Securities and Exchange Commission
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant To Rule 13a-16 Or 15d-16
Of The
Securities Exchange Act of 1934
For the month of March 2006 Commission File Number 1-11854
NATUZZI S.p.A.
(Translation of Registrant's name into English)
Via Iazzitiello 47
70029 Santeramo, Italy
(Address of principal office)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
(Check One) Form 20-F |X| Form 40-F |_|
(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
(Check One) Form 20-F |_| Form 40-F |X|
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b). 82-__.)
Natuzzi's Board of Directors Approves Fourth Quarter and Full Year 2005
Financial Results
SANTERAMO IN COLLE, Bari, Italy--(BUSINESS WIRE)--March 29, 2006--Natuzzi
S.p.A. (NYSE: NTZ):
-- 4Q&FY05 FINANCIAL HIGHLIGHTS
-- 2005 NET SALES AT EUR 669.9 MILLION FROM EUR 753.4 REPORTED IN 2004
-- 2005 LOSSES PER SHARE AT EUR 0.31 VS EARNINGS PER SHARE OF EUR 0.34
IN 2004
-- FULL YEAR 2004 CASH FLOW FROM OPERATIONS AT EUR 23.2 MILLION
The Board of Directors of Natuzzi S.p.A. (NYSE: NTZ) ('Natuzzi' or 'the
Company'), the world's leading manufacturer of leather-upholstered furniture,
today announces the approval of the financial results for the fourth quarter and
fiscal year ended on December 31, 2005.
NET SALES
In fourth quarter ended on December 31, 2005, Natuzzi total net sales
decreased by 1.5 percent to EUR 190.6 million, or $226.6 million, down from EUR
193.6 million, or $251.5 million reported for the same quarter of 2004. During
the same period total seats sold increased by 4.1 percent. Considering the
twelve months ended on December 31, 2005, total net sales decreased 11.1 percent
from 2004 at EUR 669.9 million, or $ 834.0 million, and units sold by 8.4
percent.
During the last three months of 2005, upholstery net sales were up 3.0
percent at EUR 173.0, or $205.7 million, from EUR 167.9 million, or $ 218.1
million, reported for the same period last year. Other sales (principally
living-room accessories and raw materials produced by the Company and sold to
third parties) decreased by 31.5 percent to EUR 17.6 million, or $ 20.9 million.
In the fourth quarter 2005 net sales in the Americas were at EUR 64.9
million, or $ 77.2 million, up by 19.7 percent from EUR 54.2 million, or $ 70.4
million in 2004 fourth quarter. In Europe sales were at EUR 96.9 million, or $
115.2 million, down by 4.6 percent from EUR 101.6 million, or $ 132.0 million,
reported in the same quarter last year, and in the rest of the world net sales
were down 7.4 percent at EUR 11.2 million, or $ 13.3 million, from EUR 12.1
million, or $ 15.7 million, reported in the previous year comparable period.
In the quarter ended on December 31, 2005, total net sales to our chains
Divani & Divani by Natuzzi stores, Natuzzi stores, and Kingdom of Leather stores
were at EUR 32.3 million, or $ 38.4 million, down by 21.0 percent as compared to
EUR 40.9 million, or $ 53.1 million reported one year ago. During the same
quarter nine new stores were opened (4 in Australia and one each in France,
Denmark, Czech Republic, Latvia, and Saudi Arabia), whereas 3 stores were closed
(2 in Italy, and one in China), therefore the total number of stores was 290 as
at December 31, 2005. At the same date there were 605 galleries, 80 more than
one year earlier.
Leather-upholstered furniture sales in the fourth quarter 2005 were at EUR
147.4 million, or $ 175.3 million, increasing 6.4 percent over last year's
fourth quarter, whereas during the same period fabric-upholstered furniture were
at EUR 25.6 million, or $ 30.4 million, down by 12.9 percent with respect to
last year comparable period.
Fourth quarter 2005 net sales for the Natuzzi branded products,
representing 61.5 percent of total upholstery net sales, were at EUR 106.4
million, or $ 126.5 million, 18.2 percent down with respect to the last year's
comparable quarter, whereas, over the same period, sales for the Italsofa
products increased by 75.7 percent to EUR 66.6 million, or $ 79.2 million.
GROSS PROFIT & OPERATING INCOME
For the three months ended December 31, 2005, Natuzzi's gross profit was
at EUR 55.0 million, or $ 65.4 million, 14.9 percent down from EUR 64.6 million,
or $ 83.9 million, reported one year earlier. As a percentage of sales, gross
profit margin decreased at 28.9 percent from 33.4 percent recorded one year ago.
Over the same period, the Company reported an operating loss of EUR 5.4
million, or $ 6.4 million, versus an operating income of EUR 2.8 million, or $
3.6 million, reported in 2004 fourth quarter.
FOREX & TAXES
During the last quarter of 2005 the Company had a net foreign exchange
gain of EUR 2.4 million, or $ 2.9 million, versus a net foreign exchange loss of
EUR 0.5 million, or $ 0.6 million, reported in last year's comparable period.
Over the same period, Company's income taxes were at EUR 4.1 million, or $
4.9 million, as compared to EUR 6.1 million, or $ 7.9 million, of last year
fourth quarter. Considering the whole 2005, income taxes were EUR 3.2 million,
or $ 4.0 million, versus EUR 17.6 million, or $ 21.9 million, in 2004
NET INCOME & EARNINGS PER SHARE
For the quarter ended on December 31, 2005, the Company reported net
losses of EUR 2.8 million, or net losses of $ 3.3 million, from a net loss of
EUR 9.3 million, or $ 12.1 million, reported in the same quarter of last year.
Losses per share (ADR) were EUR 0.05, or $ 0.06, from EUR 0.17 losses per share,
or $ 0.22, for the fourth quarter of 2004.
In 2005 the Company recorded net losses of EUR 16.7 million, or net losses
of $ 20.8 million, whereas one year earlier it reported net earnings of EUR 18.4
million, or $ 22.9 million. On ADR basis net losses for 2005 totaled EUR 0.31,
or $ 0.39, down from earnings per share of EUR 0.34, or $ 0.42, reported for the
whole 2004.
CASH FLOW
For the full 2005, cash flow from operations were EUR 23.2 million, or $
28.9 million, down from EUR 68.3 million, or $ 85.0 million, generated in 2004.
On a per ADR basis, net operating cash flow was EUR 0.42, or $ 0.52, versus EUR
1.25, or $ 1.55 generated in 2004.
OUTLOOK
Pasquale Natuzzi, Chairman and Chief Executive Officer, commented: "We are
encouraged by the earnings before taxes reported in the fourth quarter 2005
after four quarters in a row of losses.
In 2006 we will continue to be focused on the initiatives that should make
our operations more efficient and profitable.
At the same time, we have to take into consideration that the industry and
currency scenario for 2006 appears to be characterized by the same uncertainties
experienced last year.
In light of the above, we confirm the previously announced targets for
2006 with a positive net profit margin at most at 3 percent together with an
increase in units sold of about 5 percent."
In consideration of the negative results reported in the period, the
Directors will not propose the distribution of dividends at the annual
Shareholders' meeting, to be held on April 28th, 2006 (on first call), and if
necessary, on April 29th, 2006 (on second call).
CONVERSION RATES
The fourth quarter 2005 and 2004 dollar figures presented in this
announcement were converted at an average noon buying rate of $ 1.1890 per EUR
and $ 1.2991 per EUR, respectively. The 2005 and 2004 figure were converted at
an average noon buying rate of $ 1.2449 per EUR and $ 1.2438 per EUR,
respectively.
FOURTH QUARTER AND FULL YEAR 2005 TELECONFERENCE
Pasquale Natuzzi, Chief Executive Officer and Chairman, Daniele Tranchini,
Chief Sales & Marketing Officer, Nicola Dell'Edera, Chief Financial Officer
a.i., and Fred Starr, Chief Executive Officer and President of Natuzzi Americas,
will discuss financial results, followed by a question and answer session, in a
teleconference at 10:00 a.m. New York time (4:00 p.m. London time - 5:00 p.m.
Italian time) on March 30, 2006.
Replay of this event will be available on our web-site, www.natuzzi.com,
starting from 15:00 Italian time on March 31, 2006.
About NATUZZI S.p.A.
Founded in 1959 by Pasquale Natuzzi, Natuzzi S.p.A. designs and
manufactures a broad collection of leather-upholstered residential furniture.
Italy's largest furniture manufacturer, Natuzzi is the global leader in
the leather segment, exporting its innovative, high-quality sofas and armchairs
to 124 markets on 5 continents. Cutting-edge design, superior Italian
craftsmanship, and advanced, vertically-integrated manufacturing operations
underpin the Company's market leadership.
Since 1990, Natuzzi has sold its furnishings in Italy through the popular
Divani & Divani by Natuzzi chain of 132 stores, which it licenses to qualified
furniture dealers. Outside Italy, the Company sells to various furniture
retailers, as well as through 147 licensed Divani& Divani by Natuzzi and Natuzzi
stores.
Natuzzi S.p.A. was listed on the New York Stock Exchange on May 13, 1993.
The Company is ISO 9001 and 14001 certified.
FORWARD-LOOKING STATEMENTS
Statements in this press release other than statements of historical fact
are "forward-looking statements". Forward-looking statements are based on
management's current expectations and beliefs and therefore you should not place
undue reliance on them. These statements are subject to a number of risks and
uncertainties, including risks that may not be subject to the Company's control,
that could cause actual results to differ materially from those contained in any
forward-looking statement. These risks include, but are not limited to,
fluctuations in exchange rates, economic and weather factors affecting consumer
spending, competitive and regulatory environment, as well as other political,
economical and technological factors, and other risks identified from time to
time in the Company's filings with the Securities and Exchange Commission,
particularly in the Company's annual report on Form 20-F. Forward looking
statements speak as of the date they were made, and the Company undertakes no
obligation to update publicly any of them in light of new information or future
events.
NATUZZI S.P.A. AND SUBSIDIARIES
Unaudited Consolidated Statement of Earnings for the
fourth quarter ended
December 31, 2005 and 2004 on the basis of Italian GAAP
(Expressed in millions of EUR except per share data)
-------------------------------------------------------------------
Three months ended on % Over Percentage of Sales
31-Dec-05 31-Dec-04 (Under) 31-Dec-05 31-Dec-04
--------------- ----------- ----------- --------- -------- --------
Upholstery net
sales 173.0 167.9 3.0% 90.8% 86.7%
Other sales 17.6 25.7 ( 31.5)% 9.2% 13.3%
--------------- ----------- ----------- --------- -------- --------
Net Sales 190.6 193.6 ( 1.5)% 100.0% 100.0%
--------------- ----------- ----------- --------- -------- --------
Purchases (77.5) (97.1) 20.2% 40.7% 50.2%
Labor (30.1) (29.4) ( 2.4)% 15.8% 15.2%
Third-party
Manufacturers (7.2) (5.3) ( 35.8)% 3.8% 2.7%
Manufacturing
Costs (8.9) (8.3) ( 7.2)% 4.7% 4.3%
Inventories,
net (11.9) 11.1 ( 207.2)% 6.2% ( 5.7)%
Cost of Sales (135.6) (129.0) ( 5.1)% 71.1% 66.6%
--------------- ----------- ----------- --------- -------- --------
Gross Profit 55.0 64.6 ( 14.9)% ( 28.9)% ( 33.4)%
--------------- ----------- ----------- --------- -------- --------
Selling
Expenses (48.4) (50.1) 3.4% 25.4% 25.9%
General and
Administrative
Expenses (12.0) (11.7) ( 2.6)% 6.3% 6.0%
Operating
Income (Loss) (5.4) 2.8 ( 292.9)% ( 2.8)% 1.4%
--------------- ----------- ----------- --------- -------- --------
Interest
Income, net 0.0 (0.4) 0.0% ( 0.2)%
Foreign
Exchange, net 2.4 (0.5) 1.3% ( 0.3)%
Other Income,
net 4.2 (5.1) 2.2% ( 2.6)%
Earnings
(Losses) before
taxes and
minority
interest 1.2 (3.2) 137.5% 0.6% ( 1.7)%
--------------------------- ----------- --------- -------- --------
Income taxes (4.1) (6.1) ( 2.2)% ( 3.2)%
Earnings
(Losses) before
minority
interest (2.9) (9.3) 68.8% ( 1.5)% ( 4.8)%
--------------------------- ----------- --------- -------- --------
Minority
Interest (0.1) 0.0 ( 0.1)% 0.0%
Net Earnings
(Losses) (2.8) (9.3) 69.9% ( 1.5)% ( 4.8)%
--------------- ----------- ----------- --------- -------- --------
Earnings
(Losses) Per
Share (0.05) (0.17) ( 0.0)% ( 0.1)%
--------------- ----------- ----------- --------- -------- --------
Average Number
of Shares
Outstanding* 54,681,628 54,681,628
--------------- ----------- ----------- --------- -------- --------
(*) Net of shares repurchased 1 EUR = 1,936.27 ITL
-------------------------------------------------------------------
Key Figures in U.S. dollars Three months ended on
(millions) 31-Dec-05 31-Dec-04
--------------------------- --------------------- -----------------
Net Sales 226.6 251.5
Gross Profit 65.4 83.9
Operating
Income (Loss) (6.4) 3.6
Net Earnings
(Losses) (3.3) (12.1)
Earnings
(Losses) per
Share (0.06) (0.22)
Average exchange rate (U.S.
dollar per Euro) 1.1890 1.2991
-------------------------------------------------------------------
NATUZZI S.P.A. AND SUBSIDIARIES
Unaudited Consolidated Statement of Earnings for the full year ended
December 31, 2005 and 2004 on the basis of Italian GAAP
(Expressed in millions of EUR except per share data)
Twelve months ended on % Over Percentage of Sales
31-Dec-05 31-Dec-04 (Under) 31-Dec-05 31-Dec-04
------------------ ----------- ----------- --------- ------- ---------
Upholstery net
sales 594.8 665.5 ( 10.6)% 88.8% 88.3%
Other sales 75.1 87.9 ( 14.6)% 11.2% 11.7%
Net Sales 669.9 753.4 ( 11.1)% 100.0% 100.0%
------------------ ----------- ----------- ----------------- ---------
Purchases (295.3) (335.4) 12.0% 44.1% 44.5%
Labor (108.3) (107.2) ( 1.0)% 16.2% 14.2%
Third-party
Manufacturers (25.3) (26.9) 5.9% 3.8% 3.6%
Manufacturing
Costs (33.6) (30.1) ( 11.6)% 5.0% 4.0%
Inventories, net 3.1 15.1 ( 79.5)% ( 0.5)% ( 2.0)%
Cost of Sales (459.4) (484.5) 5.2% 68.6% 64.3%
------------------ ----------- ----------- ----------------- ---------
Gross Profit 210.5 268.9 ( 21.7)% 31.4% 35.7%
------------------ ----------- ----------- ----------------- ---------
Selling Expenses (182.2) (188.2) 3.2% 27.2% 25.0%
General and
Administrative
Expenses (43.0) (40.7) ( 5.7)% 6.4% 5.4%
Operating Income
(Loss) (14.7) 40.0 ( 136.8)% ( 2.2)% 5.3%
------------------ ----------- ----------- ----------------- ---------
Interest Income,
net 0.0 (0.6) 0.0% ( 0.1)%
Foreign Exchange,
net (1.6) 2.3 ( 0.2)% 0.3%
Other Income, net 2.5 (5.6) 0.4% ( 0.7)%
Earnings (Losses)
before taxes and
minority interest (13.8) 36.1 ( 138.2)% ( 2.1)% 4.8%
------------------------------ ----------- ----------------- ---------
Income taxes (3.2) (17.6) ( 0.5)% ( 2.3)%
Earnings (Losses)
before minority
interest (17.0) 18.5 ( 191.9)% ( 2.5)% 2.5%
------------------ ----------- ----------- ----------------- ---------
Minority Interest (0.3) 0.1 ( 0.0)% 0.0%
Net Earnings
(Losses) (16.7) 18.4 ( 190.8)% ( 2.5)% 2.4%
------------------ ----------- ----------- ----------------- ---------
Earnings (Losses)
per Share (0.31) 0.34 ( 0.0)% 0.0%
------------------ ----------- ----------- --------- ------- ---------
Average Number of
Shares
Outstanding* 54,681,628 54,681,628
------------------------------ ----------- --------- ------- ---------
(*) Net of shares repurchased 1 EUR = 1,936.27 ITL
----------------------------------------------------------------------
Key Figures in U.S. dollars Twelve months ended on
(millions) 31-Dec-05 31-Dec-04
------------------------------ ------------ -----------------
Net Sales 834.0 937.1
Gross Profit 262.1 334.5
Operating Income
(Loss) (18.3) 49.8
Net Earnings
(Losses) (20.8) 22.9
Earnings (Losses)
per Share (0.39) 0.42
Average exchange rate (U.S.
dollar per Euro) 1.2449 1.2438
----------------------------------------------------------------------
GEOGRAPHIC BREAKDOWN
----------------------------------------------------------------------
Sales* Seat Units
4th Quarter % Over 4th Quarter % Over
2005 2004 (Under) 2005 2004 (Under)
====================== ====== ====== ======= ======== ======== =======
Americas 64.9 54.2 19.7% 366,939 313,370 17.1%
% of total 37.5% 32.3% 45.7% 40.6%
Europe 96.9 101.6 (4.6%) 392,494 410,917 (4.5%)
% of total 56.0% 60.5% 48.8% 53.2%
Rest of world 11.2 12.1 (7.4%) 44,198 48,042 (8.0%)
% of total 6.5% 7.2% 5.5% 6.2%
---------------------- ------ ------ ------- -------- -------- -------
TOTAL 173.0 167.9 3.0% 803,631 772,329 4.1%
-------------------------------------------- -------------------------
* Expressed in millions of EUR
-------------------------------------------- -------------------------
BREAKDOWN BY COVERING
----------------------------------------------------------------------
Sales* Seat Units
4th Quarter % Over 4th Quarter % Over
2005 2004 (Under) 2005 2004 (Under)
====================== ====== ====== ======= ======== ======== =======
Leather 147.4 138.5 6.4% 653,604 592,042 10.4%
% of total 85.2% 82.5% 81.3% 76.7%
Fabric 25.6 29.4 (12.9%) 150,027 180,287 (16.8%)
% of total 14.8% 17.5% 18.7% 23.3%
Total 173.0 167.9 3.0% 803,631 772,329 4.1%
-------------------------------------------- -------------------------
* (Expressed in millions of EUR)
-------------------------------------------- -------------------------
BREAKDOWN BY BRAND
----------------------------------------------------------------------
Sales* Seat Units
4th Quarter % Over 4th Quarter % Over
2005 2004 (Under) 2005 2004 (Under)
====================== ====== ====== ======= ======== ======== =======
Natuzzi 106.4 130.0 (18.2%) 384,606 511,243 (24.8%)
% of total 61.5% 77.4% 47.9% 66.2%
Italsofa 66.6 37.9 75.7% 419,025 261,086 60.5%
% of total 38.5% 22.6% 52.1% 33.8%
TOTAL 173.0 167.9 3.0% 803,631 772,329 4.1%
-------------------------------------------- -------------------------
* (Expressed in millions of EUR)
-------------------------------------------- -------------------------
GEOGRAPHIC BREAKDOWN
----------------------------------------------------------------------
Sales* Seat Units
Twelve months % Over Twelve months ended % Over
ended on on
Dec-05 Dec-04 (Under) Dec-05 Dec-04 (Under)
================== ====== ====== ======= ========== ========== =======
Americas 241.7 279.4 (13.5%) 1,386,329 1,564,901 (11.4%)
% of total 40.6% 42.0% 49.3% 51.0%
Europe 313.2 340.1 (7.9%) 1,262,887 1,319,740 (4.3%)
% of total 52.7% 51.1% 44.9% 43.0%
Rest of world 39.9 46.0 (13.3%) 162,523 186,330 (12.8%)
% of total 6.7% 6.9% 5.8% 6.0%
------------------ ------ ------ ------- ---------- ---------- -------
TOTAL 594.8 665.5 (10.6%) 2,811,739 3,070,971 (8.4%)
------------------ ------ ------ ------- ---------- ---------- -------
* (Expressed in millions of EUR)
------------------ ------ ------ ------- ---------- ---------- -------
BREAKDOWN BY COVERING
----------------------------------------------------------------------
Sales* Seat Units
Twelve months % Over Twelve months ended % Over
ended on on
Dec-05 Dec-04 (Under) Dec-05 Dec-04 (Under)
================== ====== ====== ======= ========== ========== =======
Leather 498.9 547.9 (8.9%) 2,224,834 2,345,044 (5.1%)
% of total 83.9% 82.3% 79.1% 76.4%
Fabric 95.9 117.6 (18.5%) 586,905 725,927 (19.2%)
% of total 16.1% 17.7% 20.9% 23.6%
Total 594.8 665.5 (10.6%) 2,811,739 3,070,971 (8.4%)
------------------ ------ ------ ------- ---------- ---------- -------
* (Expressed in millions of EUR)
----------------------------------------------------------------------
BREAKDOWN BY BRAND
----------------------------------------------------------------------
Sales* Seat Units
Twelve months % Over Twelve months ended % Over
ended on on
Dec-05 Dec-04 (Under) Dec-05 Dec-04 (Under)
================== ====== ====== ======= ========== ========== =======
Natuzzi 387.8 507.0 (23.5%) 1,451,341 1,986,461 (26.9%)
% of total 65.2% 76.2% 51.6% 64.7%
Italsofa 207.0 158.5 30.6% 1,360,398 1,084,509 25.4%
% of total 34.8% 23.8% 48.4% 35.3%
TOTAL 594.8 665.5 (10.6%) 2,811,739 3,070,970 (8.4%)
------------------ ------ ------ ------- ---------- ---------- -------
* (Expressed in millions of EUR)
NATUZZI S.P.A. AND SUBSIDIARIES
Unaudited Consolidated Balance Sheet as of December 31, 2005
and December 31, 2004 (Expressed in millions of EUR)
31-Dec-05 31-Dec-04
--------------------------------------------- ---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents 89.7 87.3
Marketable debt securities 0.0 0.0
Trade receivables, net 123.6 137.6
Other receivables 46.3 41.2
Inventories 115.7 112.6
Unrealized foreign exchange gains 0.0 7.1
Prepaid expenses and accrued income 2.6 2.4
Deferred income taxes 6.6 1.2
--------------------------------------------- ---------- ----------
Total current assets 384.5 389.4
--------------------------------------------- ---------- ----------
Non-Current Assets:
Net property, plant and equipment 262.8 272.0
Other assets 16.6 11.2
Deferred income taxes 1.1 0.6
--------------------------------------------- ---------- ----------
TOTAL ASSETS 665.0 673.2
--------------------------------------------- ---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings 7.7 5.6
Current portion of long-term debt 0.4 0.6
Accounts payable-trade 73.5 83.7
Accounts payable-other 24.8 20.3
Unrealized foreign exchange losses 4.8 0.0
Income taxes 3.0 2.5
Salaries, wages and related liabilities 22.1 18.7
--------------------------------------------- ---------- ----------
Total current liabilities 136.3 131.4
--------------------------------------------- ---------- ----------
Long-Term Liabilities:
Employees' leaving entitlement 32.3 29.6
Long-term debt 3.6 5.0
Deferred income taxes 0.0 0.4
Deferred income for capital grants 14.8 12.5
Other liabilities 6.3 5.4
--------------------------------------------- ---------- ----------
Minority Interest 0.7 0.9
--------------------------------------------- ---------- ----------
Shareholders' Equity:
Share capital 54.7 54.7
Reserves 42.3 42.3
Additional paid-in capital 8.3 8.3
Retained earnings 365.7 382.7
--------------------------------------------- ---------- ----------
Total shareholders' equity 471.0 488.0
--------------------------------------------- ---------- ----------
Commitments and contingent liabilities 0.0 0.0
--------------------------------------------- ---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 665.0 673.2
-------------------------------------------------------- ----------
NATUZZI S.P.A. AND SUBSIDIARIES
Unaudited Consolidated Statements of Cash Flows
as of December 31, 2005 and 2004 (Expressed in millions of EUR)
31- 31-
Dec- Dec-
05 04
------ ------
Cash flows from operating activities:
Net earnings (losses) (16.7) 18.4
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 33.0 34.1
Employees' leaving entitlement 2.4 2.6
Deferred income taxes (6.3) (0.7)
Minority interest (0.2) 0.1
(Gain) loss on disposal of assets (0.2) (3.5)
Unrealized foreign exchange (losses) / gain 11.9 0.6
Deferred income for capital grants (5.6) (0.9)
Change in assets and liabilities:
Receivables, net 10.6 28.1
Inventories (1.6) (16.6)
Prepaid expenses and accrued income (0.1) (0.2)
Other assets (1.4) (0.9)
Accounts payable (7.4) 6.7
Income taxes 0.5 (1.7)
Salaries, wages and related liabilities 3.3 2.6
Other liabilities 1.0 (0.4)
-------------------------------------------------------- ------ ------
Total adjustments 39.9 49.9
-------------------------------------------------------- ------ ------
NET CASH PROVIDED BY OPERATING ACTIVITIES 23.2 68.3
-------------------------------------------------------- ------ ------
Cash flows from investing activities:
Property, plant and equipment:
Additions (20.9) (51.9)
Disposals 0.9 9.4
Government grants received 1.0 0.0
Marketable debt securities:
Proceeds from sales 0.0 0.0
Purchase of business, net of cash acquired (2.0) (0.1)
Disposal of business 0.0 5.5
-------------------------------------------------------- ------ ------
NET CASH USED IN INVESTING ACTIVITIES (21.0) (37.1)
-------------------------------------------------------- ------ ------
Cash flows from financing activities:
Long term debt:
Proceeds 0.5 1.3
Repayments (2.1) (1.3)
Short-term borrowings 1.6 1.8
Dividends paid to shareholders (3.8) (7.7)
Dividends paid to minority shareholders 0.0 (0.1)
-------------------------------------------------------- ------ ------
NET CASH USED IN FINANCING ACTIVITIES (3.8) (6.0)
-------------------------------------------------------- ------ ------
Effect of translation adjustments on cash 4.0 (1.5)
-------------------------------------------------------- ------ ------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2.4 23.7
-------------------------------------------------------- ------ ------
Cash and cash equivalents, beginning of the year 87.3 63.6
-------------------------------------------------------- ------ ------
CASH AND CASH EQUIVALENTS, END OF THE PERIOD 89.7 87.3
-------------------------------------------------------- ------ ------
Supplemental disclosure of cash flow information
Cash paid during the year for interest 0.0 1.0
-------------------------------------------------------- ------ ------
Cash paid during the year for income taxes 0.0 9.3
-------------------------------------------------------- ------ ------
CONTACT: Natuzzi S.p.A.
Investor Relations Dept.
Tel.: +39-080-8820-812
Fax: +39-080-8820-241
E-mail: investor_relations@natuzzi.com
or
Corporate Press Office
Tel.: +39-080-8820-124
Fax: +39-080-8820-508
E-mail: relazioni.esterne@natuzzi.com
SIGNATURES
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.
NATUZZI S.p.A.
(Registrant)
Date: 29th March 2006 By: /s/ GIUSEPPE DESANTIS
----------------------------------
Giuseppe Desantis