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
April 25, 2007
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
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
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
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 April 24, 2007.
Luxotticas first quarter of 2007 results show improving sales and net income
Milan, Italy April 24, 2007 - Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX), the global leader in the eyewear sector, today announced consolidated U.S. GAAP results(1) for the three-month period ended March 31, 2007(2). Financial highlights were as follows:
· Consolidated sales: 1,299.8 million (+6.7%) (+13.1% excluding the impact of exchange rates)
- Total retail sales: 833.6 million (-1.6%) (+6.3% excluding the impact of exchange rates); Retail comparable store sales(3): +1.6%
- Total wholesale sales: 548.5 million (+20.4%) (+24.3% excluding the impact of exchange rates)
· Consolidated operating income: 224.1 million (+13.9%); Operating margin: 17.2%
· Consolidated net income: 128.3 million (+20.3%); Net margin: 9.9%
· Earnings per share: 0.28 (US$0.37 per ADS)
Andrea Guerra, chief executive officer of Luxottica Group, commented on the results for the quarter as follows: The year started well. At constant exchange rates, consolidated sales for the quarter reflected strong growth (+13.1%), continuing the positive trend of fiscal 2006. Operating margin also continued to improve, exceeding 17%, while net income rose by 20.3%, which is a particularly positive result when considering the significant impact of exchange rates on results for the quarter.
It is important to mention that this positive performance was achieved while the Group is making significant investments in several markets to improve its ability to capture longer-term growth opportunities. In North America, management is currently focused both on the integration of the acquisitions made over the past 18 months and on the opening of new stores. During the first quarter we opened a record 149 new stores. In Asia-Pacific, we continued to work on our China-based retail operations: we are overseeing the building of a strong infrastructure from our new head office in Shanghai. Finally, we entered new markets with Sunglass Hut: in Hong Kong, we opened the chains first two stores in China, and we entered South Africa through the acquisitions of the Sunglass World and Occhiali for Sunglasses chains.
The comparison between the first quarter 2007 and the same period of 2006 was challenging, continued Mr. Guerra. In addition, this year the U.S. dollar depreciated by 8.3% against the Euro while weather conditions in North America during the month of February were especially unfavorable. Notwithstanding these challenges, our work on the brand portfolio and on the positioning of our retail chains allowed us to post strong results which are encouraging towards achieving our objectives for 2007. Additionally, the profitability of our retail business in North America continued to improve. As a result, today
2
we confirm our previously announced guidance for the full year and expect that results will fall towards the higher end of the range.
Luxottica Groups consolidated net outstanding debt on March 31, 2007, was 1,326.9 million, up from 1,148.5 million on December 31, 2006, as a result of the payment of US$199 million in advance royalties under the Polo Ralph Lauren license and an additional US$110 million for the closing of the D.O.C Optics acquisition. Free cash flow for the quarter before acquisitions, advance royalty payments and currency impact was 63.9 million, confirming the ability of the Group to generate significant levels of cash flow due to its strong business model.
The wholesale business continued to grow strongly. Sales rose by over 24% at constant exchange rates, with operating margin improving from 26.0% to 27.5%. Wholesale sales to third parties were even stronger, reflecting an improvement by approximately 29% at constant exchange rates due to strong products and continued excellent service levels. In addition to the positive performance of the Groups house brands, including Ray-Ban, Persol and Vogue, key license brands contributed strongly to the results for the quarter: sales of Burberry eyewear were above expectations, while Bvlgari, Chanel, Dolce & Gabbana, Prada and Versace performed especially well. In terms of geographic regions, Italy, the U.S., France and Spain posted particularly strong results, while at the same time the Group is increasingly focused on emerging market countries, consolidating its presence in Eastern Europe and in East Asia. During the quarter, the Group successfully launched the first Polo Ralph Lauren collections, although this had only a marginal impact on results for the period.
2007 is a very important year for the retail business: we have planned strong investments to expand and renew our store network and to consolidate recent acquisitions. Results for the first quarter already reflected the effects of these investments: at constant exchange rates, total sales increased by 6.3% while store comparable sales grew by 1.6%. We expect that results for the full year will also be positively impacted, with strong growth in both sales and profitability.
The positive momentum of LensCrafters and Sunglass Hut has continued. The results of the retail business in Asia-Pacific have been strong, confirming that our geographical diversification strategy has been successfully implemented. The Group was also pleased with the level of operating income achieved for the quarter, which was particularly strong when considering the level of investments mentioned above.
Luxottica Groups consolidated U.S. GAAP results for the first quarter of 2007 were approved today by its Board of Directors.
Company Annual Ordinary Shareholders Meeting and Proposed Date for the Payment of Dividend for Fiscal Year 2006
The Companys Ordinary Shareholders Meeting is scheduled for May 15, 2007, on first call, and for May 16, 2007, on second call.
3
At the Meeting, the Board of Directors will propose to shareholders to pay a dividend for fiscal year 2006 of 0.42 per ordinary share and per American Depositary Share (ADS) (one ADS represents one ordinary share), as announced on March 5, 2007.
The proposed cash dividend will be paid to holders of record of ordinary shares as of May 18, and to holders of record of ADRs as of May 23. The ex-dividend date for both holders of ordinary shares and ADRs will be May 21, 2007. Luxottica Group will make the dividend payable in Euro to holders of ordinary shares on May 24, 2007. Deutsche Bank Trust Company Americas, the depositary of Luxottica Groups ordinary shares represented by ADRs, will make the dividend payable in U.S. dollars to ADR holders on June 1, 2007, at the Euro/U.S. dollar exchange rate of May 24, 2007. Information regarding the tax regime applicable to the payment of Luxottica Group dividends are available from the Groups corporate website at www.luxottica.com.
About Luxottica Group S.p.A.
Luxottica Group is a global leader in eyewear, with approximately 5,700 optical and sun retail stores in North America, Asia-Pacific, China and Europe and a strong brand portfolio that includes Ray-Ban, the best selling sun and prescription eyewear brand in the world, as well as, among others, license brands Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada and Versace, and key house brands Vogue, Persol, Arnette and REVO. In addition to a global wholesale network that touches 130 countries, the Group manages leading retail brands such as LensCrafters and Pearle Vision in North America, OPSM and Laubman & Pank in Asia-Pacific, and Sunglass Hut globally. The Groups products are designed and manufactured in six Italy-based high-quality manufacturing plants and in the only two China-based plants wholly-owned by a premium eyewear manufacturer. For fiscal year 2006, Luxottica Group (NYSE: LUX; MTA: LUX) posted consolidated net sales of 4.7 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, fluctuations in exchange rates, economic and weather factors affecting consumer spending, the ability to successfully introduce and market new products, the availability of correction alternatives to prescription eyeglasses, the ability to successfully launch initiatives to increase sales and reduce costs, the ability to effectively integrate recently acquired businesses, as well as other political, economic and technological factors and other risks referred to in Luxottica Groups filings with the U.S. Securities and Exchange Commission. These forward-looking statements are made as of the date hereof and, under U.S. securities regulation, Luxottica Group does not assume any obligation to update them.
Luxottica Group S.p.A. media and investor relations contacts
Luca Biondolillo, Head of Communications
Tel.: +39 (02) 8633 4062
Email: LucaBiondolillo@Luxottica.com
Alessandra Senici, Senior Manager, Investor Relations
Tel.: +39 (02) 8633 4069
Email: AlessandraSenici@Luxottica.com
- TABLES TO FOLLOW -
(1) The attached financial statements have been prepared using U.S. generally accepted accounting principles and reflect our preliminary calculation of the effects of the adoption of Financial Accounting Standards Interpretation No. 48, Accounting for Uncertainty in Income Tax - an interpretation of FASB No. 109 (FIN 48), which is required to be adopted as of the beginning of our 2007 fiscal year. The Company is continuing its determination of the impact of the adoption of such standard, which could include an adjustment to the recorded cumulative adjustment to shareholders equity as of the beginning of the period presented to give effect to the adoption and a change in the tax provision and tax assets and liabilities as currently reflected on the attached balance sheet and income statements. Although the Company has not yet completed the determination of the impact of the adoption of FIN 48, any additional adjustments could have a material impact on our consolidated results of operations and financial position, including changes to our net income and earnings per share for the three months ended March 31, 2007 as reported in this press release. Any effect of the updated calculation of adoption of FIN 48 will be included in our consolidated financial statements as of and for the three months ended March 31, 2007, to be furnished to the U.S. Securities and Exchange Commission on Form 6-K.
(2) All comparisons, including percentage changes, are between the three-month periods ended March 31, 2007 and 2006.
(3) Comparable store sales reflects 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.
4
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE THREE-MONTH PERIODS ENDED
MARCH 31, 2007 AND MARCH 31, 2006
KEY FIGURES IN THOUSANDS OF EURO(4)
|
|
2007(6) |
|
2006 |
|
% Change |
|
NET SALES |
|
1,299,825 |
|
1,217,923 |
|
6.7 |
% |
|
|
|
|
|
|
|
|
NET INCOME FROM CONTINUING OPERATIONS(5) |
|
128,257 |
|
106,630 |
|
20.3 |
% |
|
|
|
|
|
|
|
|
NET INCOME |
|
128,257 |
|
103,249 |
|
24.2 |
% |
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE (ADS)(2): |
|
|
|
|
|
|
|
FROM CONTINUING OPERATIONS(5) |
|
0.28 |
|
0.24 |
|
|
|
TOTAL |
|
0.28 |
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
FULLY DILUTED EARNINGS PER SHARE (ADS)(3): |
|
|
|
|
|
|
|
FROM CONTINUING OPERATIONS(5) |
|
0.28 |
|
0.23 |
|
|
|
TOTAL |
|
0.28 |
|
0.23 |
|
|
|
KEY FIGURES IN THOUSANDS OF U.S. DOLLARS(1)(4)
|
|
2007(6) |
|
2006 |
|
% Change |
|
NET SALES |
|
1,703,551 |
|
1,464,309 |
|
16.3 |
% |
|
|
|
|
|
|
|
|
NET INCOME FROM CONTINUING OPERATIONS(5) |
|
168,094 |
|
128,201 |
|
31.1 |
% |
|
|
|
|
|
|
|
|
NET INCOME |
|
168,094 |
|
124,137 |
|
35.4 |
% |
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE (ADS)(2): |
|
|
|
|
|
|
|
FROM CONTINUING OPERATIONS(5) |
|
0.37 |
|
0.28 |
|
|
|
TOTAL |
|
0.37 |
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
FULLY DILUTED EARNINGS PER SHARE (ADS)(3): |
|
|
|
|
|
|
|
FROM CONTINUING OPERATIONS(5) |
|
0.37 |
|
0.28 |
|
|
|
TOTAL |
|
0.37 |
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes : |
|
2007 |
|
2006 |
|
|
|
(1) Average exchange rate (in U.S. Dollars per Euro) |
|
1.3106 |
|
1.2023 |
|
|
|
(2) Weighted average number of outstanding shares |
|
453,990,312 |
|
452,023,786 |
|
|
|
(3) Fully diluted average number of shares |
|
457,341,257 |
|
455,467,432 |
|
|
|
(4) Except earnings per share (ADS), which are expressed in Euro and U.S. Dollars, respectively |
|||||||
(5) Results of Things Remembered, Inc., a former subsidiary that was sold in September 2006, are classified as discontinued operations and are not included in results from continuing operations for 2006 |
|||||||
(6) The above financial statements have been prepared using U.S. generally accepted accounting principles and reflect our preliminary calculation of the effects of the adoption of Financial Accounting Standards Interpretation No. 48, Accounting for Uncertainty in Income Tax - an interpretation of FASB No. 109 (FIN 48), which is required to be adopted as of the beginning of our 2007 fiscal year. The Company is continuing its determination of the impact of the adoption of such standard, which could include an adjustment to the recorded cumulative adjustment to shareholders equity as of the beginning of the period presented to give effect to the adoption and a change in the tax provision and tax assets and liabilities as currently reflected on the attached balance sheet and income statements. |
|||||||
Although the Company has not yet completed the determination of the impact of the adoption of FIN 48, any additional adjustments could have a material impact on our consolidated results of operations and financial position, including changes to our net income and earnings per share for the three months ended March 31, 2007 as reported in this press release. Any effect of the updated calculation of adoption of FIN 48 will be included in our consolidated financial statements as of and for the three months ended March 31, 2007, to be furnished to the U.S. Securities and Exchange Commission on Form 6-K. |
5
LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE THREE-MONTH PERIODS ENDED
MARCH 31, 2007 AND MARCH 31, 2006
In thousands of Euro(1) |
|
1Q07(3) |
|
% of sales |
|
1Q06(2) |
|
% of sales |
|
% Change |
|
NET SALES |
|
1,299,825 |
|
100.0 |
% |
1,217,923 |
|
100.0 |
% |
6.7 |
% |
COST OF SALES |
|
(416,894 |
) |
|
|
(385,900 |
) |
|
|
|
|
GROSS PROFIT |
|
882,931 |
|
67.9 |
% |
832,023 |
|
68.3 |
% |
6.1 |
% |
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
SELLING EXPENSES |
|
(404,906 |
) |
|
|
(398,257 |
) |
|
|
|
|
ROYALTIES |
|
(34,491 |
) |
|
|
(26,654 |
) |
|
|
|
|
ADVERTISING EXPENSES |
|
(85,463 |
) |
|
|
(85,023 |
) |
|
|
|
|
GENERAL AND ADMINISTRATIVE EXPENSES |
|
(118,928 |
) |
|
|
(111,242 |
) |
|
|
|
|
TRADEMARK AMORTIZATION |
|
(15,017 |
) |
|
|
(14,109 |
) |
|
|
|
|
TOTAL |
|
(658,806 |
) |
|
|
(635,285 |
) |
|
|
|
|
OPERATING INCOME |
|
224,125 |
|
17.2 |
% |
196,737 |
|
16.2 |
% |
13.9 |
% |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSES |
|
(17,837 |
) |
|
|
(17,575 |
) |
|
|
|
|
INTEREST INCOME |
|
3,008 |
|
|
|
1,660 |
|
|
|
|
|
OTHER - NET |
|
(378 |
) |
|
|
(4,775 |
) |
|
|
|
|
OTHER INCOME (EXPENSES)-NET |
|
(15,207 |
) |
|
|
(20,689 |
) |
|
|
|
|
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
208,918 |
|
16.1 |
% |
176,048 |
|
14.5 |
% |
18.7 |
% |
PROVISION FOR INCOME TAXES |
|
(75,211 |
) |
|
|
(65,137 |
) |
|
|
|
|
INCOME BEFORE MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES |
|
133,708 |
|
|
|
110,911 |
|
|
|
|
|
MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES |
|
(5,451 |
) |
|
|
(4,281 |
) |
|
|
|
|
NET INCOME FROM CONTINUING OPERATIONS(2) |
|
128,257 |
|
9.9 |
% |
106,630 |
|
8.8 |
% |
20.3 |
% |
DISCONTINUED OPERATIONS |
|
|
|
|
|
(3,381 |
) |
|
|
|
|
NET INCOME |
|
128,257 |
|
9.9 |
% |
103,249 |
|
8.5 |
% |
24.2 |
% |
BASIC EARNINGS PER SHARE (ADS): |
|
|
|
|
|
|
|
|
|
|
|
FROM CONTINUING OPERATIONS(1)(2) |
|
0.28 |
|
|
|
0.24 |
|
|
|
|
|
TOTAL(1) |
|
0.28 |
|
|
|
0.23 |
|
|
|
|
|
FULLY DILUTED EARNINGS PER SHARE (ADS): |
|
|
|
|
|
|
|
|
|
|
|
FROM CONTINUING OPERATIONS(1)(2) |
|
0.28 |
|
|
|
0.23 |
|
|
|
|
|
TOTAL(1) |
|
0.28 |
|
|
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF OUTSTANDING SHARES |
|
453,990,312 |
|
|
|
452,023,786 |
|
|
|
|
|
FULLY DILUTED AVERAGE NUMBER OF SHARES |
|
457,341,257 |
|
|
|
455,467,432 |
|
|
|
|
|
Notes :
(1) Except earnings per share (ADS), which are expressed in Euro
(2) Results of Things Remembered, Inc., a former subsidiary that was sold in September 2006, are classified as discontinued operations and are not included in results from continuing operations for 2006
(3) The above financial statements have been prepared using U.S. generally accepted accounting principles and reflect our preliminary calculation of the effects of the adoption of Financial Accounting Standards Interpretation No. 48, Accounting for Uncertainty in Income Tax - an interpretation of FASB No. 109 (FIN 48), which is required to be adopted as of the beginning of our 2007 fiscal year. The Company is continuing its determination of the impact of the adoption of such standard, which could include an adjustment to the recorded cumulative adjustment to shareholders equity as of the beginning of the period presented to give effect to the adoption and a change in the tax provision and tax assets and liabilities as currently reflected on the attached balance sheet and income statements.
Although the Company has not yet completed the determination of the impact of the adoption of FIN 48, any additional adjustments could have a material impact on our consolidated results of operations and financial position, including changes to our net income and earnings per share for the three months ended March 31, 2007 as reported in this press release. Any effect of the updated calculation of adoption of FIN 48 will be included in our consolidated financial statements as of and for the three months ended March 31, 2007, to be furnished to the U.S. Securities and Exchange Commission on Form 6-K.
6
CONSOLIDATED
BALANCE SHEET
AS OF MARCH 31, 2007 AND DECEMBER 31, 2006
In thousands of Euro |
|
|
|
March 31, 2007 (1) |
|
December 31, 2006 |
|
|
|
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
|
||
CASH |
|
349,079 |
|
339,122 |
|
||
ACCOUNTS RECEIVABLE |
|
674,035 |
|
533,772 |
|
||
SALES AND INCOME TAXES RECEIVABLE |
|
14,647 |
|
24,924 |
|
||
INVENTORIES |
|
381,125 |
|
400,895 |
|
||
PREPAID EXPENSES AND OTHER |
|
137,109 |
|
98,156 |
|
||
DEFERRED TAX ASSETS - CURRENT |
|
107,695 |
|
87,947 |
|
||
TOTAL CURRENT ASSETS |
|
1,663,690 |
|
1,484,816 |
|
||
|
|
|
|
|
|
||
PROPERTY, PLANT AND EQUIPMENT - NET |
|
802,145 |
|
787,201 |
|
||
|
|
|
|
|
|
||
OTHER ASSETS |
|
|
|
|
|
||
INTANGIBLE ASSETS - NET |
|
2,570,876 |
|
2,524,976 |
|
||
INVESTMENTS |
|
22,991 |
|
23,531 |
|
||
OTHER ASSETS |
|
257,614 |
|
93,588 |
|
||
SALES AND INCOME TAXES RECEIVABLE |
|
913 |
|
913 |
|
||
TOTAL OTHER ASSETS |
|
2,852,394 |
|
2,643,008 |
|
||
|
|
|
|
|
|
||
TOTAL |
|
5,318,229 |
|
4,915,025 |
|
||
|
|
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
|
||
BANK OVERDRAFTS |
|
242,414 |
|
168,358 |
|
||
CURRENT PORTION OF LONG-TERM DEBT |
|
363,862 |
|
359,527 |
|
||
ACCOUNTS PAYABLE |
|
318,022 |
|
349,598 |
|
||
ACCRUED EXPENSES AND OTHER |
|
396,940 |
|
374,718 |
|
||
ACCRUAL FOR CUSTOMERS RIGHT OF RETURN |
|
18,019 |
|
17,881 |
|
||
INCOME TAXES PAYABLE |
|
207,422 |
|
155,195 |
|
||
TOTAL CURRENT LIABILITIES |
|
1,546,679 |
|
1,425,277 |
|
||
|
|
|
|
|
|
||
LONG-TERM LIABILITIES: |
|
|
|
|
|
||
LONG-TERM DEBT |
|
1,069,728 |
|
959,735 |
|
||
LIABILITY FOR TERMINATION INDEMNITIES |
|
61,226 |
|
60,635 |
|
||
DEFERRED TAX LIABILITIES - NON-CURRENT |
|
23,031 |
|
41,270 |
|
||
OTHER |
|
223,741 |
|
181,888 |
|
||
TOTAL LONG-TERM LIABILITIES |
|
1,377,726 |
|
1,243,528 |
|
||
|
|
|
|
|
|
||
COMMITMENTS AND CONTINGENCIES: |
|
|
|
|
|
||
MINORITY INTERESTS IN CONSOLIDATED SUBSIDIARIES |
|
36,539 |
|
30,371 |
|
||
|
|
|
|
|
|
||
SHAREHOLDERS EQUITY: |
|
|
|
|
|
||
461,192,185 ORDINARY SHARES AUTHORIZED AND ISSUED - 454,757,399 SHARES OUTSTANDING |
|
27,672 |
|
27,613 |
|
||
NET INCOME |
|
128,257 |
|
424,286 |
|
||
RETAINED EARNINGS |
|
2,201,355 |
|
1,763,950 |
|
||
TOTAL SHAREHOLDERS EQUITY |
|
2,357,284 |
|
2,215,849 |
|
||
|
|
|
|
|
|
||
TOTAL |
|
5,318,229 |
|
4,915,025 |
|
Notes:
(1) The above financial statements have been prepared using U.S. generally accepted accounting principles and reflect our preliminary calculation of the effects of the adoption of Financial Accounting Standards Interpretation No. 48, Accounting for Uncertainty in Income Tax - an interpretation of FASB No. 109 (FIN 48), which is required to be adopted as of the beginning of our 2007 fiscal year. The Company is continuing its determination of the impact of the adoption of such standard, which could include an adjustment to the recorded cumulative adjustment to shareholders equity as of the beginning of the period presented to give effect to the adoption and a change in the tax provision and tax assets and liabilities as currently reflected on the attached balance sheet and income statements. Although the Company has not yet completed the determination of the impact of the adoption of FIN 48, any additional adjustments could have a material impact on our consolidated results of operations and financial position, including changes to our net income and earnings per share for the three months ended March 31, 2007 as reported in this press release. Any effect of the updated calculation of adoption of FIN 48 will be included in our consolidated financial statements as of and for the three months ended March 31, 2007, to be furnished to the U.S. Securities and Exchange Commission on Form 6-K.
7
CONSOLIDATED
FINANCIAL HIGHLIGHTS
FOR THE YEARS ENDED
MARCH 31, 2007 AND MARCH 31, 2006
- SEGMENTAL INFORMATION -
In thousands of Euro |
|
|
|
Manufacturing |
|
Retail |
|
Inter-Segment |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
||
2007 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Net Sales |
|
548,498 |
|
833,562 |
|
(82,235 |
) |
1,299,825 |
|
||
Operating Income |
|
151,010 |
|
101,383 |
|
(28,268 |
) |
224,125 |
|
||
% of sales |
|
27.5 |
% |
12.2 |
% |
|
|
17.2 |
% |
||
Capital Expenditures |
|
19,193 |
|
34,292 |
|
|
|
53,485 |
|
||
Depreciation & Amortization |
|
15,319 |
|
29,479 |
|
9,954 |
|
54,751 |
|
||
Assets |
|
2,132,553 |
|
1,411,723 |
|
1,773,954 |
|
5,318,229 |
|
||
|
|
|
|
|
|
|
|
|
|
||
2006 (1) |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Net Sales |
|
455,617 |
|
846,823 |
|
(84,517 |
) |
1,217,923 |
|
||
Operating Income |
|
118,433 |
|
116,896 |
|
(38,592 |
) |
196,737 |
|
||
% of sales |
|
26.0 |
% |
13.8 |
% |
|
|
16.2 |
% |
||
Capital Expenditures |
|
16,970 |
|
22,685 |
|
|
|
39,655 |
|
||
Depreciation & Amortization |
|
13,219 |
|
27,454 |
|
9,022 |
|
49,695 |
|
||
Assets |
|
1,717,330 |
|
1,295,981 |
|
2,012,705 |
|
5,026,016 |
|
Notes :
(1) Results of Things Remembered, Inc., a former subsidiary that was sold in September 2006, are classified as discontinued operations and are not included in results of operations of 2006
8
LUXOTTICA GROUP
RECONCILIATION OF THE CONSOLIDATED INCOME STATEMENT
PREPARED
IN ACCORDANCE WITH US GAAP AND IAS / IFRS FOR THE THREE-MONTH PERIOD ENDED
MARCH 31, 2007,
PURSUANT TO CONSOB REGULATION N. 27021 OF APRIL 7, 2000 AND IN ACCORDANCE WITH
CONSOB
COMMUNICATION DME/5015175 DATED MARCH 10, 2005
CONSOLIDATED
INCOME STATEMENT
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2007
|
|
US GAAP |
|
|
|
|
|
|
|
|
|
IAS / IFRS |
|
In thousands of Euro(1) |
|
2007 |
|
IAS 19 |
|
IAS 38 |
|
IAS 39 |
|
Total IAS/IFRS |
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee |
|
Intangible |
|
Derivatives |
|
Adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
1,299,825 |
|
|
|
|
|
|
|
|
|
1,299,825 |
|
COST OF SALES |
|
(416,894 |
) |
1,253 |
|
|
|
|
|
1,253 |
|
(415,641 |
) |
GROSS PROFIT |
|
882,931 |
|
1,253 |
|
|
|
|
|
1,253 |
|
884,184 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING EXPENSES |
|
(404,906 |
) |
|
|
|
|
|
|
|
|
(404,906 |
) |
ROYALTIES |
|
(34,491 |
) |
|
|
|
|
|
|
|
|
(34,491 |
) |
ADVERTISING EXPENSES |
|
(85,463 |
) |
|
|
1,850 |
|
|
|
1,850 |
|
(83,613 |
) |
GENERAL AND ADMINISTRATIVE EXPENSES |
|
(118,928 |
) |
899 |
|
|
|
|
|
899 |
|
(118,029 |
) |
TRADEMARK AMORTIZATION |
|
(15,017 |
) |
|
|
|
|
|
|
|
|
(15,017 |
) |
TOTAL |
|
(658,806 |
) |
899 |
|
1,850 |
|
|
|
2,749 |
|
(656,056 |
) |
OPERATING INCOME |
|
224,125 |
|
2,152 |
|
1,850 |
|
|
|
4,003 |
|
228,128 |
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSES |
|
(17,837 |
) |
|
|
|
|
(917 |
) |
(917 |
) |
(18,754 |
) |
INTEREST INCOME |
|
3,008 |
|
|
|
|
|
|
|
|
|
3,008 |
|
OTHER - NET |
|
(378 |
) |
|
|
|
|
|
|
|
|
(378 |
) |
OTHER INCOME (EXPENSES)-NET |
|
(15,207 |
) |
|
|
|
|
(917 |
) |
(917 |
) |
(16,124 |
) |
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
208,918 |
|
2,152 |
|
1,850 |
|
(917 |
) |
3,085 |
|
212,003 |
|
PROVISION FOR INCOME TAXES |
|
(75,211 |
) |
(764 |
) |
(740 |
) |
351 |
|
(1,153 |
) |
(76,364 |
) |
INCOME BEFORE MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES |
|
133,708 |
|
1,388 |
|
1,110 |
|
(567 |
) |
1,932 |
|
135,639 |
|
MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES |
|
(5,451 |
) |
|
|
|
|
|
|
|
|
(5,451 |
) |
NET INCOME |
|
128,257 |
|
1,388 |
|
1,110 |
|
(567 |
) |
1,932 |
|
130,188 |
|
BASIC EARNINGS PER SHARE (ADS)(1) |
|
0.28 |
|
|
|
|
|
|
|
|
|
0.29 |
|
FULLY DILUTED EARNINGS PER SHARE (ADS)(1) |
|
0.28 |
|
|
|
|
|
|
|
|
|
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF OUTSTANDING SHARES |
|
453,990,312 |
|
|
|
|
|
|
|
|
|
453,990,312 |
|
FULLY DILUTED AVERAGE NUMBER OF SHARES |
|
457,341,257 |
|
|
|
|
|
|
|
|
|
457,341,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes :
(1) Except earnings per share (ADS), which are expressed in Euro
9
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 |
|
|
ENRICO CAVATORTA |
|
|
CHIEF FINANCIAL OFFICER |
DATE: April 25, 2007 |
|
|
10