Ducati Motor Holding Announces 2006 First Half Results
BOLOGNA, Italy, August 3 --
01/01/06-30/06/06 01/01/05-30/06/05 Var%
Revenues 173.4 180.8 (4.1%)
EBITDA 22.8 19.2 18.6%
Net result 2.3 (3.5)
Net Debt (33.4) (116.3)
(Million Euro)
The Board of Directors of Ducati Motor Holding S.p.A. (Borsa Italiana: DMH; NYSE: DMH) approved today its financial results for the first half of 2006.
First half 2006 revenues were Euro 173.4 million, down 4.1% compared to Euro 180.8 million over the same period in 2005. This was due to a reduction in sales in motorcycles and spare parts, partially offset by a positive bike mix and increased sales in accessories. Revenues from motorcycles for the period decreased 4.7% to Euro 134.2 million and accounted for 77.4% of revenues. 18.058 units were sold in the period. Motorcycle-related products, including spare parts, accessories and apparel, were down by 4.6% to Euro 36.6 million over the comparable period in the previous year.
Gross margin for the first half of 2006 amounted to Euro 49.0 million or 28,2% of revenues versus Euro 40.4 million or 22.3% in the first half of last year, an increase which can be attributed to an improved bike mix and reduced cost of goods.
EDITDA was Euro 22.8 million or 13.1% of revenues for the first semester of 2006 against Euro 19.2 million or 10.6% of revenues over the same period last year, mainly due to the improved product mix.
Operating result (EBIT) for the first half of 2006 amounted to Euro 12.5 million or 7.2% of sales versus Euro 4.6 million or 2.5% of sales over the same period of 2005.
At EBT level, the result was a profit of Euro 8.9 million versus a loss of Euro 0.7 million over the same period last year.
Net result for the first semester 2006 was a profit of Euro 2.3 million compared to a loss of Euro 3.5 million in the first half of 2005.
Company net debt at June 30, 2006 was Euro 33.4 million versus Euro 116.3 million at June 30, 2005.
For the first half of 2006, unofficial Ducati registrations were down by 2% over the same period last year. Registrations in the US were up by 15%, in the non-subsidiary countries by 7% and in Japan by 3%, while registrations were down in France (-3%), Italy (-7%), Benelux (-13%), Germany (-14%) and the UK (-25%).
As of June 30, 2006 the Company did not hold any treasury shares.
Federico Minoli, Ducati Chairman and Chief Executive Officer commented: "Despite the planned reduction in volumes in terms of sales, we closed a first semester 2006 with an improved operating margin. We are beginning to see the results of the new strategy which sees Ducati focused on the sale of models with higher margin. The main objective for the coming months is to maintain a tight control on sales and production in order to avoid excessive stock and to successfully prepare for the launch of the new models".
Enrico D'Onofrio, Ducati's Chief Financial Officer added: "Thanks to the capital increase which was subscribed to in full, Ducati is in a solid financial position. As well as this, interest rates negotiated for the bank financing are competitive with the best market conditions and we can look ahead with confidence to the future commitments necessary to implement the Company's relaunch plan".
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 six market segments which vary in their technical and design features and intended customers: Superbike, Supersport, Monster, Sport Touring, Multistrada and the new SportClassic. 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 thirteen of the last fifteen 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
This press release is not an offer to invest in Italy, according to Art. 1, lett (t) of the Italian Legislative Decree no. 58 of February 24th, 1998, or in any other country. This press release cannot be transmitted or distributed to any persons in the United States or in any country where its distribution is not allowed without the express approval from the relevant authorities.
These materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of the company's securities to be made in the United States will be made by means of a prospectus that may be obtained from the company and that will contain detailed information about the company and its management, including financial statements.
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Six Months Ended Six Months Ended
June, 30 June, 30 June, 30 June, 30
2006 2005 2006 2005
Net Revenues (Euro in thousands, US$ in thousands)
Motorcycle EUR 134,192 EUR 140,739 $ 170,598 $ 178,921
Spare Parts,
Accessories, Apparel 36,604 38,387 46,535 48,801
Other 2,633 1,678 3,347 2,133
Total Net Revenues EUR 173,429 EUR 180,804 $ 220,480 $ 229,855
Ducati Units
Motorcycle shipments: % Change
North America 4,715 3,569 32.1%
Main European market 8,814 11,308 (22.1%)
Japan 1,235 1,160 6.5%
Rest of World 3,294 3,991 (17.5%)
Total 18,058 20,028 (9.8%)
Motorcycle product mix: % Change
Superbike 2,583 3,780 (31.7%)
Supersport 328 525 (37.5%)
Sport Naked 10,667 10,482 1.8%
Sport Touring 984 855 15.1%
Multistrada 1,186 4,386 (73.0%)
Sport Classic 2,310 0 n.a.
Total 18,058 20,028 (9.8%)
Unofficial Motorcycle Registrations: % Change
North America 4,521 3,933 15.0%
Main European market 11,913 13,187 (9.7%)
Japan 1,449 1,408 2.9%
Rest of World 3,680 3,439 7.0%
Total 21,563 21,967 (1.8%)
Ducati Motor Holding Group
Profit & Loss
(Euro in thousands, US$ in thousands, except for shares)
Six Months Ended Six Months Ended
June, 30 June, 30 June, 30 June, 30 Percent
2006 2005 2006 2005 Change
Revenues (net) EUR 173,429 EUR 180,804 $ 220,480 $ 229,856 (4.1%)
Cost of goods sold (124,457) (140,402) (158,222) (178,493)
Gross Margin 48,972 40,402 62,258 51,363 21.2%
Other operating revenues 17,519 17,543 22,272 22,302
SG&A expenses (54,297) (51,897) (69,028) (65,977)
Other operating income
and expenses 350 (1,491) 445 (1,896)
Operating result 12,544 4,557 15,947 5,792 175.3%
Financing expense, net (3,598) (5,292) (4,574) (6,728)
Profit/(loss)before
income taxes and
min.interest 8,946 (735) 11,373 (936) (1317.1%)
Income Tax (6,684) (2,814) (8,497) (3,577)137.5%
Net Result including
minority interests 2,262 (3,549) 2,876 (4,513)(163.7%)
Minority Interests (2) 0 (3) 0
Net Result for the Group 2,260 (3,549) 2,873 (4,513)(163.7%)
Shares outstanding 320,687,920 159,360,037 320,687,920 159,360,037
Percent
Other Financial Data Change
Motorcycles Produced
(Units) 18,959 20,266 (6.4%)
Motorcycles Sold (Units) 18,058 20,028 (9.8%)
Unofficial Registrations
(Units) 21,563 21,967 (1.8%)
EBITDA 22,752 19,179 28,925 24,381 18.6%
EBITDA Margin 13.1% 10.6%
Note: On June 30, 2006 US$1 = 0,7866 Euros
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, except per share and share amounts)
Period ended Period ended
30.06.2006 31.12.2005
EUR 000 % EUR 000 %
Current assets
Cash and cash equivalents 133,761 53,017
Trade receivables, net 101,617 102,232
Inventories 83,977 81,380
Other current assets 10,528 9,217
Total current assets 329,883 60.1% 245,846 53.1%
Non current assets
Property, plant and equipment -net 63,638 66,556
Goodwill and intangible assets
with indefinite useful lives 86,050 86,050
Other intangible fixed assets net 46,324 39,665
Equity investments 20 20
Deferred tax assets 22,524 24,662
Other long-term assets 367 386
Total non current assets 218,923 39.9% 217,339 46.9%
Total assets 548,806 100% 463,185 100%
Current liabilities
Short-term bank borrowings 40,403 64,148
Accounts payable - trade 105,281 85,203
Income and other taxes payables 7,936 5,537
Other current liabilities 26,379 20,202
Provisions for risks and
charges - current portion 14,135 18,621
Total current liabilities 194,134 35.4% 193,711 41.8%
Long-term liabilities
Long-term debt, net of
current portion 126,804 125,824
Employee benefits 9,331 9,669
Deferred income taxes 15,938 13,697
Provision for risks and
charges - long term portion 1,479 1,525
Total long-term liabilities 153,552 28.0% 150,715 32.5%
Total liabilities 347,686 63.4% 344,426 74.4%
Shareholders' equity
Capital stock 163,311 82,867
Other reserves 75,214 75,559
Retained earnings (losses) (39,684) 1,780
Results for the period 2,260 (41,464)
Total Group Shareholders' equity 201,101 36.6% 118,742 25.6%
Minority interests 19 17
Total liabilities and
shareholders' equity 548,806 100% 463,185 100%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(US$ in thousands, except per share and share amounts)
Period ended Period ended
30.06.2006 31.12.2005
$ 000 % $ 000 %
Current assets
Cash and cash equivalents 170,050 67,400
Trade receivables 129,186 129,968
Inventories 106,760 103,458
Other current assets 13,384 11,718
Total current assets 419,380 60.1% 312,544 53.1%
Non-current assets
Property, plant and equipment - net 80,903 84,613
Goodwill and intangible assets
with indefinite useful lives 109,395 109,395
Other intangible fixed
assets - net 58,892 50,426
Equity investments 25 25
Deferred tax assets 28,635 31,353
Other long-term assets 467 491
Total non-current assets 278,317 39.9% 276,303 46.9%
Total assets 697,697 100% 588,847 100%
Current liabilities
Short-term bank borrowings 51,364 81,551
Accounts payable - trade 133,844 108,318
Income and other taxes payables 10,089 7,039
Other current liabilities 33,536 25,683
Provisions for risks and
charges - current portion 17,970 23,673
Total current liabilities 246,803 35.4% 246,264 41.8%
Long-term liabilities
Long-term debt, net of
current portion 161,206 159,960
Employee benefits 11,862 12,292
Deferred income taxes 20,262 17,413
Provision for risks and
charges - long term portion 1,880 1,939
Total long-term liabilities 195,210 28.0% 191,604 32.5%
Total liabilities 442,013 63.4% 437,868 74.4%
Shareholders' equity
Capital stock 207,617 105,349
Other reserves 95,620 96,058
Retained earnings (losses) (50,450) 2,263
Results for the period 2,873 (52,713)
Total Group Shareholders' equity 255,660 36.6% 150,957 25.6%
Minority interests 24 22
Total liabilities and
shareholders' equity 697,697 100% 588,847 100%
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Euro in thousands)
Period ended Period ended
30/06/2006 30/06/2005
EUR 000 EUR 000
Cash flow generated by operating activities
Net profit (loss) for the year 2,260 (3,549)
Change in cumulative translation adjustment (589) 1,443
Adjustments to reconcile net profit (loss) with the
movements of funds generated by (used in)
operating activities
- Non cash items for stock options 394 645
- Amortisation, depreciation 10,208 14,622
- Taxes paid (107) (307)
Change in operating assets
and liabilities
- Working capital 18,096 27,650
- Other current assets (1,311) (392)
- Other current liabilities 6,177 6,498
- Due to tax authorities 2,506 2,573
- Deferred tax assets 3,572 (207)
- Deferred tax liabilities 2,241 868
- Employee benefits (338) 361
- Provisions for risks and charges 136 -
- Restructuring reserve (4,668) -
- Other (3,219)
Net cash generated by operating
activities (A) 38,577 46,986
Cash flow (used in) generated by
investing activities
Net change in property, plant and equipment (3,641) (4,176)
Net change in intangible fixed assets (10,441) (9,183)
Disposal from property, plant and equipment 133 201
Other fixed assets 19 41
Net cash used in investing activities (B) (13,930) (13,117)
Cash flow generated from operating activities,
net of cash used in investing
activities (A-B) 24,647 33,869
Cash flow (used in) generated by financing activities
Change in short-term and long-term debt (20,657) (29,825)
Interests cashed (paid) (2,108) 68
Change in minority interests 2 -
Increase in share capital and reserves 78,860 385
Change in cash generated by financing activities 56,097 (29,372)
Increase (decrease) in cash on hand, bank deposits
and securities 80,744 4,497
Cash and cash equivalents, beginning of year 53,017 49,327
Cash and cash equivalents, end of period/ year 133,761 53,824
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Dollar in thousands)
Period ended Period ended
30/06/2006 30/06/2005
$ 000 $ 000
Cash flow generated by operating activities
Net profit (loss) for the year 2,873 (4,512)
Change in cumulative translation adjustment (748) 1,834
Adjustments to reconcile net profit (loss) with the
movements of funds generated by (used in)
operating activities
- Non cash items for stock options 501 820
- Amortisation, depreciation 12,977 18,589
- Taxes paid (136) (390)
Change in operating assets
and liabilities
- Working capital 23,005 35,151
- Other current assets (1,667) (498)
- Other current liabilities 7,853 8,261
- Due to tax authorities 3,186 3,271
- Deferred tax assets 4,541 (263)
- Deferred tax liabilities 2,849 1,103
- Employee benefits (430) 459
- Provisions for risks and charges 173 -
- Restructuring reserve (5,934) -
- Other (4,092)
Net cash generated by operating
activities (A) 49,043 59,733
Cash flow (used in) generated by
investing activities
Net change in property, plant and equipment (4,628) (5,309)
Net change in intangible fixed assets (13,274) (11,674)
Disposal from property, plant and equipment 169 255
Other fixed assets 24 53
Net cash used in investing activities (B) (17,709) (16,675)
Cash flow generated from operating activities,
net of cash used in investing
activities (A-B) 31,334 43,058
Cash flow (used in) generated by financing activities
Change in short-term and long-term debt (26,261) (37,916)
Interests cashed (paid) (2,680) 86
Change in minority interests 2 -
Increase in share capital and reserves 100,255 489
Change in cash generated by financing activities 71,316 (37,341)
Increase (decrease) in cash on hand, bank deposits
and securities 102,650 5,717
Cash and cash equivalents, beginning of year 67,400 62,709
Cash and cash equivalents, end of period/ year 170,050 68,426
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