Tuesday April 1 5:53 PM EDT
Tag Heuer Reports 1996 Results
Pro Forma Net Income Up 15.7 Percent on 10.6 Percent Sales Gain; Net Debt
Reduced by 64.2 Percent
MARIN (Neuchatel), Switzerland, April 2; NEW YORK, April 1 /PRNewswire/ -- TAG Heuer International SA today
reported its consolidated results for the year ended December 31, 1996.
Financial Highlights:
(Expressed in millions of Swiss Francs except for earnings per share)
Year Ended 12/31/96 12/31/95 Variance
Sales SFr.419.7 SFr.379.6 +10.6%
Gross Profit 231.8 205.7 +12.7%
Gross Margin 55.2% 54.2%
Operating Income 88.6 76.8 +15.4%
Operating Margin 21.1% 20.2%
ProForma Net Income (A) 60.5 52.3 +15.7%
ProForma Net Income
Per Share (A) SFr.11.24 SFr.9.71 --
ProForma Net Income
Per ADS in US $* (A) US$0.83 US$0.72 --
Shares Outstanding 5,383,721 5,383,721 --
Sales for 1996 increased by 10.6% to a record SFr. 419.7 million, ($310.9 million)* from SFr. 379.6 million ($281.2
million) in 1995. Operating income for the twelve-month period increased by 15.4% to SFr. 88.6 million ($65.6
million), compared to SFr. 76.8 million ($56.9 million) in 1995. Pro forma net income for 1996 increased by 15.7% to
SFr. 60.5 million ($44.8 million), or SFr.11.24 per share ($0.83 per ADS), based on 5.38 million shares outstanding.
This compares to pro forma net income of SFr. 52.3 million ($38.7 million) in 1995 or SFr. 9.71 per share ($0.72 per
ADS).
*Convenience translation: in these financial statements, the translation of Swiss Francs into US dollars has been made at
the following rate: SFr 1.35 to US$1 for balance sheet items at December 31, 1996.
The company also said it has reduced its net debt level to SFr. 116.4 million ($86.2 million) as of December 31, 1996, a
64.2% decrease from SFr. 325.3 million ($241.0 million) the previous year.
The company said that overall watch sales for 1996 totaled 717,000 units, up from 703,000 units the previous year, an
increase of 2.0%. On an underlying basis, unit sales of TAG Heuer's core series, which includes the 2000, S/el, 6000
and Carrera series, increased by 10.1%. Worldwide sales growth was driven by the Americas (where sales increased
17.9%) and Europe (with a 15.5% increase). In Asia and Australasia, growth was slower (an increase of 3.1%), as a
result of weaker sales in the Japanese market coupled with unfavorable movement in the Japanese Yen, which negatively
impacted duty free and tourist market sales.
Sales by region
(Expressed in millions of Swiss Francs)
1996 % 1995 % Variance
Americas 139.7 33.3% 118.5 31.2% +17.9%
Europe 101.6 24.2% 88.0 23.2% +15.5%
Asia/Australasia 178.4 42.5% 173.1 45.6% +3.1%
Total 419.7 100.0% 379.6 100.0% +10.6%
Management Commentary:
"We are very pleased with the company's results for 1996, which met or exceeded all of our goals for the year. I am
particularly pleased to note that we were able to improve both our gross and operating margins. As a result of our strong
operating performance and our initial public offering on September 26, 1996, we have also achieved our goal of
strengthening TAG Heuer's balance sheet. Overall, we are delighted with the company's progress over the past year,
and look forward to continuing to build on our success in the future," said Christian Viros, Chief Executive Officer.
TAG Heuer International SA, through its wholly owned Swiss subsidiary TAG Heuer SA, is a leading designer,
producer and marketer of prestigious Swiss sports watches and chronographs which are sold under one of the world's
most recognized watch brands. Built on a history of achievement in precision timing dating back to 1860, TAG Heuer
competes worldwide in the prestige sports watch segment with a product offering distinguished by its strong sports
image, recognizable design, precision and durability.
TAG Heuer's shares are listed on the Swiss and New York Stock Exchanges. In the United States, its shares are traded
on the NYSE as ADS under the symbol, "THW."
Explanatory Notes
(A) Pro Forma figures are calculated to adjust for the significant changes in capital structure arising from the
recapitalization, the reorganization, and the initial public offering on September 26, 1996. It provides a comparable basis
for the net income figures assuming that the above mentioned changes in the capital structure would have occurred as of
January 1, 1995 and excludes foreign exchange impact on the US dollar Senior Subordinated Notes, thus providing a
better understanding of the underlying performance of the business. SOURCE TAG Heuer International SA |
