Ducati Motor Holding Announces Record First Quarter Profits
BOLOGNA, Italy--May 10, 2001--Ducati Motor Holding S.p.A. , a leading manufacturer of high performance motorcycles, today announced record profits for the first quarter ended March 31, 2001, reporting an increase of 74% over the same period in the prior year.As previously reported, the Company's first quarter 2001 consolidated sales were Euro 100.6 million (US$88.8 million), representing like-for-like growth of 2.9% over the same period in 2000. Total sales were down 2.0% from Euro 102.6 million (US$90.6 million) during the same period in the previous year. This was due to a decrease in "miscellaneous other sales" of Euro 4.8 million (US$4.2 million), reflecting the one-off buy-back of inventory by the then newly established UK subsidiary from the importer in January 2000. Sales of Ducati motorcycles for the period increased 0.3% to Euro 85.6 million (US$75.6 million), representing 85.1% of total revenues. Motorcycle-related products, including spare parts, technical accessories and apparel, rose 21.3% to Euro 14.7 million (US$13.0 million) over the comparable period in the previous year.
For the first quarter, gross margin stood at 39.2% versus 37.7% a year ago, mostly the result of production efficiencies and the positive impact of foreign exchange rates. First quarter EBITDA (earnings before interest, tax, depreciation and amortization) reached Euro 18.1 million (US$16.0 million) over Euro 17.6 million (US$15.5 million) in the prior year, an increase of 3.0%. EBITDA as a percent of sales was 18.0% versus 17.2% in the first quarter of 2000.
Net income for the quarter rose 74% to Euro 4.9 million (US$4.4 million), or 4.9% of sales, versus Euro 2.8 million (US$2.5 million) in 2000, or 2.8% of sales, mainly due to foreign exchange gains and a reduced tax rate.
"Ducati's first quarter results for 2001 have shown a significant improvement in profitability," said Carlo Di Biagio, Ducati Chief Executive Officer. "While the beginning of the selling season has been delayed by terrible weather conditions and late shipments of products now in hot demand such as our Monster S4 and ST4S models, we have seen foreign exchange rates, as well as production efficiencies, boosting the bottom line. I would like to add that we remain confident that our stated year end objectives - revenue growth of 15% and stable EBITDA margins - are achievable."
Ducati registrations, a measure of retail sales, decreased 6% on a global basis, with particular weakness in the US (-29%) and Italy (-13%). However, registration growth was strong in Japan (+82%), Australia (+47%) and France (+9%).
"In addition, we are delighted to report that we have decided to enter the Grand Prix World Championship, as announced separately," added Di Biagio. "Racing is close to our hearts at Ducati and participation in the GP is a challenge which we are approaching with great enthusiasm and passion."
Ducati's net debt was Euro 107.6 million (US$95.0 million) at March 31, 2001, stable versus March 31, 2000. The Company's net debt to total net capitalization ratio was 42% as of March 31, 2001 versus 44% at March 31, 2000.
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Three Months Ended Three Months Ended
March 31 March 31 March 31 March 31
2001 2000 2001 2000
Net Sales
(Euro in thousands,
US$ in thousands)
Motorcycles E 85,559 E 85,342 $ 75,566 $ 75,374
Spare Parts,
Accessories,
Apparel 14,699 12,121 12,982 10,705
Miscellaneous Other 319 5,128 282 4,530
Total net sales E 100,577 E 102,591 $ 88,830 $ 90,609
Ducati Units
Motorcycle shipments: % Change
North America 1,678 2,075 -19.1%
Europe 7,617 7,303 +4.3%
Japan 818 352 +132.4%
Rest of World 352 634 -44.5%
Total 10,465 10,364 +1.0%
Motorcycle product mix:
Sport Segment
(Superbike &
Supersport) 4,290 4,580 -6.3%
Sport Naked 5,525 5,034 +9.8%
Sport Touring 650 750 -13.3%
Total 10,465 10,364 +1.0%
Unofficial Motorcycle
Registrations: % Change
North America 1,181 1,651 -28.5%
Europe 6,160 6,506 -5.3%
Japan 722 396 +82.3%
Rest of World 383 445 -13.9%
Total 8,446 8,998 -6.1%
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
March 31, March 31, March 31, March 31, Percent
2001 2000 2001 2000 Change
Net Sales E 100,577 E 102,591 $ 88,830 $ 90,609 -2.0%
Cost of goods
sold (61,192) (63,960) (54,045) (56,490)
Gross Profit 39,385 38,631 34,785 34,119 +2.0%
Other operating
revenues 1,019 1,046 900 924
SG&A expenses (22,029) (22,006) (19,456) (19,436)
Other operating
income (422) (40) (373) (35)
Depreciation
& amortization (6,994) (6,514) (6,177) (5,753)
Operating
income/(loss) 10,959 11,117 9,679 9,819 -1.4%
Financing
expense, net (1,980) (5,088) (1,749) (4,494)
Other non-operating
income/(expense), net 178 (34) 157 (30)
Profit/(loss) before
income taxes and
min.interest 9,157 5,995 8,087 5,295
Income taxes (4,213) (3,148) (3,720) (2,781)
Minority interest - - - -
Net profit/(loss) E 4,944 E 2,847 $ 4,367 $ 2,514
Earnings per share E 0.03 E 0.02 $ 0.03 $ 0.02
Shares
outstanding 158,271,963 157,962,963 158,271,963 157,962,963
Other Financial Percent
Data Change
Motorcycles
Produced (Units) 13,145 10,228 +28.5%
Motorcycles
Sold (Units) 10,465 10,364 +1.0%
Unofficial
Registrations
(Units) 8,446 8,998 -6.1%
EBITDA 18,131 17,597 16,013 15,542 +3.0%
EBITDA Margin 18.0% 17.2%
Note : On March 31, 2001 US$1= 2,192.33 Italian lire
On January 1, 2001, the conversion rate was fixed such that Euro 1=
1,936.27 Italian lire
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, except per share and share amounts)
Three Months Ended Three Months Ended
March 31, 2001 March 31, 2000
E % E %
Current assets
Cash and cash equivalents 24,919 25,855
Trade receivables, net 92,776 86,525
Inventories 98,834 78,655
Other current assets 13,517 6,995
Total current assets 230,046 54.7% 198,030 50.7%
Non current assets
Property, plant and
equipment-net 51,865 46,855
Intangible fixed assets, net 138,211 145,277
Equity investments 84 84
Other long-term assets 671 710
Total non current assets 190,831 45.3% 192,926 49.3%
Total assets 420,877 100.0% 390,956 100.0%
Current liabilities
Short-term bank borrowings 32,508 21,764
Current portion of
long-term debt - 8,136
Accounts payable - trade 86,017 81,813
Income and other
taxes payables 14,576 12,550
Other current liabilities 19,587 13,063
Provisions for risks
and charges - current portion 11,093 8,707
Total current liabilities 163,781 38.9% 146,033 37.4%
Long-term liabilities
Long-term debt, net
of current portion 100,000 103,557
Employees' leaving entitlement 5,016 4,072
Deferred income taxes 35 847
Other long-term liabilities 155 20
Provision for risks and
charges - long term portion 3,305 2,325
Total long-term liabilities 108,511 25.8% 110,821 28.3%
Total liabilities 272,292 256,854
Total Group
shareholders' equity 148,585 35.3% 134,102 34.3%
Minority interests
Total shareholders' equity 148,585 35.3% 134,102 34.3%
Total liabilities and
shareholders' equity 420,877 100% 390,956 100%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(US$ in thousands, except per share and share amounts)
Three Months Ended Three Months Ended
March 31, 2001 March 31, 2000
US$ % US$ %
Current assets
Cash and cash equivalents 22,008 22,835
Trade receivables, net 81,940 76,418
Inventories 87,290 69,469
Other current assets 11,938 6,178
Total current assets 203,176 54.7% 174,900 50.7%
Non current assets
Property, plant and
equipment-net 45,807 41,382
Intangible fixed assets, net 122,068 128,309
Equity investments 74 74
Other long-term assets 593 627
Total non current assets 168,542 45.3% 170,392 49.3%
Total assets 371,718 100.0% 345,292 100.0%
Current liabilities
Short-term bank borrowings 28,711 19,222
Current portion of
long-term debt - 7,186
Accounts payable - trade 75,971 72,257
Income and other taxes payables 12,873 11,084
Other current liabilities 17,299 11,537
Provisions for risks and
charges - current portion 9,798 7,690
Total current liabilities 144,652 38.9% 128,976 37.4%
Long-term liabilities
Long-term debt, net
of current portion 88,320 91,462
Employees' leaving entitlement 4,429 3,597
Deferred income taxes 31 748
Other long-term liabilities 137 17
Provision for risks and
charges - long term portion 2,919 2,053
Total long-term liabilities 95,836 25.8% 97,877 28.3%
Total liabilities 240,488 226,853
Total Group
shareholders' equity 131,230 35.3% 118,439 34.3%
Minority interests
Total shareholders' equity 131,230 35.3% 118,439 34.3%
Total liabilities and
shareholders' equity 371,718 100.0% 345,292 100.0%