BOLOGNA, Italy, March 22 /PRNewswire-FirstCall/ -- The Board of
Directors of Ducati Motor Holding SpA (Borsa Italiana: DMH, NYSE:
DMH) approved today the results for 2006 confirming the preliminary
results previously reported on February 14, 2007. 2006 2005 Var%
Revenues 304.8 308.5 -1.2% EBITDA 27.0 (0.3) n.s Net result (8.5)
(41.5) n.s Net Debt (54.2) (137.0) -60.4% (Million Euro) The full
year 2006 results show a significant reversal of the 2005 trend
with a return to a positive operating result and a substantial
improvement of the net financial position. The results are due to a
successful relaunch strategy implemented at the end of 2005 which
focused on the improvement of gross margin, reduction of dealer
stock, reduction of fixed costs and working capital. Revenues for
2006 are Euro 304.8 million, down 1.2% compared to 2005 with a
decrease in the number of bikes sold and revenues partially offset
by an improvement in bike mix and by an increase in sales of
accessories and apparel. 32.312 bikes were sold in 2006 yielding
revenues of Euro 239.7 million (bike units -6.4% with revenues down
3% versus 2005) while sales of spare parts, accessories and apparel
and reached revenues of Euro 60.1 million (up 3.4% on 2005) The
decrease in the number of bikes sold, and the increase in the
number of registrations (35.286 units, up by 2.1% over 2005),
generated a network stock reduction of 3000 bikes equivalent to
approximately 1 month of sales and in line with the relaunch
strategy. Registrations increased notably in the USA (+16.3%), in
the non-subsidiary countries (+9.4%), in France (+1.5%), and in
Japan (+0.8%) whilst they decreased in the UK (-16.5%), Benelux
(-12.5%), Germany (-8.8%) and Italy (-3.9%). It is important to
consider that the new Superbike 1098 has had very little impact on
the 2006 registrations due to being distributed only during the
last months of the year. Gross margin for 2006 amounted to Euro
72.7 million or 23.9% of revenues versus Euro 47.3 million or 15.3%
in 2005. The consistent increase is due to an improved product mix,
fewer amortizations and the extraordinary devaluation in 2005.
EBITDA was Euro 27 million or 8.9% of revenues compared to a
negative EBITDA in 2005 of Euro 0.3 million. The increase is due to
the improved bike mix and to extraordinary accruals in 2005. The
operating result (EBIT) was positive at Euro 4.8 million versus a
loss of euro 33.6 million the previous year, thanks to the improved
EBITDA and lower accruals. EBT was negative at Euro 1.6 million
versus a loss of Euro 41 million the previous year, thanks to the
improved operating result and reduced financial charges. Net result
was negative at Euro 8.5 million compared to a loss of Euro 41.5
million the previous year and includes the accrual of deferred
taxes. The Board of Directors of the company Ducati Motor Holding
S.p.A., taking into consideration that: (i) the Board will expire
upon the approval of the financial statements at 12/31/2006; (ii)
the Shareholders' Meeting convened (by notice published on Finanza
& Mercati on March 13, 2007) on April 13, 2007 on first call
and, if necessary, on April 16, 2007 on second call, may approve
the proposal to modify the Company's corporate governance system by
adopting the traditional corporate governance system (based on the
Board of Directors and the Board of Statutory Auditors) instead of
the current one-tier system, and the consequential amendments of
the by-laws; and (iii) the Shareholders may be interested in
appointing the Company's boards according to the new corporate
governance system that may be approved by the April 13-16, 2007
Shareholders' Meeting; has resolved to avail itself of the longer
term pursuant to article 2364, second paragraph, of the Italian
civil code and article 10.2 of the Company's by-laws in order to
convene the Ordinary Shareholders' Meeting for the approval of the
financial statements, i.e. 180 days from the end of the fiscal
year. The purpose is to give the Shareholders an adequate period of
time to submit and deposit the lists of candidates as members of
the Board of Directors and of the Board of Statutory Auditors in
the event the April 13-16, 2007 Shareholders' Meeting approves the
adoption of the traditional corporate governance system and
provided that - if said system is not approved - the Shareholders
shall appoint the members of the Board of Directors according to
the current one-tier system. The Company will promptly and
adequately disclose the resolutions of the April 13-16, 2007
Shareholders' Meeting and the new text of the by-laws adopted by
it, in order to allow the Shareholders to deposit at the Company's
registered office the lists of candidates in accordance with the
applicable provisions of the by-laws, by a notice that will be
published on the day following the April 13-16, 2007 Shareholders'
Meeting on Finanza & Mercati, made available to the public at
the Company's registered office and published on the website
http://www.ducati.com/. Federico Minoli, Ducati's President and CEO
commented on the 2006 results: "I am extremely satisfied with the
results brought by Ducati's relaunch plan which is living up to our
expectations and is producing results earlier than anticipated. In
particular the decrease of dealer inventory is a good preparation
for the sale of new products in 2007. The new Superbike 1098,
Hypermotard, and Desmosedici are creating high expectations in the
market and a significant number of orders. These products will
further increase the gross margin. On the race track 2006 was a
year of unprecedented successes: World Champions of Superbike, and
4 victories and 9 podium places in the MotoGP Championship. The
2007 season opened with an outstanding victory in Qatar with the
new GP800 and with Troy Bayliss' first and second places at the
Philip Island Superbike. A result that no other European
manufacturer has ever achieved". 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 seven
market segments which vary in their technical and design features
and intended customers: Superbike, Supersport, Monster, Sport
Touring, Multistrada SportClassic and the new Hypermotard. 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 fourteen of the last sixteen World
Superbike Championship titles and more individual victories than
the competition put together. Since 2003 Ducati has also been
taking part in the MotoGP World Championship. For more information
about the Company, please visit our web site at
http://www.ducati.com/ This press release is not an offer to invest
in Italy, according to Art. 1, lett (t) of the Italian Legislative
Decree no. 58 of February 24th, 1998, or in any other country. This
press release cannot be transmitted or distributed to any persons
in the United States or in any country where its distribution is
not allowed without the express approval from the relevant
authorities. These materials are not an offer of securities for
sale in the United States. 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. 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. Ducati Motor Holding S.p.A. and
Subsidiaries Net Sales and Shipment Data Twelve Months Ended Twelve
Months Ended December, December, December, December, 31 31 31 31
2006 2005 2006 2005 Net Revenues (Euro in thousands, US$ in
thousands) Motorcycles EUR239,697 EUR247,236 $ 315,682 $ 325,609
Spare Parts, 60,061 58,068 79,100 76,476 Accessories, Apparel Other
5,036 3,214 6,632 4,233 Total Net Revenues EUR304,794 EUR308,518 $
401,414 $ 406,318 Ducati Units Motorcycle shipments: % Change North
America 8,269 7,070 17.0% Main European market 15,523 18,158
(14.5%) Japan 2,361 2,575 (8.3%) Rest of World 6,159 6,733 (8.5%)
Total 32,312 34,536 (6.4%) Motorcycle product mix: % Change
Superbike 4,755 6,094 (22.0%) Supersport 556 1,030 (46.0%) Sport
Naked 18,023 16,585 8.7% Sport Touring 1,562 1,397 11.8%
Multistrada 2,997 6,156 (51.3%) Sport Classic 4,419 3,274 35.0%
Total 32,312 34,536 (6.4%) Unofficial Motorcycle % Change
Registrations: North America 8,185 7,040 16.3% Main European market
17,893 18,961 (5.6%) Japan 2,777 2,754 0.8% Rest of World 6,431
5,876 9.4% Total 35,286 34,631 1.9% Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data (Euro in thousands, US$
in thousands, except per share and share amounts) Twelve Months
Ended Twelve Months Ended December, December, December, December,
31 31 31 31 % 2006 2005 2006 2005 Change Revenues EUR 304,794 EUR
308,518 $ 401,414 $ 406,318 (1.2%) (net) Cost of goods (232,046)
(261,187) (305,605) (343,983) sold Gross Margin 72,748 47,331
95,809 62,335 53.7% Other operating 34,715 30,414 45,720 40,055
revenues SG&A expenses (102,519) (96,404) (135,018) (126,964)
Other operating (177) (1,978) (233) (2,605) income and expenses
Restructuring 0 (13,000) 0 (17,121) Reserve Operating result 4,767
(33,637) 6,278 (44,300)(114.2%) Financing (6,337) (7,315) (8,346)
(9,634) expense, net Profit/(loss) (1,570) (40,952) (2,068)
(53,934)(96.2%) before income taxes and min.interest Income Tax
(6,956) (511) (9,161) (673)1261.3% Net Result (8,526) (41,463)
(11,229) (54,607)(79.4%) including minority interests Minority
Interests 3 (1) 4 (1) Net Result for (8,523) (41,464) (11,225)
(54,608)(79.4%) the Group Shares outstanding 320,687,920
159,360,037 320,687,920 159,360,037 % Change Other Financial Data
Motorcycles 31,193 33,581 (7.1%) Produced (Units) Motorcycles Sold
32,312 34,536 (6.4%) (Units) Unofficial 35,286 34,631 1.9%
Registrations (Units) EBITDA 26,982 (273) 35,535 (361) EBITDA
Margin 8.9% (0.1%) Note: On December 31, 2006 1 Euro = 1,317 US$
Ducati Motor Holding S.p.A. Consolidated Statements of Operations
Data (Euro in thousands, except per share and share amounts) Period
ended Period ended 31.12.2006 31.12.2005 EUR 000 % EUR 000 %
Current assets Cash and cash equivalents 75,054 53,017 Trade
receivables, net 88,641 102,232 Inventories 69,846 81,380 Other
current assets 9,055 9,217 Total current assets 242,596 51.2%
245,846 53.1% Non current assets Property, plant and equipment -net
66,536 66,556 Goodwill and intangible assets with indefinite useful
lives 86,050 86,050 Other intangible fixed assets net 51,419 39,665
Equity investments 320 20 Deferred tax assets 26,494 24,662 Other
long-term assets 373 386 Total non current assets 231,192 48.8%
217,339 46.9% Total assets 473,788 100% 463,185 100% Current
liabilities Short-term bank borrowings 3,834 64,148 Accounts
payable - trade 91,180 85,203 Income and other taxes payables 5,342
5,537 Other current liabilities 19,558 20,202 Provisions for risks
and charges - current portion 7,154 18,621 Total current
liabilities 127,068 26.8% 193,711 41.8% Long-term liabilities
Long-term debt, net of current portion 125,374 125,824 Employee
benefits 9,079 9,669 Deferred income taxes 20,507 13,697 Provision
for risks and charges - long term portion 1,356 1,525 Total
long-term liabilities 156,316 33.0% 150,715 32.5% Total liabilities
283,384 59.8% 344,426 74.4% Shareholders' equity Capital stock
163,311 82,867 Other reserves 75,286 75,559 Retained earnings
(losses) (39,684) 1,780 Results for the period (8,523) (41,464)
Total Group Shareholders' equity 190,390 40.2% 118,742 25.6%
Minority interests 14 17 Total liabilities and shareholders' equity
473,788 100% 463,185 100% Ducati Motor Holding S.p.A. Consolidated
Statements of Operations Data (US$ in thousands, except per share
and share amounts) Period ended Period ended 31.12.2006 31.12.2005
$ 000 % $ 000 % Current assets Cash and cash equivalents 98,846
69,823 Trade receivables, net 116,740 134,640 Inventories 91,987
107,177 Other current assets 11,926 12,139 Total current assets
319,499 51.2% 323,779 53.1% Non current assets Property, plant and
87,628 87,654 equipment -net Goodwill and intangible assets with
113,328 113,328 indefinite useful lives Other intangible fixed
67,719 52,239 assets net Equity investments 421 26 Deferred tax
assets 34,893 32,480 Other long-term assets 491 508 Total non
current assets 304,480 48.8% 286,235 46.9% Total assets 623,979
100% 610,014 100% Current liabilities Short-term bank borrowings
5,049 84,483 Accounts payable - trade 120,084 112,212 Income and
other taxes 7,035 7,292 payables Other current liabilities 25,758
26,606 Provisions for risks and charges - 9,422 24,524 current
portion Total current liabilities 167,348 26.8% 255,117 41.8%
Long-term liabilities Long-term debt, net of current portion
165,118 165,710 Employee benefits 11,957 12,735 Deferred income
taxes 27,008 18,039 Provision for risks and charges - long 1,786
2,008 term portion Total long-term liabilities 205,869 33.0%
198,492 32.5% Total liabilities 373,217 59.8% 453,609 74.4%
Shareholders' equity Capital stock 215,081 109,136 Other reserves
99,151 99,511 Retained earnings (losses) (52,264) 2,344 Results for
the period (11,224) (54,608) Total Group Shareholders' 250,744
40.2% 156,383 25.6% equity Minority interests 18 22 Total
liabilities and 623,979 100% 610,014 100% shareholders' equity
Ducati Motor Holding S.p.A. Consolidated Statements of Cash Flow
(Euro in thousands) Period ended Period ended 31/12/06 31/12/05 EUR
000 EUR 000 Cash flow generated by operating activities Net profit
(loss) for the (8,523) (41,464) year Change in cumulative
translation adjustment (782) 1,799 Adjustments to reconcile net
profit (loss) with the movements of funds generated by (used in)
operating activities - Non cash items for stock options 655 1,238 -
Amortisation, 22,215 33,364 depreciation - Taxes paid (1,227)
(4,230) Change in operating assets and liabilities - Working
capital 31,102 35,043 - Effects of IAS 39 and 32 adoption from 1 -
(3,219) January 2005 - Other current assets 162 1,570 - Other
current (644) 4,266 liabilities - Due to tax 1,032 177 authorities
- Deferred tax assets (400) (2,997) - Deferred tax 6,810 1,490
liabilities - Employee benefits (590) 1,187 - Provisions for risks
and charges (1,130) 757 - Restructuring reserve (10,506) 13,000 -
Other Net cash generated by operating activities (A) 38,174 41,981
Cash flow (used in) generated by investing activities Net change in
property, plant and equipment (12,137) (10,928) Net change in
intangible fixed assets (21,880) (20,455) Disposal from property,
plant and equipment 68 354 Change in equity (300) - investments
Other fixed assets 13 17 Net cash used in investing activities (B)
(34,236) (31,012) Cash flow generated from operating activities,
net of cash used in investing activities (A-B) 3,938 10,969 Cash
flow (used in) generated by financing activities Change in
short-term and long-term debt (56,892) (7,833) Interests cashed
(paid) (3,872) (2,057) Change in minority (3) 1 interests Increase
in share capital and reserves 78,866 2,610 Change in cash generated
by financing 18,099 (7,279) activities Increase (decrease) in cash
on hand, bank deposits and securities 22,037 3,690 Cash and cash
equivalents, beginning of year 53,017 49,327 Cash and cash
equivalents, end of period/ 75,054 53,017 year Ducati Motor Holding
S.p.A. Consolidated Statements of Cash Flow (Dollar in thousands)
Period ended Period ended 31/12/06 31/12/05 $ 000 $ 000 Cash flow
generated by operating activities Net profit (loss) for the
(11,225) (54,608) year Change in cumulative translation adjustment
(1,030) 2,369 Adjustments to reconcile net profit (loss) with the
movements of funds generated by (used in) operating activities -
Non cash items for stock options 863 1,630 - Amortisation, 29,257
43,940 depreciation - Taxes paid (1,616) (5,571) Change in
operating assets and liabilities - Working capital 40,961 46,152 -
Effects of IAS 39 and 32 adoption from 1 (4,239) January 2005 -
Other current assets 213 2,068 - Other current (847) 5,618
liabilities - Due to tax authorities 1,359 233 - Deferred tax
assets (527) (3,947) - Deferred tax 8,968 1,962 liabilities -
Employee benefits (777) 1,563 - Provisions for risks (1,488) 997
and charges - Restructuring reserve (13,836) 17,121 - Other Net
cash generated by operating activities (A) 50,275 55,288 Cash flow
(used in) generated by investing activities Net change in property,
plant and equipment (15,984) (14,392) Net change in intangible
fixed assets (28,816) (26,939) Disposal from property, plant and
equipment 90 466 Change in equity (395) - investments Other fixed
assets 17 22 Net cash used in investing activities (B) (45,088)
(40,843) Cash flow generated from operating activities, net of cash
used in investing activities (A-B) 5,187 14,445 Cash flow (used in)
generated by financing activities Change in short-term and
long-term debt (74,928) (10,315) Interests cashed (paid) (5,099)
(2,709) Change in minority (4) 1 interests Increase in share
capital and reserves 103,867 3,437 Change in cash generated by
financing 23,836 (9,586) activities Increase (decrease) in cash on
hand, bank deposits and securities 29,023 4,859 Cash and cash
equivalents, beginning of year 69,823 64,964 Cash and cash
equivalents, end of period/ 98,846 69,823 year DATASOURCE: Ducati
Motor Holding S.p.A. CONTACT: For further information, please
contact: Federico Strano Director Investor Relations, Ducati Motor
Holding S.p.A., Via Cavalieri Ducati, 3, Bologna 40132, Italy,
e-mail: , Main Tel: +39-051-6413111, Direct Tel: +39-051-6413213
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