Ducati Motor Holding Announces Record 2000 First-Half Results
15 September 2000
Ducati Motor Holding Announces Record 2000 First-Half Results
- First-Half Net Income Rises to Lit. 12.6 Billion (US$6.2 million) -
- EBITDA Increases 13.3% to Lit. 73.3 Billion (US$36.2 million) -
BOLOGNA, Italy, Sept. 15 Ducati Motor Holding S.p.A.
, a leading manufacturer of high
performance motorcycles, today announced record financial results for the six
months ended June 30, 2000, with net income at an all-time high of
Lit. 12.6 billion (US$6.2 million).
As previously reported, the Company announced six-month consolidated sales
of Lit 420.5 billion (US$207.5 million), a 27.1% increase over the
Lit. 330.9 billion (US$163.3 million) for the first half of last year.
For the first six months of 2000, gross margin was 38.3% versus 38.7% in
the previous year, confirming the Company's ability to maintain healthy
margins while growing volume and revenues. The difference was principally due
to variations in the product mix and to higher-than-expected production costs
resulting from reaching record production levels of 200 motorcycles per day.
First-half EBITDA (earnings before interest, tax, depreciation and
amortization) increased 13.3% to Lit. 73.3 billion (US$36.2 million) from
Lit 64.7 billion (US$31.9 million) in the comparable period last year. EBITDA
as a percentage of sales was 17.4% versus the exceptionally high 19.6% of the
previous year. This is mainly due to costs arising from commercial and
promotional activities which did not occur during the same period of the
previous year, principally those related to the World Ducati Weekend 2000
which took place in June 2000, attracting 20,000 fans.
Net income for the six months was Lit.12.6 billion (US$6.2 million)
compared to Lit. 11.8 billion (US$5.8 million) in the prior year period.
"Our first-half results show that as awareness of the Ducati brand
continues to increase, so does demand for our products. Our top line figures
keep growing steadily above and beyond our promises," said Carlo Di Biagio,
Ducati Chief Executive Officer. "We are now turning our attention to the
consolidation and re-structuring of the Company in order to manage this strong
sustained growth pattern which we have achieved. In particular, we are
focused on streamlining production, on getting our new UK subsidiary up and
running, and on setting up a solid platform for our Internet business."
Ducati has experienced a significant rise in registrations, a measure of
retail sales, especially in those regions where the Company has greater
control over its distribution network. While final official data are not yet
available, during the first six months of 2000, unofficial registrations grew
more than 20% on a global basis, including approximately 64% in Japan, 52% in
the U.S., 51% in France and 25% in Italy.
Ducati's net debt decreased to Lit 147.3 billion (US$72.7 million) at
June 30, 2000 from Lit. 185.7 billion (US$91.6 million) at June 30, 1999. The
Company's net debt to total net capitalization ratio was 35.5% as of June 30,
2000.
Mr. Di Biagio concluded, "We are delighted to add that just this week we
sold-out our latest model over the Internet, the entire limited edition
available to the public of 350 996R bikes at a unit price of Euro 26,000."
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Six Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
Net Sales
(Lire in millions, US$ in thousands)
Motorcycles Lit 351,933 Lit 288,344 $173,689 $142,306
Spare Parts,
Accessories,
Apparel 55,016 38,114 27,152 18,810
Miscellaneous Other 13,501 4,460 6,663 2,201
Total net sales Lit 420,450 Lit 330,918 $207,504 $163,317
Ducati Units
Motorcycle shipments: % Change
North America 3,972 3,003 +32.3%
Europe 17,011 15,963 +6.6%
Japan 1,133 648 +74.8%
Rest of World 1,092 459 +137.9%
Total 23,208 20,073 +15.6%
Motorcycle product mix:
Sport Segment
(Superbike & Supersport) 9,370 7,899 +18.6%
Sport Naked 12,186 10,334 +17.9%
Sport Touring 1,652 1,840 -10.2%
Total 23,208 20,073 +15.6%
Unofficial Motorcycle Registrations: % Change
North America 4,103 2,705 +51.7%
Europe 18,016 15,063 +19.6%
Japan 1,179 717 +64.4%
Rest of World 1,423 1,735 -18.0%
Total 24,721 20,220 +22.3%
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Three Months Ended Three Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
Net Sales
(Lire in millions, US$ in thousands)
Motorcycles Lit 186,688 Lit 168,203 $92,136 $83,013
Spare Parts,
Accessories,
Apparel 31,547 25,433 15,569 12,552
Miscellaneous Other 3,570 2,493 1,762 1,230
Total net sales Lit 221,805 Lit 196,129 $109,467 $96,795
Ducati Units
Motorcycle shipments: % Change
North America 1,897 1,462 +29.8%
Europe 9,708 9,832 -1.3%
Japan 781 380 +105.5%
Rest of World 458 289 +58.5%
Total 12,844 11,963 +7.4%
Motorcycle product mix:
Sport Segment
(Superbike & Supersport) 4,790 4,419 +8.4%
Sport Naked 7,152 6,611 +8.2%
Sport Touring 902 933 -3.3%
Total 12,844 11,963 +7.4%
Unofficial Motorcycle Registrations: % Change
North America 2,358 1,748 +34.9%
Europe 11,271 9,781 +15.2%
Japan 781 400 +95.3%
Rest of World 819 940 -12.9%
Total 15,229 12,869 +18.3%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Lire in millions, US$ in thousands, except per share and share amounts)
Six Months Ended Six Months Ended
June 30, June 30, June 30, June 30, Percent
2000 1999 2000 1999 Change
Net sales Lit 420,450 Lit 330,918 $207,504 $163,317 +27.1%
Cost of goods
sold (259,466) (202,829) (128,054) (100,102)
Gross profit 160,984 128,089 79,450 63,215 +25.7%
Other
operating
revenues 4,505 3,901 2,223 1,925
SG&A expenses (91,578) (68,710) (45,196) (33,910)
Other operating
income/(loss) (78) 1,293 (37) 639
Depreciation &
amortization (29,490) (21,956) (14,554) (10,836)
Operating
income/ (loss) 44,343 42,617 21,884 21,033 +4.1%
Financing
expense, net (17,230) (17,642) (8,503) (8,707)
Other
non-operating
income/ (expense),
net (501) 148 (247) 73
Profit/(loss)
before income
taxes and
min. interest 26,612 25,123 13,134 12,399
Income taxes (14,033) (12,996) (6,926) (6,414)
Minority
interest -- (289) -- (143)
Net profit Lit 12,579 Lit 11,838 $6,208 $5,842 +6.3%
Earnings per
share Lit 79.48 Lit 74.94 $0.04 $0.04
Shares
outstanding 158,271,963 157,962,963 158,271,963 157,962,963
Percent
Other Financial Data Change
Motorcycles
Produced
(Units) 20,955 19,006 +10.3%
Motorcycles
Sold
(Units) 23,208 20,073 +15.6%
Unofficial
Registrations
(Units) 24,721 20,220 +22.3%
EBITDA 73,332 64,721 36,191 31,942 +13.3%
EBITDA Margin 17.4% 19.6%
Note: On June 30, 2000 US$1 = 2026.23 Italian Lire.
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Lire in millions, US$ in thousands, except per share and share amounts)
Three months ended Three months ended
June 30, June 30, June 30, June 30, Percent
2000 1999 2000 1999 Change
Net Sales Lit. 221,805 Lit. 196,129 US$ 109,467 US$ 96,795 +13.1%
Cost of
goods sold (135,623) (119,584) (66,934) (59,018)
Gross Profit 221,805 76,545 109,467 37,777 +12.6%
Other
operating
revenues 2,480 2,675 1,224 1,320
SG&A expenses (48,964) (40,140) (24,165) (19,810)
Other operating
income (2) 1,306 (1) 645
Depreciation &
amortization (16,877) (11,932) (8,329) (5,889)
Operating
income/(loss) 22,819 68,594 11,262 14,043 -19.8%
Financing
expense, net (7,380) (12,048) (3,642) (5,946)
Other
non-operating
income/(expense),
net (435) 812 (215) 401
Profit/(loss)
before income
taxes and
min.interest 15,004 17,218 7,405 8,498
Income taxes (7,938) (8,514) (3,918) (4,201)
Minority
interest -- (274) -- (135)
Net profit/
(loss) Lit. 7,066 Lit. 8,430 US$3,487 US$4,160 -16.2%
Earnings
per share Lit. 44.64 Lit. 53.37 US$0.02 US$0.03
Shares
outstanding 158,271,963 157,962,963 158,271,963 157,962,963
Percent
Other Financial Data Change
Motorcycles
Produced
(Units) 10,727 9,802 +9.4%
Motorcycles
Sold
(Units) 12,844 11,963 +7.4%
Unofficial
Registrations
(Units) 15,229 12,869 +18.3%
EBITDA 39,261 41,198 19,376 20,332 -4.7%
EBITDA Margin 17.7% 21.0%
Note: On June 30, 2000 US$1= 2026,23 Italian lire.
Ducati Motor Holding S.p.A.
Reclassified Consolidated Balance Sheet Data
(Lire in millions)
Six Months Ended Six Months Ended Year Ended
06/30/2000 06/30/1999 12/31/1999
Lm % Lm % Lm %
Current
assets
Cash and
cash
equivalents Lit 48,618 Lit 41,044 Lit 21,839
Trade
receivables,
net 135,373 120,189 121,098
Inventories 129,088 107,375 143,372
Other
current
assets 12,391 14,183 13,333
Total
current
assets 325,470 46.6% 282,791 42.2% 299,642 44.2%
Non
current
assets
Property,
plant
and
equipment
- net 91,645 90,574 91,445
Intangible
fixed
assets,
net 279,135 294,993 285,064
Equity
investments 163 163 163
Other
long-term
assets 1,346 1,216 1,252
Total
non
current
assets 372,289 53.4% 386,946 57.8% 377,924 55.8%
Total
assets 697,759 100.0% 669,737 100.0% 677,566 100.0%
Current
liabilities
Short-term
bank
borrowings 1,192 10,041 25,763
Current
portion of
long-term
debt -- 11,938 15,555
Accounts
payable -
trade 148,656 127,316 127,718
Income and
other
taxes
payables 26,634 18,095 9,801
Other
current
liabilities 29,928 16,309 15,565
Provisions
for risks
and charges
- current
portion 16,244 14,811 14,916
Total
current
liabilities 222,654 31.9% 198,510 29.6% 209,318 31.0%
Long-term
liabilities
Long-term
debt, net
of current
portion 193,627 204,791 197,994
Employees'
leaving
entitlement 8,365 6,558 7,326
Deferred
income
taxes 806 5,262 3,741
Other
long-term
liabilities 31 57 44
Provisions
for risks
and charges
- long-term
portion 4,700 4,500 4,500
Total
long-term
liabilities 207,529 29.7% 221,168 33.0% 213,605 31.4%
Total
liabilities 430,183 419,678 422,923
Total Group
shareholders'
equity 267,576 38.4% 249,170 37.2% 253,800 37.5%
Minority
interests -- 889 843
Total
shareholders'
equity 267,576 38.4% 250,059 37.3% 254,643 37.6%
Total
liabilities
and
shareholders' Lit Lit Lit
equity 697,759 100.0% 669,737 100.0% 677,566 100.0%
Ducati Motor Holding S.p.A.
Reclassified Consolidated Balance Sheet Data
(US$ in thousands)
Six Months Ended Six Months Ended Year Ended
06/30/2000 06/30/2000 12/31/1999
US$ % US$ % US$ %
Current
assets
Cash and
cash
equivalents $23,994 $20,256 $10,778
Trade
receivables,
net 66,810 59,317 59,765
Inventories 63,708 52,993 70,758
Other
current
assets 6,116 7,000 6,580
Total
current
assets 160,628 46.6% 139,566 42.2% 147,881 44.2%
Non
current
assets
Property,
plant
and
equipment
- net 45,229 44,701 45,131
Intangible
fixed
assets,
net 137,761 145,587 140,687
Equity
investments 80 80 80
Other
long-term
assets 665 600 618
Total
non
current
assets 183,735 53.4% 190,968 57.8% 186,516 55.8%
Total
assets 344,363 100.0% 330,534 100.0% 334,397 100.0%
Current
liabilities
Short-term
bank
borrowings 588 4,956 12,715
Current
portion of
long-term
debt -- 5,892 7,677
Accounts
payable -
trade 73,366 62,834 63,032
Income
and other
taxes
payables 13,145 8,930 4,837
Other
current
liabilities 14,770 8,049 7,682
Provisions for
risks and
charges-
current
portion 8,017 7,310 7,361
Total
current
liabilities 109,886 31.9% 97,971 29.6% 103,304 31.0%
Long-term
liabilities
Long-term
debt, net
of current
portion 95,560 101,070 97,715
Employees'
leaving
entitlement 4,128 3,236 3,616
Deferred
income
taxes 398 2,597 1,846
Other
long-term
liabilities 15 28 22
Provisions
for risks
and charges -
long-term
portion 2,320 2,221 2,221
Total
long-term
liabilities 102,421 29.7% 109,152 33.0% 105,420 31.4%
Total
liabilities 212,307 207,123 208,724
Total
Group
shareholders'
equity 132,056 38.4% 122,972 37.2% 125,257 37.6%
Minority
interests -- 439 416
Total
shareholders'
equity 132,056 38.4% 123,411 37.3% 125,673 37.6%
Total
liabilities
and
shareholders'
equity $344,363 100.0% $330,534 100.0% $334,397 100.0%
Note: On June 30, 2000, US$1 = 2026.23 Italian Lire; this exchange rate
was used for both 1999 and 2000.