Ducati Motor Holding Announces 62% Increase in First Quarter Profit
15 May 2000
BOLOGNA, Italy - Ducati Motor Holding S.p.A., a leading manufacturer of
high performance motorcycles, today announced first quarter profit rose 62
percent compared to year ago.
As previously reported, the Company announced first quarter 2000
consolidated sales of Lit.198.6 billion (US$98.0 million), a 47.4% increase
over the Lit. 134.8 billion (US$66.5 million) reported for first quarter 1999
with bike revenues accounting for 83.2% of total sales. Favorable exchange
rates and warm weather conditions in southern Europe contributed to this
increase.
For the first quarter, gross margin stood at 37.7% on robust sales of
high-margin accessories and apparel as well as motorcycles sales. First
quarter EBITDA (earnings before interest, tax, depreciation and amortization)
increased 44.8% to Lit. 34.1 billion (US$16.8 million) from Lit.23.5 billion
(US$11.6 million) in the comparable period last year. EBITDA as a percent of
sales was 17.2%, maintaining Ducati's position as one of the highest EBITDA
margins in the industry.
Net income for the quarter rose to Lit. 5.5 billion (US$2.7 million) from
Lit. 3.4 billion (US$1.7 million) in 1999.
"We're thrilled with our bottom-line growth," said Carlo Di Biagio, Ducati
Chief Financial Officer. "It is proof of the growing demand for the Ducati
brand worldwide. Globally, at the end of the first quarter, we had over 50
Ducati stores operating and plan to have over 60 stores by the end of the
second quarter with new openings in cities such as Brussels, Paris and as far
away as Jakarta."
Ducati has experienced a significant rise in registrations, a measure of
retail sales, in those regions where the Company has taken control of its
distribution network. Based on updated numbers for the first quarter,
registrations grew 29% on a global basis, including increases of 83% in the
U.S., 78% in France, 93% in the Netherlands and 36% in Italy.
"We are especially satisfied with the performance of our Superbike
family," Di Biagio added. "Sales of the 748 line more than tripled in the
quarter, as we had anticipated, thanks to the highly acclaimed models we
introduced last September."
Ducati's net debt decreased to Lit. 208.3 billion (US$102.8 million) at
March 31, 2000 from Lit. 214.4 billion (US$ 105.8 million) at March 31, 1999.
The Company's net debt to total net capitalization ratio was 44.5% as of March
31, 2000.
Founded in 1926, Ducati builds racing-inspired motorcycles characterized
by unique engine features, innovative design, advanced engineering and overall
technical excellence. Ducati has won eight of the last ten World Superbike
Championship titles and more individual victories than the competition put
together. The Company produces motorcycles in four market segments which vary
in their technical and design features and intended customers: Superbike,
Supersport, Monster and SportTouring. The Company's motorcycles are sold in
more than 40 countries worldwide, with a primary focus in the Western European
and North American markets.
This press release contains statements that are forward-looking and are
subject to a number of risks and uncertainties that could cause actual results
to differ materially from those anticipated, as described in the Company's
prospectus dated March 23, 1999.
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,
2000 1999 2000 1999
Net Sales (Lire in millions, US$ in thousands)
Motorcycles Lit 165,245 Lit 120,141 $81,527 $59,274
Spare Parts,
Accessories, Apparel 23,469 12,681 11,579 6,256
Miscellaneous Other 9,931 1,967 4,900 971
Total net sales 198,645 134,789 98,006 66,501
Ducati Units
Motorcycle shipments: % Change
North America 2,075 1,541 +34.7%
Europe 7,303 6,131 +19.1%
Japan 352 268 +31.3%
Rest of World 634 170 +272.9%
Total 10,364 8,110 +27.8%
Motorcycle product mix:
Sport Segment
(Superbike &
Supersport) 4,580 3,480 +31.6%
Sport Naked 5,034 3,723 +35.2%
Sport Touring 750 907 -17.3%
Total 10,364 8,110 +27.8%
Updated Motorcycle Registrations: % Change
North America 1,747 957 +82.5%
Europe 6,737 5,285 +27.5%
Japan 395 317 +24.6%
Rest of World 572 795 -28.0%
Total 9,451 7,354 +28.5%
Note: On March 31, 2000, US$1 = 2026.87 Italian Lire.
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Lire in millions, US$ in thousands, except per share and share amounts)
Three Months Ended Three Months Ended
March 31, March 31, March 31, March 31, %
2000 1999 2000 1999 Change
Net sales Lit 198,645 Lit 134,789 $98,006 $66,501 +47.4%
Cost of goods sold (123,843) (83,245) (61,101) (41,071)
Gross profit 74,802 51,544 36,905 25,430 +45.1%
Other operating
revenues 2,025 1,226 999 605
SG&A expenses (42,614) (28,570) (21,024) (14,095)
Other operating income/
(loss) (142) (677) (70) (334)
Depreciation &
amortization (12,613) (10,024) (6,223) (4,946)
Operating income/
(loss) 21,458 13,499 10,587 6,660 +59.0%
Financing expense, net (9,850) (5,535) (4,860) (2,730)
Other non-operating
income/ (expense), net 0 (60) 0 (30)
Profit/(loss) before
income taxes and
min. interest 11,608 7,904 5,727 3,900
Income taxes (6,095) (4,481) (3,007) (2,212)
Minority interest 0 (15) 0 (7)
Net profit/(loss) 5,513 3,408 2,720 1,681
Earnings per share 34.90 21.71 0.02 0.01
Shares outstanding 157,962,963 157,000,000 157,962,963157,000,000
Percent
Other Financial Data Change
Motorcycles Produced
(Units) 10,228 9,204 +11.1%
Motorcycles Sold (Units) 10,364 8,110 +27.8%
Unofficial Registrations
(Units) 9,451 7,354 +28.5%
EBITDA 34,071 23,523 16,810 11,606 +44.8%
EBITDA Margin 17.2% 17.5%
Note: On March 31, 2000, US$1 = 2026.87 Italian Lire.
Ducati Motor Holding S.p.A.
Reclassified Consolidated Balance Sheet Data
(Lire in millions)
Quarter Ended Quarter Ended Year Ended
03/31/2000 03/31/1999 12/31/1999
Lm % Lm % Lm %
Current assets
Cash and cash
equivalents Lit 50,063 Lit 108,203 Lit 21,839
Trade receivables,
net 167,534 114,609 121,098
Inventories 152,298 128,590 143,372
Other current
assets 13,545 17,326 13,333
Total current
assets 383,440 50.7% 368,728 48.8% 299,642 44.2%
Non current assets
Property, plant and
equipment -net 90,723 88,257 91,445
Intangible fixed
assets, net 281,296 297,759 285,064
Equity investments 163 163 163
Other long-term
assets 1,374 1,190 1,252
Total non current
assets 373,556 49.3% 387,369 51.2% 377,924 55.8%
Total assets 756,996 100.0% 756,097 100.0% 677,566 100%
Current liabilities
Short-term bank
borrowings 42,142 63,161 25,763
Current portion of
long-term debt 15,753 12,958 15,555
Accounts payable -
trade 158,412 130,505 127,718
Income and other
taxes payables 24,301 12,184 9,801
Other current
liabilities 25,293 14,806 15,565
Provisions for risks
and charges -
current portion 16,859 22,259 14,916
Total current
liabilities 282,760 37.4% 255,873 33.8% 209,318 31.0%
Long-term liabilities
Long-term debt, net
of current portion 200,515 246,527 197,994
Employees' leaving
entitlement 7,885 6,173 7,326
Deferred income taxes 1,640 3,512 3,741
Other long-term
liabilities 39 61 44
Provisions for risks
and charges -
long-term portion 4,500 4,500 4,500
Total long-term
liabilities 214,579 28.3% 260,773 34.5% 213,605 31.4%
Total liabilities 497,339 516,646 422,923
Total Group
shareholders'
equity 259,657 34.3% 238,757 31.6% 253,800 37.6%
Minority interests -- 694 843
Total shareholders'
equity 259,657 34.3% 239,451 31.7% 254,643 37.6%
Total liabilities and
shareholders' equity 756,996 100.0% 756,097 100.0% 677,566 100%
Ducati Motor Holding S.p.A.
Reclassified Consolidated Balance Sheet Data
(US$ in thousands)
Quarter Ended Quarter Ended Year Ended
03/31/2000 03/31/1999 12/31/1999
US$ % US$ % US$ %
Current assets
Cash and cash
equivalents $24,700 $53,384 $10,775
Trade receivables,
net 82,657 56,545 59,746
Inventories 75,139 63,443 70,736
Other current assets 6,682 8,548 6,578
Total current assets 189,178 50.7% 181,920 48.8% 147,835 44.2%
Non current assets
Property, plant and
equipment - net 44,760 43,543 45,116
Intangible fixed
assets, net 138,784 146,907 140,643
Equity investments 80 80 80
Other long-term assets 678 587 618
Total non current
assets 184,302 49.3% 191,117 51.2% 186,457 55.8%
Total assets 373,480 100.0% 373,037 100.0% 334,292 100%
Current liabilities
Short-term bank
borrowings 20,792 31,162 12,711
Current portion of
long-term debt 7,772 6,393 7,674
Accounts payable -
trade 78,156 64,387 63,012
Income and other
taxes payables 11,989 6,011 4,836
Other current
liabilities 12,479 7,306 7,679
Provisions for risks
and charges -
current portion 8,318 10,982 7,359
Total current
liabilities 139,506 37.4% 126,241 33.8% 103,271 31.0%
Long-term liabilities
Long-term debt, net
of current portion 98,928 121,629 97,685
Employees' leaving
entitlement 3,890 3,046 3,614
Deferred income taxes 810 1,733 1,846
Other long-term
liabilities 19 30 22
Provisions for risks and
charges - long-term
portion 2,220 2,220 2,220
Total long-term
liabilities 105,867 28.3% 128,658 34.5% 105,387 31.4%
Total liabilities 245,373 254,899 208,658
Total Group
shareholders' equity 128,107 34.3% 117,796 31.6% 125,218 37.6%
Minority interests -- 342 416
Total shareholders'
equity 128,107 34.3% 118,138 31.7% 125,634 37.6%
Total liabilities
and shareholders'
equity 373,480 100.0% 373,037 100.0% 334,292 100%
Note: On March 31, 2000, US$1 = 2026.87 Italian Lire; this exchange rate
was used for both 1999 and 2000.
