UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
October 26, 2012
COMMISSION FILE NO. 1 - 10421
LUXOTTICA GROUP S.p.A.
VIA C. CANTÙ 2, MILAN, 20123 ITALY
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F o |
|
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o |
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o |
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Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes o No x |
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If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- |
Set forth below is the text of a press release issued on October 25, 2012
Press release
Luxottica, another quarter of solid growth
Net sales for the 2012 third quarter exceed 1.7 billion Euros (+17.0%)
Net income of 138.6 million Euros (+30.6%)
Milan (Italy) October 25, 2012 The Board of Directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), a leader in the design, manufacture and distribution of fashion, luxury and sports eyewear, met today and approved the consolidated results for the three- and nine- month periods ended September 30, 2012 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IAS/IFRS).
Third quarter of 20121
(In millions of Euro) |
|
3Q 2012 |
|
3Q 2011 |
|
Change |
| |||
|
|
|
|
|
|
(at current exchange rates) |
| |||
|
|
|
|
|
|
|
|
|
| |
Net sales |
|
1,783.5 |
|
1,523.8 |
|
+17.0% |
|
(+6.7% at constant exchange rates2) |
| |
Operating income |
|
248.9 |
|
194.5 |
|
|
|
|
| |
Adjusted operating income3,4 |
|
248.9 |
|
197.4 |
|
+26.1% |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Net income attributable to Luxottica Group stockholders |
|
138.6 |
|
111.2 |
|
|
|
|
| |
Adjusted net income3,4 attributable to Luxottica Group stockholders |
|
138.6 |
|
106.1 |
|
+30.6% |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Earnings per share |
|
0.30 |
|
0.24 |
|
|
|
|
| |
Adjusted earnings per share3,4 |
|
0.30 |
|
0.23 |
|
+29.2% |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Earnings per share in US$ |
|
0.37 |
|
0.34 |
|
|
|
|
| |
Adjusted earnings per share3,4 in US$ |
|
0.37 |
|
0.33 |
|
+14.3% |
|
|
| |
First nine months of 20121
(In millions of Euro) |
|
9M 2012 |
|
9M 2011 |
|
Change |
| |||
|
|
|
|
|
|
(at current exchange rates) |
| |||
|
|
|
|
|
|
|
|
|
| |
Net sales |
|
5,453.8 |
|
4,713.5 |
|
+15.7% |
|
(+8.2% at constant exchange rates2) |
| |
Operating income |
|
818.0 |
|
678.8 |
|
|
|
|
| |
Adjusted operating income3,4 |
|
839.8 |
|
681.6 |
|
+23.2% |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Net income attributable to Luxottica Group stockholders |
|
464.9 |
|
388.0 |
|
|
|
|
| |
Adjusted net income attributable to Luxottica Group stockholders3,4 |
|
480.2 |
|
382.9 |
|
+25.4% |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Earnings per share |
|
1.00 |
|
0.84 |
|
|
|
|
| |
Adjusted earnings per share3,4 |
|
1.03 |
|
0.83 |
|
+24.4% |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Earnings per share in US$ |
|
1.28 |
|
1.19 |
|
|
|
|
| |
Adjusted earnings per share3,4 in US$ |
|
1.33 |
|
1.17 |
|
+13.3% |
|
|
| |
Operating performance for the third quarter of 2012
During the third quarter of 2012, Luxotticas growth trend continued at a steady pace. In an overall global macroeconomic environment that was increasingly challenging, Luxottica achieved positive results across all regions, delivering improved results for the eleventh straight quarter.
In the third quarter of 2012, the Groups net sales increased from Euro 1,523.8 million to Euro 1,783.5 million, up 17.0% (+6.7% at constant exchange rates2). In the first nine months, net sales grew by 15.7% (+8.2% at constant exchange rates2) to Euro 5,453.8 million (Euro 4,713.5 million during the same period in 2011).
The third quarter results confirm the Groups excellent performance, which testifies to Luxotticas commitment to serving its customers and consumers., commented Andrea Guerra, Chief Executive Officer of Luxottica.
We have generated a record positive free cash flow4 of Euro 271 million, permitting a further reduction in net debt and strengthening our balance sheet.
Both the Wholesale and Retail divisions have worked enthusiastically and with strong determination within all regions where the Group is present. It is important to note the strong continuous growth achieved in North America which exceeded our initial expectations, the acceleration in Western Europe (+9% in quarter), and the recovery in the Mediterranean region.
Investments in emerging markets continue to pay off. We are very satisfied with our operating margin results, which improved by 100 basis points at the Group level. We are confident that our balanced business model and sales momentum constitute an excellent base as we head towards the end of 2012 and will allow us to take advantage of future opportunities.
EBITDA for the third quarter of 2012 rose by 24.0% over the same period in 2011, increasing from Euro 276.0 million (on an adjusted basis)3,4 in 2011 to Euro 342.1 million in the current period. Additionally, adjusted EBITDA 3,4 for the first nine months of 2012 reached Euro 1,103.6 million, an increase over the Euro 911.1 million recorded for the same period in 2011.
Operating income for the third quarter of 2012 grew by 26.1% year-over-year, equalling Euro 248.9 million (Euro 197.4 million on an adjusted basis)3,4 The Groups operating margin increased from 13.0% (on an adjusted basis)3,4 in the same period of 2011 to 14.0% in the current quarter.
During the first nine months of the year, adjusted operating income3,4 amounted to Euro 839.8 million, up by 23.2% compared with Euro 681.6 million in the same period of 2011. The Groups adjusted operating margin3,4 therefore rose to 15.4% in the first nine months of 2012, from 14.5% during the same period in 2011.
Net income for the third quarter of 2012 increased to Euro 138.6 million (Euro 106.1 million on an adjusted basis3,4 in 2011), up 30.6%, resulting in EPS (earnings per share) of 0.30 Euros for the quarter (at an average Euro/US dollar exchange rate of 1.2502). EPS in US dollars was US$ 0.37 for the third quarter of 2012.
Strict control over working capital during the third quarter enabled Luxottica to accumulate a record positive free cash flow4 of Euro 271.0 million. This facilitated a reduction in net debt,4 which totalled Euro 1,887 million at September 30, 2012 (Euro 2,032 million at the end of 2011), and resulted in a net debt to adjusted EBITDA3,4 ratio of 1.4x at September 30, 2012.
Luxottica recorded solid and balanced growth during the third quarter of 2012 in both the Wholesale and Retail divisions.
Wholesale division
During the third quarter of 2012, the Wholesale division continued to achieve excellent results in terms of both net sales and profitability, while increasing its presence and exploiting opportunities in fast-growing regions.
Sales performance in key areas, such as North America and the emerging markets, stood out this quarter. Double-digit growth was recorded in China, Turkey, Mexico, India, Brazil and Eastern Europe. Excellent results were also achieved in Western Europe, with Nordic countries, France, Germany and the UK up double-digits in the quarter. Performance in Italy was slightly negative, while Spain returned to growth.
Wholesales strong results were driven by the success of our new collections, our ability to establish unique and long-term relationships with our customers and by consistently offering a best-in-class service. The strength of our brand portfolio is also at the root of this success, with double-digit growth in Ray-Ban, Oakley and the luxury segment.
The Wholesale divisions net sales rose to Euro 646.8 million from Euro 555.1 million in the third quarter of 2011 (+16.5% at current exchange rates and +10.7% at constant exchange rates2). On a nine-month basis, net sales were Euro 2,161.8 million, improving by 13.8% at current exchange rates (+10.3% at constant exchange rates2) as compared with Euro 1,900.2 million in the first nine months of 2011.
Operating income grew to Euro 124.8 million, compared with Euro 104.9 million during the third quarter of 2011. The operating margin grew from 18.9% in the third quarter of 2011 to 19.3% for the third quarter of 2012. In the first nine months of 2012, the operating margin was 23.4% (23.2% in the same period of 2011).
Retail division
During the third quarter of 2012, the Retail division recorded solid and well-balanced growth across all regions. Net sales equalled Euro 1,136.7 million (Euro 968.7 million in the third quarter of 2011), +17.3% year-over-year (+4.4% at constant exchange rates2).
During the first nine months of 2012, net sales were Euro 3,292.1 million, up 17.0% compared with Euro 2,813.3 million in the same period of 2011 (+6.9% at constant exchange rates2).
The Retail divisions operating income increased from Euro 127.4 million on an adjusted basis3,4 in the third quarter of 2011 to Euro 166.2 million (+30.5%). The operating margin amounted to 14.6%, up from 13.2% on an adjusted basis3,4 in the third quarter of 2011. The adjusted operating margin3,4 in the first nine months of 2012 was 14.0% (12.6% in the 2011 period).
In terms of comparable store sales5, the Retail division grew by 5.9% during the quarter.
The North American optical business also exhibited positive trends in the current period with LensCrafters recording an increase in comparable store sales5 of 2.5%.
Sunglass Hut, the Groups sun specialty chain that operates in a number of countries, once again delivered record results, with overall comparable store sales5 up 8.8%. Stellar performance was achieved in the United States (+8.4%) and Mexico, which recorded an increase in excess of 30% in comparable store sales4 as a result of investments made over the last few months.
In Australia, the reorganization that began in February 2012 led to an 8.5% increase in comparable store sales5 in the optical segment during the third quarter (+6.2% for the current nine-month period). The contribution of OPSM to these results was significant, accelerating in the quarter with growth of 12%.
§
Results for the third quarter and for the first nine months of 2012 will be discussed today in a conference call with the financial community starting at 6:30 PM CET. The audio portion and related presentation will be available via live webcast at www.luxottica.com.
The officer responsible for preparing the Companys financial reports, Enrico Cavatorta, declares, pursuant to Article 154-bis, Section 4, of the Consolidated Law on Finance, that the accounting information contained in this press release is consistent with the data in the supporting documents, books of accounts and other accounting records.
Luxottica Group Contacts
Cristina Parenti |
Alessandra Senici |
Group Corporate Communication and Public Relations Director |
Group Investor Relations Director |
Tel.: +39 (02) 8633 4683 |
Tel.: +39 (02) 8633 4870 |
E-mail: cristina.parenti@luxottica.com |
E-mail: InvestorRelations@Luxottica.com |
|
|
Ana Iris Reece |
|
Group Financial and Corporate Press Office Manager |
|
Tel.: +39 (02) 8633 4912 |
|
Email: anairis.reece@luxottica.com |
|
Notes on the press release
1 All comparisons, including percentage changes, refer to the three-month and the nine-month periods ended September 30, 2012 and September 30, 2011, respectively.
2 Figures given at constant exchange rates have been calculated using the average exchange rate in effect for the respective comparative period in the previous year. For further information, please refer to the attached tables.
3 The adjusted data for the third quarter of 2011 does not include: an extraordinary gain of approximately 21 million related to the acquisition of the 40% stake in Multiopticas Internacional; non-recurring costs related to Luxotticas 50th anniversary celebrations of approximately 12 million; and non-recurring restructuring and start-up costs in the Retail Division of approximately 11.8 million.
The adjusted data for the first nine months of 2012 does not include restructuring costs relating to the reorganization of OPSM amounting to an approximately 21.7 million adjustment to Operating Income and an approximately 15.2 million adjustment to Net Income.
4 EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted operating margin, free cash flow, net debt, the ratio of net debt to adjusted EBITDA, adjusted net income, adjusted operating income and adjusted
earnings per share are not measures in accordance with IAS/IFRS. For additional information on non-IAS/IFRS measures, please see the attached tables.
5 Comparable store sales reflect the change in sales from one period to another that, for comparison purposes, includes in the calculation only stores open in the more recent period that also were open during the comparable prior period, and applies to both periods the average exchange rate for the prior period and the same geographic area. Commencing 2Q12, retail comparable store sales exclude Pearle Vision results.
Luxottica Group S.p.A.
Luxottica Group is a leader in premium, luxury and sports eyewear with approximately 7,000 optical and sun retail stores in North America, Asia-Pacific, China, South Africa, Latin America and Europe, and a strong, well-balanced brand portfolio. House brands include Ray-Ban, the worlds most famous sun eyewear brand, Oakley, Vogue, Persol, Oliver Peoples, Arnette and REVO, while licensed brands include Bvlgari, Burberry, Chanel, Coach, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada, Tiffany and Versace. In addition to a global wholesale network involving 130 different countries, the Group manages leading retail chains in major markets, including LensCrafters, Pearle Vision and ILORI in North America, OPSM and Laubman & Pank in Asia-Pacific, LensCrafters in China, GMO in Latin America and Sunglass Hut worldwide. The Groups products are designed and manufactured at its six manufacturing plants in Italy, two wholly owned plants in the Peoples Republic of China, one plant in Brazil and one plant in the United States devoted to the production of sports eyewear. In 2011, Luxottica Group posted net sales of more than 6.2 billion. Additional information on the Group is available at www.luxottica.com
Safe Harbor Statement
Certain statements in this press release may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those which are anticipated. Such risks and uncertainties include, but are not limited to, the ability to manage the effect of the current uncertain international economic outlook, the ability to successfully acquire new businesses and integrate their operations, the ability to predict future economic conditions and changes in consumer preferences, the ability to successfully introduce and market new products, the ability to maintain an efficient distribution network, the ability to achieve and manage growth, the ability to negotiate and maintain favorable license arrangements, the availability of correction alternatives to prescription eyeglasses, fluctuations in exchange rates, changes in local conditions, the ability to protect intellectual property, the ability to maintain relations with those hosting our stores, computer system problems, inventory-related risks, credit and insurance risks, changes to tax regimes as well as other, political, economic and technological factors and other risks and uncertainties described in our filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, and we do not assume any obligation to update them.
- APPENDIX FOLLOWS -
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE THREE-MONTH PERIODS ENDED
SEPTEMBER 30, 2012 AND SEPTEMBER 30, 2011
In accordance with IAS/IFRS
|
|
2012 |
|
2011 |
|
% Change |
|
KEY FIGURES IN THOUSANDS OF EURO (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
1,783,486 |
|
1,523,807 |
|
17.0 |
% |
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO LUXOTTICA GROUP STOCKHOLDERS |
|
138,616 |
|
111,181 |
|
24.7 |
% |
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE (ADS)(2): |
|
0.30 |
|
0.24 |
|
23.3 |
% |
|
|
2012 |
|
2011 |
|
% Change |
|
KEY FIGURES IN THOUSANDS OF U.S. DOLLARS (1) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
2,229,714 |
|
2,152,682 |
|
3.6 |
% |
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO LUXOTTICA GROUP STOCKHOLDERS |
|
173,298 |
|
157,065 |
|
10.3 |
% |
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE (ADS) (2): |
|
0.37 |
|
0.34 |
|
9.1 |
% |
|
|
2012 |
|
2011 |
|
Notes : |
|
|
|
|
|
(1) Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively |
|
|
|
|
|
(2) Weighted average number of outstanding shares |
|
465,528,412 |
|
460,505,512 |
|
(3) Average exchange rate (in U.S. Dollars per Euro) |
|
1.2502 |
|
1.4127 |
|
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE NINE-MONTH PERIODS ENDED
SEPTEMBER 30, 2012 AND SEPTEMBER 30, 2011
In accordance with IAS/IFRS
|
|
2012 |
|
2011 |
|
% Change |
|
KEY FIGURES IN THOUSANDS OF EURO (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
5,453,844 |
|
4,713,453 |
|
15.7 |
% |
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO LUXOTTICA GROUP STOCKHOLDERS |
|
464,937 |
|
387,962 |
|
19.8 |
% |
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE (ADS) (2) |
|
1.00 |
|
0.84 |
|
18.9 |
% |
|
|
2012 |
|
2011 |
|
% Change |
|
KEY FIGURES IN THOUSANDS OF U.S. DOLLARS (1) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
6,985,283 |
|
6,629,471 |
|
5.4 |
% |
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO LUXOTTICA GROUP STOCKHOLDERS |
|
595,491 |
|
545,669 |
|
9.1 |
% |
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE (ADS)(2) |
|
1.28 |
|
1.19 |
|
8.3 |
% |
|
|
2012 |
|
2011 |
|
Notes : |
|
|
|
|
|
(1) Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively |
|
|
|
|
|
(2) Weighted average number of outstanding shares |
|
464,002,373 |
|
460,249,023 |
|
(3) Average exchange rate (in U.S. Dollars per Euro) |
|
1.2808 |
|
1.4065 |
|
LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE THREE-MONTH PERIODS ENDED
SEPTEMBER 30, 2012 AND SEPTEMBER 30, 2011
In accordance with IAS/IFRS
|
|
2012 |
|
% of sales |
|
2011 |
|
% of sales |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY FIGURES IN THOUSANDS OF EURO (1) |
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
1,783,486 |
|
100.0 |
% |
1,523,807 |
|
100.0 |
% |
17.0 |
% |
COST OF SALES |
|
(596,155 |
) |
|
|
(524,657 |
) |
|
|
|
|
GROSS PROFIT |
|
1,187,332 |
|
66.6 |
% |
999,151 |
|
65.6 |
% |
18.8 |
% |
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
SELLING EXPENSES |
|
(571,907 |
) |
|
|
(505,421 |
) |
|
|
|
|
ROYALTIES |
|
(29,350 |
) |
|
|
(23,070 |
) |
|
|
|
|
ADVERTISING EXPENSES |
|
(120,023 |
) |
|
|
(103,098 |
) |
|
|
|
|
GENERAL AND ADMINISTRATIVE EXPENSES |
|
(194,934 |
) |
|
|
(152,936 |
) |
|
|
|
|
TRADEMARK AMORTIZATION AND OTHER |
|
(22,236 |
) |
|
|
(20,090 |
) |
|
|
|
|
TOTAL |
|
(938,451 |
) |
|
|
(804,614 |
) |
|
|
|
|
OPERATING INCOME |
|
248,881 |
|
14.0 |
% |
194,537 |
|
12.8 |
% |
27.9 |
% |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSES |
|
(33,177 |
) |
|
|
(29,375 |
) |
|
|
|
|
INTEREST INCOME |
|
2,900 |
|
|
|
3,158 |
|
|
|
|
|
OTHER - NET |
|
(3,162 |
) |
|
|
(3,051 |
) |
|
|
|
|
OTHER INCOME (EXPENSES)-NET |
|
(33,439 |
) |
|
|
(29,268 |
) |
|
|
|
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
215,442 |
|
12.1 |
% |
165,268 |
|
10.8 |
% |
30.4 |
% |
PROVISION FOR INCOME TAXES |
|
(76,361 |
) |
|
|
(52,990 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
139,081 |
|
|
|
112,278 |
|
|
|
|
|
OF WHICH ATTRIBUTABLE TO: |
|
|
|
|
|
|
|
|
|
|
|
- LUXOTTICA GROUP STOCKHOLDERS |
|
138,616 |
|
7.8 |
% |
111,181 |
|
7.3 |
% |
24.7 |
% |
- NON-CONTROLLING INTERESTS |
|
465 |
|
0.0 |
% |
1,097 |
|
0.1 |
% |
|
|
NET INCOME |
|
139,081 |
|
7.8 |
% |
112,278 |
|
7.4 |
% |
23.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE (ADS): |
|
0.30 |
|
|
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FULLY DILUTED EARNINGS PER SHARE (ADS): |
|
0.30 |
|
|
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF OUTSTANDING SHARES |
|
465,528,412 |
|
|
|
460,505,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FULLY DILUTED AVERAGE NUMBER OF SHARES |
|
467,486,153 |
|
|
|
462,079,618 |
|
|
|
|
|
LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE NINE-MONTH PERIODS ENDED
SEPTEMBER 30, 2012 AND SEPTEMBER 30, 2011
In accordance with IAS/IFRS
|
|
2012 |
|
% of sales |
|
2011 |
|
% of sales |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY FIGURES IN THOUSANDS OF EURO (1) |
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
5,453,844 |
|
100.0 |
% |
4,713,453 |
|
100.0 |
% |
15.7 |
% |
COST OF SALES |
|
(1,825,197 |
) |
|
|
(1,621,783 |
) |
|
|
|
|
GROSS PROFIT |
|
3,628,648 |
|
66.5 |
% |
3,091,670 |
|
65.6 |
% |
17.4 |
% |
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
SELLING EXPENSES |
|
(1,706,326 |
) |
|
|
(1,485,787 |
) |
|
|
|
|
ROYALTIES |
|
(97,454 |
) |
|
|
(80,122 |
) |
|
|
|
|
ADVERTISING EXPENSES |
|
(345,430 |
) |
|
|
(306,771 |
) |
|
|
|
|
GENERAL AND ADMINISTRATIVE EXPENSES |
|
(596,548 |
) |
|
|
(480,061 |
) |
|
|
|
|
TRADEMARK AMORTIZATION AND OTHER |
|
(64,860 |
) |
|
|
(60,159 |
) |
|
|
|
|
TOTAL |
|
(2,810,618 |
) |
|
|
(2,412,900 |
) |
|
|
|
|
OPERATING INCOME |
|
818,029 |
|
15.0 |
% |
678,771 |
|
14.4 |
% |
20.5 |
% |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSES |
|
(106,166 |
) |
|
|
(89,809 |
) |
|
|
|
|
INTEREST INCOME |
|
14,795 |
|
|
|
10,393 |
|
|
|
|
|
OTHER - NET |
|
(3,651 |
) |
|
|
(5,947 |
) |
|
|
|
|
OTHER INCOME (EXPENSES)-NET |
|
(95,021 |
) |
|
|
(85,363 |
) |
|
|
|
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
723,008 |
|
13.3 |
% |
593,408 |
|
12.6 |
% |
21.8 |
% |
PROVISION FOR INCOME TAXES |
|
(254,438 |
) |
|
|
(200,211 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME |
|
468,570 |
|
8.6 |
% |
393,197 |
|
8.3 |
% |
19.2 |
% |
OF WHICH ATTRIBUTABLE TO: |
|
|
|
|
|
|
|
|
|
|
|
- LUXOTTICA GROUP STOCKHOLDERS |
|
464,938 |
|
8.5 |
% |
387,962 |
|
8.2 |
% |
19.8 |
% |
- NON-CONTROLLING INTERESTS |
|
3,632 |
|
0.1 |
% |
5,235 |
|
0.1 |
% |
|
|
NET INCOME |
|
468,570 |
|
8.6 |
% |
393,197 |
|
8.3 |
% |
19.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE (ADS): |
|
1.00 |
|
|
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FULLY DILUTED EARNINGS PER SHARE (ADS): |
|
1.00 |
|
|
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF OUTSTANDING SHARES |
|
464,002,373 |
|
|
|
460,249,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FULLY DILUTED AVERAGE NUMBER OF SHARES |
|
466,184,724 |
|
|
|
462,121,938 |
|
|
|
|
|
Notes :
(1) Except earnings per share (ADS), which are expressed in Euro
LUXOTTICA GROUP
CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 2012 AND DECEMBER 31, 2011
In accordance with IAS/IFRS
|
|
September 30, 2012 |
|
December 31, 2011 |
|
KEY FIGURES IN THOUSANDS OF EURO |
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
CASH AND CASH EQUIVALENTS |
|
1,026,050 |
|
905,100 |
|
ACCOUNTS RECEIVABLE - NET |
|
829,449 |
|
714,033 |
|
INVENTORIES - NET |
|
707,042 |
|
649,506 |
|
OTHER ASSETS |
|
204,563 |
|
230,850 |
|
TOTAL CURRENT ASSETS |
|
2,767,104 |
|
2,499,489 |
|
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT - NET |
|
1,174,773 |
|
1,169,066 |
|
GOODWILL |
|
3,193,041 |
|
3,090,563 |
|
INTANGIBLE ASSETS - NET |
|
1,370,114 |
|
1,350,921 |
|
INVESTMENTS |
|
12,217 |
|
8,754 |
|
OTHER ASSETS |
|
133,116 |
|
147,625 |
|
DEFERRED TAX ASSETS |
|
230,380 |
|
202,206 |
|
TOTAL NON-CURRENT ASSETS |
|
6,113,640 |
|
5,969,135 |
|
|
|
|
|
|
|
TOTAL |
|
8,880,744 |
|
8,468,624 |
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
SHORT-TERM BORROWINGS |
|
113,685 |
|
193,834 |
|
CURRENT PORTION OF LONG-TERM DEBT |
|
401,029 |
|
498,295 |
|
ACCOUNTS PAYABLE |
|
567,871 |
|
608,327 |
|
INCOME TAXES PAYABLE |
|
133,037 |
|
39,859 |
|
SHORT TERM PROVISIONS FOR RISKS AND OTHER CHARGES |
|
63,182 |
|
53,337 |
|
OTHER LIABILITIES |
|
630,897 |
|
579,595 |
|
TOTAL CURRENT LIABILITIES |
|
1,909,701 |
|
1,973,247 |
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
LONG-TERM DEBT |
|
2,398,752 |
|
2,244,583 |
|
EMPLOYEE BENEFITS |
|
200,878 |
|
197,675 |
|
DEFERRED TAX LIABILITIES |
|
272,517 |
|
280,842 |
|
LONG TERM PROVISIONS FOR RISKS AND OTHER CHARGES |
|
98,347 |
|
80,400 |
|
OTHER LIABILITIES |
|
53,524 |
|
66,756 |
|
TOTAL NON-CURRENT LIABILITIES |
|
3,024,019 |
|
2,870,256 |
|
|
|
|
|
|
|
STOCKHOLDERS EQUITY: |
|
|
|
|
|
LUXOTTICA GROUP STOCKHOLDERS EQUITY |
|
3,935,349 |
|
3,612,928 |
|
NON-CONTROLLING INTEREST |
|
11,676 |
|
12,192 |
|
TOTAL STOCKHOLDERS EQUITY |
|
3,947,025 |
|
3,625,120 |
|
|
|
|
|
|
|
TOTAL |
|
8,880,744 |
|
8,468,624 |
|
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE NINE-MONTH PERIODS ENDED
SEPTEMBER 30, 2012 AND SEPTEMBER 30, 2011
- SEGMENTAL INFORMATION -
In accordance with IAS/IFRS
In thousands of Euro |
|
Manufacturing |
|
Retail |
|
Inter-Segment |
|
Consolidated |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
2,161,769 |
|
3,292,075 |
|
|
|
5,453,844 |
|
Operating Income |
|
505,403 |
|
438,805 |
|
(126,179 |
) |
818,029 |
|
% of Sales |
|
23.4 |
% |
13.3 |
% |
|
|
15.0 |
% |
Capital Expenditures(1) |
|
90,481 |
|
153,220 |
|
|
|
243,701 |
|
Depreciation & Amortization |
|
79,168 |
|
119,833 |
|
64,860 |
|
263,861 |
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
1,900,165 |
|
2,813,289 |
|
|
|
4,713,453 |
|
Operating Income |
|
441,246 |
|
342,133 |
|
(104,609 |
) |
678,771 |
|
% of Sales |
|
23.2 |
% |
12.2 |
% |
|
|
14.4 |
% |
Capital Expenditures |
|
71,014 |
|
126,545 |
|
|
|
197,560 |
|
Depreciation & Amortization |
|
62,205 |
|
107,136 |
|
60,159 |
|
229,500 |
|
Notes:
(1) In 2012, Capital Expenditures include finance leases of the Retail division of Euro 18.7 million. Capital Expenditures excluding finance leases were Euro 224.9 million.
Major currencies
|
|
Three months ended |
|
Nine months ended |
|
Twelve months ended |
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, 2012 |
|
September 30, 2012 |
|
December 31, 2011 |
|
September 30, 2011 |
|
September 30, 2011 |
|
Average exchange rates per 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
|
1.25024 |
|
1.28082 |
|
1.39196 |
|
1.41270 |
|
1.40648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
AUD |
|
1.20350 |
|
1.23813 |
|
1.34839 |
|
1.34585 |
|
1.35398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GBP |
|
0.79153 |
|
0.81203 |
|
0.86788 |
|
0.87760 |
|
0.87140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CNY |
|
7.94102 |
|
8.10578 |
|
8.99600 |
|
9.06533 |
|
9.13784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
JPY |
|
98.30231 |
|
101.61484 |
|
110.95860 |
|
109.77212 |
|
113.19244 |
|
Non-IAS/IFRS measures: Adjusted measures
In order to provide a supplemental comparison of current period results of operations to prior periods, we have adjusted for certain non-recurring transactions or events.
We have made such adjustments to the following measures: EBITDA, EBITDA margin, operating income, operating margin, net income and earnings per share.
For comparative purposes, management has adjusted each of the foregoing measures by excluding non-recurring OPSM reorganization costs of approximately 22 million.
In addition, we have made adjustments to fiscal year 2011 measures for comparative purposes as described in the footnotes to the tables that contain such fiscal year 2011 data.
The Company believes that these adjusted measures are useful to both management and investors in evaluating the Companys operating performance compared with that of other companies in its industry because they exclude the impact of non-recurring items that are not relevant to the Companys operating performance.
The adjusted measures referenced above are not measures of performance in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IAS/IFRS). We include these adjusted comparisons in this presentation in order to provide a supplemental view of operations that excludes items that are unusual, infrequent or unrelated to our ongoing core operations.
These adjusted measures are not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IAS/IFRS. Rather, these non-IAS/IFRS measures should be used as a supplement to IAS/IFRS results to assist the reader in better understanding the operational performance of the Company. The Company cautions that these adjusted measures are not defined terms under IAS/IFRS and their definitions should be carefully reviewed and understood by investors. Investors should be aware that Luxottica Groups method of calculating these adjusted measures may differ from methods used by other companies.
The Company recognizes that there are limitations in the usefulness of adjusted comparisons due to the subjective nature of items excluded by management in calculating adjusted comparisons. We compensate for the foregoing limitation by using these adjusted measures as a comparative tool, together with IAS/IFRS measurements, to assist in the evaluation of our operating performance.
See the tables on the following pages for a reconciliation of the adjusted measures discussed above to their most directly comparable IAS/IFRS financial measures or, in the case of adjusted EBITDA and adjusted EBITDA margin, to EBITDA and EBITDA margin, respectively, which are also non-IAS/IFRS measures. For a discussion of EBITDA and EBITDA margin and a reconciliation of EBITDA and EBITDA margin to their most directly comparable IAS/IFRS financial measures, see the tables on the pages immediately following the reconciliation of the adjusted measures.
Non-IAS/IFRS measure: Reconciliation between reported and adjusted P&L items
Millions of Euro
Luxottica Group
|
|
3Q12 |
|
3Q11 |
| ||||||||||||||||
|
|
Net sales |
|
EBITDA |
|
Operating Income |
|
Net Income |
|
EPS |
|
Net sales |
|
EBITDA |
|
Operating Income |
|
Net Income |
|
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
1,783.5 |
|
342.1 |
|
248.9 |
|
138.6 |
|
0.30 |
|
1,523.8 |
|
273.1 |
|
194.5 |
|
111.2 |
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for Multiopticas Internacional extraordinary gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
(21.0 |
) |
(21.0 |
) |
(21.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for 50th anniversary celebration |
|
|
|
|
|
|
|
|
|
|
|
|
|
12.0 |
|
12.0 |
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for restructuring costs in the Retail Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
11.8 |
|
11.8 |
|
7.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
1,783.5 |
|
342.1 |
|
248.9 |
|
138.6 |
|
0.30 |
|
1,523.8 |
|
276.0 |
|
197.4 |
|
106.1 |
|
0.23 |
|
Retail Division
|
|
3Q12 |
|
3Q11 |
| ||||||||||||||||
|
|
Net sales |
|
EBITDA |
|
Operating Income |
|
Net Income |
|
EPS |
|
Net sales |
|
EBITDA |
|
Operating Income |
|
Net Income |
|
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
1,136.7 |
|
205.6 |
|
166.2 |
|
n.a. |
|
n.a. |
|
968.7 |
|
153.4 |
|
115.6 |
|
n.a. |
|
n.a. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for restructuring costs in the Retail Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
11.8 |
|
11.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
1,136.7 |
|
205.6 |
|
166.2 |
|
n.a. |
|
n.a. |
|
968.7 |
|
165.2 |
|
127.4 |
|
n.a. |
|
n.a. |
|
Non-IAS/IFRS measure: Reconciliation between reported and adjusted P&L items
Millions of Euro
Luxottica Group
|
|
9M12 |
|
9M11 |
| ||||||||||||||||
|
|
Net sales |
|
EBITDA |
|
Operating Income |
|
Net Income |
|
EPS |
|
Net sales |
|
EBITDA |
|
Operating Income |
|
Net Income |
|
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
5,453.8 |
|
1,081.9 |
|
818.0 |
|
464.9 |
|
1.00 |
|
4,713.5 |
|
908.3 |
|
678.8 |
|
388.0 |
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for OPSM reorganization |
|
|
|
21.7 |
|
21.7 |
|
15.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for Multiopticas Internacional extraordinary gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
(21.0 |
) |
(21.0 |
) |
(21.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for 50th anniversary celebration |
|
|
|
|
|
|
|
|
|
|
|
|
|
12.0 |
|
12.0 |
|
8.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for restructuring costs in the Retail Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
11.8 |
|
11.8 |
|
7.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
5,453.8 |
|
1,103.6 |
|
839.8 |
|
480.2 |
|
1.03 |
|
4,713.5 |
|
911.1 |
|
681.6 |
|
382.9 |
|
0.83 |
|
Retail Division
|
|
9M12 |
|
9M11 |
| ||||||||||||||||
|
|
Net sales |
|
EBITDA |
|
Operating Income |
|
Net Income |
|
EPS |
|
Net sales |
|
EBITDA |
|
Operating Income |
|
Net Income |
|
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
3,292.1 |
|
558.6 |
|
438.8 |
|
n.a. |
|
n.a. |
|
2,813.3 |
|
449.3 |
|
342.1 |
|
n.a. |
|
n.a. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for OPSM reorganization |
|
|
|
21.7 |
|
21.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
> Adjustment for restructuring costs in the Retail Division |
|
|
|
|
|
|
|
|
|
|
|
|
|
11.8 |
|
11.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted |
|
3,292.1 |
|
580.4 |
|
460.5 |
|
n.a. |
|
n.a. |
|
2,813.3 |
|
461.1 |
|
354.0 |
|
n.a. |
|
n.a. |
|
Non-IAS/IFRS measure: EBITDA and EBITDA margin
EBITDA represents net income before non-controlling interest, taxes, other income/expense, depreciation and amortization. EBITDA margin means EBITDA divided by net sales.
The Company believes that EBITDA is useful to both management and investors in evaluating the Companys operating performance compared with that of other companies in its industry. Our calculation of EBITDA allows us to compare our operating results with those of other companies without giving effect to financing, income taxes and the accounting effects of capital spending, which items may vary for different companies for reasons unrelated to the overall operating performance of a companys business.
EBITDA and EBITDA margin are not measures of performance under International Financial Reporting Standards as issued by the International Accounting Standards Board (IAS/IFRS).
We include them in this presentation in order to:
· improve transparency for investors;
· assist investors in their assessment of the Companys operating performance and its ability to refinance its debt as it matures and incur additional indebtedness to invest in new business opportunities;
· assist investors in their assessment of the Companys cost of debt;
· ensure that these measures are fully understood in light of how the Company evaluates its operating results and leverage;
· properly define the metrics used and confirm their calculation; and
· share these measures with all investors at the same time.
EBITDA and EBITDA margin are not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IAS/IFRS. Rather, these non-IAS/IFRS measures should be used as a supplement to IAS/IFRS results to assist the reader in better understanding the operational performance of the Company. The Company cautions that these measures are not defined terms under IAS/IFRS and their definitions should be carefully reviewed and understood by investors. Investors should be aware that Luxottica Groups method of calculating EBITDA may differ from methods used by other companies. The Company recognizes that the usefulness of EBITDA has certain limitations, including:
· EBITDA does not include interest expense. Because we have borrowed money in order to finance our operations, interest expense is a necessary element of our costs and ability to generate profits and cash flows. Therefore, any measure that excludes interest expense may have material limitations;
· EBITDA does not include depreciation and amortization expense. Because we use capital assets, depreciation and amortization expense is a necessary element of our costs and ability to generate profits. Therefore, any measure that excludes depreciation and expense may have material limitations;
· EBITDA does not include provision for income taxes. Because the payment of income taxes is a necessary element of our costs, any measure that excludes tax expense may have material limitations;
· EBITDA does not reflect cash expenditures or future requirements for capital expenditures or contractual commitments;
· EBITDA does not reflect changes in, or cash requirements for, working capital needs; and
· EBITDA does not allow us to analyze the effect of certain recurring and non-recurring items that materially affect our net income or loss.
We compensate for the foregoing limitations by using EBITDA as a comparative tool, together with IAS/IFRS measurements, to assist in the evaluation of our operating performance and leverage.
See the table on the following page for a reconciliation of EBITDA to net income, which is the most directly comparable IAS/IFRS financial measure, as well as the calculation of EBITDA margin on net sales.
Non-IAS/IFRS measure: EBITDA and EBITDA margin
Millions of Euro
|
|
3Q 2011 |
|
3Q 2012 |
|
9M 2011 |
|
9M 2012 |
|
FY 2011 |
|
LTM September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) |
|
111.2 |
|
138.6 |
|
388.0 |
|
464.9 |
|
452.3 |
|
529.3 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest |
|
1.1 |
|
0.5 |
|
5.2 |
|
3.6 |
|
6.0 |
|
4.4 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
53.0 |
|
76.4 |
|
200.2 |
|
254.4 |
|
237.0 |
|
291.2 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)/expense |
|
29.3 |
|
33.4 |
|
85.4 |
|
95.0 |
|
111.9 |
|
121.5 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization |
|
78.6 |
|
93.2 |
|
229.5 |
|
263.9 |
|
323.9 |
|
358.2 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
273.1 |
|
342.1 |
|
908.3 |
|
1,081.9 |
|
1,131.0 |
|
1,304.6 |
|
(=) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
1,523.8 |
|
1,783.5 |
|
4,713.5 |
|
5,453.8 |
|
6,222.5 |
|
6,962.9 |
|
(/) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
17.9 |
% |
19.2 |
% |
19.3 |
% |
19.8 |
% |
18.2 |
% |
18.7 |
% |
(=) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-IAS/IFRS measure: Adjusted EBITDA and Adjusted EBITDA margin
Millions of Euro
|
|
3Q 20111,2 |
|
3Q 2012 |
|
9M 20111,2 |
|
9M 20122 |
|
FY 20111,2 |
|
LTM September 30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net income/(loss) |
|
106.1 |
|
138.6 |
|
382.9 |
|
480.2 |
|
455.6 |
|
552.9 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to non-controlling interest |
|
1.1 |
|
0.5 |
|
5.2 |
|
3.6 |
|
6.0 |
|
4.4 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Provision for income taxes |
|
60.9 |
|
76.4 |
|
208.1 |
|
261.0 |
|
247.4 |
|
300.3 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)/expense |
|
29.3 |
|
33.4 |
|
85.4 |
|
95.0 |
|
111.9 |
|
121.5 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Depreciation & amortization |
|
78.6 |
|
93.2 |
|
229.5 |
|
263.9 |
|
315.0 |
|
349.3 |
|
(+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
276.0 |
|
342.1 |
|
911.1 |
|
1,103.6 |
|
1,135.9 |
|
1,328.4 |
|
(=) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
1,523.8 |
|
1,783.5 |
|
4,713.5 |
|
5,453.8 |
|
6,222.5 |
|
6,962.9 |
|
(/) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
18.1 |
% |
19.2 |
% |
19.3 |
% |
20.2 |
% |
18.3 |
% |
19.1 |
% |
(=) |
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The adjusted figures exclude the following measures:
(a) an extraordinary gain of approximately 21 million (3 and 9 months ended September 30, 2011) and 19 million (for the year 2011) related to the acquisition, in 2009, of a 40% stake in Multiopticas Internacional;
(b) non-recurring costs related to Luxotticas 50th anniversary celebrations of approximately 12 million, including the adjustment relating to the grant of treasury shares to Group employees; and
(c) non-recurring restructuring and start-up costs in the Retail Division of approximately 11.8 million (3 and 9 months ended September 30, 2011) and 11.2 million (for the year 2011);
2 Non-recurring OPSM re-organization costs of approximately 9.6 million in 2011 and 21.7 million in 2012 are also excluded from adjusted figures.
Non-IAS/IFRS measure: Net Debt to EBITDA ratio
Net debt to EBITDA ratio: Net debt means the sum of bank overdrafts, current portion of long-term debt and long-term debt, less cash. EBITDA represents net income before non-controlling interest, taxes, other income/expense, depreciation and amortization. The Company believes that EBITDA is useful to both management and investors in evaluating the Companys operating performance compared with that of other companies in its industry. Our calculation of EBITDA allows us to compare our operating results with those of other companies without giving effect to financing, income taxes and the accounting effects of capital spending, which items may vary for different companies for reasons unrelated to the overall operating performance of a companys business. The ratio of net debt to EBITDA is a measure used by management to assess the Companys level of leverage, which affects our ability to refinance our debt as it matures and incur additional indebtedness to invest in new business opportunities. The ratio also allows management to assess the cost of existing debt since it affects the interest rates charged by the Companys lenders.
EBITDA and ratio of net debt to EBITDA are not measures of performance under International Financial Reporting Standards as issued by the International Accounting Standards Board (IAS/IFRS).
We include them in this presentation in order to:
· improve transparency for investors;
· assist investors in their assessment of the Companys operating performance and its ability to refinance its debt as it matures and incur additional indebtedness to invest in new business opportunities;
· assist investors in their assessment of the Companys cost of debt;
· ensure that these measures are fully understood in light of how the Company evaluates its operating results and leverage;
· properly define the metrics used and confirm their calculation; and
· share these measures with all investors at the same time.
EBITDA and ratio of net debt to EBITDA are not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IAS/IFRS. Rather, these non-IAS/IFRS measures should be used as a supplement to IAS/IFRS results to assist the reader in better understanding the operational performance of the Company. The Company cautions that these measures are not defined terms under IAS/IFRS and their definitions should be carefully reviewed and understood by investors. Investors should be aware that Luxottica Groups method of calculating EBITDA and the ratio of net debt to EBITDA may differ from methods used by other companies. The Company recognizes that the usefulness of EBITDA and the ratio of net debt to EBITDA as evaluative tools may have certain limitations, including:
· EBITDA does not include interest expense. Because we have borrowed money in order to finance our operations, interest expense is a necessary element of our costs and ability to generate profits and cash flows. Therefore, any measure that excludes interest expense may have material limitations;
· EBITDA does not include depreciation and amortization expense. Because we use capital assets, depreciation and amortization expense is a necessary element of our costs and ability to generate profits. Therefore, any measure that excludes depreciation and expense may have material limitations;
· EBITDA does not include provision for income taxes. Because the payment of income taxes is a necessary element of our costs, any measure that excludes tax expense may have material limitations;
· EBITDA does not reflect cash expenditures or future requirements for capital expenditures or contractual commitments;
· EBITDA does not reflect changes in, or cash requirements for, working capital needs;
· EBITDA does not allow us to analyze the effect of certain recurring and non-recurring items that materially affect our net income or loss; and
· The ratio of net debt to EBITDA is net of cash and cash equivalents, restricted cash and short-term investments, thereby reducing our debt position.
Because we may not be able to use our cash to reduce our debt on a dollar-for-dollar basis, this measure may have material limitations. We compensate for the foregoing limitations by using EBITDA and the ratio of net debt to EBITDA as two of several comparative tools, together with IAS/IFRS measurements, to assist in the evaluation of our operating performance and leverage.
See the table on the following page for a reconciliation of net debt to long-term debt, which is the most directly comparable IAS/IFRS financial measure, as well as the calculation of the ratio of net debt to EBITDA. For a reconciliation of EBITDA to net income, which is the most directly comparable IAS/IFRS financial measure, see the table on the preceding pages.
Non-IAS/IFRS measure: Net debt and Net debt/EBITDA
Millions of Euro
|
|
Sep. 30, 2012 |
|
Dec. 31, 2011 |
|
|
|
|
|
|
|
Long-term debt (+) |
|
2,398.8 |
|
2,244.6 |
|
|
|
|
|
|
|
Current portion of long-term debt (+) |
|
401.0 |
|
498.3 |
|
|
|
|
|
|
|
Bank overdrafts (+) |
|
113.7 |
|
193.8 |
|
|
|
|
|
|
|
Cash (-) |
|
(1,026.0 |
) |
(905.1 |
) |
|
|
|
|
|
|
Net debt (=) |
|
1,887.4 |
|
2,031.6 |
|
|
|
|
|
|
|
EBITDA |
|
1,304.6 |
|
1,131.0 |
|
|
|
|
|
|
|
Net debt/EBITDA |
|
1.4x |
|
1.8x |
|
|
|
|
|
|
|
Net debt @ avg. exchange rates(1) |
|
1,887.4 |
|
1,944.4 |
|
|
|
|
|
|
|
Net debt @ avg. exchange rates(1)/EBITDA |
|
1.4x |
|
1.7x |
|
1. Net debt figures are calculated using the average exchange rates used to calculate the EBITDA figures
Non-IAS/IFRS measure: Net debt and Net debt/Adjusted EBITDA
Millions of Euro
|
|
Sep. 30, 20122 |
|
Dec. 31, 20112 |
|
|
|
|
|
|
|
Long-term debt (+) |
|
2,398.8 |
|
2,244.6 |
|
|
|
|
|
|
|
Current portion of long-term debt (+) |
|
401.0 |
|
498.3 |
|
|
|
|
|
|
|
Bank overdrafts (+) |
|
113.7 |
|
193.8 |
|
|
|
|
|
|
|
Cash (-) |
|
(1,026.0 |
) |
(905.1 |
) |
|
|
|
|
|
|
Net debt (=) |
|
1,887.4 |
|
2,031.6 |
|
|
|
|
|
|
|
LTM Adjusted EBITDA |
|
1,328.4 |
|
1,135.9 |
|
|
|
|
|
|
|
Net debt/LTM Adjusted EBITDA |
|
1.4x |
|
1.8x |
|
|
|
|
|
|
|
Net debt @ avg. exchange rates(1) |
|
1,887.4 |
|
1,944.4 |
|
|
|
|
|
|
|
Net debt @ avg. exchange rates(1)/LTM EBITDA |
|
1.4x |
|
1.7x |
|
1 Net debt figures are calculated using the average exchange rates used to calculate the EBITDA figures
2 The adjusted figures exclude the following measures:
(a) an extraordinary gain of approximately 21 million (3 and 9 months ended September 30, 2011) and 19 million (for the year 2011) related to the acquisition, in 2009, of a 40% stake in Multiopticas Internacional;
(b) non-recurring costs related to Luxotticas 50th anniversary celebrations of approximately 12 million, including the adjustment relating to the grant of treasury shares to Group employees;
(c) non-recurring restructuring and start-up costs in the Retail Division of approximately 11.8 million (3 and 9 months ended September 30, 2011) and 11.2 million (for the year 2011); and
(d) non-recurring OPSM re-organization costs of approximately 9.6 million in 2011 and 21.7 million in 2012.
Non-IAS/IFRS measures: free cash flow
Free cash flow net represents net income before non-controlling interest, taxes, other income/expense, depreciation and amortization (i.e. EBITDA see table on the earlier page) plus or minus the decrease/(increase) in working capital over the prior period, less capital expenditures, plus or minus interest income/(expense) and extraordinary items, minus taxes paid. The Company believes that free cash flow is useful to both management and investors in evaluating the Companys operating performance compared with other companies in its industry. In particular, our calculation of free cash flow provides a clearer picture of the Companys ability to generate net cash from operations, which is used for mandatory debt service requirements, to fund discretionary investments, pay dividends or pursue other strategic opportunities.
Free cash flow is not a measure of performance under International Financial Reporting Standards as issued by the International Accounting Standards Board (IAS/IFRS).
We include it in this presentation in order to:
· Improve transparency for investors;
· Assist investors in their assessment of the Companys operating performance and its ability to generate cash from operations in excess of its cash expenses;
· Ensure that this measure is fully understood in light of how the Company evaluates its operating results;
· Properly define the metrics used and confirm their calculation; and
· Share this measure with all investors at the same time.
Free cash flow is not meant to be considered in isolation or as a substitute for items appearing on our financial statements prepared in accordance with IAS/IFRS. Rather, this non-IAS/IFRS measure should be used as a supplement to IAS/IFRS results to assist the reader in better understanding the operational performance of the Company. The Company cautions that this measure is not a defined term under IAS/IFRS and its definition should be carefully reviewed and understood by investors. Investors should be aware that Luxottica Groups method of calculation of free cash flow may differ from methods used by other companies. The Company recognizes that the usefulness of free cash flow as an evaluative tool may have certain limitations, including:
· The manner in which the Company calculates free cash flow may differ from that of other companies, which limits its usefulness as a comparative measure;
· Free cash flow does not represent the total increase or decrease in the net debt balance for the period since it excludes, among other things, cash used for funding discretionary investments and to pursue strategic opportunities during the period and any impact of the exchange rate changes; and
· Free cash flow can be subject to adjustment at the Companys discretion if the Company takes steps or adopts policies that increase or diminish its current liabilities and/or changes to working capital.
We compensate for the foregoing limitations by using free cash flow as one of several comparative tools, together with IAS/IFRS measurements, to assist in the evaluation of our operating performance.
See the table on the following page for a reconciliation of free cash flow to EBITDA and the table on the earlier page for a reconciliation of EBITDA to net income, which is the most directly comparable IAS/IFRS financial measure.
Non-IAS/IFRS measure: free cash flow
Millions of Euro
|
|
3Q 2012 |
|
EBITDA(1) |
|
342 |
|
Δ working capital |
|
85 |
|
Capex |
|
(79 |
) |
|
|
|
|
Operating cash flow |
|
348 |
|
Financial charges(2) |
|
(30 |
) |
Taxes |
|
(44 |
) |
Extraordinary charges(3) |
|
(3 |
) |
|
|
|
|
Free cash flow |
|
271 |
|
1. EBITDA is not an IAS/IFRS measure, please see table on the earlier page for a reconciliation of EBITDA to net income
2. Equals interest income minus interest expense
3. Equals extraordinary income minus extraordinary expense
Non-IAS/IFRS measure: free cash flow
Millions of Euro
|
|
9M 2012 |
|
EBITDA(1) |
|
1,104 |
|
∆ working capital |
|
(144 |
) |
Capex |
|
(225 |
) |
|
|
|
|
Operating cash flow |
|
734 |
|
Financial charges(2) |
|
(91 |
) |
Taxes |
|
(152 |
) |
Extraordinary charges(3) |
|
(3 |
) |
|
|
|
|
Free cash flow |
|
487 |
|
1. EBITDA is not an IAS/IFRS measure, please see table on the earlier page for a reconciliation of EBITDA to net income
2. Equals interest income minus interest expense
3. Equals extraordinary income minus extraordinary expense
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
LUXOTTICA GROUP S.p.A. | |
|
|
| |
|
|
| |
|
|
By: |
/s/ ENRICO CAVATORTA |
Date: October 26, 2012 |
|
|
ENRICO CAVATORTA |