Ducati Motor Holding Announces 2007 First Quarter Results
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BOLOGNA, Italy, May 14, 2007 -- 01/01/07- 01/01/06-
31/03/07 31/03/06 Var%
Revenues 95.4 76.6 24.5%
EBITDA 14.5 11.3 28.2%
Net result 5.6 1.5 266.3%
Net Debt (52.8) (141.2) -62.6%
(Million Euro)
The Board of Directors of Ducati Motor Holding S.p.A. (Borsa Italiana: DMH; NYSE: DMH) today approved the 2007 First Quarter Results, which confirm the success of Ducati's turnaround plan, with a remarkable improvement of all the financial indicators.
The success of the new products, launched in 2006, is enhanced by a strong first quarter increase and by the acceleration in registrations in April.
First quarter revenues are 95.4 Mio EUR (98.3 Mio EUR at constant forex) compared to 6.6 Mio EUR in the first quarter 2006 (+24.5% at current forex e +28.3% at constant forex), increasing thanks to the new Superbike 1098 sales performance and to the remarkable result of accessories and apparel revenues (+38.7%).
Bikes sold in the first quarter are 8,903 versus 7,337 in 2006 with a 21.3% increase, compared to a 3.0% increase of the relevant market.
Registrations increased steeply in April with 5.119 bikes versus 3.957 in 2006 (+29%), thus allowing a 14% increase in the first four months' performance and a dealer network inventory of 13.405 bikes or 2.7 months of sales, 2.306 bikes less than the comparable period of 2006 .
First quarter registrations increased in every country following the introduction of the new 2007 models. UK (+34,9%); Benelux (+42,3%); Germany (+5,7%), Italy (+5,1%) reverted last years' trend while the importers (+17,8%) and the USA (+15,2%) reconfirmed the growing trend. On the other hand, France (-2,7%) and, above all, Japan (-53,3%) showed a negative result since the new Superbike was launched only in April.
2007 First quarter Gross Margin is 25,9 Mio EUR, equal to 27,1% of revenues, versus 22,5 Mio EUR, or 29,4% in 2006. The margin decrease is mainly due to a negative Forex effect.
EBITDA was 14,5 Mio EUR, (16,6 Mio EUR at constant Forex), or 15,2% of revenues at current Forex (16,9% at constant Forex), compared to an EBITDA of 11,3 Mio EUR in 2006, or 14,8% of revenues.
The operating result (EBIT) was positive at 9,3 Mio EUR versus 6,0 Mio EUR (+55,4%) the previous year, thanks to the improved EBITDA.
EBT was 9,0 Mio EUR versus 5,3 Mio EUR (+69,0%) the previous year, thanks to an improvement of the operating margin and lower financial interests.
The Net Result is positive at 5,6 Mio EUR compared to 1,5 Mio EUR the year before.
Net Debt reduced to 52,8 Mio EUR versus 141,2 Mio EUR in March 2006, thanks to the capital increase and to working capital improvements.
The company's President and CEO commented:
"I am extremely satisfied at having brought Ducati, together with the vital support of the management group, back onto the road of profitability and growth.
The worldwide success of registrations of the new Superbike 1098, which were much higher than our expectations, and the significant portfolio of orders for the 1098, Hypermotard and Desmosedici means we can confidently confirm a two digit growth for 2007, with a return to profit a year earlier than our forecast in the relaunch plan.
The extraordinary show of strength in MotoGP with 3 victories in 4 races, and the formidable worldwide appeal of the brand are finally, after a few years of uncertainty, coupled with a winning product thus allowing to look optimistically at the future of the company.
It is therefore a suitable moment to leave Ducati and pursue new challenges. I leave Ducati financially strong, with a passionate and capable managerial team. Together we made the Ducati brand and product into an icon that is respected and loved around the world.
I am satisfied with what we have accomplished, because Ducati will bear our mark in the future. With sadness but also with enormous pride, I, too, will forever bear inside me the mark of Ducati".
"The first three months of the year posted positive results, with an increase in revenues of 24,5%, despite the adverse impact of Forex, and with an improvement of the net financial position of 88,4 Mio EUR compared to the first quarter 2006. All sectors show a significant increase in sales, even when compared to a particularly satisfying quarter in 2006. The 2007 guidance is confirmed with a double digit increase in revenues, EBITDA at 12% of revenues and a return to profit. If the figures for May and June confirm April's acceleration in registrations - considering the Forex trend as well - we may be able to review the guidance upwards when publishing the second quarter results" added Enrico D'Onofrio, CFO.
Please note that as from May 14th 2007, Paolo Poma has become the Director of Investor Relations.
Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. The Company produces motorcycles in seven market segments which vary in their technical and design features and intended customers: Superbike, Supersport, Monster, Sport Touring, Multistrada SportClassic and the new Hypermotard. The Company's motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European, Japan and North American markets. Ducati has won fourteen of the last sixteen World Superbike Championship titles and more individual victories than the competition put together. Since 2003 Ducati has also been taking part in the MotoGP World Championship. For more information about the Company, please visit our web site at http://www.ducati.com
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Three Months Three Months
Ended Ended
March, March, March, March,
31 31 31 31
2007 2006 2007 2006
Net Revenues
(Euro in thousands,
US$ in thousands)
Motorcycles EUR 74,478 EUR 60,162 $ 99,190 $ 80,124
Spare Parts, 19,735 15,334 26,283 20,422
Accessories,
Apparel
Other 1,166 1,104 1,553 1,470
Total Net Revenues EUR 95,379 EUR 76,600 $ 127,026 $ $102,016
Ducati Units
Motorcycle shipments: % Change
North 2,747 2,502 9.8%
America
Main 3,981 2,839 40.2%
European
market
Japan 323 555 (41.8%)
Rest of 1,852 1,441 28.5%
World
Total 8,903 7,337 21.3%
Motorcycle product mix: % Change
Superbike 3,450 1,147 200.8%
Supersport 47 176 (73.3%)
Sport Naked 3,917 3,933 (0.4%)
Sport 291 550 (47.1%)
Touring
Multistrada 461 666 (30.8%)
Sport 737 865 (14.8%)
Classic
Total 8,903 7,337 21.3%
Unofficial Motorcycle % Change
Registrations:
North 1,916 1,663 15.2%
America
Main 4,758 4,401 8.1%
European
market
Japan 299 640 (53.3%)
Rest of 1,817 1,543 17.8%
World
Total 8,790 8,247 6.6%
Ducati Motor Holding Group
Profit & Loss
(Euro in thousands, US$ in thousands, except for shares)
Three Months Ended
March, 31 March, 31
2007 2006
Revenues (net) EUR 95,379 EUR 76,600
Cost of goods sold (69,498) (54,097)
Gross Margin 25,881 22,503
Other operating 7,479 6,687
revenues
SG&A expenses (24,284) (23,123)
Other operating 245 (68)
income and expenses
Operating result 9,321 5,999
Financing expense, (310) (666)
net
Profit/(loss)before 9,011 5,333
income taxes and
min.interest
Income Tax (3,412) (3,800)
Net Result 5,599 1,533
including minority
interests
Minority Interests 5 (3)
Net Result for the 5,604 1,530
Group
Shares outstanding 320,687,920 159,360,037
Other Financial Data
Motorcycles 10,003 9,068
Produced (Units)
Motorcycles Sold 8,903 7,337
(Units)
Unofficial 8,788 8,165
Registrations
(Units)
EBITDA 14,488 11,300
EBITDA Margin 15.2% 14.8%
Three Months Ended
March, 31 March, 31 Percent
2007 2006 Change
Revenues (net) $ 127,026 $ 102,016 24.5%
Cost of goods sold (92,557) (72,046)
Gross Margin 34,469 29,970 15.0%
Other operating 9,961 8,906
revenues
SG&A expenses (32,341) (30,795)
Other operating 326 (91)
income and expenses
Operating result 12,415 7,990 55.4%
Financing expense, (413) (887)
net
Profit/(loss)before 12,002 7,103 69.0%
income taxes and
min.interest
Income Tax (4,544) (5,061) (10.2%)
Net Result 7,458 2,042 265.2%
including minority
interests
Minority Interests 7 (4)
Net Result for the 7,465 2,038 266.3%
Group
Shares outstanding 320,687,920 159,360,037
Percent
Other Financial Data Change
Motorcycles 10.3%
Produced (Units)
Motorcycles Sold 21.3%
(Units)
Unofficial 7.6%
Registrations
(Units)
EBITDA 19,295 15,048 28.2%
EBITDA Margin
Note: On March 31, 2007 1 Euro = 1,3318 US$
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, except per share and share amounts)
Period ended Period ended
31.03.2007 31.12.2006
EUR 000 % EUR 000 %
Current assets
Cash and cash 82,624 75,054
equivalents
Trade 106,449 88,641
receivables,
net
Inventories 75,999 69,846
Other current 13,374 9,055
assets
Total current 278,446 54.6% 242,596 51.2%
assets
Non current
assets
Property, 66,381 66,536
plant and
equipment -net
Goodwill and 86,050 86,050
intangible
assets with
indefinite
useful lives
Other 54,132 51,419
intangible
fixed assets
net
Equity 320 320
investments
Deferred tax 24,473 26,494
assets
Other 357 373
long-term
assets
Total non 231,713 45.4% 231,192 48.8%
current assets
Total assets 510,159 100.0% 473,788 100.0%
Current
liabilities
Short-term 16,309 3,834
bank
borrowings
Accounts 110,011 91,180
payable -
trade
Income and 7,032 5,342
other taxes
payables
Other current 23,255 19,558
liabilities
Provisions for 6,980 7,154
risks and
charges -
current
portion
Total current 163,587 32.1% 127,068 26.8%
liabilities
Long-term
liabilities
Long-term debt,
net of
current 119,074 125,374
portion
Employee 9,248 9,079
benefits
Deferred 20,904 20,507
income taxes
Provision for 1,410 1,356
risks and
charges - long
term portion
Total 150,636 29.5% 156,316 33.0%
long-term
liabilities
Total 314,223 61.6% 283,384 59.8%
liabilities
Shareholders'
equity
Capital stock 163,311 163,311
Other reserves 75,219 75,286
Retained (48,207) (39,684)
earnings
(losses)
Results for 5,604 (8,523)
the period
Total Group 195,927 38.4% 190,390 40.2%
Shareholders'
equity
Minority 9 14
interests
Total 510,159 100.0% 473,788 100.0%
liabilities
and
shareholders'
equity
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(US$ in thousands, except per share and share
amounts)
Period ended Period ended
31.03.2007 31.12.2006
$ 000 % $ 000 %
Current assets
Cash and cash 110,039 99,957
equivalents
Trade 141,770 118,052
receivables
Inventories 101,215 93,021
Other current 17,811 12,059
assets
Total current 370,835 54.6% 323,089 51.2%
assets
Non-current
assets
Property, 88,407 88,613
plant and
equipment -
net
Goodwill and 114,601 114,601
intangible
assets with
indefinite
useful lives
Other 72,093 68,480
intangible
fixed assets -
net
Equity 426 426
investments
Deferred tax 32,593 35,285
assets
Other 475 497
long-term
assets
Total 308,595 45.4% 307,902 48.8%
non-current
assets
Total assets 679,430 100.0% 630,991 100.0%
Current
liabilities
Short-term 21,720 5,106
bank
borrowings
Accounts 146,513 121,434
payable -
trade
Income and 9,365 7,114
other taxes
payables
Other current 30,971 26,047
liabilities
Provisions for 9,296 9,528
risks and
charges -
current
portion
Total current 217,865 32.1% 169,229 26.8%
liabilities
Long-term
liabilities
Long-term debt,
net of
current 158,583 166,973
portion
Employee 12,316 12,091
benefits
Deferred 27,840 27,311
income taxes
Provision for 1,878 1,806
risks and
charges - long
term portion
Total 200,617 29.5% 208,181 33.0%
long-term
liabilities
Total 418,482 61.6% 377,410 59.8%
liabilities
Shareholders'
equity
Capital stock 217,498 217,498
Other reserves 100,177 100,266
Retained (64,202) (52,851)
earnings
(losses)
Results for 7,463 (11,351)
the period
Total Group 260,936 38.4% 253,562 40.2%
Shareholders'
equity
Minority 12 19
interests
Total 679,430 100.0% 630,991 100.0%
liabilities
and
shareholders'
equity
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, except per share and share amounts)
Period ended Period ended
31.03.2007 31.12.2006
EUR 000 % EUR 000 %
Current assets
Cash and cash equivalents 82,624 75,054
Trade receivables, net 106,449 88,641
Inventories 75,999 69,846
Other current assets 13,374 9,055
Total current assets 278,446 54.6% 242,596 51.2%
Non current assets
Property, plant and equipment 66,381 66,536
-net
Goodwill and intangible 86,050 86,050
assets with indefinite useful
lives
Other intangible fixed assets 54,132 51,419
net
Equity investments 320 320
Deferred tax assets 24,473 26,494
Other long-term assets 357 373
Total non current assets 231,713 45.4% 231,192 48.8%
Total assets 510,159 100.0% 473,788 100.0%
Current liabilities
Short-term bank borrowings 16,309 3,834
Accounts payable - trade 110,011 91,180
Income and other taxes 7,032 5,342
payables
Other current liabilities 23,255 19,558
Provisions for risks and 6,980 7,154
charges - current portion
Total current liabilities 163,587 32.1% 127,068 26.8%
Long-term liabilities
Long-term debt, net of
current portion 119,074 125,374
Employee benefits 9,248 9,079
Deferred income taxes 20,904 20,507
Provision for risks and 1,410 1,356
charges - long term portion
Total long-term liabilities 150,636 29.5% 156,316 33.0%
Total liabilities 314,223 61.6% 283,384 59.8%
Shareholders' equity
Capital stock 163,311 163,311
Other reserves 75,219 75,286
Retained earnings (losses) (48,207) (39,684)
Results for the period 5,604 (8,523)
Total Group Shareholders' 195,927 38.4% 190,390 40.2%
equity
Minority interests 9 14
Total liabilities and 510,159 100.0% 473,788 100.0%
shareholders' equity
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(US$ in thousands, except per share and share amounts)
Period ended Period ended
31.03.2007 31.12.2006
$ 000 % $ 000 %
Current assets
Cash and cash 110,039 99,957
equivalents
Trade receivables 141,770 118,052
Inventories 101,215 93,021
Other current assets 17,811 12,059
Total current assets 370,835 54.6% 323,089 51.2%
Non-current assets
Property, plant and 88,407 88,613
equipment - net
Goodwill and intangible 114,601 114,601
assets with indefinite
useful lives
Other intangible fixed 72,093 68,480
assets - net
Equity investments 426 426
Deferred tax assets 32,593 35,285
Other long-term assets 475 497
Total non-current assets 308,595 45.4% 307,902 48.8%
Total assets 679,430 100.0% 630,991 100.0%
Current liabilities
Short-term bank 21,720 5,106
borrowings
Accounts payable - trade 146,513 121,434
Income and other taxes 9,365 7,114
payables
Other current 30,971 26,047
liabilities
Provisions for risks and 9,296 9,528
charges - current
portion
Total current 217,865 32.1% 169,229 26.8%
liabilities
Long-term liabilities
Long-term debt, net of
current portion 158,583 166,973
Employee benefits 12,316 12,091
Deferred income taxes 27,840 27,311
Provision for risks and 1,878 1,806
charges - long term
portion
Total long-term 200,617 29.5% 208,181 33.0%
liabilities
Total liabilities 418,482 61.6% 377,410 59.8%
Shareholders' equity
Capital stock 217,498 217,498
Other reserves 100,177 100,266
Retained earnings (64,202) (52,851)
(losses)
Results for the period 7,463 (11,351)
Total Group 260,936 38.4% 253,562 40.2%
Shareholders' equity
Minority interests 12 19
Total liabilities and 679,430 100.0% 630,991 100.0%
shareholders' equity
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Euro in thousands)
Period ended Period ended
31.03.2007 31.03.2006
EUR 000 EUR 000
Cash flow generated by operating activities
Net profit (loss) for the year 5,604 1,530
Change in cumulative translation (139) (135)
adjustment
Adjustments to reconcile net profit (loss)
with the movements of funds generated by
(used in) operating activities
- Non cash items for stock 72 197
options
- Amortisation, depreciation 5,167 5,301
- Taxes paid (302) (50)
Change in operating assets
and liabilities
- Working capital (5,130) (11,525)
- Effects of IAS 39 and 32 adoption
from 1 January 2005
- Other current assets (4,319) (1,042)
- Other current liabilities 3,697 4,309
- Due to tax authorities 1,992 1,275
- Deferred tax assets 2,021 1,953
- Deferred tax liabilities 397 832
- Employee benefits 169 (73)
- Provisions for risks and (6) (16)
charges
- Restructuring reserve (114) (1,334)
Net cash generated by operating
activities (A) 9,109 1,222
Cash flow (used in) generated by
investing activities
Net change in property, plant and (2,783) (1,728)
equipment
Net change in intangible fixed assets (4,942) (5,462)
Disposal from property, plant and - 31
equipment
Other fixed assets 16 13
Net cash used in investing activities (B) (7,709) (7,146)
Cash flow generated from operating activities,
net of cash used in investing
activities (A-B) 1,400 (5,924)
Cash flow (used in) generated by financing activities
Change in short-term and long-term debt 6,179 (7,903)
Interests paid (4) (192)
Change in minority interests (5) 3
Increase in share capital and reserves - 1,700
Change in cash generated by financing 6,170 (6,392)
activities
Increase (decrease) in cash on hand, bank deposits
and securities 7,570 (12,316)
Cash and cash equivalents, beginning of 75,054 53,017
year
Cash and cash equivalents, end of period/ 82,624 40,701
year
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Dollar in thousands)
Period ended Period ended
31.03.2007 31.03.2006
$ 000 $ 000
Cash flow generated by operating
activities
Net profit (loss) for the 7,463 2,038
year
Change in cumulative (185) (180)
translation adjustment
Adjustments to reconcile net - -
profit (loss) with the
movements of funds generated - -
by (used in)
operating activities - -
- Non cash items for stock 96 262
options
- Amortisation, 6,881 7,060
depreciation
- Taxes paid (402) (67)
Change in operating assets - -
and liabilities - -
- Working capital (6,832) (15,349)
- Effects of IAS 39 and 32 - -
adoption from 1 January
2005
- Other current assets (5,752) (1,388)
- Other current 4,924 5,739
liabilities
- Due to tax authorities 2,653 1,698
- Deferred tax assets 2,692 2,601
- Deferred tax liabilities 529 1,108
- Employee benefits 225 (97)
- Provisions for risks and (8) (21)
charges
- Restructuring reserve (152) (1,777)
Net cash generated by
operating
activities (A) 12,132 1,627
Cash flow (used in) generated by
investing activities
Net change in property, plant (3,706) (2,301)
and equipment
Net change in intangible (6,582) (7,274)
fixed assets
Disposal from property, plant - 41
and equipment
Other fixed assets 21 17
Net cash used in investing (10,267) (9,517)
activities (B)
Cash flow generated from operating
activities,
net of cash used in investing
activities (A-B) 1,865 (7,890)
Cash flow (used in) generated by
financing activities
Change in short-term and 8,229 (10,525)
long-term debt
Interests paid (5) (256)
Change in minority interests (7) 4
Increase in share capital and - 2,264
reserves
Change in cash generated by 8,217 (8,513)
financing activities
Increase (decrease) in cash on hand,
bank deposits
and securities 10,082 (16,403)
Cash and cash equivalents, 99,957 70,608
beginning of year
Cash and cash equivalents, 110,039 54,205
end of period/ year
