06.11.2014 09:31:31

Press Release: HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine Months ended 30th September 2014.

Head N.V. / HEAD NV and HTM Sport GmbH Announce the Unaudited Results for the Three and Nine Months ended 30th September 2014. . Processed and transmitted by Nasdaq OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

Amsterdam - 6(th) November 2014 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a leading global manufacturer and marketer of sports equipment, announced the following results today.

Net sales for the first nine months of 2014 were up 5.0% compared to the prior year driven by growth in all divisions. At constant currencies the sales growth would have been higher at 6.5%.

Winter Sports sales for the first nine months were up 8.6% versus the comparable period in 2013. At constant currencies, this increase would have been 9.4%. The growth was mainly due to the rise in volumes of both skis and ski boots which were delivered earlier in 2014 than in the prior year.

Our Winter Sports bookings for the year to date are around 5% ahead of those achieved by the same point last year. We do not however anticipate that this growth in bookings will be fully reflected in an equivalent full year sales increase. This is due to bookings being affected by a number of timing issues and also the fact that full year sales are dependent upon reorders in the 4th quarter which are closely linked to weather conditions.

The growth in the Racquet Sports division of 1.3% for the nine months to September 2014 was driven by higher volumes in tennis balls and higher revenues in accessories partly offset by exchange rate movements.

Our Diving sales for the first nine months of 2014 were up 5.4% due to the sales from our newly acquired SSI business offset by declines in equipment sales due to tough market conditions.

Sportswear sales for the first nine months of 2014 increased by EUR0.5m or 11.0% mainly due to an increase in the sale of winter sportswear offset by a decline in bag sales in the UK.

Licensing revenues for the first nine months of 2014 increased by EUR1.3m or 34.8% due to increased reported sales from our licensees.

Gross margins for the nine months to 30(th) September 2014 have improved from 40.9% to 43.7% mainly due to higher licensing income, the mix in our diving business due to the new acquired SSI business and lower costs of sales in our bindings and tennis ball businesses.

The adjusted operating results improved from a loss of EUR1.3m for the nine months to 30(th) September 2013 to a profit of EUR1.7m for the nine months to 30(th) September 2014. This improvement of EUR3.0m was due to the higher sales and improved margins offset by an increase in selling and marketing costs of EUR5.5m (mainly higher advertising and departmental selling costs for our winter and diving divisions) and an increase in general and administrative expenses of EUR1.8m (mainly due to the inclusion of the newly acquired SSI business).

The higher level of long and short-term debt has resulted in an increase in interest and other financial expenses of EUR1.2m or 34.7% for the period to 30(th) September 2014 compared to the prior year.

Net cash used for operating activities increased by EUR10.0m in the first nine months mainly due to adverse working capital movements in the first nine months of 2014 compared to the first nine months of 2013.

Net debt increased by EUR46.6m from 30(th) September 2013 to 30(th) September 2014 predominantly due to the share buy back that took place in the second quarter of 2014 (EUR23.8m) and the payments for the acquisitions in the period (EUR9.7m) in addition to the cash used in operations over the twelve months period.

Net debt will be further impacted in the fourth quarter of 2014 by the results of our recent tender where 4,844,162 shares were tendered at a price of EUR1.60 amounting to a cost of EUR7.8m to the Company.

We continue to forecast a modest growth in sales this year based on our current order books along with the contribution of our acquisition. 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 30(th) of September 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

Results Q3 2014: http://hugin.info/133711/R/1869077/657064.pdf

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

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#1869077

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Head N.V.

Prins Bernhardplein 200 Amsterdam The Netherlands

WKN: 577203 ;ISIN: NL0000238301;

http://www.head.com (END) Dow Jones Newswires

   November 06, 2014 03:00 ET (08:00 GMT)- - 03 00 AM EST 11-06-14