Ducati Motor Holding Announces Record 2000 Nine-Month Results
15 November 2000
Ducati Motor Holding Announces Record 2000 Nine-Month Results
- Nine-month Net Income Rises to Lit. 7.2 Billion (US$3.3 million) -
- EBITDA Increases 6.3% to Lit. 79.6 Billion (US$36.0 million) -
BOLOGNA, Italy, Nov. 15 Ducati Motor Holding S.p.A.
, a leading manufacturer of high
performance motorcycles, today announced record financial results for the nine
months ended September 30, 2000, with net income reaching Lit. 7.2 billion
(US$3.3 million) compared to Lit. 6.3 billion (US$2.8 million) in the prior
year, an increase of 14.6%.
As previously reported, the Company announced nine-month consolidated
sales of Lit 532.4 billion (US$241.0 million), a 26.7% increase over the Lit.
420.1 billion (US$190.2 million) for the first nine months of last year.
For the first nine months of 2000, gross margin was 39.1% versus 39.3% in
the previous year. Factors that influenced gross margins were higher-than-
expected production costs resulting from record production levels, offset by
favorable exchange rates.
Nine-month EBITDA (earnings before interest, tax, depreciation and
amortization) increased 6.3% to Lit. 79.6 billion (US$36.0 million) from Lit
74.9 billion (US$33.9 million) in the comparable period last year. EBITDA as
a percentage of sales was 15.0% versus 17.8% of the previous year, primarily
due to start-up costs in Ducati's UK subsidiary, high promotional costs in
Ducati's Japan subsidiary and, to a lesser extent, costs relating to
Ducati.com and to the World Ducati Weekend in June 2000.
"We are pleased with our results for the first nine months of the year
which encourage us actively to continue with our current strategic
initiatives," said Carlo Di Biagio, Ducati's Chief Executive Officer. "We are
confident that they, along with our investments in improving our manufacturing
processes, are the best way to achieve our ambitious plans for future growth."
Ducati has experienced a significant rise in registrations, a measure of
retail sales, and, while official nine-month world registration data are not
yet available, the Company estimates that registrations increased 18% during
the nine months compared to the same period a year ago, with particular
strength in Japan, North America and France.
Ducati's net debt decreased to Lit. 165.2 billion ($74.7 million) at
September 30, 2000, from Lit. 187.3 billion ($84.6 million) one year ago. The
Company's net debt to total net capitalization was 39% as of September 30,
2000.
Separately, the Company announced that it had won the manufacturers' title
in the World Superbike Championship for the ninth time.
"We are particularly proud of this year's manufacturers' title in the
World Superbike Championship as it re-confirms the superior performance of our
bikes on the racetrack," commented Mr. Di Biagio. "I would like to take this
opportunity to congratulate our riders and to thank Carl Fogarty for his
immense contribution to Ducati and to motorcycling in general. Ducati wishes
him the best of luck and looks forward to working with him on special projects
in the future."
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Three Months Ended Three Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Net Sales (Lire in millions, US$ in thousands)
Motorcycles Lit 85,047 Lit 70,413 $38,499 $31,874
Spare Parts,
Accessories, Apparel 26,585 17,993 12,034 8,145
Miscellaneous Other 276 739 125 335
Total net sales Lit 111,908 Lit 89,145 $50,658 $40,354
Ducati Units Three Months Ended
Motorcycle shipments: Sept. 30, Sept. 30, % Change
2000 1999
North America 817 660 23.8%
Europe 3,651 3,794 (3.8%)
Japan 452 166 172.3%
Rest of World 470 195 141.0%
Total 5,390 4,815 11.9%
Motorcycle product mix:
Sport Segment (Superbike &
Supersport) 2,118 1,911 10.8%
Sport Naked 2,928 2,643 10.8%
Sport Touring 344 261 31.8%
Total 5,390 4,815 11.9%
Unofficial Motorcycle Registrations:% Change
North America 1,392 1,062 31.1%
Europe 5,809 5,904 (1.6%)
Japan 706 412 71.4%
Rest of World 558 455 22.6%
Total 8,465 7,833 8.1%
Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data
Nine Months EndedNine Months Ended
September 30,September 30, September 30,September 30,
2000 1999 2000 1999
Net Sales (Lire in millions, US$ in thousands)
Motorcycles Lit 436,980 Lit 358,757 $197,810 $162,400
Spare Parts,
Accessories, Apparel 81,601 56,107 36,938 25,398
Miscellaneous Other 13,777 5,199 6,237 2,353
Total net sales Lit 532,358 Lit 420,063 $240,985 $190,151
Ducati Units Nine Months Ended
Motorcycle shipments: Sept. 30, Sept. 30, % Change
2000 1999
North America 4,789 3,663 30.7%
Europe 20,662 19,757 4.6%
Japan 1,585 814 94.7%
Rest of World 1,564 654 139.1
Total 28,600 24,888 14.9%
Motorcycle product mix:
Sport Segment
(Superbike & Supersport) 11,490 9,810 17.1%
Sport Naked 15,114 12,977 16.5%
Sport Touring 1,996 2,101 (5.0%)
Total 28,600 24,888 14.9%
Unofficial Motorcycle Registrations: % Change
North America 5,497 3,767 45.9%
Europe 23,866 20,967 13.8%
Japan 1,886 1,129 67.1%
Rest of World 1,911 2,190 (12.7%)
Total 33,160 28,053 18.2%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Lire in millions, US$ in thousands, except per share data and share amounts)
Three Months Ended Three Months Ended
Sept. 30, Sept. 30, Sept. 30,Sept. 30, Percent
2000 1999 2000 1999 Change
Net sales Lit 111,908 Lit 89,145 $50,658 $40,353 25.5%
Cost of goods
sold (64,609) (52,197) (29,247) (23,628)
Gross profit 47,299 36,948 21,411 16,725 28.0%
Other operating
revenues 2,365 1,249 1,071 565
SG&A
expenses (43,571) (27,520) (19,724) (12,457)
Other operating
income/(loss) (38) (167) (17) (75)
Depreciation &
amortization(13,532) (11,776) (6,126) (5,331)
Operating
income/(loss)(7,477) (1,266) (3,385) (573) (490.8%)
Financing
expense, net(4,922) (4,873) (2,228) (2,206)
Other non-operating
income/
(expense), net 232 (335) 105 (151)
Profit/(loss)
before income
taxes and min.
interest (12,167) (6,474) (5,508) (2,930)
Income taxes 6,784 1,006 3,071 455
Minority interest -- (93) -- (42)
Net profit Lit(5,383) Lit(5,561) $(2,437) $(2,517) 3.2%
Earnings
per share Lit(34.0) Lit(35.2) $(0.15) $(0.16)
Shares
outstand-
ing 158,271,963 157,962,963 158,271,963 157,962,963
Other Financial Data Percent
Change
Motorcycles
Produced
(Units) 8,922 6,504 37.2%
Motorcycles
Sold
(Units) 5,392 4,815 12.0%
Unofficial
Registrations
(Units) 8,465 7,833 8.1%
EBITDA 6,287 10,175 2,845 4,605 (38.2%)
EBITDA Margin 15.0% 19.5%
Note: On September 30, 2000, US$1 = 2,209.09 Italian Lire.
On January 1, 2000, the conversion rate was fixed such that Euro 1=
1,936.27 Italian Lire.
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Lire in millions, US$ in thousands, except per share data and share amounts)
Nine Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Percent
2000 1999 2000 1999 Change
Net sales
Lit 532,358 Lit 420,063 $240,985 $190,152 26.7%
Cost of
goods
sold (324,075) (255,026) (146,700) (115,444)
Gross profit 208,283 165,037 94,285 74,708 26.2%
Other
operating
revenues 6,870 5,150 3,110 2,331
SG&A
expenses (135,149) (96,230) (61,179) (43,560)
Other
operating income
/(loss) (116) 1,126 (53) 509
Depreciation &
amortization(43,022) (33,732) (19,475) (15,270)
Operating
income/(loss)36,866 41,351 16,688 18,718 (10.8%)
Financing
expense,
net (22,152) (22,515) (10,028) (10,192)
Other
non-operating
income/(expense),
net (269) (187) (122) (84)
Profit/(loss)
before income
taxes and
min.
interest 14,445 18,649 6,538 8,442
Income taxes (7,249) (11,990) (3,281) (5,428)
Minority interest -- (382) -- (173)
Net profit Lit 7,196 6277 $3,257 $2,841 14.6%
Earnings per
share Lit45.46 Lit39.73 $0.21 $0.18
Shares
outstand-
ing 158,271,963 157,962,963 158,271,963 157,962,963
Other Financial Data Percent
Change
Motorcycles
Produced (Units)29,877 25,510 17.1%
Motorcycles
Sold (Units) 28,600 24,888 14.9%
Unofficial
Registrations
(Units) 33,160 28,053 18.2%
EBITDA 79,619 74,896 36,042 33,904 6.3%
EBITDA Margin 15.0% 17.8%
Note: On September 30, 2000, US$1 = 2,209.09 Italian Lire.
On January 1, 2000, the conversion rate was fixed such that Euro 1=
1,936.27 Italian Lire.
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Lire in millions, US$ in thousands, except per share data and share amounts)
Nine Months EndedNine Months EndedYear Ended
09/30/2000 09/30/1999 12/31/1999
Lm % Lm % Lm %
Current assets
Cash and
cash
equivalents Lit32,849Lit 23,446Lit 21,839
Trade
receivables, net 87,540 76,079 121,098
Inventories 164,577 124,561 143,372
Other current
assets 15,760 12,435 13,333
Total
current assets 300,726 44.9% 236,521 38.4% 299,642 44.2%
Non current assets
Property, plant
and equipment -net 92,683 88,333 91,445
Intangible fixed
assets, net 275,195 289,333 285,064
Equity investments 163 163 163
Other
long-term assets 1,325 1,276 1,252
Total non
current assets 369,366 55.1% 379,105 61.6% 377,924 55.8%
Total assets 670,092 100.0% 615,626 100.0% 677,566 100.0%
Current liabilities
Short-term
bank borrowings 262 63 25,763
Current portion
of long-term debt -- 15,343 15,555
Accounts
payable - trade 132,993 102,368 127,718
Income and
other taxes
payables 19,374 11,755 9,801
Other current
liabilities 32,642 15,487 15,565
Provisions
for risks and
charges -
current portion 14,833 15,050 14,916
Total current
liabilities 200,104 29.9% 160,066 26.0% 209,318 30.9%
Long-term liabilities
Long-term debt,
net of
current portion 193,627 195,304 197,994
Employees'
leaving
entitlement 8,959 7,008 7,326
Deferred income taxes 0 5,178 3,741
Other long-term
liabilities 25 49 44
Provisions for risks
and charges -
long-term portion 4,700 4,500 4,500
Total long-term
liabilities 207,311 30.9% 212,039 34.4% 213,605 31.5%
Total liabilities 407,415 372,105 422,923
Total Group
shareholders'
equity 262,677 39.2% 242,539 39.4% 253,800 37.5%
Minority interests -- 982 843
Total
shareholders'
equity 262,677 39.2% 243,521 39.6% 254,643 37.6%
Total liabilities
and shareholders'
equity Lit670,092 100.0% Lit615,626 100.0%Lit 677,566 100.0%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Lire in millions, US$ in thousands, except per share data and share amounts)
Nine Months Ended Nine Months Ended Year Ended
09/30/2000 09/30/2000 12/31/1999
US$ % US$ % US$ %
Current assets
Cash and
cash
equivalents $14,870 $10,613 $9,886
Trade receivables,
net 39,627 34,439 54,818
Inventories 74,500 56,386 64,901
Other current
assets 7,134 5,629 6,035
Total current
assets 136,131 44.9% 107,067 38.4% 135,640 44.2%
Non current assets
Property, plant
and equipment
net 41,955 39,986 41,395
Intangible fixed
assets,net 124,574 130,974 129,041
Equity investments 74 74 74
Other long-term
assets 600 578 567
Total non current
assets 167,203 55.1% 171,612 61.6% 171,077 55.8%
Total assets 303,334 100.0% 278,679 100.0% 306,717 100.0%
Current liabilities
Short-term
bank
borrowings 118 29 11,662
Current portion
of long-term
debt -- 6,945 7,041
Accounts
payable - trade 60,203 46,339 57,815
Income and other
taxes payables 8,770 5,321 4,437
Other current
liabilities 14,776 7,011 7,046
Provisions for
risks and charges -
current portion 6,715 6,813 6,752
Total current
liabilities 90,582 29.9% 72,458 26.0% 94,753 30.9%
Long-term liabilities
Long-term debt,
net of current
portion 87,650 88,409 89,627
Employees' leaving
entitlement 4,056 3,172 3,316
Deferred income
taxes 2,344 1,693
Other long-term
liabilities 11 22 20
Provisions for
risks and charges -
long-term
portion 2,128 2,038 2,037
Total long-term
liabilities 93,845 30.9% 95,985 34.4% 96,693 31.5%
Total
liabilities 184,427 168,443 191,446
Total Group
shareholders'
equity 118,907 39.2% 109,791 39.4% 114,889 37.5%
Minority interests -- 445 382
Total shareholders'
equity 118,907 39.2% 110,236 39.6% 115,271 37.6%
Total liabilities
and shareholders'
equity $303,334 100.0%
$278,679 100.0% $306,717 100.0%