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10/09/2010
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Cannes, December 17, 2008
·SHARP DECLINE IN RESULTS
·CONFIDENCE IN THE FUTURE:
·SALES ORDER BACKLOG OF € 316 MILLION
RODRIGUEZ GROUP's 2007/08 financial year ended September 30, 2008. Financial statements at September 30, 2008 were approved by the Directors on December 15, 2008.
Rodriguez Group realized sales of € 307.6(1) million at September 30, 2008, 34.2% less than in the previous financial year.
Sales for the fiscal year 2007/08 are analyzed thus: yacht sales: 84%(1) and services : 16%(1). The significance and suddenness of the crisis, such as has never been seen before, sharply affected the Group's customers and was felt by all operations.
After including, in particular, the loss generated and provision charges required by the Pre-Owned Yacht business, the Group reports a € 63.9(1) million Operating Loss, compared to a € 27.9 million profit in 2006/07. Provisions for writedown (net of releases) on the inventory of pre-owned yachts made during the fiscal year 2007/08 amounted to € 36.7 million (1)
Net loss - Group share was € 47.6 million(1), compared to a € 15.2 million profit in 2006/07, after taking account of a € 23.7 million tax credit.
Confidence in the Future
Despite the deteriorated economic situation, the Group remains confident in its outlook.
IN THE SHORT TERM
At a banking level, although the banking covenants have not been complied with, the Banks have formally confirmed to the company their decision not to request immediate repayment of the debt. (syndicated credit of € 150 million fully drawn as of today).
In addition, the company has entered into constructive discussions with the Banks, notably on the subject of debt restructuring.
At a financial level, the Group has significant equity (€ 79(1) million), despite the loss incurred in 2008.
Moreover, the Company has revised its cash flow forecast, using conservative assumptions given the current economic situation. This forecast confirms the Group's capacity to weather the cash low point which usually falls at the end of February, without selling assets.
At an operating level, the Group has initiated a program to adapt the production of New Yachts to demand.
As for Pre-Owned Yachts, the Group continues to implement its restructuring plan for this business, despite the crisis:
- net inventories were brought down to € 74(1) million, a 21% fall compared to the previous financial year.
- trade-in commitments sharply declined to € 39(1) million, which is a 58% decrease in one year and 74% over two years.
- writing down the value of yachts that remain in stock makes it easier to sell them to opportunistic and/or investor customers.
IN THE MEDIUM AND LONG TERM
The current situation does not call into question RODRIGUEZ GROUP's confidence in its business model or the fact that its exclusive customers remain enthusiastic about the exceptional yachts marketed by the Group.
Therefore, after the Autumn shock, the sales order backlog at December 16 was € 316 million, down 29% compared to December 2007. It has grown 5% since November 13, 2008.
In the future,
- due to the implementation of significant steps to adapt to the economic situation,
- the clearance of the Pre-Owned Yacht business,
- and benefiting from a rearranged and resized financial structure,
the Group should be ready to seize recovery opportunities as soon as possible.
(1) Audit in progress
·CONFIDENCE IN THE FUTURE:
·SALES ORDER BACKLOG OF € 316 MILLION
RODRIGUEZ GROUP's 2007/08 financial year ended September 30, 2008. Financial statements at September 30, 2008 were approved by the Directors on December 15, 2008.
Rodriguez Group realized sales of € 307.6(1) million at September 30, 2008, 34.2% less than in the previous financial year.
Sales for the fiscal year 2007/08 are analyzed thus: yacht sales: 84%(1) and services : 16%(1). The significance and suddenness of the crisis, such as has never been seen before, sharply affected the Group's customers and was felt by all operations.
After including, in particular, the loss generated and provision charges required by the Pre-Owned Yacht business, the Group reports a € 63.9(1) million Operating Loss, compared to a € 27.9 million profit in 2006/07. Provisions for writedown (net of releases) on the inventory of pre-owned yachts made during the fiscal year 2007/08 amounted to € 36.7 million (1)
Net loss - Group share was € 47.6 million(1), compared to a € 15.2 million profit in 2006/07, after taking account of a € 23.7 million tax credit.
Confidence in the Future
Despite the deteriorated economic situation, the Group remains confident in its outlook.
IN THE SHORT TERM
At a banking level, although the banking covenants have not been complied with, the Banks have formally confirmed to the company their decision not to request immediate repayment of the debt. (syndicated credit of € 150 million fully drawn as of today).
In addition, the company has entered into constructive discussions with the Banks, notably on the subject of debt restructuring.
At a financial level, the Group has significant equity (€ 79(1) million), despite the loss incurred in 2008.
Moreover, the Company has revised its cash flow forecast, using conservative assumptions given the current economic situation. This forecast confirms the Group's capacity to weather the cash low point which usually falls at the end of February, without selling assets.
At an operating level, the Group has initiated a program to adapt the production of New Yachts to demand.
As for Pre-Owned Yachts, the Group continues to implement its restructuring plan for this business, despite the crisis:
- net inventories were brought down to € 74(1) million, a 21% fall compared to the previous financial year.
- trade-in commitments sharply declined to € 39(1) million, which is a 58% decrease in one year and 74% over two years.
- writing down the value of yachts that remain in stock makes it easier to sell them to opportunistic and/or investor customers.
IN THE MEDIUM AND LONG TERM
The current situation does not call into question RODRIGUEZ GROUP's confidence in its business model or the fact that its exclusive customers remain enthusiastic about the exceptional yachts marketed by the Group.
Therefore, after the Autumn shock, the sales order backlog at December 16 was € 316 million, down 29% compared to December 2007. It has grown 5% since November 13, 2008.
In the future,
- due to the implementation of significant steps to adapt to the economic situation,
- the clearance of the Pre-Owned Yacht business,
- and benefiting from a rearranged and resized financial structure,
the Group should be ready to seize recovery opportunities as soon as possible.
(1) Audit in progress