011 as the amortisation of these costs were accelerated on redemption. In 2011 the Company recorded a significant deferred tax benefit as historic operating losses in one of the Company's operating countries were recognised as a result of improved profitability. Overall, net income for the year ended 2012 improved by €2.0m from €338 thousand in 2011 to €2,384 thousand in 2012. Net cash provided by operating activities improved by €18.6m in 2012 compared to 2011, due predominantly to the lowering of working capital needs at the yearend compared to 2011. Whilst sales in our Winter Sports division have been lower in 2012 compared to 2011, the Company has managed to reduce inventory levels through the year which positively impacted cash flow. Lower Winter Sports sales have also resulted in a lower year end receivables position which again has positively impacted the cash flow. As a result of this positive trend in operating cash flows, net debt has reduced from €72.1m at 31^st December 2011 to €53.6m at the 31^st December 2012. For 2013 we see continued financial pressure on consumers, but the relatively good snow in Europe, the success of our athletes and the new product launches should allow the group to continue to be competitive in the market and desired by athletes. Head NV has filed its Annual Report for the Year ended 31^st December 2012 with the Authority for Financial Markets in the Netherlands (AFM) and the Vienna Stock Exchange (VSE). Copies of the report are available on our website. The first quarter's results will be released on or around the 10^th of May 2013. The Annual General Meeting of Shareholders of Head NV will be held on Thursday, the 25^th of April, 2013 at 2pm (local time) at the Sheraton Amsterdam Airport Hotel, Schiphol Boulevard 101, 1118 BG Amsterdam, The Netherlands. Details concerning the agenda, the right to attend, and how to exercise rights at the Annual General Meeting are available on our website. The Annual General Meeting will not be open to members of the general public. 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: firstname.lastname@example.org Gunter Hagspiel, Chief Financial Officer Tel: +43 5574 608 Fax: +43 5574 608 130 E-mail: email@example.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 YE 2012 ------------------------------------------------------------------------------ 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#1685020 --- End of Message --- Head N.V. Prins Bernhardplein 200 Amsterdam The Netherlands WKN: 577203 ;ISIN: NL0000238301;
Head N.V. : Ad hoc: HEAD NV and HTM Sport GmbH Announce the Audited Results for the Twelve Months Ended 31st December 2012
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