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Natuzzi S.p.A. Fourth Quarter And Fiscal Year 2012 Financial Results

Stocks in this article: NTZ

A live web cast of the conference call will be available on line at http://www.natuzzi.com/ under the Investor Relations section.

A replay of the call will be available shortly after the end of the conference call starting from March 28 th, 2013 (at 2:00 pm US Eastern time), to April 28 th, 2013. To access the replay of the conference call, interested persons need to dial 1-877-870-5176 (toll-free) for calls from U.S. and Canada, and 1-858-384-5517 for calls from other countries. The access code for the replay is: 4513299.

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About Natuzzi S.p.A.

Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and manufactures a broad collection of residential upholstered furniture. With consolidated revenues of EUR 468.8 million in 2012, Natuzzi is Italy's largest furniture manufacturer. The Natuzzi Group exports its innovative high-quality sofas and armchairs to 130 markets on five continents under separate brand names, Natuzzi Italia, Natuzzi Editions (only for the North American market) / Leather Editions and Softaly. Cutting-edge design, superior Italian craftsmanship and advanced, vertically integrated manufacturing operations underpin the Company's market leadership. Natuzzi S.p.A. has been listed on the New York Stock Exchange since May 1993. The Company is ISO 9001 and 14001.

 
 
Natuzzi S.p.A. and Subsidiaries
Unaudited Consolidated Profit & Loss for the fourth quarter 2012 and 2011 on the basis of Italian GAAP
(expressed in millions Euro except for per-share data)
 
      Three months ended on   Change     Percentage of Sales
        Dec. 31, 2012   Dec. 31, 2011   %     Dec. 31, 2012   Dec. 31, 2011
   
Upholstery net sales 110.5 114.6 -3.5% 87.4% 88.4%
Other sales       16.0   15.0   6.4%     12.6%   11.6%
Total Net Sales       126.5   129.6   -2.4%     100.0%   100.0%
 
Consumption (*) (58.2) (58.4) -0.3% -46.0% -45.1%
Labor (20.7) (20.2) 2.6% -16.4% -15.6%
Industrial Costs (7.6) (7.9) -4.1% -6.0% -6.1%
of which: Depreciation, Amortization       (2.5)   (2.0)   24.8%     -1.9%   -1.5%
Cost of Sales       (86.5)   (86.5)   0.0%     -68.4%   -66.7%
                           
Industrial Margin       40.0   43.1   -7.2%     31.6%   33.3%
 
Selling Expenses (22.9) (24.1) -4.9% -18.1% -18.6%
Transportation (13.6) (12.8) 6.4% -10.8% -9.9%
Commissions (2.2) (2.8) -22.1% -1.7% -2.2%
Advertising (7.1) (8.5) -16.3% -5.6% -6.6%
 
Other Selling and G&A (24.1) (29.3)

-17.8%

-19.0% -22.6%
of which: Depreciation, Amortization (1.6) (2.0) -21.3% -1.3% -1.6%
                           
EBITDA       (2.9)   (6.2)         -2.3%   -4.8%
                           
EBIT       (7.0)   (10.3)         -5.5%   -7.9%
 
Interest Income/(Costs), Net (0.1) (0.2)
Foreign Exchange, Net (1.2) 1.6
Other Income/(Cost), Net (1.9) 0.7
                           
Earning before Income Taxes       (10.2)  

(8.2)

        -8.0%   -6.3%
 
Current taxes (1.9) (7.9) -1.5% -6.1%
                           
Net Result       (12.1)   (16.1)         -9.5%   -12.4%
 
Minority interest (0.0) 0.2
                           
Net Group Result       (12.1)   (16.0)         -9.6%   -12.3%
                           
Net Group Result per Share       (0.22)   (0.29)              
 
                           
Key Figures in U.S. dollars       Three months ended on   Change     Percentage of Sales
(millions)       Dec. 31, 2012   Dec. 31, 2011   %     Dec. 31, 2012   Dec. 31, 2011
 
Total Net Sales 164.2 168.1 -2.4% 100.0% 100.0%
Industrial Margin 51.9 55.9 -7.2% 31.6% 33.3%
EBIT (9.0) (13.3) -5.5% -7.9%
Net Group Result (15.7) (20.7) -9.6% -12.3%
Net Group Result per Share (0.29) (0.4)
 
Average exchange rate (U.S.$ per 1€)

1.2975

                           

   
 
UPHOLSTERY NET SALES BREAKDOWN
                       

 

GEOGRAPHIC BREAKDOWN

NET SALES (million euro) NET SALES (in seats)
 
Three months ended on Three months ended on
Dec. 31, 2012     Dec. 31, 2011   Change Dec. 31, 2012     Dec. 31, 2011   Change
 
Americas 44.9 40.6% 38.2 33.4% 17.4% 219,934 48.9% 200,090 41.8% 9.9%
Natuzzi Italia 4.3 3.8% 4.1 3.6% 3.9% 9,753 2.2% 10,449 2.2% -6.7%
Other brands (*) 40.6 36.8% 34.1 29.8% 19.0% 210,181 46.8% 189,641 39.7% 10.8%
 
Europe (ex Italy) 40.5 36.6% 49.4 43.1% -18.1% 143,283 31.9% 181,444 37.9% -21.0%
Natuzzi Italia 16.1 14.6% 23.8 2.7% -32.2% 29,150 6.5% 51,606 10.8% -43.5%
Other brands (*) 24.4 22.0% 25.7 22.4% -5.1% 114,133 25.4% 129,838 27.2% -12.1%
 
Italy (Natuzzi Italia) 9.9 8.9% 11.4 10.0% -13.6% 29,294 6.5% 37,347 7.8% -21.6%
 
Rest of the World 15.3 13.9% 15.5 13.5% -1.1% 56,821 12.6% 59,324 12.4% -4.2%
Natuzzi Italia 6.8 6.2% 8.2 7.2% -17.2% 14,638 3.3% 19,492 4.1% -24.9%
Other brands (*) 8.5 7.7% 7.3 6.3% 17.3% 42,183 9.4% 39,832 8.3% 5.9%
                                             
Total 110.5 100.0% 114.6 99.9% -3.5% 449,331 100.0% 478,205 100.0% -6.0%
                                             
 

 

BREAKDOWN BY BRAND

Net Sales (million euro) Net Sales (in seats)
 
Three months ended on Three months ended on
 
      Dec. 31, 2012     Dec. 31, 2011   Change Dec. 31, 2012     Dec. 31, 2011   Change
 
Natuzzi Italia 37.0 33.5% 47.5 41.5% -22.0% 82,834 18.4% 118,894 24.9% -30.3%
 
Other brands (*) 73.5 66.5% 67.1 58.5% 9.6% 366,497 81.6% 359,312 75.1% 2.0%
                                             
Total 110.5 100.0% 114.6 100.0% -3.5% 449,331 100.0% 478,205 100.0% -6.0%
                                             

(*) Italsofa, Natuzzi Editions/Leather Editions and unbranded

 
 
Natuzzi S.p.A. and Subsidiaries
Unaudited Consolidated Profit & Loss for the twelve months of 2012 & 2011 on the basis of Italian GAAP
(expressed in millions Euro except per-share data)
 
      Twelve months ended on   Change       Percentage of Sales
        Dec. 31, 2012     Dec. 31, 2011   %       Dec. 31, 2012     Dec. 31, 2011
       
Upholstery net sales 409.4 425.3 -3.7% 87.3% 87.4%
Other sales       59.4     61.1   -2.7%       12.7%     12.6%
Total Net Sales       468.8     486.4   -3.6%       100.0%     100.0%
 
Consumption (*) (209.0) (215.5) -3.0% -44.6% -44.3%
Labor (75.8) (79.2) -4.4% -16.2% -16.3%
Industrial Costs (29.1) (31.4) -7.3% -6.2% -6.5%
of which: Depreciation, Amortization       (9.5)     (9.5)   0.4%       -2.0%     -1.9%
Cost of Sales       (313.8)     (326.1)   -3.7%       -66.9%     -67.0%
                                 
Industrial Margin       155.0     160.3   -3.3%       33.1%     33.0%
 
Selling Expenses (76.8) (79.8) -3.7% -16.4% -16.4%
Transportation (47.6) (46.4) 2.7% -10.2% -9.5%
Commissions (9.7) (9.1) 6.5% -2.1% -1.9%
Advertising (19.5) (24.3) -19.6% -4.2% -5.0%
 
Other Selling and G&A (95.4) (107.8) -11.5% -20.4% -22.2%
of which: Depreciation, Amortization (7.5) (9.5) -21.0% -1.6% -2.0%
                                 
EBITDA       (0.3)     (8.3)           -0.1%     -1.7%
                                 
EBIT       (17.3)     (27.3)           -3.7%     -5.6%
 
Interest Income/(Costs), Net (0.2) (0.5)
Foreign Exchange, Net (2.5) 0.4
Other Income/(Cost), Net (1.9) 17.3
                                 
Earning before Income Taxes       (21.9)     (10.0)           -4.7%     -2.1%
 
Current taxes (4.2) (8.9) -0.9% -1.8%
                                 
Net result       (26.0)     (18.9)           -5.6%     -3.9%
 
Minority interest (0.1) (0.7)
                                 
Net Group Result       (26.1)     (19.6)           -5.6%     -4.0%
                                 
Net Group Result per Share       (0.5)     (0.4)                  
 
 
Key Figures in U.S. dollars Twelve months ended on Change Percentage of Sales
(millions, except per share data)       Dec. 31, 2012     Dec. 31, 2011   %       Dec. 31, 2012     Dec. 31, 2011
 
Total Net Sales 602.9 625.4 -3.6% 100.0% 100.0%
Industrial Margin 199.3 206.1 -3.3% 33.1% 33.0%
EBIT (22.2) (35.1) -3.7% -5.6%
Net Group Result (33.6) (25.2) -5.6% -4.0%
Net Group Result per Share (0.61) (0.5)
 
Average exchange rate

(U.S.$ per 1€)

1.2859

 

(*) Purchases plus beginning stock minus final stock and leather processing

   
 
UPHOLSTERY NET SALES BREAKDOWN
                         

GEOGRAPHIC BREAKDOWN

NET SALES (million euro) NET SALES (in seats)
Twelve months ended on Twelve months ended on
Dec. 31, 2012     Dec. 31, 2011   Change Dec. 31, 2012     Dec. 31, 2011   Change
 
Americas 169.8 41.5% 143.5 33.7% 18.3% 832,977 49.6% 776,171 43.4% 7.3%
Natuzzi Italia 15.9 3.9% 16.2 3.8% -1.7% 37,293 2.2% 45,777 2.6% -18.5%
Other brands (*) 153.9 37.6% 127.3 29.9% 20.9% 795,683 47.3% 730,394 40.9% 8.9%
 
Europe (ex Italy) 145.9 35.6% 174.1 40.9% -16.2% 530,199 31.5% 634,062 35.5% -16.4%
Natuzzi Italia 61.7 15.1% 85.8 20.2% -28.1% 122,665 7.3% 185,254 10.4% -33.8%
Other brands (*) 84.3 20.6% 88.4 20.8% -4.6% 407,534 24.2% 448,808 25.1% -9.2%
 
Italy (Natuzzi) 34.1 8.3% 46.2 10.9% -26.0% 105,756 6.3% 146,729 8.2% -27.9%
 
Rest of the World 59.5 14.5%

61.5

14.5% -3.2% 211,839 12.6% 230,858 12.9% -8.2%
Natuzzi Italia 28.2 6.9% 33.3 7.8% -15.1% 61,115 3.6% 78,787 4.4% -22.4%
Other brands (*) 31.3 7.6% 28.2 6.6% 10.8% 150,723 9.0% 152,071 8.5% -0.9%
                                           
Total 409.4 100.0% 425.3 100.0% -3.7% 1,680,770 100.0% 1,787,819 100.0% -6.0%
                                           
 

BREAKDOWN BY BRAND

Net Sales (million euro) Net Sales (in seats)
Twelve months ended on Twelve months ended on
 
  Dec. 31, 2012     Dec. 31, 2011   Change Dec. 31, 2012     Dec. 31, 2011   Change
 
Natuzzi Italia 139.9 34.2% 181.4 42.6% -22.8% 326,830 19% 456,547 26% -28.4%
 
Other brands (*) 269.5 65.8% 243.9 57.4% 10.5% 1,353,941 81% 1,331,273 74% 1.7%
                                           
Total 409.4 100.0% 425.3 100.0% -3.7% 1,680,770 100.0% 1,787,819 100.0% -6.0%
                                           

(*) Italsofa, Natuzzi Editions, Editions and unbranded

 
 
Natuzzi S.p.A. and Subsidiaries
Unaudited Consolidated Balance Sheets at December 31, 2012 on the basis of Italian GAAP
(Expressed in millions of euro)
 
ASSETS Dec. 31, 2012 31-Dec-11
 
Current assets:
Cash and cash equivalents 77.7 94.0
Marketable debt securities 0.0 0.0
Trade receivables, net 93.1 92.9
Other receivables 51.0 44.9
Inventories 82.3 93.5
Unrealized foreign exchange gains 0.9 0.1
Prepaid expenses and accrued income 2.0 2.6
Deferred income taxes 0.5 0.4
     
Total current assets 307.5 328.4
 
Non current assets:
Net property, plant and equipment 161.5 175.8
Other assets 7.1 6.8
     
Total non current assets 168.5 182.6
 
TOTAL ASSETS 476.0 511.0
 
LIABILITIES AND SHAREHOLDERS' EQUITY    
 
Current liabilities:
Short-term borrowings 26.9 24.2
Current portion of long-term debt 3.5 3.7
Accounts payable-trade 63.3 63.6
Accounts payable-other 21.0 21.4
Unrealized foreign exchange losses 0.0 0.6
Income taxes 9.2 1.3
Salaries, wages and related liabilities 8.0 8.0
     
Total current liabilities 131.9 122.8
 
Long-term liabilities:
Employees' leaving entitlement 25.7 26.8
Long-term debt 7.3 10.8
Deferred income taxes - long term 1.1 6.9
Deferred income for capital grants 9.3 9.8
Other liabilities 17.0 20.3
     
Total long-term liabilities 60.5 74.6
     
Minority interest 2.5 3.0
 
Shareholders' equity:
Share capital 54.9 54.9
Reserves 42.8 42.8
Additional paid-in capital 8.3 8.3
Retained earnings 175.2 204.6
     
Total shareholders' equity 281.1 310.6
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 476.0 511.0

 
 
Natuzzi S.p.A. and Subsidiaries
Consolidated Statements of Cash Flows Twelve months ended on
(Expressed in million of euro) Dec. 31, 2012 Dec. 31, 2011
Cash flows from operating activities:
Net earnings (loss) (26.1) (18.9)
 
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 17.0 19.0

Write-off of fixed assets

- 0.3
Impairment of long lived assets - 1.0
One time termination benefits - 5.4
Deferred income taxes 0.2 6.2
Minority interest 0.1 -
(Gain) loss on disposal of assets (1.5) (28.3)
Unrealized foreign exchange losses and gains (1.5) (0.3)
Deferred income for capital grants (0.5) (0.5)
Non monetary operating costs 13.9 2.9
 
Change in assets and liabilities:
Receivables, net (0.1) 2.9
Inventories 11.3 (6.2)
Prepaid expenses and accrued income 0.6 (1.3)
Other assets (3.1) -
Accounts payable (3.1) (0.8)
Income taxes 7.5 (1.6)
Salaries, wages and related liabilities (0.1) (1.9)
Employees' leaving entitlement - (1.7)
Other liabilities (8.9) 6.6
 
Net working capital 4.0 (3.9)
 
Net cash provided by operating activities (8.2) (20.0)
 
Cash flows from investing activities:
Property, plant and equipment:
Additions (8.0) (19.7)
Disposals 1.7 2.4
Chinese relocation compensation - 46.7
Other Assets - (1.3)
Purchase of business, net of cash acquired (0.2) -
Net cash used in investing activities (6.5) 28.1
 
Cash flows from financing activities:
Long-term debt:
Proceeds - 1.0
Repayments (3.7) (1.9)
Short-term borrowings 2.8 24.1
 
Net cash used in financing activities (0.9) 23.2
 
Effect of translation adjustments on cash (0.7) 1.6
 
Increase (decrease) in cash and cash equivalents (16.3) 32.9
 
Cash and cash equivalents, beginning of the year 94.0 61.1
 
Cash and cash equivalents, end of the period 77.7 94.0
 




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