Ducati Motor Holding Announces Third Consecutive Year of Record Results
6 March 2000
Ducati Motor Holding Announces Third Consecutive Year of Record Results
- Ducati Establishes Internet Division to Expand E-Commerce -
BOLOGNA, Italy, March 6 Ducati Motor Holding S.p.A.
(Borsa Italiana S.p.A: DMH), a leading manufacturer of high
performance motorcycles, today announced record financial results for the
third consecutive year.
As previously reported, the Company announced 1999 consolidated sales of
Lit. 570.3 billion (US$295.9 million), a 22.6% increase over the
Lit. 465.1billion (US$241.3 million) reported for 1998 with bike revenues
accounting for 86.3% of total sales.
For the year, gross profit margin increased to 40.1% from 38.2% thanks to
robust sales of high-margin accessories and apparel as well as the increased
average motorcycle margin stemming from the consolidation of the subsidiary
mark-ups. Full-year EBITDA (earnings before interest, tax, depreciation and
amortization) increased 24.3% to Lit. 98.3 billion (US$51.0 million) from
Lit 79.1 billion (US$41.1 million) in 1998. EBITDA as a percent of sales
increased to 17.2% from 17.0%, keeping Ducati's EBITDA margin one of the
highest in the industry.
Net income for the year was Lit.17.3 billion (US$9.0 million) compared to
a loss of Lit.2.4 billion (US$1.2 million) in 1998, as a result of stronger
EBITDA and lower interest and tax charges.
"We are very excited about our 1999 results and the important
accomplishments we achieved during our first year as a public company," said
Carlo Di Biagio, Ducati Chief Financial Officer. "During 1999, Ducati
significantly increased its global penetration, heightened brand awareness,
and made substantial advances in sales and profitability. We look forward to
continued success in 2000 both on and off the racetrack."
As previously announced, Ducati experienced in 1999 a significant rise in
registrations, the measure of retail sales. While final official data are not
yet available, unofficial registrations for the year grew 18% on a global
basis, with exceptional increases in the U.S. (+29%), Italy (+31%),
Germany (+20%), and Belgium (+34%).
Ducati's net debt decreased to Lit. 217.5 billion (US$112.8) at
December 31, 1999 from Lit. 290.4 billion (US$150.7 million) at December 31,
1998. The Company's net debt to total net capitalization ratio was 46.1% as
of December 31, 1999.
Separately, Ducati announced that it has established a new Internet
division to fully explore and develop its rapidly growing Internet site
http://www.Ducati.com. Ducati has already established itself as one of Italy's
largest e-tailers after the sell-out success of the MH900evoluzione at the
start of the year. The new division, which will have a team of dedicated
Internet and e-commerce professionals separate from Ducati Motor SpA, will
serve Ducati enthusiasts, suppliers and dealers. The site will provide a
complete World of Ducati experience by enhancing the current offering of news,
entertainment, special events, auctions and business-to-business commerce as
well as adding new functions such as business-to-consumer and
consumer-to-consumer activities. Ducati said that it will announce major
developments connected to http://www.Ducati.com in the months ahead.
"We were amazed by the sell-out success of the MH900evoluzione at the
launch of the millennium. The power of that uniquely designed bike, the
Ducati brand itself and the excitement of the Internet have confirmed our
future on-line strategy," said Federico Minoli, Ducati Chairman and Chief
Executive Officer.
Founded in 1926, Ducati builds racing-inspired motorcycles characterized
by unique engine features, innovative design, advanced engineering and overall
technical excellence. Ducati has won eight of the last ten World Superbike
Championship titles and more individual victories than the competition put
together. The Company produces motorcycles in four market segments which vary
in their technical and design features and intended customers: Superbike,
Supersport, Monster and SportTouring. The Company's motorcycles are sold in
more than 40 countries worldwide, with a primary focus in the Western European
and North American markets. 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 the Company's
prospectus dated March 23, 1999.
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
12/31/99 12/31/98 12/31/99 12/31/98 Percent
1999 1998 1999 1998 Change
Net sales Lit.239,365 Lit.196,160 US$124,191 US$101,774 +22.0%
Cost of
goods sold (139,001) (119,847) (72,118) (62,181)
Gross profit 100,364 76,313 52,073 39,593 +31.5%
Other operating
revenues 2,559 1,061 1,328 550
SG&A expenses (69,370) (46,545) (35,991) (24,149)
Other operating
income/(loss) (115) -- (60) --
Depreciation
& amortization (25,000) (19,333) (12,971) (10,031)
Operating
income/(loss) 8,438 11,496 4,379 5,963 -26.6%
Financing expense,
net (10,072) (13,490) (5,226) (6,999)
Other non-operating
income/(expense),
net 185 894 96 464
Profit/(loss)
before income
taxes and min.
interest (1,449) (1,100) (751) (572)
Income taxes 6,840 (1,622) 3,549 (841)
Minority interest 45 (138) 23 (72)
Net
profit/(loss) Lit. 5,436 Lit. (2,860) US$2,821 US$(1,485)
Earnings
per share Lit. 34.41 Lit. (20.43) US$ 0.02 US$ (0.01)
Shares
outstanding 157,962,963 140,000,000 157,962,963 140,000,000
Other Financial Data Change
Motorcycles Produced
(Units) 15,656 13,700 +14.3%
Motorcycles Sold
(Units) 13,051 11,307 +15.4%
Unofficial
Registrations
(Units) 12,935 10,862 +19.1%
EBITDA 33,623 31,723 17,445 16,459 + 6.0%
EBITDA Margin 14.1% 16.2%
Note: On December 31, 1999, US$1 = 1,927.4 Italian lire.
Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data
(Lire in millions, US$ in thousands, except per share and share amounts)
Twelve Months Ended Twelve Months Ended
12/31/99 12/31/98 12/31/99 12/31/98 Percent
Change
Net sales Lit.570,283 Lit.465,098 US$295,882 US$241,308 +22.6%
Cost of
goods sold (341,830) (287,404) (177,353) (149,115)
Gross profit 228,453 177,694 118,529 92,193 +28.6%
Other operating
revenues 6,460 2,298 3,352 1,192
SG&A expenses (138,080) (101,479) (71,641) (52,651)
Other operating
income 1,178 -- 611 --
Depreciation
& amortization (46,956) (37,136) (24,362) (19,267)
Operating
income/(loss) 51,055 41,377 26,489 21,467 +23.4%
Financing expense,
net (27,714) (25,234) (14,379) (13,092)
Other non-operating
income/(expense),
net (1) 333 (16,895) 173 (8,766)
Profit/(loss) before income
taxes and
min. interest 23,674 (752) 12,283 (391)
Income taxes (6,156) (1,376) (3,194) (714)
Minority interest (244) (276) (127) (143)
Net profit/
(loss) Lit. 17,274 Lit. (2,404) US$8,962 US$(1,248)
Earnings
per share Lit. 109 Lit. (17) US$0.06 US$(0.01)
Shares
outstanding 157,962,963 140,000,000 157,962,963 140,000,000
Percent
Other Financial Data Change
Motorcycles Produced
(Units) 34,662 27,970 +23.9%
Motorcycles Sold
(Units) 33,124 28,011 +18.3%
Unofficial Registrations
(Units) 32,135 27,304 +17.7%
EBITDA 98,344 79,121 51,024 41,051 +24.3%
EBITDA Margin 17.2% 17.0%
(1) Extraordinary item in 1998 principally related to non-recurring
expenses for the cash settled warrant rights granted to the credit
institutions that arranged financing prior to the Company's initial
public offering and the write-off debt issuance costs.
Note: On December 31, 1999, US$1 = 1,927.4 Italian lire.
Ducati Motor Holding S.p.A.
Reclassified Consolidated Balance Sheet Data
(Lire in millions)
Year Year
Ended Ended
12/31/99 12/31/98
Lm % Lm %
Current assets
Cash and cash equivalents 21,839 15,288
Trade receivables, net 121,098 94,936
Inventories 143,372 111,110
Other current assets 13,333 11,351
Total current assets 299,642 44.2% 232,685 38.5%
Non current assets
Property, plant and
equipment - net 91,445 87,422
Intangible fixed assets, net 285,064 283,407
Equity investments 163 163
Other long-term assets 1,252 957
Total non current assets 377,924 55.8% 371,949 61.5%
Total assets 677,566 100.0% 604,634 100.0%
Current liabilities
Short-term bank borrowings 25,763 50,661
Current portion of
long-term debt 15,555 12,738
Accounts payable - trade 127,718 103,513
Income and other taxes payables 9,801 5,108
Other current liabilities 15,565 8,862
Provisions for risks and
charges - current portion 14,916 21,186
Total current liabilities
209,318 30.9% 202,068 33.4%
Long-term liabilities
Long-term debt, net of current
portion 197,994 242,327
Employees' leaving entitlement 7,326 8,344
Deferred income taxes 3,741 3,002
Other long-term liabilities 44 62
Provisions for risks and
charges - long-term portion 4,500 9,096
Total long-term liabilities 213,605 31.5% 262,831 43.5%
Total liabilities 422,923 464,899
Total Group shareholders'
equity 253,800 37.5% 139,056 23.0%
Minority interests 843 679
Total shareholders' equity 254,643 37.6% 139,735 23.1%
Total liabilities and
shareholders' equity 677,566 100% 604,634 100%
Ducati Motor Holding S.p.A.
Reclassified Consolidated Balance Sheet Data
(US$ in thousands)
Year Year
Ended Ended
12/31/99 12/31/98
US$ % US$ %
Current assets
Cash and cash equivalents 11,331 7,932
Trade receivables, net 62,830 49,256
Inventories 74,386 57,648
Other current assets 6,917 5,889
Total current assets 155,464 44.2% 120,725 38.5%
Non current assets
Property, plant and
equipment - net 47,444 45,357
Intangible fixed assets, net 147,901 147,041
Equity investments 85 85
Other long-term assets 650 496
Total non current assets 196,080 55.8% 192,979 61.5%
Total assets 351,544 100.0% 313,704 100.0%
Current liabilities
Short-term bank borrowings 13,367 26,285
Current portion of long-term
debt 8,070 6,609
Accounts payable - trade 66,264 53,706
Income and other taxes payables 5,085 2,650
Other current liabilities 8,076 4,598
Provisions for risks and
charges - current portion 7,739 10,992
Total current liabilities 108,601 30.9% 104,840 33.4%
Long-term liabilities
Long-term debt, net of current
portion 102,726 125,727
Employees' leaving entitlement 3,801 4,329
Deferred income taxes 1,941 1,558
Other long-term liabilities 23 32
Provisions for risks and
charges - long-term portion 2,335 4,719
Total long-term liabilities 110,826 31.5% 136,365 43.5%
Total liabilities 219,427 241,205
Total group shareholders'
equity 131,680 37.5% 72,147 23.0%
Minority interests 437 352
Total shareholders' equity 132,117 37.6% 72,499 23.1%
Total liabilities and
shareholders' equity 351,544 100 % 313,704 100 %
Note: On December 31, 1999, US$1 = 1,927.4 Italian lire; this exchange
rate was used for both 1998 and 1999.
