Head N.V. / HEAD NV and HTM Sport GmbH Announce the Unaudited
Results for the Three and Six Months ended 30th June 2014. .
Processed and transmitted by NASDAQ OMX Corporate Solutions. The
issuer is solely responsible for the content of this
announcement.
Amsterdam - 7th August
2014 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a leading global
manufacturer and marketer of sports equipment, announced the
following results today.
Sales for the first six months of 2014 were up
2.0% compared to the prior year driven primarily by Winter Sports,
offset by exchange rate movements. At constant currency the sales
for the first six months of 2014 would have increased by 4.2%.
Winter Sports sales for the first six months were
up 6.5% compared to the same period in 2013. This, however, is not
a key delivery period for the division and consists mainly of close
out sales for the 2013/2014 season and some deliveries of bindings
under contract manufacturing agreements for the 2014/2015
season.
Our Winter Sports pre-orders for the 2014/2015
season, which have broadly been collected now, are impacted by the
weather conditions during the prior season. During this season,
southern parts of Europe and the USA experienced good snowfall, but
the weather in our core markets of Central and Northern Europe was
unseasonably warm and this will negatively influence the winter
sports market in 2014. However, we believe that whilst the market
overall may decline, we may gain market share in some countries.
Our bookings at this stage have improved compared to those achieved
in the same period in 2013.
The small decline in the overall Racquet Sports
division performance was mainly due to the negative exchange rate
impact coupled with tough market conditions for racquets that
resulted in lower volumes of racquets sold. The decline of tennis
ball volumes in the first quarter reversed in the second quarter
resulting in a broadly stable performance for tennis balls for the
first six months of 2014 compared to the first six months of
2013.
Our Diving division sales for the first six months
benefited from the inclusion of the newly acquired SSI Group.
Excluding the impact of SSI, the sales of equipment have declined
due to tough conditions in some markets, for example the adverse
weather conditions and the continued economic crisis in Southern
Europe and political turmoil in the Middle East.
Sportswear sales for the six months were broadly
flat mainly due to higher revenues for Summer and Winter
Sportswear, partly offset by lower sales of bags in the UK
market.
Gross margins for the six months to 30th June 2014
have improved from 40.9% to 44.3% mainly due to higher licensing
revenues and lower cost of sales for our bindings, tennis ball and
diving business.
The adjusted operating loss for the six months to
30th June 2014
decreased from €8.8m to €8.1m as a result of the improved gross
profit (€5.8m) offset by increased costs of €5.1m mainly due to the
inclusion of the newly acquired SSI Group, higher Winter Sport
advertising and higher departmental selling expenses.
The net interest increased by €0.6m as the average
debt in the first six months of 2014 was higher than in 2013. The
cost incurred in the first six months of 2013 for the share option
scheme (ESOP) reverted to income in the first six months of 2014 as
the share-price declined over the period.
As a result of the foregoing factors the net loss
for the six months to 30th June 2014
decreased by €0.7m compared to the net loss for the six months to
30th June
2013.
Net cash provided by operating activities
increased by €0.8m in the first six months to 30th June
2014 mirroring the reduction in the net loss for the period.
Net debt increased by €33.4m from 30th June 2013 to
30th June 2014
due predominantly to the share buy back that took place in the
second quarter of 2014 (€23.8m) and the payments for the
acquisitions in the period.
For 2014, based on our current order book, we are
anticipating a further recovery of our Winter Sports division and
along with the impact of our acquisition our sales should grow
modestly for the year. However the impact of currency fluctuations
and some higher marketing and investment costs mean that overall we
believe our operating results will be broadly in line with those
achieved in 2013.
Our interim financial statements for the period
ended 30th of June 2014
can be found on our website at
www.head.com/corporate/investors/quarterly_reports.php.
About Head
HEAD NV is a leading global manufacturer and
marketer of premium sports equipment and apparel.
HEAD NV's ordinary shares are listed on the Vienna
Stock Exchange ("HEAD").
Our business is organized into five divisions:
Winter Sports, Racquet Sports, Diving, Sportswear and Licensing. We
sell products under the HEAD (alpine skis, ski bindings, ski boots,
snowboard and protection products, tennis, racquetball, paddle and
squash racquets, tennis balls and tennis footwear, sportswear and
swimming products), Penn (tennis balls and racquetball balls),
Tyrolia (ski bindings) and Mares and SSI (diving) brands.
For more information, please visit our website:
www.head.com
Analysts, investors, media
and others seeking financial and general information, please
contact:
Clare Vincent, Investor Relations
Tel: +44 207 499 7800
Fax: +44 207 491 7725
E-mail: Investor-Relations@head.com
Gunter Hagspiel, Chief Financial Officer
Tel: +43 5574 608
Fax: +43 5574 608 130
E-mail: g.hagspiel@head.com
Forward-Looking
Statements
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "anticipate", "believe",
"could", "estimate", "expect", "intend", "may", "plan", "predict",
"project", "will" and similar terms and phrases, including
references to assumptions, as they relate to Head NV, its
management or third parties, identify forward-looking statements.
Forward-Looking statements include statements regarding Head NV's
business strategy, financial condition, results of operations, and
market data, as well as any other statements that are not
historical facts. These statements reflect beliefs of Head NV's
management as well as assumptions made by its management and
information currently available to Head NV. Although Head NV
believes that these beliefs and assumptions are reasonable, the
statements are subject to numerous factors, risks and uncertainties
that could cause actual outcomes and results to be materially
different from those projected. These Factors include, but are not
limited to, the following: global economic turmoil, weather and
other factors beyond our control, competitive pressures and trends
in the sporting goods industry, our ability to implement our
business strategy, our liquidity and capital expenditures, our
ability to obtain financing, our ability to compete, including
internationally, our ability to introduce new and innovative
products, legal proceedings and regulatory matters, our ability to
fund our future capital needs, and general economic conditions.
These factors, risks and uncertainties expressly qualify all
subsequent oral and written forward-looking statements attributable
to Head NV or persons acting on its behalf.
Head NV
Prins Bernhardplein 200,
1097 JB Amsterdam
Shares:
ISIN: NL0000238301
Stock Market: Official Market of the Vienna Stock Exchange
Bond:
ISIN: CH0222437011
Market: SIX Swiss Exchange
The press release can also be
downloaded from the following link:
Results Q2 2014
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Head N.V. via Globenewswire
HUG#1846934
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