Exhibit 99.1
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Annual report 2016 (Unaudited) |
The board of directors and the managing director hereby submit the consolidated Annual report for the financial year 2016-01-01 — 2016-12-31.
The Annual Report consists of
Page 2 | Adminstration report |
Page 3 | Report of Independent Certified Public Accountants |
Page 5 | Income Statements |
Page 6 | Balance sheets |
Page 8 | Cash flow Statements |
Page 9 | Accounting principles and Notes |
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Administration report
(Kronas in thousands, except for employee data)
General information about the company
STIGA Sports Group AB is the parent company of STIGA Sports Group. STIGA Sports Group consists of STIGA Sports Group AB with it's subsidary STIGA Sports AB and subsidaries STIGA Sports Norway AS, Oy STIGA Sports Suomi Ab, Munkhammar Fastighets AB, STIGA Sports Japan KK and STIGA Sports Beijing Co., Ltd. The group is focused on Sports and Games.
Operations are divided into two segments, STIGA Table Tennis and STIGA Games.
STIGA Table Tennis is a top supplier of table tennis equipment worldwide. Among other things, the company is a sponsor and supplier of blades for the Chinese national team.
STIGA Games is famous for its Snowracer and its Ice Hockey game. However, the product range consists of several other games and play products such as sleds, floor ball and badminton.
STIGA Sports Group owns a property in Eskilstuna in which the Group operates.
The company is owned by Escalade Incorporated, and the Bandstigen family.
Investments
During the past year the group made a number of investments, a new production facility was built.
Other investments were mostly in production tools.
Total investment amounts to 9 849 TSEK (28 842 TSEK).
(Unaudited) | ||||
2016 | 2015 | 2014 | 2013 | |
Net sales | 360 330 | 379 210 | 354 517 | 315 125 |
Operating profit | 37 042 | 67 622 | 62 858 | 45 921 |
Equity ratio | 74% | 72% | 69% | 61% |
Average number of employees | 100 | 96 | 91 | 84 |
Total assets | 344 672 | 335 402 | 301 492 | 272 053 |
Equity ratio= Adjusted equity divided by total assets. | ||||
Proposal for appropriation of profits (Kronas in thousands) | ||||
From the preceding year profits brought forward | 186 108 | |||
Translation difference | 924 | |||
Offset between restricted and unrestricted equity | 0 | |||
Net profit for the year | 28 612 | |||
Profits at the disposition of theannual general meeting | 215 644 | |||
Proposed appropriation of profits | ||||
Dividend to shareholders | 40 000 | |||
Profit carried forward | 175 644 | |||
Total | 215 644 |
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors
STIGA Sports Group AB
We have audited the accompanying consolidated financial statements of STIGA Sports Group AB and subsidiaries (the “Company”), which comprise the consolidated balance sheets as of December 31, 2015 and December 31, 2014 (not included herein), and the related consolidated income and cash flow statements for each of the two years in the period ended December 31, 2015, and the related notes to the financial statements.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in Sweden; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
3(16)
reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of STIGA Sports Group AB and subsidiaries as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2015 in accordance with accounting principles generally accepted in Sweden.
Basis of accounting
We draw attention to the Accounting Policies of the financial statements, which describes the basis of accounting. The financial statements are prepared on the basis of accounting principles generally accepted in Sweden, which differs from accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
GRANT THORNTON SWEDEN AB
Eskilstuna, Sweden
20 June 2016
4(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
(Unaudited) | ||||||
Income statements (Kronas in thousands) | Note | 2016-01-01 -2016-12-31 | 2015-01-01 -2015-12-31 | 2014-01-01 -2014-12-31 | ||
Net sales | 1 | 360,330 | 379 210 | 354 517 | ||
Other operating income | 8 087 | 7 801 | 7 031 | |||
Turnover | 368 417 | 387 011 | 361 548 | |||
Goods for resale and raw materials | 2 | -183 072 | -182 922 | -173 199 | ||
Other external costs | 3 | -91 255 | -85 371 | -71 595 | ||
Personnel costs | -47 765 | -43 820 | -42 685 | |||
Depreciation | -9 283 | -7 276 | -11 211 | |||
Operating expenses | -331 375 | -319 389 | -298 690 | |||
Operating profit | 37 042 | 67 622 | 62 858 | |||
Interest income & similar profit items | 4 | 2 730 | 394 | 10 941 | ||
Interest expense & similar loss items | 5 | -914 | -1 087 | -1 499 | ||
Result from financial items | 1 816 | -693 | 9 442 | |||
Profit after financial items | 38 858 | 66 929 | 72 300 | |||
Tax on profit for the year | 6 | -10 246 | -17 661 | -17 578 | ||
Net profit for the year | 28 612 | 49 268 | 54 722 |
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STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
(Unaudited) | ||||
Balance sheets (Kronas in thousands) | Note | 2016-12-31 | 2015-12-31 | |
Capitalized expenditure of software | 7 | 1 743 | 2 145 | |
Goodwill | 8 | 0 | 0 | |
Intangible assets | 1 743 | 2 145 | ||
Land & Buildings | 9 | 48 825 | 48 795 | |
Machinery, equipment & tools | 10 | 29 881 | 28 930 | |
Tangible assets | 78 706 | 77 725 | ||
Other fixed assets investments | 11 | 5 297 | 4 886 | |
Financial assets | 5 297 | 4 886 | ||
Fixed assets | 85 746 | 84 756 | ||
Raw materials | 23 739 | 21 758 | ||
Goods for resale | 73 866 | 74 805 | ||
Inventories | 97605 | 96 563 | ||
Accounts receivable - trade | 78 623 | 74 258 | ||
Other receivables | 5 994 | 10 029 | ||
Other assets | 12 | 11 486 | 6 102 | |
Current receivables | 96 103 | 90 389 | ||
Cash and cash equivalents | 65 218 | 63 694 | ||
Current assets | 258 926 | 250 646 | ||
ASSETS | 344 672 | 335 402 |
6(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
(Unaudited) | ||||
Balance sheets (Kronas in thousands, except for share data) | Note | 2016-12-31 | 2015-12-31 | |
Share capital (12 000 shares) | 1 200 | 1 200 | ||
Restricted reserves | 36 582 | 36 582 | ||
Restricted equity | 37 782 | 37 782 | ||
Non-restricted reserves | 187 032 | 154 840 | ||
Profit for the year | 28 612 | 49 268 | ||
Non-restricted equity | 215 644 | 204 108 | ||
Equity | 13 | 253 426 | 241 890 | |
Provisions for pensions | 5 297 | 4 886 | ||
Provisions for taxes | 14 | 10 978 | 10 813 | |
Provisions | 16 275 | 15 699 | ||
Liabilities to credit institutions | 15 | 30 653 | 33 137 | |
Long-term liabilities | 30 653 | 33 137 | ||
Liabilities to credit institutions | 2 897 | 3 309 | ||
Bank overdraft | 16 | 1 486 | 0 | |
Accounts payable - trade | 26 704 | 24 655 | ||
Tax liability | 0 | 3 487 | ||
Other liabilities | 2 632 | 2 707 | ||
Accrued expenses | 17 | 10 599 | 10 518 | |
Current liabilities | 44 318 | 44 676 | ||
EQUITY & LIABILITIES | 344 672 | 335 402 | ||
Memorandum items | ||||
Property mortgages | 34 575 | 34 575 | ||
Chattel mortgages | 40 000 | 40 000 | ||
Capital sum insurance | 4 886 | 4 886 | ||
Pledged assets | 79 461 | 79 461 | ||
Other warranties | 430 | 430 | ||
Contingent liabilities | 430 | 430 |
7(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
(Unaudited) | ||||||
Cash flow statements (Kronas in thousands) | Note | 2016-12-31 | 2015-12-31 | 2014-12-31 | ||
Net operating profit | 37 042 | 67 622 | 62 858 | |||
Adjustment for items not included in cash flow | ||||||
Depreciation | 9 283 | 7 276 | 11 211 | |||
Other adjustments | -514 | 804 | 1 027 | |||
Interest received | 2 730 | 394 | 10 941 | |||
Interest paid | -914 | -1 087 | -1 499 | |||
Income tax paid | -10 246 | -16 518 | -15 090 | |||
Cash flow from current operations | ||||||
before change in working capital | 37 381 | 58 491 | 69 448 | |||
Increase(-) / Reduction(+) of inventories | -1 042 | -9 450 | -22 219 | |||
Increase(-) / Reduction(+) of account receivables | -4 365 | -10 304 | 16 297 | |||
Increase(-) / Reduction(+) other receivables | -1 349 | -999 | -3 559 | |||
lncrease(+) / Reduction(-) of account payable | 2 049 | 1 538 | -7 819 | |||
lncrease(+) / Reduction(-) other current liabilities | 6 | -6 318 | -2 474 | |||
Change of working capital | -4 701 | -25 533 | -19 774 | |||
Cash flow from current operations | 32 680 | 32 958 | 49 674 | |||
Investment of intangible assets | -37 | -515 | 0 | |||
Investment of tangible assets | -9 812 | -28 437 | -9 109 | |||
Investment of other fixed assets investments | -411 | -607 | -1 452 | |||
Sale of intangible assets | 0 | 0 | 0 | |||
Sale of tangible assets | 0 | 0 | 235 | |||
Sale of other fixed assets investments | 0 | 618 | 0 | |||
Cash flow used in investment activities | -10 260 | -28 941 | -10 326 | |||
Proceeds from debt issuance | 0 | 16 975 | 0 | |||
Repayment of debt | -2 896 | -13 500 | -6 655 | |||
Dividend to shareholders | -18 000 | -16 000 | -12 000 | |||
Cash flow used in financing activities | -20 896 | -12 525 | -18 655 | |||
CASH FLOW | 1 524 | -8 508 | 20 693 | |||
Cash and cash equivalents at beginning of year | 63 694 | 72 202 | 51 509 | |||
Cash and cash equivalents at end of year | 65 218 | 63 694 | 72 202 |
8(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Accounting policies
General Accounting policies
The annual report has been prepared in accordance with the Annual Accounts Act and general advice from the Swedish Accounting Standards Board BFNAR 2012:1 Annual accounts and consolidated accounts. The annual report has been prepared in accordance with the Annual Accounts Act and BFNAR 2012:1 Annual accounts and consolidated accounts (K3).
Consolidated financial statements
The consolidated financial statements have been prepared in accordance with the principles of the Accounting Standards Council's (Redovisningsrådet) recommendation RR 1:00 (Swedish GAAP), and by applying the purchase accounting method.
The consolidated financial statements include all subsidiaries. Foreign subsidiaries have been translated using the current method.
The consolidated financial statements include STIGA Sports Group AB (Parent company) and all subsidiaries (collectively, the Group) activities until December 31, 2016.
Subsidiaries are all companies in which the Group has power to govern financial and operating policies so as to obtain benefits. The subsidiaries are Munkhammar Fastighetsbolag AB, STIGA Sports AB, STIGA Sports Norway AS, Oy STIGA Sports Suomi Ab and STIGA Sports Beijing Co., Ltd.
The Group achieves and exercises controlling influence by holding the majority of votes. Special purpose companies are consolidated if the parent company has a controlling interest. All subsidiaries have been reporting date December 31 and applies the parent company's valuation principles.
The consolidated financial statements are presented in currency, SEK, which is also the parent company's reporting currency. Results of subsidiaries acquired or disposed of during the year are recognized from the date of acquisition to the date of the disposal of entry into force, as appropriate.
Amounts recognized in the financial statements of subsidiaries have been adjusted where necessary to ensure compliance with the Group's accounting policies.
Intercompany transactions and balance sheet items are eliminated in full on consolidation, including unrealized gains and losses on transactions between group companies. In cases where unrealized losses intercompany transfer of assets from consolidation, the group also assesses the underlying asset impairment from a group perspective.
Valuation principles
Revenues
Revenues is recorded at fair value of what has been received or will be received.
Consequently the company records revenue at nominal value (invoice amount). Deduction is made for discounts given.
Sale of goods
Sale of goods is recorded when the company has transferred the material risks and benefits associated with ownership to the buyer, normally when the customer has possession of the goods.
Revenues from the sale of goods that do not have any substantial service obligations are recorded on delivery.
Interest, royalties and dividends
Interest income is recognised using the effective interest method.
Royalties are included in other operating income and are recognised on an accruals basis in accordance with the substance of the relevant agreement.
Other assets, provisions and liabilities are recorded at cost of acquisition unless otherwise stated below.
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STIGA SPORTS GROUP AB | |
Org nr 556216-6347 |
Accounting policies
Fixed assets
Fixed assets are recorded at cost of acquisition less accumulated depreciation and any write-downs.
The assets are depreciated on a straight-line basis over the estimated useful life.
(Unaudited) | |||||
Fixed assets | Group | ||||
2016 | 2015 | ||||
Capitalised expenditure for software | 10,0% | 10,0% | |||
Goodwill | 12,5% | 12,5% | |||
Buildings | 1-10% | 1-10% | |||
Equipment, tools and machinery | 10-20% | 10-20% |
Receivables
Receivables are recorded in the amounts at which they are expected to be received.
Inventories
Inventories are measured at the lower of cost of acquisition and net realisable value.
Inventories are stated at 97% of the aggregate cost of acquisition.
Receivables and liabilities in foreign currency
Monetary receivables and liabilities in foreign currencies have been restated at the closing rate.
Cash and cash equivalents
Cash and cash equivalents consist of cash and demand deposits at banks and other credit institutions and other short-term highly liquid investments that are readily convertible to known amounts and that are subject to insignificant risk of fluctuations in value. Such investments have a maximum maturity of three months.
Equity
Equity capital of the company consists of the following items:
Share capital represents the nominal value of issued and registered shares.
Restricted reserve is recorded when there is a requirement under the Companies Act to make provision to the statutory reserve. Retained earnings represents all earnings and equity compensation for the current and prior periods.
Employee benefits
Short-term benefits
Short-term employee benefits, such as wages, holiday pay and bonuses are employee benefits that are due within 12 months from the balance sheet date the year in which the employee earned compensation. Short-term benefits are measured at the undiscounted amount that the company expects to pay as a result of the unused entitlement.
Defined contribution pension plans
The Company pays fixed contributions to other legal persons with regard to several state plans and insurance for individual employees. The company has no legal or constructive obligations to pay further fees in addition to payment of the fixed amount recognized as an expense in the period in which the relevant service is rendered.
Leasing
All leases are recognised as an expense on a straight-line basis over the lease term.
Income tax
The reporting of income tax includes current and deferred tax.
For items reported in the income statement, the associated tax is reported in the income statement.
For items recognized directly in equity, tax is also recognized directly in equity.
Assessment of doubtful debts
Trade receivables are measured at the cash flow expected to flow to the company.
A detailed and objective review of all outstanding amounts is made at the balance sheet date to ensure the trade receivables are recorded on that basis.
10(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Notes
(Unaudited) | ||||||||
NOTE 1 NET SALES | ||||||||
2016 | 2015 | 2014 | ||||||
- STIGA Table Tennis | 50,5% | 50,7% | 51,3% | |||||
- STIGA Games | 49,5% | 49,3% | 48,4% | |||||
- Lease of properties | 0,0% | 0,0% | 0,3% | |||||
Sales by business area | 100,0% | 100,0% | 100,0% | |||||
- Europe | 64,2% | 59,8% | 62,4% | |||||
- Asia | 28,0% | 30,3% | 28,8% | |||||
- North America | 6,5% | 8,5% | 6,7% | |||||
- South America | 0,4% | 0,2% | 0,8% | |||||
- Oceania | 0,5% | 0,7% | 0,7% | |||||
- Africa | 0,4% | 0,5% | 0,6% | |||||
Sales by geographic region | 100,0% | 100,0% | 100,0% |
(Unaudited) | ||||||||
NOTE2OTHER EXTERNAL COSTS(Kronas in thousands) | ||||||||
2016 | 2015 | 2014 | ||||||
Fees paid to auditors | ||||||||
- Grant Thornton Sweden AB | 159 | 183 | 145 | |||||
- Revico Grant Thornton OY | 59 | 47 | 35 | |||||
- Deloitte AS | 43 | 51 | 53 | |||||
- Grant Thornton Beijing Ltd | 134 | 131 | 110 | |||||
Audit fees | 395 | 412 | 343 | |||||
- Grant Thornton Sweden AB | 0 | 21 | 28 | |||||
Other fees | 0 | 21 | 28 |
The amount of other external costs include lease payments, excluding rent for the premises, with 1 780, 1 811 and 1 076 (Thousand kronas) in the years ending 2016, 2015 and 2014 respectively.
(Unaudited) | ||||||||
NOTE3PERSONNEL(Kronas in thousands, exept for employee data) | ||||||||
2016 | 2015 | 2014 | ||||||
- Women | 31 | 29 | 28 | |||||
- Men | 69 | 67 | 63 | |||||
Average number of employees | 100 | 96 | 91 | |||||
- Women | 1 | 2 | 0 | |||||
- Men | 3 | 3 | 4 | |||||
Board of Directors | 4 | 5 | 4 | |||||
- Women | 1 | 2 | 0 | |||||
- Men | 3 | 3 | 4 | |||||
Management and Managing Directors | 4 | 5 | 4 |
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STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Notes |
- Board of Directors & CEO* | 1 918 | 2 831 | 4 516 | |||||
- Other employees | 32 743 | 29 718 | 26 109 | |||||
Salaries & remunerations | 34 661 | 32 549 | 30 625 | |||||
- Pension expenses for Board of Directors & CEO | 380 | 670 | 1 370 | |||||
- Pension expenses for other employees | 2 148 | 1 653 | 1 594 | |||||
- Other social expenses | 9 986 | 8 818 | 8 407 | |||||
Social costs | 12 514 | 11 141 | 11 371 | |||||
*Bonus and similar | 144 | 144 | 2 401 |
Personnel costs have been reduced by wage subsidy in the group with 836, 849 and 664 (Thousands kronas) in the years ending 2016, 2015 and 2014 respectively. |
Subsidiaries have retirement benefits obligation amounting to 5 297, 4 886 and 4 279 (Thousand kronas) in the years ending 2016, 2015 and 2014 respectively which is fully reinsured by capital insurances. |
(Unaudited) | ||||||||
NOTE4INTEREST INCOME & SIMILAR PROFIT ITEMS(Kronas in thousands) | ||||||||
2016 | 2015 | 2014 | ||||||
- Exchange gains | 2 533 | 276 | 4 337 | |||||
-Translation difference | 0 | 0 | 5 248 | |||||
- Interest income from account receivable - trade | 125 | 48 | 29 | |||||
- Other interest income | 72 | 70 | 1 327 | |||||
Interest income & similar | 2 730 | 394 | 10 941 |
(Unaudited) | ||||||||
NOTE5INTEREST EXPENSES & SIMILAR LOSS ITEMS(Kronas in thousands) | ||||||||
2016 | 2015 | 2014 | ||||||
- Exchange loss | 0 | -64 | 0 | |||||
-Translation difference | 0 | 0 | 0 | |||||
- Other interest expense | -914 | -1 023 | -1 499 | |||||
Interest expense & similar | -914 | -1 087 | -1 499 |
(Unaudited) | ||||||||
NOTE 6 TAX ON PROFIT FOR THE YEAR(Kronas in thousands) | ||||||||
2016 | 2015 | 2014 | ||||||
- Current income tax | -10 081 | -15 065 | -15 972 | |||||
- Deferred income tax | -165 | -2 596 | -1 606 | |||||
Tax on profit for the year | -10 246 | -17 661 | -17 578 |
(Unaudited) | ||||||||
NOTE7CAPITALIZED EXPENDITURE OF SOFTWARE*(Kronas in thousands) | ||||||||
2016-12-31 | 2015-12-31 | |||||||
- Acquisition value brought forward | 3 314 | 2 799 | ||||||
- Purchases | 37 | 515 | ||||||
Accumulated acquisition value carried forward | 3 351 | 3 314 | ||||||
- Amortization brought forward | -1 169 | -764 | ||||||
- Amortization for the year | -439 | -405 | ||||||
Accumulated amortization carried forward | -1 608 | -1 169 | ||||||
Planned residual value carried forward | 1 743 | 2 145 |
*Capitalized expenditure consists of the capitalized costs of ERP systems. |
12(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Notes |
(Unaudited) | ||||||||
NOTE 8 GOODWILL*(Kronas in thousands) | ||||||||
2016-12-31 | 2015-12-31 | |||||||
- Acquisition value brought forward | 124 999 | 124 999 | ||||||
Accumulated acquisition value carried forward | 124 999 | 124 999 | ||||||
- Amortization brought forward | -124 999 | -124 999 | ||||||
- Amortization for the year | 0 | 0 | ||||||
Accumulated amortization carried forward | -124 999 | -124 999 | ||||||
Planned residual value carried forward | 0 | 0 |
* Goodwill relating to acquisition of the brand STIGA in certain products and the Games business operations.
The life of goodwill is expected to exceed the amortization period of eight years.
((Unaudited) | ||||||||
NOTE9LAND& BUILDINGS(Kronas in thousands) | ||||||||
2016-12-31 | 2015-12-31 | |||||||
- Acquisition value brought forward | 59 414 | 44 548 | ||||||
- Purchases | 2 306 | 14 866 | ||||||
Accumulated acquisition value carried forward | 61 720 | 59 414 | ||||||
- Depreciation brought forward | -10 619 | -9 096 | ||||||
- Depreciation for the year | -2 276 | -1 523 | ||||||
Accumulated depreciation carried forward | -12 895 | -10 619 | ||||||
Planned residual value carried forward | 48 825 | 48 795 | ||||||
- Buildings | 42 791 | 33 791 | ||||||
- Land | 5 754 | 5 754 | ||||||
Assessed value (For taxation) | 48 545 | 39 545 |
(Unaudited) | ||||||||
NOTE 10 MACHINERY, EQUIPMENTS & TOOLS (Kronas in thousands) | ||||||||
2016-12-31 | 2015-12-31 | |||||||
- Acquisition value brought forward | 50 432 | 36 861 | ||||||
- Purchases | 7 506 | 13 571 | ||||||
- Sales / disposals | -694 | 0 | ||||||
Accumulated acquisition value carried forward | 57 244 | 50 432 | ||||||
- Depreciation brought forward | -21 502 | -16 154 | ||||||
-Sales/disposals | 603 | 0 | ||||||
- Depreciation for the year | -6 464 | -5 348 | ||||||
Accumulated depreciation carried forward | -27 363 | -21 502 | ||||||
Planned residual value carried forward | 29 881 | 28 930 |
(Unaudited) | ||||||||
NOTE11OTHER FIXED ASSETS INVESTMENTS(Kronas in thousand | ||||||||
2016-12-31 | 2015-12-31 | |||||||
-Acquisition value brought forward | 4 886 | 4 896 | ||||||
- Purchases | 411 | 607 | ||||||
- Sales / disposals | 0 | -617 | ||||||
Accumulated acquisition value carried forward | 5 297 | 4 886 |
5297, 3 102 and 2 097 (Thousand kronas) in the years ending 2016, 2015 and 2014 respectively relating to capital insurance. This is pledged to cover the provision for pensions. The market value on closing date amounted to 6 677 and 5 868 (Thousand kronas) in the years ending 2016 and 2015.
13(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Notes |
(Unaudited) | ||||||||
NOTE 12 OTHER ASSETS(Kronas in thousands) | ||||||||
2016-12-31 | 2015-12-31 | |||||||
- Leasing | 0 | 191 | ||||||
- Other prepaid expenses | 4 919 | 4 059 | ||||||
Prepaid expenses | 4 919 | 4 250 | ||||||
- Royalties | 1 885 | 983 | ||||||
- Other assets | 4 682 | 869 | ||||||
Accrued income | 6 567 | 1 852 | ||||||
Other assets | 11 486 | 6 102 |
NOTE 13 EQUITY (Kronas in thousands) | ||||||||
Changes in equity | Share | Restricted | Non-rest. | |||||
capital | reserves | reserves | Total | |||||
Amount carried forward 2014 | 1 200 | 25 307 | 139 196 | 165 703 | ||||
- Adjustment between rest. and non rest. equity | 5 694 | -5 694 | 0 | |||||
- Dividend to shareholders | -12 000 | -12 000 | ||||||
- Profit for the year | 54 722 | 54 722 | ||||||
Amount carried forward 2015 | 1 200 | 31 001 | 176 224 | 208 425 | ||||
- Adjustment between rest. and non rest. equity | 5 581 | -5 581 | 0 | |||||
- Dividend to shareholders | -16 000 | -16 000 | ||||||
- Translation difference | 197 | 197 | ||||||
- Profit for the year | 49 268 | 49 268 | ||||||
Amount carried forward to 2016 | 1200 | 36 582 | 204 108 | 241 890 | ||||
- Adjustment between rest. and non rest. equity | 0 | 0 | ||||||
- Dividend to shareholders | -18 000 | -18 000 | ||||||
- Translation difference | 924 | 924 | ||||||
- Profit for the year | 28 612 | 28 612 | ||||||
Amount carried forward to 31 December 2016 (unaudited) | 1 200 | 36 582 | 215 644 | 253 426 |
Subsidiaries | Reg. Off. | Registration number | Share | |||
- Munkhammar Fastighetsbolag AB (Directly owned) | Eskilstuna | 556893-3252 | 100% | |||
- STIGA Sports AB (Directly owned) | Eskilstuna | 556448-8178 | 100% | |||
-- STIGA Sports Norway AS (Indirectly owned) | Oslo | 989.698.702 | 100% | |||
-- Oy STIGA Sports Suomi Ab (Indirectly owned) | Helsinki | 2334318-8 | 100% | |||
-- STIGA Sports Beijing Co., Ltd (Indirectly owned) | Beijing | 1100004501143970 | 100% | |||
-- STIGA Sports Japan KK(lndirectly owned) | Tokyo | 0104-01-128454 | 100% |
(Unaudited) | ||||||||
‘NOTE 14 PROVISIONS FOR TAXES(Kronas in thousands) | ||||||||
2016-12-31 | 2015-12-31 | |||||||
- Deferred tax amounts | 10 978 | 10 813 | ||||||
Provisions for taxes | 10 978 | 10 813 |
14(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Notes
(Unaudited) | ||||||||
NOTE 15 LONG-TERM LIABILITIES (Kronas in thousands) | ||||||||
2016-12-31 | 2015-12-31 | |||||||
- Repayment within 2 to 5 years | 10 918 | 12 565 | ||||||
- Repayment after 5 years | 19 735 | 20 572 | ||||||
Long-term Liabilities | 30 653 | 33 137 | ||||||
Property mortgages | 34 575 | 34 575 | ||||||
Chattel mortgages | 40 000 | 40 000 | ||||||
Collateral for this liability and bank overdraft | 74 575 | 74 575 | ||||||
(Unaudited) | ||||||||
NOTE 16 BANK OVERDRAFT (Kronas in thousands) | ||||||||
2016-12-31 | 2015-12-31 | |||||||
- Credit limit | 40 000 | 40 000 | ||||||
- Utilized part of credit limit | 1 486 | 0 | ||||||
(Unaudited) | ||||||||
NOTE 17 ACCRUED LIABILITIES | 2016-12-31 | 2015-12-31 | ||||||
- Pay and payroll overhead | 5 965 | 6 318 | ||||||
- Commissions | 3 613 | 3 550 | ||||||
- Other accrued expenses | 1 021 | 650 | ||||||
Accrued expenses | 10 599 | 10 518 | ||||||
Accrued liabilities | 10 599 | 10 518 | ||||||
NOTE 18 Differences Between Swedish GAAP and US GAAP |
The financial statements have been prepared in accordance with Swedish GAAP. Certain differences exist between Swedish GAAP applied by STIGA Sports Group AB and US GAAP that may be material to the financial information presented therein.
The discussion set forth below summarizes certain differences identified between Swedish GAAP applied by STIGA Sports Group AB and US GAAP. These differences, which have not been quantified, were identified as potentially having an impact on net profit or total equity. No other significant differences between Swedish GAAP and US GAAP were identified with respect to the financial statements of STIGA Sports Group AB.
Goodwill
Under Swedish GAAP, goodwill is amortized over an eight-year period, whereas under US GAAP, goodwill is not amortized, but rather is evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable.
Foreign Currency Translation
Specifically with respect to 2014, foreign currency translation adjustments were recorded within the income statements as opposed to being recorded as a component of equity as required under US GAAP. Commencing in 2015, due to a change in Swedish GAAP foreign currency translation adjustments are recorded as a component of equity.
15(16)
STIGA SPORTS GROUP AB | |
Reg nr 556216-6347 |
Notes
Business Combinations
Under Swedish GAAP, there were no separately identifiable intangible assets that were required to be recognized as a part of the business combination disclosed in Note 8. Under US GAAP, all separately identifiable intangible asset acquired as a part of a business combination should be recorded at the fair value on the date of acquisition and amortized over its expected useful life. Indefinite lived intangible assets are evaluated for impairment annually and whenever events or changes in circumstances indicate the carrying value may not be recoverable in accordance with US GAAP.
16(16)