euro adhoc: ESCADA AG
Quarterly or Semiannual Financial Statements
Investor HMD Partners to invest EUR45 MM in ESCADA - Business Trends below Plan (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Aschheim/Munich, 27 June 2003 - ESCADA AG and US private equity firm HMD Partners have entered into an agreement pursuant to which HMD will invest EUR45 MM in ESCADA AG via a cash capital increase, through the acquisition of ESCADA AGs treasury stock and the subscription of a convertible bond at a price of EUR10 per share. This transaction will significantly strengthen ESCADA Groups equity base. HMD will assume up to 29% of ESCADA AGs increased share capital. HMD has entered into a share lock-up agreement in which the shares may not be sold prior to 2006. The capital increase facilitating the transaction is to be agreed at an extraordinary shareholders meeting on August 19, 2003. Furthermore, the investment is conditional upon the refinancing of the bank indebtedness of ESCADA AG. The result of these negotiations is expected to be announced shortly.
ESCADA Groups business trend in the first half of 2002/2003 (1.11 - 30.4) was impacted stronger than foreseen by the consequences of the Iraq war on the worldwide consumer climate for luxury goods. In addition, the lung disease SARS harmed business in Asia, where ESCADA is market leader in the fashion industry. As a result, sales and profit remained below the planned amounts. Group sales for the first six months were EUR306.6 MM (previous year: EUR410.5 MM). Adjusted for deconsolidation effects (Beauté, Kemper/Féraud), sales decreased by 13%. Thereof, the translation of local currencies into the reinforced Euro accounted for approx. 5%. Profit before interest and taxes (EBIT) was minus EUR4 MM (previous year: EUR18.3 MM). After taxes, the interim net loss amounts to EUR7.3 MM (previous year: profit of EUR6.3 MM). Due to the multitude of negative external effects, the increase of Group EBIT planned for the fiscal year 2002/2003 is not reachable. Because of the substantial market uncertainties, ESCADA refrains from a precise profit forecast. However, Management still considers a positive EBIT as feasible. Management views the distinct increase in pre-orders for the spring/summer collection 2003/2004 in all ESCADA lines as a sign for a trend reversal.
end of announcement euro adhoc 27.06.2003
Further inquiry note:
Viona Brandt Tel.: +49 (0)89 9944 1336 E-Mail: viona.brandt@de.escada.com
Branche: Clothing
ISIN: DE0005692107
WKN: 569210
Index: CDAX, Classic All Share, Prime All Share, Prime Standard, SDAX
Börsen: Berliner Wertpapierbörse / official dealing
Bayerische Börse / official dealing
Frankfurter Wertpapierbörse / official dealing
Bremer Wertpapierbörse (BWB) / regulated dealing
Hamburger Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Baden-Württembergische Wertpapierbörse / free trade