Luxottica Raises Cash Dividend for FY 2009 by 59%, to Euro 0.35 Per Share
Net income for FY 2009 at Euro 314.8 million
MILAN, March 1 /PRNewswire-FirstCall/ -- The Board of Directors of Luxottica Group S.p.A. (MTA: LUX; NYSE: LUX), a global leader in the design, manufacture and distribution of fashion, luxury and sports eyewear, approved today the Statutory Financial Statements and its consolidated financial results for the year ended December 31, 2009 in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP) and with International Financial Reporting Standards (IFRS).
Fiscal Year 2009(1)
------------------
(in millions of Euro) FY09 FY08 Change
Consolidated sales 5,094.3 5,201.6 -2.1% (-4.5% at constant
Exchange rates(2))
Consolidated sales
adj. for the 53rd
week(3) 5,086.7 5,155.6 -1.3% (-3.8% at constant
Exchange rates(2))
EBITDA(4) 869.1 1,014.7 -14.3%
Adjusted(3,4) 873.9 982.8 -11.1%
Operating income 583.2 749.8 -22.2%
Adjusted(3,4) 588.0 710.6 -17.3%
Net income 314.8 379.7 -17.1%
Adjusted(3,4) 317.9 369.7 -14.0%
------------------ ----- ----- -----
Fourth quarter of 2009(1)
------------------------
(in millions of Euro) 4Q09 4Q08 Change
Consolidated sales 1,157.1 1,236.5 -6.4% (-1.1% at constant
exchange rates(2))
Consolidated sales
adj. for the 53rd
week(3) 1,149.4 1,190.5 -3.4% (+2.1% at constant
exchange rates(2))
EBITDA(4) 148.2 186.1 -20.3%
Adjusted(3,4) 153.0 175.9 -13.0%
Operating income 76.9 117.4 -34.5%
Adjusted(3,4) 81.7 107.3 -23.9%
Net income 35.6 38.8 -8.4%
Adjusted(3,4) 38.7 47.9 -19.2%
------------------ ---- ---- -----
Performance of the Group in 2009
Fiscal year 2009 was a pivotal year that saw Luxottica grow stronger, thanks to the proven effectiveness of its integrated business model, and report positive financial and operating results that improved steadily throughout the year.
More specifically, the initiatives launched to stimulate sales, the strength of two powerful brands such as Ray-Ban and Oakley, and the Group's diversified geographic footprint and strong balance sheet enabled Luxottica to increase its penetration in all major markets in 2009, despite a contraction in its target markets.
"The results achieved in 2009 confirmed once again the effectiveness of our integrated business model, which enabled Luxottica to continue reporting record-level sales, while at the same time generating free cash flow(4) of nearly Euro 700 million and net income of about Euro 315 million," said Andrea Guerra, Chief Executive Officer of Luxottica Group.
"The first two months of 2010, while representing a limited time horizon, were extremely positive. At this point, the U.S. market is showing solid signs of a turnaround, while emerging markets have been on a path to new and stable growth for some time. In Europe, the pace of the recovery varies from one market to the next, with the countries of Continental and Northern Europe performing better than those in the Mediterranean Basin. Overall, 2010 is going to be a year during which the ability to seize opportunities quickly and flexibly will be particularly important."
Action Plans for 2010
The results achieved in 2009 and the strength of Luxottica's business model put the Group in an ideal position to have a "normal" year in 2010, which, for Luxottica, would result in mid-single-digit revenue growth, a more than proportionate increase in margins and a further reduction in the ratio of net debt to EBITDA.
The four cornerstones upon which the Group will build in 2010 to achieve these goals are: Oakley's growth potential, further expansion in emerging markets, growth in the U.S. market and flexibility, with steady focus on the strength of the balance sheet and cash flow generation.
Oakley's growth potential
In the past few years, as the world experienced a period of structural realignment, Oakley showed that it truly is an extraordinary brand, achieving double-digit growth in 2008 and, more remarkably, in 2009. Oakley's opportunities are still significant: in 2010, following a period of intense activity devoted to improving distribution in Europe and emerging markets, the Group will substantially increase its investments in support of this brand.
Another extremely important factor will be the ability to leverage Oakley's unique and distinctive position in the "optical prescription" business, with additional investments in marketing programs, design and technology.
Oakley is a brand that is expected to provide a fundamental contribution to Luxottica's sustainable growth over the long term.
Further expansion in emerging markets
In 2010, Luxottica expects to continue on the growth track that it has been experiencing in emerging markets. Currently, these markets account for about 15% of sales of the Wholesale Division and about 7% of the Group's consolidated sales, practically double that of only five years ago. The Group intends to achieve significant growth in Asia and Latin America, specifically focusing on Brazil, China and India. With this in mind, in 2010 it will launch specially designed Ray-Ban collections and special projects for these countries, with the objective of stimulating demand and increasing the penetration of Luxottica's brands. Other actions planned for the current year include completing Oakley's integration in Brazil and South Africa and launching the STARS project in Latin America, India and Eastern Europe.
In addition, the Group will continue to make small and medium-size investments in these markets, as it seeks new opportunities in these regions for the Retail Division, for Sunglass Hut in particular.
The U.S. market
The U.S. is a key market for Luxottica. The fourth quarter of 2009 and the first two months of 2010 provided encouraging evidence of a return to the growth track, both in terms of sales and margins, that, while still lacking staying power, is nevertheless an undoubtedly positive development.
Specifically, during the first two months of 2010, LensCrafters' results reflected an accelerating growth rate, with comparable store sales(5) improving by over 7%: clearly, the work done in the U.S. during the difficult past two years in terms of organization, technology and services offered is beginning to bear fruit.
Efficiency and flexibility
The benefits expected from the investments and initiatives carried out during the past two years will be fully realized in 2010, thanks to a much more flexible and efficient cost structure and organization than in the past.
In addition, in 2010 the Group will continue to invest in its infrastructure, with the goal of creating a truly common platform, shared by the Group's operations throughout the world, which is essential to support future growth. In 2009, SAP was launched at the Sedico, Italy-based main logistics hub, in all of Sunglass Hut globally and at the newly-created European Service Center, all of which will support the optimization of purchasing and accounting processes at the continental level, with substantial cost savings and efficiency gains. In 2010, SAP will be extended to the China-based logistics hub and to the Wholesale Division in Italy, the U.S. and the UK.
For 2009, consolidated net sales held above the five-billion-Euro mark: Euro 5,086.7 million when adjusted for the additional week of sales(3) (-1.3% at current exchange rates and -3.8% at constant exchange rates(2), when compared with sales for the previous year, which were the highest in the Group's history). After gradually and steadily improving throughout the year, net sales for the fourth quarter reached Euro 1,149.4 million, reflecting an improvement by 2.1% at constant exchange rates(2) and when adjusted for the additional week of sales(3).
Turning to operating performance, adjusted EBITDA(3,4) for the full year totaled Euro 873.9 million, reflecting a decline by 11.1% from Euro 982.8 million posted for 2008. Adjusted EBITDA margin(3,4) for the year also decreased, to 17.2% compared with 19.1% for 2008. Fourth-quarter adjusted EBITDA(3,4) amounted to Euro 153.0 million (-13.0% compared with the comparable quarter of 2008), resulting in an adjusted EBITDA margin(3,4) contraction to 13.3%, compared with 14.8% for the fourth quarter of 2008.
As a result, adjusted operating income(3,4) for 2009 decreased to Euro 588.0 million, compared with Euro 710.6 million for the previous year (-17.3%), with the adjusted operating margin(3,4) declining to 11.6% from 13.8% for 2008. For the fourth quarter of 2009, adjusted operating income(3,4) totaled Euro 81.7 million (Euro 107.3 million for the same period the previous year, resulting in a year-over-year decline of 23.9%). Adjusted operating margin(3) for the quarter was 7.1%, compared with 9.0% for the fourth quarter of 2008.
Adjusted net income(3,4) for the full year totaled Euro 317.9 million (Euro 369.7 million for 2008, reflecting a year-over-year decline by 14.0%), at an average Euro/U.S. dollar exchange rate of 1.3947.
By carefully controlling working capital and despite dividend payments in the final quarter of the year that totaled Euro 100.8 million, the Group continued to generate a strong free cash flow(4) in the fourth quarter of 2009, reaching a record Euro 691 million for all of 2009. As a result, net debt(4) decreased further, falling to Euro 2,339 million at December 31, 2009 (compared with net debt of Euro 2,950 million at December 31, 2008), and the ratio of net debt to EBITDA(4) improved to 2.7X (compared with 2.9X at December 31, 2008).
The Board of Directors will submit a motion to the Annual General Meeting of Shareholders recommending the distribution of a cash dividend of Euro 0.35 per ordinary share, reflecting a year-over-year 59% increase. The total dividend amount will be approximately Euro 160 million.
"We feel that it is appropriate to share with our shareholders the gains achieved in 2009 despite the challenging environment," added Mr. Guerra. "A payout ratio of approximately 50% is a step toward returning to 'normalcy' at Luxottica."
The Board of Directors agreed to convene the Annual General Meeting of Shareholders on April 29, 2010 on first call and April 30, 2010 on second call to approve the 2009 Statutory Financial Statements. If approved, the cash dividend will be payable on May 27, 2010 (with a record date of May 24, 2010). Regarding the American Depositary Shares (ADS) listed on the New York Stock Exchange, the dividend record date will be May 24, 2010 and, according to Deutsche Bank Trust Company Americas, the depositary bank for the ADSs, the payment date for the dividend in U.S. dollars will be June 3, 2010. The dividend amount in U.S. dollars will be determined based on the Euro/U.S. dollar exchange rate as of May 27, 2010.
With regard to the share buyback program approved by the Ordinary Meeting of Shareholders on October 29, 2009 and launched on November 16, 2009, Luxottica Group S.p.A. discloses that, during the month of February, it did not purchase any treasury shares and that its Arnette Optic Illusions, Inc. subsidiary did not sell any Luxottica Group S.p.A. shares through market transactions.
Results for fiscal year 2009 will be reviewed tomorrow, March 2, 2010, starting at 9:30 AM GMT, during a presentation to the financial community in London. The presentation will be available to all via live webcast at www.luxottica.com.
The officer responsible for preparing the company's 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.
Notes to the press release
(1) All comparisons, including percentage changes, are between the three or twelve-month periods ended December 31, 2009 and 2008, as indicated, in accordance with U.S. GAAP.
(2) Operating measures that assume constant exchange rates between the fourth quarter of 2009 and the fourth quarter of 2008 and between fiscal year 2009 and fiscal year 2008 are calculated using the average exchange rates for the respective three and twelve-month periods ended December 31, 2008, which were Euro 1=US$1.3180 and Euro 1=US$1.4707, respectively.
(3) In 2008, the fiscal year for the Retail Division in North America included 53 weeks; in 2009, the fiscal year for the Retail Division in Asia Pacific, Greater China and South Africa included 53 weeks.
In order to allow a comparison between homogeneous data, the adjusted data takes into account the fact that, in the fourth quarter of 2009, the Retail Division in North America incurred non-recurring charges of Euro 7 million, that, in 2008, the Group recognized a non-recurring loss of Euro 22.8 million (Euro 15.3 million, net of tax effect) related to the sale in 2008 of a note we received as part of the sale of the Things Remembered retail chain in September 2006 and that, in the third quarter of 2008, the Group recognized a non-recurring gain of Euro 29.0 million (Euro 19.1 million, net of tax effect) related to income from insurance proceeds, reduction of non-cash stock compensation expenses and trademark amortization reversal.
(4) Adjusted operating income, adjusted operating margin, adjusted net income, EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, free cash flow, net debt and the ratio of net debt to EBITDA are all non-U.S. GAAP measures. For additional disclosure regarding such measures, please refer to the attached tables.
(5) 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.
About Luxottica Group S.p.A.
Luxottica Group is a leader in premium fashion, luxury and sports eyewear, with over 6,200 optical and sun retail stores in North America, Asia-Pacific, China, South Africa and Europe and a strong and well-balanced brand portfolio. Luxottica's key house brands include Ray-Ban, the best known sun eyewear brand in the world, Oakley, Vogue, Persol, Oliver Peoples, Arnette and REVO, while license brands include Bvlgari, Burberry, Chanel, Dolce & Gabbana, Donna Karan, Polo Ralph Lauren, Prada, Salvatore Ferragamo, Tiffany and Versace. In addition to a global wholesale network covering 130 countries, the Group manages leading retail brands such as LensCrafters and Pearle Vision in North America, OPSM and Laubman & Pank in Australasia, LensCrafters in Greater China and Sunglass Hut globally. The Group's products are designed and manufactured in six Italy-based manufacturing plants, two wholly-owned plants in China and a sports sunglass production facility in the U.S. In 2009, Luxottica Group posted consolidated net sales of Euro 5.1 billion. Additional information about 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 poor current global economic conditions on our business, 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, as well as other political, economic and technological factors and other risks and uncertainties described in our filings with the U.S. 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.
- TABLES TO FOLLOW -
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE THREE-MONTHS PERIOD ENDED
DECEMBER 31, 2009 AND DECEMBER 31, 2008
KEY FIGURES IN THOUSANDS OF EURO (3)
------------------------------------
2009 2008 % Change
NET SALES 1,157,085 1,236,476 -6.4%
NET INCOME 35,581 38,826 -8.4%
BASIC EARNINGS PER SHARE (ADS)(2): 0.08 0.08 -8.5%
KEY FIGURES IN THOUSANDS OF U.S.
DOLLARS (1)(3)
--------------------------------
2009 2008 % Change
NET SALES 1,710,056 1,629,675 4.9%
NET INCOME 52,585 51,173 2.8%
BASIC EARNINGS PER SHARE (ADS) (2): 0.11 0.11 2.6%
Notes : 2009 2008
(1) Average exchange rate (in U.S.
Dollars per Euro) 1.4779 1.3180
(2) Weighted average number of
outstanding shares 457,752,091 456,816,446
(3) Except earnings per share
(ADS), which are expressed in
Euro and U.S. Dollars,
respectively
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
DECEMBER 31, 2009 AND DECEMBER 31, 2008
KEY FIGURES IN THOUSANDS OF EURO (3)
-------------------------------------
2009 2008 % Change
NET SALES 5,094,318 5,201,611 -2.1%
NET INCOME 314,762 379,722 -17.1%
BASIC EARNINGS PER SHARE (ADS) (2): 0.69 0.83 -17.2%
KEY FIGURES IN THOUSANDS OF U.S.
DOLLARS (1)(3)
--------------------------------
2009 2008 % Change
NET SALES 7,105,045 7,650,009 -7.1%
NET INCOME 438,999 558,457 -21.4%
BASIC EARNINGS PER SHARE (ADS)(2): 0.96 1.22 -21.5%
Notes : 2009 2008
(1) Average exchange rate (in U.S.
Dollars per Euro) 1.3947 1.4707
(2) Weighted average number of
outstanding shares 457,270,491 456,563,502
(3) Except earnings per share
(ADS), which are expressed in
Euro and U.S. Dollars,
respectively
LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE THREE-MONTH PERIODS ENDED
DECEMBER 31, 2009 AND DECEMBER 31, 2008
In thousands of % of % of
Euro (1) 4Q 09 sales 4Q 08(2) sales % Change
NET SALES 1,157,085 100.0% 1,236,476 100.0% -6.4%
COST OF SALES (412,885) (437,924)
GROSS PROFIT 744,201 64.3% 798,552 64.6% -6.8%
OPERATING EXPENSES:
SELLING EXPENSES (412,938) (439,900)
ROYALTIES (26,114) (24,346)
ADVERTISING EXPENSES (66,342) (69,220)
GENERAL AND
ADMINISTRATIVE
EXPENSES (142,531) (128,604)
TRADEMARK
AMORTIZATION (19,391) (19,034)
TOTAL (667,316) (681,104)
OPERATING INCOME 76,885 6.6% 117,448 9.5% -34.5%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES (22,305) (35,252)
INTEREST INCOME 2,565 3,384
OTHER - NET (2,345) (33,780)
OTHER INCOME
(EXPENSES)-NET (22,085) (65,648)
INCOME BEFORE
PROVISION FOR
INCOME TAXES 54,800 4.7% 51,800 4.2% 5.8%
PROVISION FOR
INCOME TAXES (18,091) (10,368)
NET INCOME 36,709 41,432
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTEREST (1,128) (2,607)
NET INCOME
ATTRIBUTABLE TO
LUXOTTICA GROUP
SHAREHOLDERS 35,581 3.1% 38,825 3.1% -8.4%
BASIC EARNINGS PER
SHARE (ADS): 0.08 0.08
FULLY DILUTED
EARNINGS PER
SHARE (ADS): 0.08 0.08
WEIGHTED AVERAGE
NUMBER OF
OUTSTANDING SHARES 457,752,091 456,816,446
FULLY DILUTED
AVERAGE NUMBER
OF SHARES 458,810,708 458,224,364
Notes :
(1) Except earnings per share (ADS), which are expressed in Euro
(2) Certain figures from 2008 have been reclassified to conform to
the 2009 presentation
LUXOTTICA GROUP
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED
DECEMBER 31, 2009 AND DECEMBER 31, 2008
In thousands of % of % of
Euro (1) 2009 sales 2008(2) sales % Change
NET SALES 5,094,318 100.0% 5,201,611 100.0% -2.1%
COST OF SALES (1,768,436) (1,751,251)
GROSS PROFIT 3,325,882 65.3% 3,450,360 66.3% -3.6%
OPERATING EXPENSES:
SELLING EXPENSES (1,693,593) (1,669,533)
ROYALTIES (100,623) (115,639)
ADVERTISING EXPENSES (312,144) (339,258)
GENERAL AND
ADMINISTRATIVE
EXPENSES (555,664) (504,426)
TRADEMARK
AMORTIZATION (80,657) (71,742)
TOTAL (2,742,680) (2,700,597)
OPERATING INCOME 583,202 11.4% 749,763 14.4% -22.2%
OTHER INCOME (EXPENSE):
INTEREST EXPENSES (91,571) (135,267)
INTEREST INCOME 6,887 13,265
OTHER - NET (4,235) (37,890)
OTHER INCOME
(EXPENSES)-NET (88,919) (159,892)
INCOME BEFORE
PROVISION FOR
INCOME TAXES 494,283 9.7% 589,870 11.3% -16.2%
PROVISION FOR
INCOME TAXES (167,417) (194,657)
NET INCOME 326,866 395,213
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTEREST (12,105) (15,492)
NET INCOME
ATTRIBUTABLE TO
LUXOTTICA GROUP
SHAREHOLDERS 314,762 6.2% 379,722 7.3% -17.1%
BASIC EARNINGS PER
SHARE (ADS): 0.69 0.83
FULLY DILUTED
EARNINGS PER
SHARE (ADS): 0.69 0.83
WEIGHTED AVERAGE
NUMBER OF
OUTSTANDING SHARES 457,270,491 456,563,502
FULLY DILUTED
AVERAGE NUMBER
OF SHARES 457,942,618 457,717,044
Notes :
(1) Except earnings per share (ADS), which are expressed in Euro
(2) Certain figures from 2008 have been reclassified to conform to
the 2009 presentation
LUXOTTICA GROUP
CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2009 AND DECEMBER 31, 2008
December 31, December 31,
In thousands of Euro 2009 2008(1)
CURRENT ASSETS:
CASH AND CASH EQUIVALENT 380,081 288,450
MARKETABLE SECURITIES 23,550
ACCOUNTS RECEIVABLE - NET 618,884 630,018
SALES AND INCOME TAXES RECEIVABLE 59,516 151,609
INVENTORIES - NET 526,548 570,987
PREPAID EXPENSES AND OTHER 137,603 144,054
DEFERRED TAX ASSETS - CURRENT 101,859 131,907
TOTAL CURRENT ASSETS 1,824,493 1,940,575
PROPERTY, PLANT AND EQUIPMENT - NET 1,148,916 1,159,231
OTHER ASSETS
INTANGIBLE ASSETS - NET 3,856,977 3,928,804
INVESTMENTS 45,677 5,503
OTHER ASSETS 152,540 175,234
SALES AND INCOME TAXES RECEIVABLE 965 965
DEFERRED TAX ASSETS - NON-CURRENT 107,051 83,447
TOTAL OTHER ASSETS 4,163,210 4,193,952
TOTAL 7,136,619 7,293,758
CURRENT LIABILITIES:
BANK OVERDRAFTS 148,951 432,465
CURRENT PORTION OF LONG-TERM DEBT 166,279 286,213
ACCOUNTS PAYABLE 434,604 398,080
ACCRUED EXPENSES AND OTHER 483,794 396,182
ACCRUAL FOR CUSTOMERS' RIGHT OF RETURN 27,334 31,363
INCOME TAXES PAYABLE 11,204 18,353
TOTAL CURRENT LIABILITIES 1,272,167 1,562,655
LONG-TERM LIABILITIES:
LONG-TERM DEBT 2,404,189 2,519,289
LIABILITY FOR TERMINATION INDEMNITIES 54,608 55,522
DEFERRED TAX LIABILITIES - NON-CURRENT 235,523 233,551
OTHER LONG-TERM LIABILITIES 309,898 368,821
TOTAL LIABILITIES 4,276,386 4,739,838
COMMITMENTS AND CONTINGENCIES:
EQUITY:
464,386,383 ORDINARY SHARES
AUTHORIZED AND ISSUED - 458,038,451
SHARES OUTSTANDING 27,863 27,802
NET INCOME ATTRIBUTABLE TO LUXOTTICA
GROUP SHAREHOLDERS 314,762 379,722
RETAINED EARNINGS 2,460,718 2,099,068
TOTAL LUXOTTICA GROUP
SHAREHOLDERS' EQUITY 2,803,343 2,506,593
NONCONTROLLING INTEREST 56,890 47,328
TOTAL EQUITY 2,860,233 2,553,921
TOTAL 7,136,619 7,293,758
Notes:
(1) Certain figures from 2008 have been reclassified to conform to
the 2009 presentation
LUXOTTICA GROUP
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED
DECEMBER 31, 2009 AND DECEMBER 31, 2008
- SEGMENTAL INFORMATION -
Manufacturing Inter-Segment
and Transactions and
In thousands of Euro Wholesale Retail Corporate Adj. Consolidated
2009
Net Sales 1,955,340 3,138,978 5,094,318
Operating Income 355,507 367,457 (139,763) 583,202
% of sales 18.2% 11.7% 11.4%
Capital Expenditures 81,175 119,234 200,409
Depreciation &
Amortization 76,005 129,261 80,657 285,923
Assets 1,849,677 1,169,840 4,117,101 7,136,619
2008 Adjusted (1)
Net Sales 2,092,465 3,109,146 5,201,611
Operating Income 439,957 430,565 (120,759) 749,763
% of sales 21.0% 13.8% 14.4%
Capital Expenditures 125,489 170,947 296,436
Depreciation &
Amortization 85,987 123,129 55,822 264,938
Assets (2) 1,959,812 1,156,820 4,177,126 7,293,758
2008 Reported
Net Sales 2,472,330 3,109,146 (379,865) 5,201,611
Operating income 545,507 291,469 (87,213) 749,763
% of sales 22.1% 9.4% 14.4%
Capital Expenditure 125,489 170,947 296,436
Depreciation &
Amortization 85,987 123,129 55,822 264,938
Assets (2) 2,750,630 1,498,192 3,044,937 7,293,758
Notes :
(1) In 2009 the Company adopted a new method to report Segmental
information. This method is in compliance with ASC no 280
requirements. For the purpose of providing comparability with
financial information from previous periods, the Company has
presented 2008 segment data in accordance with the revised
methodology.
(2) Certain figures from 2008 have been reclassified to conform to
the 2009 presentation
LUXOTTICA GROUP
RECONCILIATION OF THE CONSOLIDATED INCOME STATEMENT
PREPARED IN ACCORDANCE WITH US GAAP AND IAS / IFRS FOR THE
YEAR ENDED DECEMBER 31, 2009
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2009
In thousands of Euro
US GAAP
2009 IFRS 2 IAS 2 IFRS 3 IAS 19
Stock Invent- Business Employee
option ories combination benefit
NET SALES 5,094,318
COST OF SALES (1,768,436) 5,846
GROSS PROFIT 3,325,882 5,846
OPERATING EXPENSES:
SELLING
EXPENSES (1,693,593) (4,019)
ROYALTIES (100,623)
ADVERTISING
EXPENSES (312,144)
GENERAL AND
ADMINISTRATIVE
EXPENSES (555,664) (8,645) (77) (2,633)
TRADEMARK
AMORTIZATION (80,657)
TOTAL (2,742,680) (8,645) (4,019) (77) (2,633)
OPERATING
INCOME 583,202 (8,645) 1,827 (77) (2,633)
OTHER INCOME
(EXPENSE):
INTEREST EXPENSES (91,571) (2,673)
INTEREST INCOME 6,887
OTHER - NET (4,235)
OTHER INCOME
(EXPENSES)-NET (88,919) (2,673)
INCOME BEFORE
PROVISION
FOR INCOME
TAXES 494,283 (8,645) 1,827 (2,751) (2,633)
PROVISION FOR
INCOME TAXES (167,417) 1,713 (696) 244 932
NET INCOME 326,866 (6,933) 1,131 (2,507) (1,701)
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTEREST (12,105) 6,330
NET INCOME
ATTRIBUTABLE TO
LUXOTTICA GROUP
SHAREHOLDERS 314,762 (6,933) 1,131 3,824 (1,701)
BASIC EARNINGS
PER SHARE
(ADS) (1) 0.69
FULLY
DILUTED
EARNINGS
PER SHARE
(ADS) (1) 0.69
WEIGHTED AVERAGE
NUMBER OF
OUTSTANDING
SHARES 457,270,491
FULLY DILUTED
AVERAGE
NUMBER OF
SHARES 457,942,618
In thousands of Euro
IAS / IFRS
IAS 39 Total 2009
Derivatives /
Amortized
cost Other adj. IAS-IFRS
NET SALES 5,094,318
COST OF SALES 5,846 (1,762,590)
GROSS PROFIT 5,846 3,331,728
OPERATING EXPENSES:
SELLING EXPENSES (2,793) (6,812) (1,700,405)
ROYALTIES (100,623)
ADVERTISING EXPENSES 206 206 (311,938)
GENERAL AND
ADMINISTRATIVE
EXPENSES (11,355) (567,019)
TRADEMARK
AMORTIZATION (80,657)
TOTAL (2,587) (17,961) (2,760,641)
OPERATING INCOME (2,587) (12,115) 571,087
OTHER INCOME
(EXPENSE):
INTEREST EXPENSES (13,120) (1,768) (17,561) (109,132)
INTEREST INCOME 6,887
OTHER - NET 180 180 (4,056)
OTHER INCOME
(EXPENSES)-NET (12,940) (1,768) (17,382) (106,301)
INCOME BEFORE
PROVISION FOR
INCOME TAXES (12,940) (4,355) (29,497) 464,786
PROVISION FOR
INCOME TAXES 4,672 664 7,528 (159,888)
NET INCOME (8,268) (3,691) (21,969) 304,897
LESS: NET INCOME
ATTRIBUTABLE TO
NONCONTROLLING
INTEREST 6,330 (5,774)
NET INCOME
ATTRIBUTABLE TO
LUXOTTICA GROUP
SHAREHOLDERS (8,268) (3,691) (15,638) 299,123
BASIC EARNINGS PER
SHARE (ADS) (1) 0.65
FULLY DILUTED
EARNINGS PER
SHARE (ADS) (1) 0.65
WEIGHTED AVERAGE
NUMBER OF
OUTSTANDING
SHARES 457,270,491
FULLY DILUTED
AVERAGE NUMBER
OF SHARES 457,937,802
Notes :
(1) Except earnings per share (ADS), which are expressed in Euro
Non-U.S. GAAP 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 and net income.
For comparative purposes, management has adjusted each of the foregoing measures by excluding, as applicable, the following:
(a) the impact of the 53rd week of operations in the Retail Division
in North America in fiscal year 2008 and in the Retail Division in
Asia Pacific, Greater China and South Africa in fiscal year 2009;
(b) non-recurring charges of Euro 7 million incurred by the Retail
Division in North America in the fourth quarter of 2009;
(c) a non-recurring loss of Euro 22.8 million (Euro 15.3 million,
net of tax) related to the sale in 2008 of a note we received
as part of the sale of the Things Remembered retail chain in
September 2006; and
(d) a non-recurring gain of Euro 29.0 million incurred in the third
quarter of 2008 related to income from insurance proceeds,
reduction of non-cash stock compensation expenses and trademark
amortization reversal.
The Company believes that these adjusted measures are useful to both management and investors in evaluating the Company’s 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 Company’s operating performance.
The adjusted measures referenced above are not measures of performance in accordance with accounting principles generally accepted in the United States (U.S. GAAP). 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 U.S. GAAP. Rather, these non-GAAP measures should be used as a supplement to U.S. GAAP 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 U.S. GAAP and their definitions should be carefully reviewed and understood by investors. Investors should be aware that Luxottica Group’s 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 U.S. GAAP 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 U.S. GAAP financial measures or, in the case of adjusted EBITDA and adjusted EBITDA margin, to EBITDA and EBITDA margin, respectively, which are also non-U.S. GAAP measures. For a discussion of EBITDA and EBITDA margin and a reconciliation of EBITDA and EBITDA margin to their most directly comparable U.S. GAAP financial measures, see the tables on the pages immediately following the reconciliation of the adjusted measures.
Non-U.S. GAAP Measure: Reconciliation between reported and
adjusted P&L items
Millions of Euro
FY09
-----------------------------------------------
Net sales EBITDA Operating Income Net Income
Reported 5,094.3 869.1 583.2 314.8
-------- ------- ----- ----- -----
> Adjustment for the
53rd week (7.6) (2.6) (2.6) (1.7)
--------------------- ---- ---- ---- ----
> Non-recurring costs 7.4 7.4 4.9
---------------------- --- --- ---
> Non-recurring gains
----------------------
> One - time capital
loss in 2008
---------------------
Adjusted 5,086.7 873.9 588.0 317.9
-------- ------- ----- ----- -----
Adjusted net sales
(/) 5,086.7
--- -------
Adjusted operating
margin
(=) 11.6%
--- ----
FY08
------------------------------------------------
Net sales EBITDA Operating Income Net Income
Reported 5,201.6 1,014.7 749.8 379.7
-------- ------- ------- ----- -----
> Adjustment for the
53rd week (46.0) (10.1) (10.1) (6.2)
--------------------- ----- ----- ----- ----
> Non-recurring costs
----------------------
> Non-recurring gains (21.8) (29.0) (19.1)
---------------------- ----- ----- -----
> One - time capital
loss in 2008 15.3
--------------------- ----
Adjusted 5,155.6 982.8 710.6 369.7
-------- ------- ----- ----- -----
Adjusted net sales
(/) 5,155.6
--- -------
Adjusted operating
margin
(=) 13.8%
--- ----
Non-U.S. GAAP Measure: Reconciliation between reported and
adjusted P&L items
Millions of Euro
4Q09
-----------------------------------------------
Net sales EBITDA Operating Income Net Income
Reported 1,157.1 148.2 76.9 35.6
-------- ------- ----- ---- ----
> Adjustment for the
53rd week (7.6) (2.6) (2.6) (1.7)
--------------------- ---- ---- ---- ----
> Non-recurring costs 7.4 7.4 4.9
---------------------- --- --- ---
> One - time capital
loss in 2008
---------------------
Adjusted 1,149.4 153.0 81.7 38.7
-------- ------- ----- ---- ----
Adjusted net sales
(/) 1,149.4
--- -------
Adjusted operating
margin
(=) 7.1%
--- ---
4Q08
-----------------------------------------------
Net sales EBITDA Operating Income Net Income
Reported 1,236.5 186.1 117.4 38.8
-------- ------- ----- ----- ----
> Adjustment for the
53rd week (46.0) (10.1) (10.1) (6.2)
--------------------- ----- ----- ----- ----
> Non-recurring costs
----------------------
> One - time capital
loss in 2008 15.3
--------------------- ----
Adjusted 1,190.5 175.9 107.3 47.9
-------- ------- ----- ----- ----
Adjusted net sales
(/) 1,190.5
--- -------
Adjusted operating
margin
(=) 9.0%
--- ---
Non-U.S. GAAP Measure: EBITDA and EBITDA margin
EBITDA represents net income before non-controlling interests, taxes, other income/expense, interest 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 Company’s 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 company’s business.
EBITDA and EBITDA margin are not measures of performance under accounting principles generally accepted in the United States (U.S. GAAP). We include them in this presentation in order to:
- improve transparency for investors;
- assist investors in their assessment of the Company’s 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 Company’s 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 U.S. GAAP.
Rather, these non-GAAP measures should be used as a supplement to U.S. GAAP 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 U.S. GAAP and their definitions should be carefully reviewed and understood by investors.
Investors should be aware that Luxottica Group’s 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 U.S. GAAP measurements, to assist in the evaluation of our operating performance and leverage.
See the tables on the following pages for a reconciliation of EBITDA to net income, which is the most directly comparable U.S. GAAP financial measure, as well as the calculation of EBITDA margin on net sales.
Non-U.S. GAAP Measure: EBITDA
Millions of Euro
4Q09 4Q08 FY09 FY08
---- ---- ---- ----
Net income/(loss)
(+) 35.6 38.8 314.8 379.7
--- ---- ---- ----- -----
Net income attributable to non-
controlling interests
(+) 1.1 2.6 12.1 15.5
--- --- --- ---- ----
Provision for income taxes
(+) 18.1 10.4 167.4 194.7
---- ---- ---- ----- -----
Other (income)/expense
(+) 2.3 33.8 4.2 37.9
--- --- ---- --- ----
Interest expense
(+) 19.7 31.9 84.7 122.0
--- ---- ---- ---- -----
Depreciation & amortization
(+) 71.3 68.6 285.9 264.9
=== ==== ==== ===== =====
EBITDA
(=) 148.2 186.1 869.1 1,014.7
--- ----- ----- ----- -------
Non-U.S. GAAP Measure: Adjusted EBITDA
Millions of Euro
4Q09 4Q08 FY09 FY08
---- ---- ---- ----
Adjusted net income/(loss)
(+) 38.7 47.9 317.9 369.7
--- ---- ---- ----- -----
Net income attributable to non-
controlling interests
(+) 1.1 2.6 12.1 15.5
--- --- --- ---- ----
Adjusted provision for income taxes
(+) 19.7 13.9 169.1 188.4
---- ---- ---- ----- -----
Adjusted other (income)/expense
(+) 2.3 11.0 4.2 15.1
--- --- ---- --- ----
Interest expense
(+) 19.7 31.9 84.7 122.0
--- ---- ---- ---- -----
Adjusted Depreciation & amortization
(+) 71.3 68.6 285.9 272.1
=== ==== ==== ===== =====
Adjusted EBITDA
(=) 153.0 175.9 873.9 982.8
--- ----- ----- ----- -----
Non-U.S. GAAP Measure: EBITDA and EBITDA margin
Millions of Euro
4Q09 4Q08 FY09 FY08
---- ---- ---- ----
Net income/(loss)
(+) 35.6 38.8 314.8 379.7
--- ---- ---- ----- -----
Net income attributable to non-
controlling interests
(+) 1.1 2.6 12.1 15.5
--- --- --- ---- ----
Provision for income taxes
(+) 18.1 10.4 167.4 194.7
---- ---- ---- ----- -----
Other (income)/expense
(+) 2.3 33.8 4.2 37.9
--- --- ---- --- ----
Interest expense
(+) 19.7 31.9 84.7 122.0
---- ---- ---- -----
Depreciation & amortization (+)
(+) 71.3 68.6 285.9 264.9
=== ==== ==== ===== =====
EBITDA
(=) 148.2 186.1 869.1 1,014.7
--- ----- ----- ----- -------
Net sales
(/) 1,157.1 1,236.5 5,094.3 5,201.6
--- ------- ------- ------- -------
EBITDA margin
(=) 12.8% 15.0% 17.1% 19.5%
---- ---- ---- ----
Non-U.S. GAAP Measure: Adjusted EBITDA and Adjusted EBITDA margin
Millions of Euro
4Q09 4Q08 FY09 FY08
---- ---- ---- ----
Adjusted net income/(loss)
(+) 38.7 47.9 317.9 369.7
--- ---- ---- ----- -----
Net income attributable to non-
controlling interests
(+) 1.1 2.6 12.1 15.5
--- --- --- ---- ----
Adjusted provision for income taxes
(+) 19.7 13.9 169.1 188.4
---- ---- ---- ----- -----
Adjusted other (income)/expense
(+) 2.3 11.0 4.2 15.1
--- --- ---- --- ----
Interest expense
(+) 19.7 31.9 84.7 122.0
---- ---- ---- -----
Adjusted Depreciation & amortization
(+) 71.3 68.6 285.9 272.1
=== ==== ==== ===== =====
Adjusted EBITDA
(=) 153.0 175.9 873.9 982.8
--- ----- ----- ----- -----
Adjusted net sales
(/) 1,149.4 1,190.5 5,086.7 5,155.6
--- ------- ------- ------- -------
Adjusted EBITDA margin
(=) 13.3% 14.8% 17.2% 19.1%
---- ---- ---- ----
Non-U.S. GAAP 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 interests, taxes, other income/expense, interest expense, depreciation and amortization.
The Company believes that EBITDA is useful to both management and investors in evaluating the Company’s 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 company’s business. The ratio of net debt to EBITDA is a measure used by management to assess the Company’s 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 Company’s lenders.
EBITDA and ratio of net debt to EBITDA are not measures of performance under accounting principles generally accepted in the United States (U.S. GAAP). We include them in this presentation in order to:
- improve transparency for investors;
- assist investors in their assessment of the Company’s 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 Company’s 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 U.S. GAAP.
Rather, these non-GAAP measures should be used as a supplement to U.S. GAAP 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 U.S. GAAP and their definitions should be carefully reviewed and understood by investors.
Investors should be aware that Luxottica Group’s 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 U.S. GAAP measurements, to assist in the evaluation of our operating performance and leverage.
See the tables on the following pages for a reconciliation of net debt to long-term debt, which is the most directly comparable U.S. GAAP 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 U.S. GAAP financial measure, see the tables on the preceding pages.
Non-U.S. GAAP Measure: Net debt and Net debt / EBITDA
Millions of Euro
Dec 31, 2009 Dec 31, 2008
------------ ------------
Long-term debt 2,404.2 2,519.3
(+)
---
Current portion of long-term debt 166.3 286.2
(+)
---
Bank overdrafts (+) 149.0 432.5
------------------- ----- -----
Cash (-) (380.1) (288.5)
Net debt (=) 2,339.3 2,949.5
EBITDA 869.1 1,014.7
Net debt/EBITDA 2.7x 2.9x
================ ==== ====
Net debt @ avg. exchange rates (1) 2,383.9 2,821.2
Net debt @ avg. exchange rates (1) / EBITDA 2.7x 2.8x
1. Calculated using the respective 12-month average exchange rate as
of December 31, 2008 and the 12-month average exchange rate as of
December 31, 2009, which were Euro 1 = U.S.$ 1.3947 and
Euro 1 = U.S.$ 1.4707 respectively
Non-US GAAP Measures: Free Cash Flow
Free cash flow represents net income before non-controlling interests, taxes, other income/expense, interest 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 Company’s operating performance compared with other companies in its industry. In particular, our calculation of free cash flow provides a clearer picture of the Company’s ability to generate net cash from operations, which it uses to cover mandatory debt service requirements and to fund discretionary investments, pay dividends or pursue other strategic opportunities.
Free cash flow is not a measure of performance under accounting principles generally accepted in the United States (U.S. GAAP). We include it in this presentation in order to:
- Improve transparency for investors;
- Assist investors in their assessment of the Company’s 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 U.S. GAAP.
Rather, this non-GAAP measure should be used as a supplement to U.S. GAAP 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 U.S. GAAP and its definition should be carefully reviewed and understood by investors.
Investors should be aware that Luxottica Group’s 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;
- Free cash flow can be subject to adjustment at the Company’s discretion if the Company takes steps or adopts policies that increase or diminish its current liabilities and/or changes to working capital; and
- Free cash flow includes amounts that are used to cover mandatory debt service and other non-discretionary requirements and therefore does not represent the residual cash flow available solely for discretionary expenditures.
We compensate for the foregoing limitations by using free cash flow as one of several comparative tools, together with U.S. GAAP 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 U.S. GAAP financial measure.
Non-U.S. GAAP Measure: Free cash flow
Millions of Euro
FY09
----
EBITDA (1) 869.1
Change working capital 181.5
Capex (200.4)
========================== =====
Operating cash flow 850.2
Financial charges (2) (84.7)
Taxes (70.8)
Extraordinary charges (3) (3.3)
========================== =====
Free cash flow 691.4
1. EBITDA is not a U.S. GAAP 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
SOURCE Luxottica Group S.p.A.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article