Ducati Motor Holding Announces First Quarter 2004 Results - Strong
sales and EBITDA growth and return to profitability - BOLOGNA,
Italy, May 14 /PRNewswire-FirstCall/ -- Ducati Motor Holding S.p.A.
(NYSE: DMH; Borsa Italiana S.p.A: DMH), a leading manufacturer of
high performance motorcycles, today announced financial results for
the first quarter ended March 31, 2004. For the first quarter of
2004, revenues were Euro 100.3 million up 23.4% including forex (or
up 26.3% excluding forex) over the same period in 2003. The
improvement was mainly due to a 22.1% increase in unit sales and a
41,2% increase of accessories and apparel sales, despite continuing
adverse forex. Revenues from Ducati motorcycles for the period
increased 22.1% to Euro 80.0 million and represented 79.8% of total
revenues. Motorcycle-related products, including spare parts,
technical accessories and apparel, increased 23.5% to Euro 18.8
million over the comparable period in the previous year. Gross
margin was 35.9% of revenues including forex effects (or 37.2%
excluding forex effects) versus 36.9% in the same period a year
ago, due to the negative foreign exchange impact more than
offsetting margin improvements. Sales costs represented 19.1% of
sales versus 21.4% in the period last year. EBITDA was a Euro 12.3
million, up 37.6% including forex (or up 54.8% excluding forex)
representing 12.3% of revenues, versus 11.0% in the period of the
previous year. Pre-tax profit of the Ducati Group was Euros 0.8
million in the first quarter of 2004, compared with a loss of Euros
6.2 million in the first quarter of 2003, including the impact of a
one-off Euro 3.5 million restructuring charge. Unofficial Ducati
worldwide registrations, a measure of retail sales, were up 11%
versus the first quarter of last year, in a market growing 3%.
Registrations were up 39% in the US, up 26% in Italy, up 13% in
non-subsidiary country and up 8% in the UK. Decreases were recorded
in the Benelux Countries down 2%, in France down 7%, Germany down
10% and in Japan down 18%. The Company's net debt at March 31, 2004
was Euro 121.2 million, down versus the Euro 123.6 million at the
same date a year earlier, and up versus Euro 117.2 million at
December 31, 2003. The company's gearing ratio was 76% at March 31,
2003 versus 79% at the same date a year earlier and 74% at December
31, 2003. "2004 has got off to a great start," said Federico
Minoli, Ducati Chairman and Chief Executive Officer. "All key
indicators are positive: unit sales, registrations, profitability
and cash are going in the right direction. Our products are meeting
with enthusiasm in the market and momentum is building, and we look
forward with great excitement to seeing all our fans and friends at
World Ducati Week, from May 17th to 23rd, where we are expecting
record attendance." "The year started well but we cannot be
complacent," said Enrico D'Onofrio, Ducati Chief Financial Officer.
"2004 remains a year of consolidation and we have to work hard to
reach our targets of sales growth, return to profitability and net
debt improvement." Separately, the company announced that Fabrizio
Nardi, Group Financial Controller, will assume the role of Director
of Investor Relations in addition to his current responsibilities.
He takes over from Christopher Spira who will work on other
projects within the group. 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 five
market segments which vary in their technical and design features
and intended customers: Superbike, Supersport; Monster, Sport
Touring and Multistrada. 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 twelve
of the last fourteen 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. Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data Three Months Ended Three Months Ended
Mar, 31 Mar, 31 Mar, 31 Mar, 31 2004 2003 2004 2003 Net Sales (Euro
in thousands, US$ in thousands) Motorcycles euro 80,014 euro 65,518
$97,809 $80,089 Spare Parts, Accessories, Apparel 18,824 15,244
23,010 18,634 Miscellaneous Other 1,462 504 1,788 617 Total net
sales euro 100,300 euro 81,266 $122,607 $99,340 Ducati Units %
Change North America 1,280 836 53.1% Main European market 5,721
4,700 21.7% Japan 533 631 (15.5%) Rest of World 1,936 1,587 22.0%
Total 9,470 7,754 22.1% Motorcycle product mix: % Change Sport
Segment (Superbike & Supersport) 3,331 3,683 (9.6%) Sport Naked
4,352 3,497 24.4% Sport Touring 856 492 74.0% Multistrada 931 82 na
Total 9,470 7,754 22.1% Unofficial Motorcycle Registrations: %
Change North America 1,325 950 39.5% Main European market 6,150
5,582 10.2% Japan 727 884 (17.8%) Rest of World 1,287 1,139 13.0%
Total 9,489 8,555 10.9% Ducati Motor Holding S.p.A. Consolidated
Statements of Operations Data (Euro in thousands, US$ in thousands,
except per share and share amounts) Three Months Ended Three Months
Ended Mar, 31 Mar, 31 Mar, 31 Mar, 31 Percent 2004 2003 2004 2003
Change Net Sales euro 100,300 euro 81,266 $122,607 $99,340 23.4%
Cost of goods sold (64,269) (51,244) (78,562) (62,641) Gross Profit
36,031 30,022 44,045 36,699 20.0% Other operating revenues 5,835
6,102 7,133 7,459 SG&A expenses (29,291) (26,873) (35,805)
(32,850) Other operating income (234) (205) (286) (251)
Depreciation & amortization (9,659) (9,184) (11,808) (11,227)
Operating income/(loss) 2,682 (138) 3,279 (170) na Financing
expense, net (1,916) (2,439) (2,342) (2,981) Other non-operating
income/(expense), net (10) (3,584) (12) (4,381) Profit/(loss)
before income taxes 756 (6,161) 925 (7,532) na Shares outstanding
158,500,963 158,500,963 158,500,963 158,500,963 Percent Other
Financial Change Data Motorcycles Produced (Units) 11,238 10,366
8.4% Motorcycles Sold (Units) 9,470 7,754 22.1% Unofficial
Registrations (Units) 9,489 8,555 10.9% EBITDA 12,331 8,962 15,073
10,954 37.6% EBITDA Margin 12.3% 11.0% Note: On March 31, 2004
US$1= 0,7995 Euros Ducati Motor Holding S.p.A. Consolidated
Statements of Operations Data (Euro in thousands) March 31, 2004
March 31, 2003 euros % euros % Current assets Cash and cash
equivalents 26,168 23,429 Trade receivables, net 106,347 84,443
Inventories 119,129 131,922 Other current assets 17,963 22,317
Total current assets 269,607 54.5% 262,111 54.8% Non current assets
Property, plant and equipment-net 65,089 70,385 Intangible fixed
assets, net 122,671 130,513 Equity investments 12 12 Other
long-term assets 37,160 15,581 Total non current assets 224,932
45.5% 216,491 45.2% Total assets 494,539 100.0% 478,602 100.0%
Current liabilities Short-term bank borrowings 70,884 55,746
Current portion of long-term debt 5,532 3,146 Accounts payable -
trade 112,726 110,715 Income and other taxes payables 12,976 6,264
Other current liabilities 20,980 23,049 Provisions for risks and
charges - current portion 4,824 8,637 Total current liabilities
227,922 46.1% 207,557 43.4% Long-term liabilities Long-term debt,
net of current portion 81,890 86,000 Employees' leaving entitlement
8,648 7,459 Deferred income taxes 31 35 Other long-term liabilities
14,075 17,099 Provision for risks and charges - long term portion
2,518 3,998 Total long-term liabilities 107,162 21.7% 114,591 23.9%
Total liabilities 335,084 322,148 Total Group shareholders' equity
159,455 32.2% 156,454 32.7% Total liabilities and shareholders'
equity 494,539 100% 478,602 100% Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data (US$ in thousands) March
31, 2004 March 31, 2003 US$ % US$ % Current assets Cash and cash
equivalents 31,988 28,640 Trade receivables, net 129,998 103,223
Inventories 145,623 161,261 Other current assets 21,958 27,280
Total current assets 329,567 54.5% 320,404 54.8% Non current assets
Property, plant and equipment-net 79,565 86,039 Intangible fixed
assets, net 149,953 159,539 Equity investments 15 15 Other
long-term assets 45,424 19,046 Total non current assets 274,957
45.5% 264,639 45.2% Total assets 604,524 100.0% 585,043 100.0%
Current liabilities Short-term bank borrowings 86,649 68,144
Current portion of long-term debt 6,762 3,846 Accounts payable -
trade 137,796 135,338 Income and other taxes payables 15,862 7,657
Other current liabilities 25,646 28,175 Provisions for risks and
charges - current portion 5,897 10,558 Total current liabilities
278,612 46.1% 253,718 43.4% Long-term liabilities Long-term debt,
net of current portion 100,102 105,126 Employees' leaving
entitlement 10,571 9,118 Deferred income taxes 38 43 Other
long-term liabilities 17,205 20,902 Provision for risks and charges
- long term portion 3,078 4,887 Total long-term liabilities 130,994
21.7% 140,076 23.9% Total liabilities 409,606 393,794 Total
Shareholders' equity 194,918 32.2% 191,249 32.7% Total liabilities
and shareholders' equity 604,524 100.0% 585,043 100.0% DATASOURCE:
Ducati Motor Holding S.p.A. CONTACT: Fabrizio Nardi, Investor
Relations of Ducati Motor Holding S.p.A., or +39-051-6413-111, or
+39-051-6413-213, or fax, +39-051-6413-223, or Web site:
http://www.ducati.com/
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