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FILA HOLDING S.P.A. ANNOUNCES CONSOLIDATED RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 1993

 BIELLA, Italy, Nov. 4 /PRNewswire/ -- Fila Holding S.p.A. (NYSE: FLH) today announced its consolidated results for the third quarter and nine months ended September 30, 1993.
 Fila reports its quarterly results mainly in lire, as this generally reflects Fila's consolidated results more accurately than translating these amounts into other currencies. For convenience, however, Fila has also furnished below translations of selected figures into U.S. dollars at the average rate of exchange in effect for the applicable periods.
 Fila's net direct sales for the quarter ended September 30, 1993 increased by 67.1 percent to Lit. 239.7 billion compared to Lit. 143.5 billion in the third quarter of 1992. Net income grew by 68.7 percent to Lit. 21.9 billion, compared with Lit. 13 billion in the corresponding 1992 period.
 Earnings per ADS (American Depositary Share) for the third quarter of 1993 were U.S. $0.56 compared with U.S. $0.66 per ADS in the third quarter of 1992. The decline in earnings per ADS is due to the increased number of shares outstanding, which grew from 86,358,696 during 1992 to 125,000,000 in 1993 and the appreciation of the U.S. dollar against the Italian lira from lira 1,151 in the third quarter of 1992 to lira 1,572 in the same period of 1993.
 For the nine months ended September 30, 1993, net direct sales increased 60.4 percent to Lit. 567.3 billion compared with Lit. 353.6 billion in the comparable 1992 period. Net income for the first nine months of 1993 increased 78.4 percent to Lit. 42.2 billion compared with Lit. 23.7 billion in the corresponding 1992 period. Earnings per ADS for the first nine months of 1993 equaled U.S.$1.09 compared to U.S.$1.22 for the same period of 1992.
 At September 30, 1993, worldwide 1994 "futures" orders for apparel and footwear increased 30.5 percent in U.S. dollar terms as compared to the same period of 1992, with U.S. futures orders increasing 43.7 percent and the rest of the world increasing 15 percent. Footwear futures orders increased 50.6 percent while apparel futures orders increased 6.9 percent over the same period of 1992.
 Commenting on these results Mr. Enrico Frachey, Managing Director and Chief Executive Officer of Fila, said, "Fila's third quarter 1993 results confirm the strength of the Company's strategy to emphasize a unique business mix, superior design creativity and a higher quality to price ratio. In the first nine months of 1993, revenues and net income have already exceeded the levels reached in the entire 1992 year.
 "Both our footwear and apparel lines continue to grow significantly in all of Fila's geographic markets (U.S., Far East and Europe) and the Company is taking full advantage of the decline of some competitors' market share in order to increase its overall worldwide presence."
 Net direct footwear sales increased 60.3 percent (to Lit. 160.1 billion from Lit. 99.8 billion) while net direct apparel sales grew 82.6 percent (to Lit. 79.7 billion from Lit. 43.6 billion). The United States, which reported a sales increase of 61.3 percent, accounted for 64.6 percent of total net direct sales, with footwear sales increasing 54.7 percent and apparel sales increasing 107.4 percent. Net direct sales increased by 67.5 percent in Italy, and grew by 91.5 percent in the rest of the world, mainly due to a strong 163.3 percent increase in sales outside of the United States and Europe.
 Gross profit increased 57.2 percent in the third quarter of 1993 to Lit. 97.9 billion compared to Lit. 62.3 billion in the third quarter of 1992. As a percentage of net revenues, gross profit decreased to 40.3 percent from 42.8 percent, due primarily to the effects of the U.S.$/lira exchange rates in the two quarters and to higher duty costs on certain footwear products.
 Commenting on gross profit, Mr. Frachey emphasized that the combined effect of the strong depreciation of the U.S. dollar against the lira in the third quarter of 1992, and the dollar's appreciation during the third quarter of 1993, affected the cost of products imported to Italy from the Far East. Mr. Frachey noted that despite this decline, the level of gross margins met the Company's goal of a 38-40 percent gross profit margin.
 Selling, general and administrative expenses (excluding advertising and promotion) increased by 61.5 percent, to Lit. 41.7 billion from Lit. 25.8 billion and decreased slightly as a percentage of net revenues. Advertising and promotion expenses rose by 93.1 percent to Lit. 17.4 billion in the third quarter of 1993 from Lit. 9 billion in the same quarter of 1992.
 Mr. Frachey indicated that although selling, general and administrative expenses had declined as a percentage of net revenues from the third quarter of 1992 to the third quarter of 1993, significant additions to such expenses are a result of the Company's continuing expansion of activities in view of its growth plans, which include doubling the 1992 level of sales by 1995.
 Income before taxes was Lit. 32.6 billion, an increase of 50.4 percent compared to Lit. 21.7 billion in the third quarter of 1992. Income taxes increased less than income before taxes due to a geographic change in Fila's business distribution in 1993. As a result of this new geographic distribution, a greater proportion of Fila's profits were attributable to countries with relatively lower tax rates.
 FILA HOLDING S.p.A.
 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 For the three months For the nine months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 (in millions of Lire) (in millions of Lire)
 Net revenues:
 Net direct sales 239,745 143,470 567,267 353,621
 Royalty income 2,650 2,269 9,287 6,806
 Other revenues 565 (10) 3,795 2,458
 Total 242,960 145,729 580,349 362,885
 Cost of sales 145,027 83,418 348,475 210,817
 Gross profit 97,933 62,311 231,874 152,068
 Selling, general and
 administrative expenses 59,117 34,845 155,334 98,018
 Income from operations 38,816 27,466 76,540 54,050
 Other income (expense):
 Interest income 360 300 1,537 814
 Interest expense (2,758) (2,417) (7,368) (7,238)
 Other expense-net (3,800) (3,656) (5,288) (4,874)
 Total (6,198) (5,773) (11,119) (11,298)
 Income before income taxes 32,618 21,693 65,421 42,752
 Income taxes 10,671 8,681 23,183 19,082
 Net income 21,947 13,012 42,238 23,670
 Earnings per share
 (in Lire) (A) 176 151 338 290
 (A) Earnings per share have been calculated by dividing net income by the weighted average number of shares of 125,000,000 and 86,358,696 for the three months ended September 30, 1993 and 1992, respectively and 125,000,000 and 81,602,740 for the nine months ended September 30, 1993 and 1992, respectively.
 KEY FIGURES IN U.S. DOLLARS
 Fila maintains its financial statements in lire. For convenience, certain key results for the three and six-months periods are presented below as translated into dollars at the average exchange rates in effect for the respective periods. Converting Fila's consolidated results from lire into U.S. dollars at the average rate of exchange for each period, rather than at the period-end rate, is consistent with Fila's practice of converting the income statements of its foreign subsidiaries into lire at the respective average rates of exchange during the applicable periods.
 FILA GROUP
 Third Quarter For the Nine Months
 Ended Sept. 30,
 1993 1992 1993 1992
 Net Revenues US$(millions) 154.5 126.6 375.9 304.9
 Net Income US$(millions) 14.0 11.1 27.4 19.9
 Earnings per ADS(A) US$/ADS 0.56 0.66 1.09 1.22
 Average exchange rate lire/$ 1,572 1,151 1,544 1,190
 Number of shares
 outstanding 125,000,000 86,358,696 125,000,000 81,602,740
 (A) Earnings per ADS are calculated by dividing net income by the weighted average number of ordinary shares outstanding during the period and adjusting for the ratio of 5 ordinary shares per ADS.
 -0- 11/4/93
 /CONTACT: Enzio Bermani, chief financial officer of Fila S.p.A., 011-39-15-350-6368, or Felicia Vonella of Dewe Rogerson Inc., 212-688-6840/
 (FLH)


CO: Fila Holding S.p.A. ST: IN: TEX SU: ERN

LG-MP -- NY039 -- 0639 11/04/93 10:54 EST
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