BOLOGNA, Italy, November 11 - The Board of Directors of Ducati Motor Holding S.p.A. approved yesterday the nine months 2005 financial results, which have been prepared under International Financial Reporting Standards (IFRS).
Revenues for the first nine months 2005 were Euro 240.3 million, down 10.0% including forex effects (or 9.2% excluding forex effects) versus the same period in 2004 . This was due to the reduction in motorcycle volumes, combined with an unfavourable mix and adverse forex effects. Revenues from motorcycles for the period decreased 10.5% to Euro 181.8 million and accounted for 75.6% of revenues. Motorcycle-related products, including spare parts, accessories and apparel, were down by 4.7% to Euro 56.1 million over the comparable period in the previous year.
Gross margin for the first nine months of 2005 amounted to Euro 57.4 million or 23.9% of revenues versus Euro 69.6 million or 26.1% in the same period in 2004, caused by a reduction in motorcycle volumes, a negative mix and adverse forex effects, only partially offset by product cost reductions.
EDITDA was Euro 14.4 million or 6.0% of revenues against Euro 24.1 million or 9.0% of revenues, due to the above-mentioned factors and down 40.2% at current exchange rates and 35.2% at constant exchange rates.
With regard to depreciation and amortisation, please note that following the adoption of IFRS, the amortisation of intangible assets no longer includes brand and goodwill amortisation.
Operating result (EBIT) amounted to a loss of Euro 6.9 million versus a profit of Euro 2.5 million for the same period 2004.
At EBT level, the result was a loss of Euro 13.0 million versus a loss of Euro 4.3 million due to lower EBIT.
Net result for the period was a loss of Euro 16.6 million compared to a loss of Euro 9.0 million in the first nine months of 2004.
Company net debt at September 30, 2005 was Euro 129.9 million versus Euro 133.4 million at September 30, 2004 and Euro 150.5 million at December, 31 2004. The company's gearing ratio was 92.2% compared to 87.0% on September 30, 2004 and 95.4% on December 31, 2004.
For the first nine months of 2005, unofficial Ducati registrations were down by 5.3% on the same period last year. Registrations were up in the US (+21%), in the non-subsidiary countries (+5%), and in France (+4%) and down in Japan (-9%), in Italy (-15%), in the UK (-16%), in Benelux (-17%) and in Germany (-18%).
"Despite a recovery in terms of sales, third quarter results were unsatisfactory", said Federico Minoli, Ducati's Chairman and Chief Executive Officer. "While the third quarter helped reduce the gap on last year in terms of sales, the unfavourable mix and the delay in the production of the Sport Classic bikes had a negative impact on the company's profitability. Our aim is to reverse this trend in the last quarter by the shipment of approximately 3,500 pre-sold Sport Classic bikes".
"Our cash control resulted in a reduction in the net financial position despite lower EBITDA", said Enrico D'Onofrio, Chief Financial Officer of Ducati. "Anyway, market trends and Company results force us to rethink our cost structure and product mix through a restructuring and relaunch plan whose details and expected results will be presented soon".
As for the third quarter, revenues were Euro 52.2 million, up 12.2% over the same period in 2004 thanks to a 31% bikes sales increase.
Gross margin was Euro 11.5 Million, or 22.1% of revenues, up 12.6% versus Euro 10.5 Million of the same period a year ago.
Operating result (EBIT) for the third quarter of 2005 was a loss of Euro 11.5 million versus a loss of Euro 9.6 million last year due to higher sales costs.
Net result for the third quarter was a loss of Euro 13.0 million against a loss of Euro 11.6 million last year.
As of September 30, 2005, the Company had re-purchased 3,769,249 shares, equivalent to Euro 4,267,510 or 2.37% of its stock capital. Subsequentely the Company has sold 1.924.580 shares.
Founded in 1926, Ducati develops 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 Sport Classic. The Company's motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European 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. 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.
These materials are not an offer of securities for sale in the United States. The 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
Three Months Ended Three Months Ended
September,30 September,30 September,30 September,30
2005 2004 2005 2004
Net Revenues
(Euro in thousands,
US$ in thousands)
Motorcycles EUR 34,373 EUR 28,446 $ 41,392 $ 34,255
Spare Parts,
Accessories,
Apparel 17,104 16,612 20,597 20,004
Other 744 1,482 896 1,785
Total Net Revenues EUR 52,221 EUR 46,540 $ 62,885 $ 56,044
Ducati Units
Motorcycle shipments: % Change
North America 1,276 657 94.2%
Main European
market 1,904 1,622 17.4%
Japan 491 438 12.1%
Rest of World 718 644 11.5%
Total 4,389 3,361 30.6%
Motorcycle product mix: % Change
Superbike 969 1,118 (13.3%)
Supersport 170 118 44.1%
Sport Naked 2,372 1,589 49.3%
Sport Touring 221 245 (9.8%)
Multistrada 657 291 125.8%
Total 4,389 3,361 30.6%
Unofficial Motorcycle Registrations: % Change
North America 1,824 1,441 26.6%
Main European
market 4,008 4,660 (14.0%)
Japan 708 676 4.7%
Rest of World 1,249 1,092 14.4%
Total 7,789 7,869 (1.0%)
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, US$ in thousands, except
per share and share amounts)
Nine Months Ended Nine Months Ended
Sept- Sept- Sept- Sept- Percent
ember,30 ember,30 ember,30 ember,30 Change
2005 2004 2005 2004
Revenues (net) EUR240,326 EUR266,908 $289,401 $321,411 (10.0%)
Cost of goods
sold (182,891) (197,306) (220,237) (237,596)
Gross Margin 57,435 69,602 69,164 83,815 (17.5%)
Other operating
revenues 27,630 26,839 33,272 32,320
SG&A expenses (91,141) (92,586) (109,752) (111,492)
Other operating
income and
expenses (881) (1,340) (1,061) (1,614)
Operating result (6,957) 2,515 (8,377) 3,029 (376.6%)
Financing
expense, net (6,075) (6,841) (7,316) (8,238)
Profit/(loss)
before income
taxes and
min.interest (13,032) (4,326) (15,693) (5,209) 201.2%
Income Tax (3,538) (4,676) (4,260) (5,631) (24.3%)
Net Result
including
minority
interests (16,570) (9,002) (19,953) (10,840) 84.1%
Minority Interests (1) (11) (1) (13) -90.9%
Net Result for
the Group (16,571) (9,013) (19,954) (10,853) 83.9%
Shares
outstanding 159,360,037 158,826,407 159,360,037 158,826,407
Percent
Other Change
Financial
Data
Motorcycles
Produced (Units) 25,977 29,029 (10.5%)
Motorcycles
Sold (Units) 24,417 25,240 (3.3%)
Unofficial
Registrations
(Units) 29,756 31,412 (5.3%)
EBITDA 14,435 24,132 17,383 29,059 (40.2%)
EBITDA Margin 6.0% 9.0%
Note: On September 30, 2005 US$1= 0,8304 Euros
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands, US$ in thousands,
except per share and share amounts)
Three Months Ended Three Months Ended
Sept- Sept- Sept- Sept- Percent
ember,30 ember,30 ember,30 ember,30 Change
2005 2004 2005 2004
Revenues (net) EUR 52,221 EUR 46,540 $ 62,885 $ 56,043 12.2%
Cost of goods
sold (40,678) (36,289) (48,984) (43,699)
Gross Margin 11,543 10,251 13,901 12,344 12.6%
Other operating
revenues 8,086 9,114 9,737 10,975
SG&A expenses (31,753) (28,875) (38,237) (34,771)
Other operating
income and
expenses 610 (52) 735 (63)
Operating result (11,514) (9,562) (13,864) (11,515) 20.4%
Financing
expense, net (783) (2,211) (943) (2,662)
Profit/(loss)
before income
taxes and min.
interest (12,297) (11,773) (14,807) (14,177) 4.5%
Income Tax (724) 208 (857) 275 18%
Net Result
including minority
interests (13,021) (11,565) (15,664) (13,902) 12.6%
Minority Interests (1) (14) (1) (17) -90.9%
Net Result for
the Group (13,022) (11,579) (15,665) (13,919) 12.5%
Shares outstanding 159,360,037 158,826,407 159,360,037 158,826,407
Percent
Other Financial Change
Data
Motorcycles
Produced ( Units) 5,711 5,852 (2.4%)
Motorcycles Sold
(Units) 4,389 3,361 30.6%
Unofficial
Registrations
(Units) 7,789 7,869 (1.0%)
EBITDA (4,744) (2,524) (5,713) (3,039) 88.0%
EBITDA Margin (9.1%) (5.4%)
Note: On September 30, 2005 US$1= 0,8304 Euros
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Euro in thousands)
Nine months ended Period ended
30/09/05 31/12/04
EUR 000 % EUR 000 %
Current assets
Cash and cash equivalents 47,058 49,327
Trade receivables, net 77,513 118,622
Inventories 102,514 92,293
Other current assets 7,559 10,787
Current assets - Credit Link - 15,000
Total current assets 234,644 52.2% 286,029 56.9%
Non current assets
Property, plant and
equipment -net 66,149 70,288
Goodwill and intangible
assets with indefinite
useful lives 86,050 86,050
Other intangible
fixed assets net 40,704 38,268
Equity investments 20 20
Deferred tax assets 21,264 21,665
Other long-term assets 384 403
Total non current assets 214,571 47.8% 216,694 43.1%
Total assets 449,215 100% 502,723 100%
Current liabilities
Short-term bank borrowings 48,406 93,738
Current portion of
long-term debt 3,200 57,342
Accounts payable - trade 77,567 77,463
Income and other taxes
payables 5,382 8,298
Other current liabilities 19,326 15,936
Provisions for risks and
charges - current portion 4,726 4,726
Total current liabilities 158,607 35.3% 257,503 51.2%
Long-term liabilities
Long-term debt, net of
current portion 115,912 51,913
Employee benefits 9,096 8,482
Deferred income taxes 13,628 12,207
Income and other taxes
payables- long term portion - 1,292
Other long-term liabilities 9,405 11,869
Provision for risks and
charges - long term portion 1,663 1,663
Total long-term liabilities 149,704 33.3% 87,426 17.4%
Total liabilities 308,311 68.6% 344,929 68.6%
Shareholders' equity
Capital stock 82,867 82,590
Share premium reserve 16,769 16,662
Revaluation reserve 46,265 46,265
Reserve IFRS conversion 3,642 3,578
Other reserves 4,130 5,546
Retained earnings (losses) 3,785 6,606
Results for the period (16,571) (3,469)
Total Group Shareholders'
equity 140,887 31.4% 157,778 31.4%
Minority interests 17 16
Total liabilities and
shareholders' equity 449,215 100% 502,723 100%
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(US$ in thousands)
Nine months ended Period ended
30/09/05 31/12/04
$ 000 % $ 000 %
Current assets
Cash and cash equivalents 56,667 59,399
Trade receivables, net 93,341 142,846
Inventories 123,447 111,139
Other current assets 9,103 12,990
Current assets - Credit Link - 18,063
Total current assets 282,558 52.2% 344,437 56.9%
Non current assets
Property, plant and
equipment -net 79,657 84,641
Goodwill and intangible
assets with indefinite
useful lives 103,621 103,621
Other intangible fixed
assets net 49,016 46,082
Equity investments 24 24
Deferred tax assets 25,606 26,089
Other long-term assets 462 485
Total non current assets 258,386 47.8% 260,942 43.1%
Total assets 540,944 100% 605,379 100%
Current liabilities
Short-term bank borrowings 58,291 112,879
Current portion of long-term
debt 3,853 69,051
Accounts payable - trade 93,407 93,282
Income and other taxes
payables 6,481 9,992
Other current liabilities 23,272 19,190
Provisions for risks and
charges - current portion 5,691 5,691
Total current liabilities 190,995 35.3% 310,085 51.2%
Long-term liabilities
Long-term debt, net of
current portion 139,581 62,514
Employee benefits 10,953 10,214
Deferred income taxes 16,411 14,700
Income and other taxes
payables- long term portion - 1,556
Other long-term liabilities 11,326 14,293
Provision for risks and
charges - long term portion 2,003 2,002
Total long-term liabilities 180,274 33.3% 105,279 17.4%
Total liabilities 371,269 68.6% 415,364 68.6%
Shareholders' equity
Capital stock 99,788 99,455
Share premium reserve 20,193 20,064
Revaluation reserve 55,712 55,712
Reserve IFRS conversion 4,386 4,309
Other reserves 4,973 6,678
Retained earnings (losses) 4,558 7,955
Results for the period (19,955) (4,177)
Total Group Shareholders'
equity 169,655 31.4% 189,996 31.4%
Minority interests 20 19
Total liabilities and
shareholders' equity 540,944 100% 605,379 100%
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Euro in thousands)
Period ended Period ended
30/09/05 31/12/04
EUR 000 EUR 000
Cash flow generated by operating activities
Net profit (loss) for the year (16,571) (9,013)
Adjustments to reconcile net profit (loss) with the 1,546 260
movements of funds generated by (used in)
operating activities
- Non cash items for stock options
- Amortisation, depreciation and writedowns 968 387
- Interests paid 21,392 21,617
- Taxes paid 2,850 3,916
Change in operating assets
and liabilities
- Working capital 30,992 15,092
- Other current assets 3,228 2,403
- Other current liabilities 3,390 850
- Due to tax authorities (7,058) (8,989)
- Deferred tax liabilties (assets) net 1,822 2,059
- Employee benefits 614 718
- 81
Net cash generated by operating
activities (A) 43,173 29,381
Cash flow (used in) generated by
investing activities
Net change in property, plant and equipment (6,504) (6,653)
Net change in intangible fixed assets (13,385) (8,009)
Disposal from property, plant and equipment 201 404
Other fixed assets 19 102
Net cash used in investing activities (B) (19,669) (14,156)
Cash flow generated from operating activities,
net of cash used in investing
activities (A-B) 23,504 15,225
Cash flow (used in) generated by financing activities
Change in short-term and long-term debt (36,690) 2,440
Financial assets - Credit Link 15,000 -
Change in cumulative translation adjustment (1,249) (6,357)
Change in minority interests 27
Increase in share capital and reserves 385 235
Change in shareholders' equity due to IAS 32,39 adoption
as of 1st January 2005 (3,219) -
Change in cash generated by financing activities (25,773) (3,655)
Increase (decrease) in cash on hand, bank deposits
and securities (2,269) 11,570
Cash and cash equivalents, beginning of year 49,327 33,973
Cash and cash equivalents, end of period/ year 47,058 45,543
Ducati Motor Holding S.p.A.
Consolidated Statements of Cash Flow
(Dollar in thousands)
Period Period
ended ended
30/09/05 31/12/04
$ 000 $ 000
Cash flow generated by operating activities
Net profit (loss) for the year (19,955) (10,853)
Change in cumulative translation adjustment 1,862 313
Adjustments to reconcile net profit (loss) with the
movements of funds generated by (used in)
operating activities
- Non cash items for stock options 1,166 466
- Amortisation, depreciation and
writedowns 25,760 26,031
- Taxes paid 3,432 4,715
Change in operating assets
and liabilities
- Working capital 37,321 18,174
- Other current assets 3,887 2,894
- Other current liabilities 4,082 1,024
- Due to tax authorities (8,499) (10,825)
- Deferred tax liabilties (assets) net 2,194 2,479
- Employee benefits 739 865
98
Net cash generated by operating
activities (A) 51,989 35,381
Cash flow (used in) generated by
investing activities
Net change in property, plant and equipment (7,832) (8,012)
Net change in intangible fixed assets (16,118) (9,644)
Disposal from property, plant and equipment 242 486
Other fixed assets 23 123
Net cash used in investing activities (B) (23,685) (17,047)
Cash flow generated from operating activities,
net of cash used in investing
activities (A-B) 28,304 18,334
Cash flow (used in) generated by financing activities
Change in short-term and long-term debt (44,182) 2,938
Financial assets - Credit Link 18,062 -
Interests paid (1,504) (7,655)
Change in minority interests 33
Increase in share capital and reserves 464 283
Change in shareholders' equity due to IAS 32,39 adoption
as of 1st January 2005 (3,876) -
Change in cash generated by financing activities (31,036) (4,401)
Increase (decrease) in cash on hand, bank deposits
and securities (2,732) 13,933
Cash and cash equivalents, beginning of year 59,399 40,910
Cash and cash equivalents, end of period/ year 56,667 54,843
