Head NV buys back 0.43% of its issued share capital

Athletic manufacturer Head NV and HTM Sport GmbH have

announced a Share Buy Back of 393,558 ordinary listed shares in Head NV amounting to0.43% of the issued share capital of the company. It is the second operation of this kind in less than a month.
 
These shares were bought by Head NV at a cost of €295,169. The leading global manufacturer and marketer of sports equipment, announced early this morning the share buy backs amounting to 0.43% of the issued share capital of the company.
 
This the second share buy back process that the company undertakes in less than a month, as Head bought back 607,207 ordinary listed shares in Head NV amounting to 0.66% of the issued share capital of the company in mid November. These shares were bought by Head NV at a cost of €424,745.

Sales for the group for the first nine months of the year declined by just 0.1% or €0.3m, as the company posted in November. The adjusted operating profit for the nine month period declined by €2.7m compared to prior year. This was mainly due to a negative €1.5m impact of lower gross margins (41.4% in 2011 compared to 42.1% in 2010) as a result of higher raw material prices and higher selling and marketing expenses of €1.5m offset by general and administration expenses being lower by €0.3m.

The reported operating profit for the nine month period declined by €6.0m compared to the prior year. The further decline of €3.2m compared to the adjusted operating profit came from the accounting for our stock option plans. In 2010 we recorded a non-cash income of €3.3m for the plans, compared to an income of €0.1m in 2011.

In both the three month period and the nine month period, interest and other financial costs increased significantly. This was due to the acceleration of the amortization of the non-cash disagio costs as a result of the buy back and redemption of the Senior Secured Notes during 2011. Excluding this non-cash disagio cost, interest and other financial expenses would have decreased from €2.4m to €2.3m for the three month period to September 2011 compared to 2010, and increased just slightly from €7.0m to €7.1m for the nine month period

HEAD NV’s ordinary shares are listed on the Vienna Stock Exchange (“HEAD”). Their business is organized into five divisions: Winter Sports, Racquet Sports, Diving, Sportswear and Licensing. We sell products under the HEAD (tennis, squash and racquetball racquets, tennis balls, tennis footwear, badminton products, alpine skis, ski bindings and ski boots, snowboards, bindings and boots and sportswear), Penn (tennis and racquetball balls), Tyrolia (ski bindings) and Mares (diving equipment) brands.