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
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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
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
Restructuring -- 3
ESOP (non-cash) 101 (415)
Reported Operating Profit 10,009 13,971
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
Net cash provided by operating activities 24,796 6,183
Purchase of property, plant and equipment 8,507 8,788
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
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
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
The first quarter's results will be released on or around the 10^th of May
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.
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
Gunter Hagspiel, Chief Financial Officer
Tel: +43 5574 608
Fax: +43 5574 608 130
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
Prins Bernhardplein 200,
1097 JB Amsterdam
Stock Market: Official Market of the Vienna Stock Exchange
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
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information contained therein.
Source: Head N.V. via Thomson Reuters ONE
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Prins Bernhardplein 200 Amsterdam The Netherlands
WKN: 577203 ;ISIN: NL0000238301;
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