Ducati Motor Holding Announces 2006 First Quarter Results
BOLOGNA, Italy, May 16, 2006 -- The Board of Directors of Ducati Motor Holding S.p.A. (Borsa Italiana: DMH; NYSE: DMH) approved today the financial results for the first quarter ended March 31, 2006.
Revenues for the first quarter of 2006 were Euro 78.2 million, down 4.5% compared to Euro 81.9 million in the same period in 2005. This was due to a reduction in motorcycle sales, offset by a positive product mix, increased sales in accessories, as well as a positive exchange rate effect. 7,337 units were sold in the period. Revenues from motorcycles for the period decreased 8.6% to Euro 60.2 million against the same period last year and accounted for 77.0% of total revenues. Motorcycle-related products, including spare parts, accessories and apparel, amounted to Euro 16.9 million, up 9.9% on the first quarter of 2005.
Gross margin for the period amounted to Euro 24.2 million or 31.0% of revenues versus Euro 17.9 million or 21.8% over the same period last year, due to a positive product mix, increased accessories sales, as well as a positive exchange rate effect.
EBITDA was Euro 11.3 million for the period and accounted for 14.5% of revenues, versus 9.6% in the same period last year.
Operating result (EBIT) was a profit of Euro 6.0 million versus a Euro 2.1 million profit for the same period in 2005, due to the above-mentioned factors.
At EBT level, the result was a profit of Euro 5.3 million versus a loss of Euro 0.4 million in the same period in 2005.
Net result for the first quarter 2006 was a profit of Euro 1.5 million compared to a loss of Euro 2.6 million in the first quarter of 2005.
Company net debt as of March 31, 2006 was Euro 141.2 million, an improvement compared to Euro 159.2 million on March 31, 2005 and an improvement of Euro 4.2 million versus December 31, 2005, which is in line with the seasonality of sales.
As of March 31, 2006, the Company's net assets were Euro 122.0 million.
For the first quarter of 2006, unofficial Ducati registrations were up 3.3% on the same period of last year. Registrations in Japan were up by 30%, in the US by 19%, in the non-subsidiary countries by 18%, and in Germany by 3%, while they were down in France (-3%), Italy (-6%), Benelux (-25%) and the UK (-32%).
"2006 is off to a strong start, both in terms of financial results as well as on the racetrack. The transition from TPG to InvestIndustrial as the controlling shareholders has been successfully completed and the Company refinancing has seen positive input from the banks, headed by UniCredit," announced Federico Minoli, Ducati's Chairman and Chief Executive Officer. "The Company has the financial resources and renewed enthusiasm to face future challenges with passion and confidence."
Enrico D'Onofrio, Chief Financial Officer for Ducati, added, "Thanks to a favourable product and geographic mix, the first quarter of 2006 sees a return to profit and an improved net financial position on last year. However, year-end forecast remains prudent and our main objective for 2006 is to reduce stock in our dealer network and improve structural costs."
As of March 31, 2006 the Company did not hold any treasury shares.
Founded in 1926, Ducati develops racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. The Company produces motorcycles in six market segments which vary in their technical and design features and intended customers: Superbike, Supersport; Monster, Sport Touring, Multistrada and Sport Classic. The Company's motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European and North American markets. Ducati has won thirteen of the last fifteen World Superbike Championship titles and more individual victories than the competition put together. For more information about the Company, please visit our web site at http://www.ducati.com
01/01/06-31/03/06 01/01/05-31/03/05 Var%
Revenues 78.2 81.9 -4.5%
EBITDA 11.3 7.9 43.4%
Net result 1.5 (2.6)
Net Debt (141.2) (159.2) -11.3%
(Million Euro)
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Three Months Ended Three Months Ended
March, 31 March, 31 March, 31 March, 31
2006 2005 2006 2005
Net Revenues
(Euro in
thousands, US$
in thousands)
Motorcycles EUR 60,162 EUR 65,791 $ 72,821 $ 79,633
Spare Parts,
Accessories,
Apparel 16,912 15,389 20,470 18,627
Other 1,104 702 1,336 850
Total Net
Revenues EUR 78,178 EUR 81,882 $ 94,627 $ 99,110
Ducati Units
Motorcycle
shipments: % Change
North
America 2,502 1,710 46.3%
Main
European
market 2,845 4,997 (43.1%)
Japan 555 513 8.2%
Rest of
World 1,435 1,745 (17.8%)
Total 7,337 8,965 (18.2%)
Motorcycle
product mix: % Change
Superbike 1,147 2,120 (45.9%)
Supersport 176 259 (32.0%)
Sport Naked 3,933 4,174 (5.8%)
Sport
Touring 550 389 41.4%
Multistrada 666 2,023 (67.1%)
Sport
Classic 865 0 n.a.
Total 7,337 8,965 (18.2%)
Unofficial
Motorcycle
Registrations: % Change
North
America 1,670 1,404 18.9%
Main
European
market 4,382 4,755 (7.8%)
Japan 640 494 29.6%
Rest of
World 1,473 1,253 17.6%
Total 8,165 7,906 3.3%
Ducati Motor Holding Group
Profit & Loss
(Euro in thousands, US$ in thousands, except for shares)
Three Months Ended Three Months Ended
March, 31 March, 31 March, 31 March, 31 Percent
2006 2005 2006 2005 Change
Revenues (net) EUR 78,178 EUR 81,882 $ 94,627 $ 99,110 (4.5%)
Cost of goods sold (53,954) (64,004) (65,306) (77,470)
Gross Margin 24,224 17,878 29,321 21,640 35.5%
Other operating
revenues 7,036 8,333 8,516 10,086
SG&A expenses (25,193) (23,737) (30,494) (28,731)
Other operating
income and expenses (68) (400) (82) (484)
Operating result 5,999 2,074 7,261 2,511 189.2%
Financing expense,
net (666) (2,494) (806) (3,019)
Profit/(loss)before
income taxes and
min.interest 5,333 (420) 6,455 (508)(1369.8%)
Income Tax (3,800) (2,206) (4,600) (2,670) 72.3%
Net Result
including minority
interests 1,533 (2,626) 1,855 (3,178) (158.4%)
Minority Interests (3) (1) (4) (1) 200.0%
Net Result for the
Group 1,530 (2,627) 1,851 (3,179) (158.2%)
Shares outstanding 159,360,037 158,826,407 159,360,037 158,826,407
Percent
Other Financial Change
Data
Motorcycles
Produced (Units) 9,068 9,616 (5.7%)
Motorcycles Sold
(Units) 7,337 8,965 (18.2%)
Unofficial
Registrations
(Units) 8,165 7,906 3.3%
EBITDA 11,300 7,881 13,678 9,538 43.4%
EBITDA Margin 14.5% 9.6%
Note: On March 31,
2006 US$1 = 0,8262
Euros
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, except per share and share amounts)
Period Period
ended ended
31.03.2006 31.12.2005
EUR 000 % EUR 000 %
Current assets
Cash and cash
equivalents 40,701 53,017
Trade receivables, net 110,227 102,232
Inventories 94,333 81,380
Other current assets 10,259 9,217
Total current assets 255,520 54.0% 245,846 53.1%
Non current assets
Property, plant and
equipment -net 64,765 66,556
Goodwill and intangible
assets with indefinite
useful lives 86,050 86,050
Other intangible fixed
assets net 43,314 39,665
Equity investments 20 20
Deferred tax assets 22,709 24,662
Other long-term assets 373 386
Total non current
assets 217,231 46.0% 217,339 46.9%
Total assets 472,751 100% 463,185 100%
Current liabilities
Short-term bank
borrowings 57,647 64,148
Accounts payable -
trade 94,626 85,203
Income and other taxes
payables 6,762 5,537
Other current
liabilities 24,511 20,202
Provisions for risks
and charges - current
portion 17,295 18,621
Total current
liabilities 200,841 42.5% 193,711 41.8%
Long-term liabilities
Long-term debt, net of
current portion 124,230 125,824
Employee benefits 9,596 9,669
Deferred income taxes 14,529 13,697
Provision for risks and
charges - long term
portion 1,501 1,525
Total long-term
liabilities 149,856 31.7% 150,715 32.5%
Total liabilities 350,697 74.2% 344,426 74.4%
Shareholders' equity
Capital stock 82,867 82,867
Other reserves 77,321 75,559
Retained earnings
(losses) (39,684) 1,780
Results for the period 1,530 (41,464)
Total Group
Shareholders' equity 122,034 25.8% 118,742 25.6%
Minority interests 20 17
Total liabilities and
shareholders' equity 472,751 100% 463,185 100%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations
Data
(US$ in thousands, except per share and share amounts)
Period ended Period ended
31.03.2006 31.12.2005
$ 000 % $ 000 %
Current assets
Cash and cash equivalents 49,264 64,172
Trade receivables 133,419 123,742
Inventories 114,181 98,502
Other current assets 12,417 11,156
Total current assets 309,281 54.0% 297,572 53.1%
Non-current assets
Property, plant and equipment - net 78,392 80,559
Goodwill and intangible assets with 104,155 104,155
indefinite useful lives
Other intangible fixed assets - net 52,427 48,011
Equity investments 24 24
Deferred tax assets 27,487 29,851
Other long-term assets 451 467
Total non-current assets 262,936 46.0% 263,067 46.9%
Total assets 572,217 100% 560,639 100%
Current liabilities
Short-term bank borrowings 69,776 77,645
Accounts payable - trade 114,535 103,130
Income and other taxes payables 8,185 6,702
Other current liabilities 29,668 24,452
Provisions for risks and charges - 20,934 22,539
current portion
Total current liabilities 243,098 42.5% 234,468 41.8%
Long-term liabilities
Long-term debt, net of
current portion 150,368 152,297
Employee benefits 11,615 11,703
Deferred income taxes 17,586 16,579
Provision for risks and charges - 1,816 1,846
long term portion
Total long-term liabilities 181,385 31.7% 182,425 32.5%
Total liabilities 424,483 74.2% 416,893 74.4%
Shareholders' equity
Capital stock 100,302 100,302
Other reserves 93,589 91,457
Retained earnings (losses) (48,033) 2,155
Results for the period 1,852 (50,188)
Total Group Shareholders' equity 147,710 25.8% 143,726 25.6%
Minority interests 24 20
Total liabilities and shareholders' 572,217 100% 560,639 100%
equity
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Euro in thousands)
Period ended Period ended
31.03.2006 31.03.2005
EUR 000 EUR 000
Cash flow generated by operating activities
Net profit (loss) for the year 1,530 (2,627)
Change in cumulative translation adjustment (135) 660
Adjustments to reconcile net profit (loss)
with the
movements of funds generated by (used in)
operating activities
- Non cash items for stock options 197 231
- Amortisation, depreciation 5,301 5,807
- Taxes paid (50) (134)
Change in operating assets
and liabilities
- Working capital (11,525) (9,070)
- Effects of IAS 39 and 32 adoption from 1 January (3,219)
2005
- Other current assets (1,042) (1,158)
- Other current liabilities 4,309 3,269
- Due to tax authorities 1,275 1,014
- Deferred tax assets 1,953 1,291
- Deferred tax liabilities 832 54
- Employee benefits (73) 337
- Provisions for risks and charges (16) -
- Restructuring reserve (1,334) -
Net cash generated by operating
activities (A) 1,222 (3,545)
Cash flow (used in) generated by
investing activities
Net change in property, plant and equipment (1,728) (1,317)
Net change in intangible fixed assets (5,462) (3,791)
Disposal from property, plant and equipment 31 23
Other fixed assets 13 (47)
Net cash used in investing activities (B) (7,146) (5,132)
Cash flow generated from operating
activities,
net of cash used in investing
activities (A-B) (5,924) (8,677)
Cash flow (used in) generated by financing
activities
Change in short-term and long-term debt (7,903) 1,434
Interests paid (192) (735)
Change in minority interests 3 1
Increase in share capital and reserves 1,700 -
Change in cash generated by financing (6,392) 700
activities
Increase (decrease) in cash on hand, bank deposits
and securities (12,316) (7,977)
Cash and cash equivalents, beginning of 53,017 49,327
year
Cash and cash equivalents, end of period/ 40,701 41,350
year
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Dollar in thousands)
Period Period
ended ended
31.03.2006 31.03.2005
$ 000 $ 000
Cash flow generated by operating activities
Net profit (loss) for the 1,852 (3,180)
year
Change in cumulative translation adjustment (163) 798
Adjustments to reconcile net profit (loss)
with the
movements of funds generated by (used in)
operating activities
- Non cash items for stock options 238 280
- Amortisation, 6,416 7,029
depreciation
- Taxes paid (61) (162)
Change in operating assets
and liabilities
- Working capital (13,950) (10,978)
- Effects of IAS 39 and 32 adoption from 1 (3,896)
January 2005
- Other current assets (1,261) (1,402)
- Other current 5,216 3,957
liabilities
- Due to tax 1,543 1,227
authorities
- Deferred tax assets 2,364 1,563
- Deferred tax 1,007 65
liabilities
- Employee benefits (88) 408
- Provisions for risks and charges (19) -
- Restructuring reserve (1,615) -
Net cash generated by
operating
activities (A) 1,479 (4,291)
Cash flow (used in) generated by
investing activities
Net change in property, plant and equipment (2,092) (1,594)
Net change in intangible fixed assets (6,611) (4,589)
Disposal from property, plant and equipment 37 27
Other fixed assets 15 (56)
Net cash used in investing activities (B) (8,651) (6,212)
Cash flow generated from operating activities,
net of cash used in
investing
activities (A-B) (7,172) (10,503)
Cash flow (used in) generated by financing
activities
Change in short-term and long-term debt (9,566) 1,736
Interests paid (232) (889)
Change in minority 4 1
interests
Increase in share capital and reserves 2,058 -
Change in cash generated by financing (7,736) 848
activities
Increase (decrease) in cash on hand, bank
deposits
and securities (14,908) (9,655)
Cash and cash equivalents, beginning of year 64,172 59,705
Cash and cash equivalents, end of period/ year 49,264 50,050
For further information, please contact: Federico Strano, Director, Investor Relations, Ducati Motor Holding S.p.A.. Via Cavalieri Ducati, 3, Bologna 40132, Italy, e-mail: federico.strano@ducati.com, Main Tel: +39-051-6413-111, Direct Tel: +39-051-6413-213
