Ducati Motor Holding Announces Preliminary Full Year and Fourth Quarter 2004 Financial Results
BOLOGNA, Italy, February 11 --
2004 2003 Var% 4Q04 4Q03 Var%
Revenues 382.8 388.2 -1.4% 114.8 103.6 10.8%
EBITDA 39.1 45.2 -13.5% 13.0 14.3 -9.1%
Profit/Loss
(pre-tax) (1.8) 0.1 na 8.0 7.1 12.7%
Net Debt (115.9) (117.2) 1.1%
(Million euro)
Ducati Motor Holding S.p.A. , a leading manufacturer of high performance motorcycles, today announced preliminary full year and fourth quarter 2004 financial results.
Revenues for 2004 were Euro 382.8 million, up 1.0% excluding forex effects, (or down 1.4% including forex effects) versus last year. Revenues from motorcycles decreased 4.4% to Euro 302.2 million and represented 78.9% of revenues. Motorcycle-related products, including spare parts, technical accessories and apparel, increased 8.2% to Euro 75.0 million against last year.
Gross margin for 2004 was 36.0% versus last year's 34.7%, thanks to product cost reduction, operational efficiencies and related product sales increase, partly offset by a negative forex effect. EBITDA was Euro 39.1 million, or 10.2% of revenues, up 2.3% excluding forex effects (or down 13.5% including forex effects), versus Euro 45.2 million of the previous yea,. mainly due to increased sales costs.
At EBT level, the result was a loss of Euro 1.8 million versus break-even in 2003, due to a lower EBITDA, which was partially offset by lower depreciation and financial charges.
The Company's net debt on December 31, 2004 was Euro 115.9 million, down against Euro 117.2 million on December 31, 2003. The company's gearing ratio was 75% on December 31, 2004 versus 74% on the same date a year earlier.
Unofficial Ducati worldwide registrations for 2004 were down 5.2% versus last year, with France down 1%, Italy down 6%, UK down 13%, Benelux down 17%, Japan down 19%, Germany down 20%, while Spain was up 33%, the US was up 15% and Australia was up 8%.
"2004 was a challenging year for Ducati. The continuing weakness of the dollar and the difficult market conditions in Germany, France, UK and Japan together with the delay in the introduction of the new Monster S2R weighed heavily on both sales and registrations", said Federico Minoli, President and CEO of Ducati Motor Holding. "However, the company concluded 2004 with excellent fourth quarter results and 2 podiums in the MotoGP championship, which are both promising results for the coming year. The success of the presentation of the new Superbike, the arrival of the Monster S2R and the great excitement around the new Multistrada 620 all give us a year to look forward to with confidence".
"We expect to close 2004 with a net loss of approximately 8 million Euro, due to current and deferred income taxes", added Enrico D'Onofrio, Chief Financial Officer of Ducati. "We are finalizing the refinancing of the bond which is expiring by the end of May 2005. The company is evaluating all possible financial instruments including a new bond issue in the range of 100 Million Euros."
Revenues for the fourth quarter of 2004 were Euro 114.8 million, up 16.2% excluding forex effects, (or up 10.8% including forex effects) over the same period in 2003, due to higher bike sales.
Gross margin for the fourth quarter was 33.4% of revenues, in line with the previous year. EBITDA was Euro 13.0 million, compared to Euro 14.3 million in 2003, due to a negative forex effect and higher sales costs.
Results before tax for the fourth quarter of 2004 were a profit of Euro 8.0 million versus Euro 7.1 million last year. This increase is mainly due to lower financial charges.
Fourth quarter 2004 financial results were approved by the Board of Director on February 10, 2005.
By the end of the year 2004, the Company had re-purchased 3,769,249 shares, equivalent to Euro 3,283,016 or 2.37% of its stock capital.
A discussion by Ducati management of 2004 results is available under the Company section of our website www.ducati.com in Investor Relations. It can be accessed until mid-March 2005 under "Webcast of Results" at the bottom of the IR Press Release Schedule section.
Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. Ducati has won thirteen of the last fifteen World Superbike Championship titles and more individual victories than the competition put together. The Company produces motorcycles in five market segments which vary in their technical and design features and intended customers: Superbike, Supersport; Monster, Sport Touring and Multistrada. The Company's motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European and North American markets. For more information about the Company, please visit our web site at http://www.ducati.com
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands)
December 31, 2004 December 31, 2003
EUR % EUR %
Current assets
Cash and cash equivalents 33,327 23,973
Trade receivables, net 84,333 80,421
Inventories 92,293 104,774
Other current assets 18,642 18,869
Current assets - Credit Link 15,000 -
Total current assets 243,595 54.4% 228,037 52.4%
Non current assets
Property, plant and equipment-net 62,961 67,167
Intangible fixed assets, net 119,532 124,721
Equity investments 20 12
Non current assets - Credit
Link / ABS 10,000 25,000
Other long-term assets 11,822 12,096
Total non current assets 204,335 45.6% 228,996 50.1%
Total assets 447,930 100.0% 457,033 100.0%
Current liabilities
Short-term bank borrowings 93,346 65,587
Current portion of long-term debt 61,850 3,740
Accounts payable - trade 77,112 89,503
Income and other taxes payables 7,406 12,212
Other current liabilities 16,335 15,930
Provisions for risks and
charges - current portion 3,871 4,011
Total current liabilities 259,920 58.0% 190,983 41.6%
Long-term liabilities
Long-term debt, net of current
portion 7,116 81,882
Employees' leaving entitlement 9,253 8,277
Deferred income taxes 86 35
Income an other taxes
payables - long term portion 1,292 -
Other long-term liabilities 11,869 14,939
Provision for risks and
charges - long term portion 2,518 2,518
Total long-term liabilities 32,134 7.2% 107,651 23.6%
Total liabilities 292,054 298,634
Total Group shareholders' equity 155,860 34.8% 158,399 34.7%
Minority interests 16 -
Total shareholders' equity 155,876 34.8% 158,399 34.7%
Total liabilities and
shareholders' equity 447,930 100% 457,033 100%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(US$ in thousands)
December 31, 2004 December 31, 2003
US$ % US$ %
Current assets
Cash and cash equivalents 45,395 32,654
Trade receivables, net 114,870 109,541
Inventories 125,712 142,713
Other current assets 25,392 25,701
Current assets - Credit Link 20,432 -
Total current assets 331,801 54.4% 310,609 52.4%
Non current assets
Property, plant and equipment-net 85,759 91,488
Intangible fixed assets, net 162,815 169,882
Equity investments 27 16
Non current assets - Credit
Link / ABS 13,621 34,053
Other long-term assets 16,102 16,476
Total non current assets 278,324 45.6% 311,915 50.1%
Total assets 610,125 100.0% 622,524 100.0%
Current liabilities
Short-term bank borrowings 127,146 89,336
Current portion of long-term debt 84,246 5,094
Accounts payable - trade 105,034 121,912
Income and other taxes payables 10,088 16,634
Other current liabilities 22,250 21,698
Provisions for risks and
charges - current portion 5,273 5,463
Total current liabilities 354,037 58.0% 260,137 41.6%
Long-term liabilities
Long-term debt, net of current
portion 9,693 111,532
Employees' leaving entitlement 12,604 11,274
Deferred income taxes 117 48
Income an other taxes
payables - long term portion 1,760 -
Other long-term liabilities 16,166 20,348
Provisionfor risks and
charges - long term portion 3,429 3,430
Total long-term liabilities 43,769 7.2% 146,632 23.6%
Total liabilities 397,806 406,769
Total Group shareholders' equity 212,297 34.8% 215,755 34.7%
Minority interests 22
Total shareholders' equity 212,319 34.8% 215,755 34.7%
Total liabilities and
shareholders' equity 610,125 100% 622,524 100%
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Euro in thousands)
Year ended Year ended
31/12/04 31/12/03
EUR 000 EUR 000
Cash flow generated by operating activities
Net profit (loss) for the period (1,763) 40
Change in cumulative translation adjustment (1,012) (1,381)
Change in minority interests - -
Adjustments to reconcile net profit (loss)
with the movements
of funds generated by (used in) operating
activities:
- Amortisation, depreciation and
writedowns 35,519 38,889
- Deferred income taxes 51 -
- Net change in employees'
leaving entitlements 976 1,151
Change in operating assets
and liabilities
- Trade receivables (3,912) 1,621
- Inventories 12,481 6,653
- Other current assets 365 (1,443)
- Trade payables (12,391) (5,611)
- Other current liabilities 265 (4,781)
- Due to tax authorities (3,514) 6,858
- Other long-term assets and liabilities - (13,026)
Net cash generated
by operating activities 27,065 28,970
Cash flow (used in) generated
by investing activities
Net change in property, plant and equipment (10,472) (15,746)
Net change in intangible fixed assets (15,652) (18,110)
Decrease (increase) in equity investments 144 -
Other non-current assets - 66
Net cash used in investing activities (25,980) (33,790)
Net cash generated by operating activities
less cash flow used in investing activities 1,085 (4,820)
Cash flow (used in) generated by financing
activities
Change in short- and long-term debt 29,533 30,169
Subscription to (buy back of) bonds (21,500) (15,336)
Increase in share capital and reserves 236 -
Other non-current financial assets - (10,000)
Net cash (used in) generated by financing
activities 8,269 4,833
Increase (decrease) in cash on hand, bank
deposits and securities 9,354 13
Cash and cash equivalents, beginning of
the period 23,973 23,960
Cash and cash equivalents, end of the period 33,327 23,973
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(US$ in thousands)
Year ended Year ended
31/12/04 31/12/03
$/000 $/000
Cash flow generated by operating activities
Net profit (loss) for the period (2,401) 54
Change in cumulative translation adjustment (1,378) (1,881)
Change in minority interests - -
Adjustments to reconcile net profit
(loss) with the movements
of funds generated by (used in) operating
activities:
- Amortisation, depreciation and writedowns 48,378 52,968
- Deferred income taxes 69 -
- Net change in employees' leaving entitlements 1,329 1,568
Change in operating assets
and liabilities
- Trade receivables (5,328) 2,208
- Inventories 16,999 9,062
- Other current assets 497 (1,965)
- Trade payables (16,877) (7,642)
- Other current liabilities 361 (6,512)
- Due to tax authorities (4,786) 9,341
- Other long-term assets and liabilities - (17,742)
Net cash generated
by operating activities 36,863 39,459
Cash flow (used in) generated
by investing activities
Net change in property, plant and equipment (14,263) (21,446)
Net change in intangible fixed assets (21,318) (24,666)
Decrease (increase) in equity investments 196 -
Other non-current assets - 90
Net cash used in investing activities (35,385) (46,022)
Net cash generated by operating activities
less cash flow used in investing activities 1,478 (6,563)
Cash flow (used in) generated by financing
activities
Change in short- and long-term debt 40,225 41,091
Subscription to (buy back of) bonds (29,284) (20,888)
Increase in share capital and reserves 321 -
Other non-current financial assets - (13,620)
Net cash (used in) generated by financing
activities 11,262 6,583
Increase (decrease) in cash on hand, bank
deposits and securities 12,740 20
Cash and cash equivalents, beginning of the period 23,973 23,960
Cash and cash equivalents, end of the period 36,713 23,980
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Three Months Ended Three Months Ended
Dec, 31 Dec, 31 Dec, 31 Dec, 31
2004 2003 2004 2003
Net Sales (Euro in
thousands, US$ in
thousands)
Motorcycles EUR 97,936 EUR 86,210 $ 133,399 $ 117,427
Spare Parts,
Accessories, Apparel 16,099 15,567 21,928 21,204
Miscellaneous Other 761 1,864 1,037 2,539
Total net sales EUR 114,796 EUR 103,641 $ 156,364 $ 141,170
Ducati Units
Motorcycle shipments: % Change
North America 1,974 1,701 16.0%
Main European market 6,440 5,743 12.1%
Japan 816 1,252 (34.8%)
Rest of World 2,090 1,380 51.4%
Total 11,320 10,076 12.3%
Motorcycle product mix: % Change
Superbike 3,509 2,660 31.9%
Supersport 406 570 (28.8%)
Sport Naked 5,069 4,734 7.1%
Sport Touring 832 849 (2.0%)
Multistrada 1,504 1,263 19.1%
Total 11,320 10,076 12.3%
Unofficial Motorcycle
Registrations: % Change
North America 839 886 (5.3%)
Main European market 1,902 2,442 (22.1%)
Japan 600 795 (24.5%)
Rest of World 1,153 902 27.8%
Total 4,494 5,025 (10.6%)
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Twelve Months Ended Twelve Months Ended
Dec, 31 Dec, 31 Dec, 31 Dec, 31
2004 2003 2004 2003
Net Sales (Euro in
thousands, US$ in
thousands)
Motorcycles EUR 302,179 EUR 315,959 $ 411,598 $ 430,368
Spare Parts,
Accessories, Apparel 74,985 69,298 102,137 94,391
Miscellaneous Other 5,598 2,984 7,625 4,065
Total net sales EUR 382,762 EUR 388,241 $ 521,360 $ 528,824
Ducati Units
Motorcycle shipments: % Change
North America 5,298 4,618 14.7%
Main European market 21,862 23,808 (8.2%)
Japan 2,351 3,508 (33.0%)
Rest of World 7,049 6,483 8.7%
Total 36,560 38,417 (4.8%)
Motorcycle product mix: % Change
Superbike 10,213 9,308 9.7%
Supersport 1,426 2,818 (49.4%)
Sport Naked 18,027 17,991 0.2%
Sport Touring 2,996 2,275 31.7%
Multistrada 3,898 6,025 (35.3%)
Total 36,560 38,417 (4.8%)
Unofficial Motorcycle
Registrations: % Change
North America 5,673 4,927 15.1%
Main European market 21,806 24,080 (9.4%)
Japan 2,914 3,579 (18.6%)
Rest of World 5,696 5,502 3.5%
Total 36,089 38,088 (5.2%)
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, US$ in thousands, except per share and share amounts)
Twelve Months Ended Twelve Months Ended
Dec, 31 Dec, 31 Dec, 31 Dec, 31 Percent
2004 2003 2004 2003 Change
EUR EUR $ $
Net Sales 382,762 388,241 521,360 528,823 (1.4%)
Cost of goods sold (244,846) (253,406) (333,505) (345,164)
Gross Profit 137,916 134,835 187,855 183,659 2.3%
Other operating
revenues 24,718 23,178 33,668 31,571
SG&A expenses (123,178) (112,993) (167,781) (153,908)
Other operating
income (371) 187 (505) 255
Depreciation &
amortization (35,520) (38,889) (48,383) (52,971)
Operating
income/(loss) 3,565 6,318 4,854 8,606 (43.6%)
Financing
expense, net (4,764) (6,756) (6,488) (9,202)
Other non-operating
income/(expense), net (564) 558 (768) 760
Profit/(loss)before
income taxes (1,763) 120 (2,402) 164 (1568.3%)
Shares
outstanding 158,826,407 158,500,963 158,826,407 158,500,963
Percent
Other Financial
Data Change
Motorcycles
Produced (Units) 35,538 36,661 (3.1%)
Motorcycles Sold
(Units) 36,560 38,417 (4.8%)
Unofficial
Registrations (Units) 36,089 38,088 (5.2%)
EBITDA 39,084 45,207 53,236 61,517 (13.5%)
EBITDA Margin 10.2% 11.6%
Note : On December 31, 2004 US$1= 0,7342 Euros
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, US$ in thousands, except per share and share amounts)
Three Months Ended Three Months Ended
Dec, 31 Dec, 31 Dec, 31 Dec, 31 Percent
2004 2003 2004 2003 Change
EUR EUR $ $
Net Sales 114,796 103,641 156,364 141,169 10.8%
Cost of goods sold (76,457) (68,977) (104,142) (93,954)
Gross Profit 38,339 34,664 52,222 47,215 10.6%
Other operating
revenues 6,460 6,854 8,799 9,336
SG&A expenses (32,042) (27,582) (43,644) (37,569)
Other operating
income/(expense),
net 177 193 241 263
Depreciation &
amortization (7,403) (10,770) (10,084) (14,670)
Operating
income/(loss) 5,531 3,359 7,534 4,575 64.7%
Financing expense, net 2,649 (971) 3,610 (1,323)
Other non-operating
income/(expense), net (134) 4,736 (183) 6,451
Profit/(loss)before
income taxes 8,046 7,124 10,961 9,703 13.0%
Shares
outstanding 158,826,407 158,500,963 158,826,407 158,500,963
Percent
Other Financial Data Change
Motorcycles Produced
( Units) 6,509 9,800 (33.6%)
Motorcycles Sold
(Units) 11,320 10,076 12.3%
Unofficial
Registrations (Units) 4,494 5,025 (10.6%)
EBITDA 12,933 14,129 17,739 19,505 (9.1%)
EBITDA Margin 11.3% 13.6%
Note : On December 31, 2004 US$1= 0,7342 Euros
