Ducati Motor Holding Announces 2002 Results
BOLOGNA, Italy, Feb. 13 -- Ducati Motor Holding
S.p.A. , a leading manufacturer of
high performance motorcycles, today announced full year 2002 results for the
period ended December 31, 2002.
2002 revenues were Euro 413.0 million representing a growth of
1.3% versus Euro 407.8 million in 2001. Revenues from motorcycle sales for
the period decreased 1.1% to Euro 341.5 million and represented 82.7% of
revenues. Motorcycle-related products rose 13.9% to Euro 69.9 million versus
2001, mainly thanks to the success of Ducati Performance accessory sales,
which grew 27.0% versus year ago.
In 2002, gross margin was 39.6% of revenues versus 40.8% the year earlier,
reflecting the negative impact of exchange rates and a negative country mix
effect (due to lower shipments in the US), partly offset by a positive effect
from related product sales.
EBITDA (earnings before interest, tax, depreciation and amortization) was
Euro 52.3 million and represented 12.7% of revenues compared to
Euro 66.1 million, or 16.2% of revenues, a year earlier. This is mostly due
to costs related to the first full year of investments for the development of
the Ducati Desmosedici GP motorcycle, the restructuring of Ducati's US
business, the negative impact of foreign exchange rates and promotional
activities.
Net earnings were Euro 6.5 million, compared to Euro 10.6 million in 2001.
The decrease was due to the factors mentioned above, partly compensated by
lower interest and lower taxes.
"2002 has been a difficult year for Ducati," said Carlo Di Biagio, Ducati
Chief Executive Officer. "In particular, we were -- and are -- burdened by
the restructuring of our US subsidiary and the continued devaluation of the
dollar versus the Euro. In addition, it was a year in which, for the first
time in fifteen years, we were confronted with a decline in our reference
market. The motorcycle industry, especially in Italy, has been under great
pressure. But despite this, it is a year in which Ducati grew revenues and
delivered bottom line profit, while concentrating, more than ever, on product
innovation.
"Despite this scenario, the company has moved forward with conviction,"
continued Di Biagio. "For model year 2003, we launched important innovations
across the board, including the all new, prize-winning 999 Testastretta
Superbike, new engines in the Super Sport and Monster families and an ABS
system in the top Sport Touring model."
"There have been some serious challenges this year for Ducati," said
Enrico D'Onofrio, Ducati Chief Financial Officer. "In this light, and given
the uncertainty of the current political, economic and market conditions, we
believe we should assume a cautious position and, for the time being, refrain
from giving numerical forward-looking guidance to the financial markets. As
soon as visibility improves, we will return to our previous practice of
providing annual guidance."
"Looking forward, 2003 is signalling that it will be at least as
challenging as 2002," added Di Biagio. "The market is down and the Euro is
up. In particular, it is essential that we complete the turnaround of our US
business. We are putting in place measures and will track improvements
carefully. At the same time, we are eager to face our competitors in both the
Moto GP and Superbike Championships this year, and to get the new Multistrada
into dealerships and onto the road. More than anything, however, we will work
with determination to grow the business, build the brand and pay particular
attention to cutting costs."
Ducati's net debt at December 31, 2002 was Euro 112.4 million, in line
with the Euro 112.9 million at the same date a year earlier. The company's
net debt to total capitalization ratio was 41% at December 31, 2002 versus 42%
at the same date a year earlier.
These results have been approved by the Ducati Board of Directors, pending
review by Company auditors.
A conference call with management will take place today at 16:00 Italian
time, 15:00 GMT or 10:00 EST. To access the call, please go to
http://www.ducati.com, and click on Ducati Investor Relations in the Ducati
News section. All historic Company data are available at the Ducati Investor
Relations page.
PLEASE NOTE: These results are still subject to final approval and may be
changed. Final approved data will be announced on March 6, 2003, following
the Board of Directors' Meeting on March 5, 2003.
Founded in 1926, Ducati builds racing-inspired motorcycles characterized
by unique engine features, innovative design, advanced engineering and overall
technical excellence. Ducati has won eleven of the last thirteen 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. For more information
about the Company, please visit our web site at http://www.Ducati.com.
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 documents
previously filed by the Company with CONSOB and with the U.S. Securities and
Exchange Commission.
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
2002 2001 2002 2001
Net Sales (Euro in thousands,
US$ in thousands)
Motorcycles Euro 99,462 Euro 109,087 $94,843 $104,021
Spare Parts,
Accessories, Apparel 14,156 14,970 13,499 14,275
Miscellaneous Other 458 326 437 311
Total net sales Euro 114,076 Euro 124,383 $108,779 $118,607
Ducati Units
Motorcycle shipments: % Change
North America 2,219 3,164 (29.9%)
Main European market 5,743 5,983 (4.0%)
Japan 860 704 22.2%
Rest of World 1,675 1,726 (3.0%)
Total 10,497 11,577 (9.3%)
Motorcycle product mix:
Sport Segment
(Superbike &
Supersport) 5,388 5,735 (6.1%)
Sport Naked 4,269 4,957 (13.9%)
Sport Touring 840 885 (5.1%)
Total 10,497 11,577 (9.3%)
Unofficial Motorcycle
Registrations: % Change
North America 993 1,015 (2.2%)
Main European market 2,435 2,800 (13.0%)
Japan 732 727 0.7%
Rest of World 895 929 (3.7%)
Total 5,055 5,471 (7.6%)
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Twelve Months Ended Twelve Months Ended
Dec, 31 Dec, 31 Dec, 31 Dec, 31
2002 2001 2002 2001
Net Sales (Euro in thousands,
US$ in thousands)
Motorcycles Euro 341,529 Euro 345,475 $325,669 $329,432
Spare Parts,
Accessories, Apparel 69,945 61,390 66,697 58,539
Miscellaneous Other 1,497 950 1,427 906
Total net sales Euro 412,971 Euro 407,815 $393,793 $388,877
Ducati Units
Motorcycle shipments: % Change
North America 5,044 6,801 (25.8%)
Main European market 24,359 24,485 (0.5%)
Japan 3,687 3,334 10.6%
Rest of World 6,444 5,396 19.4%
Total 39,534 40,016 (1.2%)
Motorcycle product mix:
Sport Segment
(Superbike & Supersport) 16,453 16,253 1.2%
Sport Naked 19,600 20,125 (2.6%)
Sport Touring 3,481 3,638 (4.3%)
Total 39,534 40,016 (1.2%)
Unofficial Motorcycle
Registrations: % Change
North America 5,970 6,021 (0.8%)
Main European market 24,496 24,510 (0.1%)
Japan 3,857 3,546 8.8%
Rest of World 5,284 4,867 8.6%
Total 39,607 38,944 1.7%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, US$ in thousands, except per
share and share amounts)
Twelve Months Ended Twelve Months Ended
Dec, 31 Dec, 31 Dec, 31 Dec, 31 Percent
2002 2001 2002 2001 Change
Net Sales Euro 412,971 Euro 407,815 $393,793 $388,877 1.3%
Cost of goods
sold (249,264) (241,266) (237,689) (230,062)
Gross Profit 163,707 166,549 156,104 158,815 (1.7%)
Other operating
revenues 10,795 7,547 10,294 7,197
SG&A expenses (121,580) (107,874) (115,934) (102,864)
Other operating
income (452) (94) (431) (90)
Depreciation &
amortization (33,984) (34,580) (32,407) (32,974)
Operating income/
(loss) 18,486 31,548 17,626 30,084 (41.4%)
Financing expense,
net (10,109) (12,073) (9,640) (11,512)
Other non-operating
income/(expense),
net 134 (27) 128 (26)
Profit/(loss)before
income taxes and
min.interest 8,511 19,448 8,114 18,546 (56.2%)
Income taxes (1,986) (8,895) (1,894) (8,483)
Net profit/
(loss) Euro 6,525 Euro 10,553 $6,220 $10,063 (38.2%)
Earnings
per share Euro 0.04 Euro 0.07 $0.04 $0.06
Shares
outstanding 158,500,963 158,500,963 158,500,963 158,500,963
Percent
Change
Other Financial Data
Motorcycles
Produced (Units) 41,411 40,692 1.8%
Motorcycles Sold
(Units) 39,534 40,016 (1.2%)
Unofficial Registrations
(Units) 39,607 38,944 1.7%
EBITDA 52,342 66,100 49,911 63,029 (20.8%)
EBITDA Margin 12.7% 16.2%
Note : On Dec 31, 2002 US$1= 0.9536 Euros
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, US$ in thousands, except per
share and share amounts)
Three Months Ended Three Months Ended
Dec, 31 Dec, 31 Dec, 31 Dec, 31 Percent
2002 2001 2002 2001 Change
Net Sales Euro 114,076 Euro 124,383 $108,778 $118,607 (8.3%)
Cost of
goods sold (72,454) (74,351) (69,089) (70,898)
Gross Profit 41,622 50,032 39,689 47,709 (16.8%)
Other operating
revenues 2,834 2,797 2,702 2,667
SG&A expenses (31,540) (34,899) (30,075) (33,278)
Other operating
income/(expense),
net 714 (230) 681 (219)
Depreciation &
amortization (9,451) (11,648) (9,012) (11,107)
Operating
income/(loss) 4,179 6,052 3,985 5,772 (30.9%)
Financing expense,
net 509 (2,484) 485 (2,369)
Other non-operating
income/(expense),
net 154 (214) 147 (204)
Profit/(loss)before
income taxes and
min.interest 4,842 3,354 4,617 3,199 44.4%
Income taxes (334) (1,785) (317) (1,702)
Net profit/
(loss) Euro 4,508 Euro 1,569 $4,300 $1,497 187.3%
Earnings per
share Euro 0.03 Euro 0.01 $0.03 $0.01
Shares
outstanding 158,500,963 158,500,963 158,500,963 158,500,963
Percent
Other Financial Data Change
Motorcycles
Produced
(Units) 10,488 8,911 17.7%
Motorcycles Sold
(Units) 10,497 11,577 (9.3%)
Unofficial
Registrations
(Units) 5,055 5,471 (7.6%)
EBITDA 13,522 17,486 12,894 16,674 (22.7%)
EBITDA Margin 11.9% 14.1%
Note : On Dec 31, 2002 US$1= 0.9536 Euros
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, except per share and share amounts)
December 31, 2002 December 31, 2001
Euro % Euro %
Current assets
Cash and cash equivalents 23,960 23,705
Trade receivables, net 82,042 98,027
Inventories 111,427 97,636
Other current assets 17,426 11,114
Total current assets 234,855 52.5% 230,482 53.3%
Non current assets
Property, plant and equipment-net 66,402 54,576
Intangible fixed assets, net 130,518 132,000
Equity investments 12 1
Other long-term assets 15,616 15,610
Total non current assets 212,548 47.5% 202,187 46.7%
Total assets 447,403 100.0% 432,669 100.0%
Current liabilities
Short-term bank borrowings 39,293 38,870
Current portion of long-term debt 3,230 2,270
Accounts payable - trade 95,112 86,749
Income and other taxes payables 5,354 3,732
Other current liabilities 16,520 16,763
Provisions for risks and charges -
current portion 8,202 9,148
Total current liabilities 167,711 37.5% 157,532 36.4%
Long-term liabilities
Long-term debt, net of current
portion 91,000 91,000
Employees' leaving entitlement 7,126 5,719
Deferred income taxes 35 1,031
Other long-term liabilities 17,792 19,485
Provision for risks and charges -
long term portion 3,998 3,305
Total long-term liabilities 119,951 26.8% 120,540 27.9%
Total liabilities 287,662 278,072
Total shareholders' equity 159,741 35.7% 154,597 35.7%
Total liabilities and
shareholders' equity 447,403 100.0% 432,669 100.0%
Memo: Net consolidate
financial position (112,355) (112,920)
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(US$ in thousands, except per share and share amounts)
December 31,2002 December 31, 2001
US$ % US$ %
Current assets
Cash and cash equivalents 25,127 24,859
Trade receivables, net 86,037 102,801
Inventories 116,853 102,391
Other current assets 18,275 11,655
Total current assets 246,292 52.5% 241,706 53.3%
Non current assets
Property, plant and equipment-net 69,636 57,234
Intangible fixed assets, net 136,874 138,428
Equity investments 13 1
Other long-term assets 16,376 16,370
Total non current assets 222,899 47.5% 212,033 46.7%
Total assets 469,191 100.0% 453,739 100.0%
Current liabilities
Short-term bank borrowings 41,206 40,763
Current portion of long-term debt 3,387 2,381
Accounts payable - trade 99,744 90,974
Income and other taxes payables 5,615 3,914
Other current liabilities 17,325 17,579
Provisions for risks and charges -
current portion 8,601 9,593
Total current liabilities 175,878 37.5% 165,204 36.4%
Long-term liabilities
Long-term debt, net of current portion 95,432 95,432
Employees' leaving entitlement 7,473 5,997
Deferred income taxes 37 1,081
Other long-term liabilities 18,658 20,434
Provisionfor risks and charges - long
term portion 4,193 3,465
Total long-term liabilities 125,793 26.8% 126,409 27.9%
Total liabilities 301,671 291,613
Total shareholders' equity 167,520 35.7% 162,126 35.7%
Total liabilities and
shareholders' equity 469,191 100.0% 453,739 100.0%
Memo: Net consolidate financial
position (117,827) (118,419)