Adams Golf Announces Record Sales Results for First Quarter 2012
May 11 2012 - 5:25PM
Adams Golf (Nasdaq:ADGF) today reported record net sales of $37.8
million for the three months ended March 31, 2012, as compared to
$30.2 million for the three months ended March 31, 2011, an
increase of 25% year-over-year. Adams Golf recorded a net profit of
$5.4 million, or $0.66 per fully diluted share, for the three
months ended March 31, 2012, as compared to $4.0 million, or $0.50
per fully diluted share, for the comparable period of 2011.
"We are excited about our strong start to 2012 and the continued
brand momentum," said Mr. Barney Adams, Interim CEO of Adams Golf.
"Our Q1 results benefited from our ability to grow our brand and
our business, both domestically and internationally, our great
product offering and technology especially Velocity Slot technology
in our fairway woods and hybrids."
"During the first quarter:
- Revenues from our domestic business grew 25% for the first
quarter 2012 as compared to the first quarter 2011, reflecting both
market share and distribution gains.
- International growth continues to be a key objective for our
company and we perceive this as an area of strong future growth
potential. During Q1 this year, our international revenues
increased 24% over first quarter 2011.
- Our financial position and balance sheet remain in excellent
shape. As of March 31, 2012, our net working capital increased to
$56.6 million from $48.8 million at March 31, 2011 and our total
net assets book value increased to $68.2 million, or $8.53 per
share (calculated as total assets less total liabilities divided by
outstanding shares).
- We continued to strengthen our brand through tour exposure and
sustained our position as the # 1 hybrid on the PGA, Nationwide and
Champions tours combined.
- We were encouraged with the market response to our current
product offerings, especially the Speedline Fast 12 woods, the XTD
fairway and Super XTD hybrid along with the Idea a12OS iron product
lines, all of which are experiencing success in the marketplace.
Our continued success with the Velocity Slot Technology
incorporated into our 2012 fairway woods and hybrids is yielding
market share growth.
- Independent market research from Golf Datatech shows that over
the last year: our overall brand rating was at an all-time high,
purchase interest in our products continued to increase, and we
have increased our lead as the perceived leader in hybrid
technology."
"In summary, we are encouraged with our Q1 results and our
progress on brand and business development. We are excited about
the many opportunities of future growth of the company," concluded
Mr. Adams.
About Adams Golf
Developing high-performance and technologically innovative golf
products is the cornerstone of Adams Golf. From initial design,
through manufacturing and servicing, Adams Golf is committed to
helping golfers of all abilities enjoy the game of golf. For more
information on Adams Golf, please visit www.adamsgolf.com or view
prior press releases at http://www.adamsgolf.com/news.htm.
The Adams Golf logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5031
Forward-Looking Statements
This press release contains "forward-looking statements" made
under the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. The statements include, but are not
limited to, our ability to continue manufacturing products that are
commercially acceptable to consumers, planned product launches and
international growth, our ability to operate profitably and protect
our financial condition and statements using terminology such as
"may," "would," "expect," "intend," "estimate," "anticipate,"
"plan," "seek," "inevitably," "appears," or "believe." Such
statements reflect the current view of Adams Golf with respect to
future events and are subject to certain risks, uncertainties and
assumptions related to certain factors including, without
limitation, the following: the impact of changing economic
conditions; product development difficulties; assembly
difficulties; competing product introductions; patent infringement
risks; our ability to protect our intellectual property rights;
market demand and acceptance of products; the success of our
marketing strategy both domestically and internationally; our
dependence on a limited number of customers; business conditions in
the golf industry; reliance on third parties, including suppliers;
the actions of competitors, including pricing, advertising and
product development risks concerning future technology; the
management of sales channels and re-distribution both domestically
and internationally; and one-time events and other factors detailed
under "Risk Factors" in our most recent Form 10-K and other filings
we have made with the Securities and Exchange Commission. These
filings can be obtained by contacting Adams Golf Investor Relations
or visiting the SEC's website at www.sec.gov.
Although Adams Golf believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. Based
upon changing conditions, should any one or more of these risks or
uncertainties materialize, or should any underlying assumptions
prove incorrect, actual results may vary materially from those
described herein. Except as required by federal securities laws,
Adams Golf undertakes no obligation to publicly update or revise
any written or oral forward-looking statements, whether as a result
of new information, future events, changed circumstances or any
other reason after the date of this press release. All subsequent
written and oral forward-looking statements attributable to Adams
Golf or persons acting on its behalf are expressly qualified in
their entirety by the applicable cautionary statements.
ADAMS GOLF, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands,
except share amounts) |
ASSETS |
|
March 31, 2012 |
December 31,
2011 |
|
(unaudited) |
|
Current assets: |
|
|
Cash and cash equivalents |
$ 8,415 |
$ 18,216 |
Trade receivables, net of allowance for
doubtful accounts of $2,218 (unaudited) and $2,172 at March 31,
2012 and December 31, 2011, respectively |
38,354 |
16,786 |
Inventories, net |
23,645 |
26,480 |
Prepaid expenses |
209 |
209 |
Deferred tax asset, net –current |
1,609 |
1,962 |
Other current assets |
2,550 |
3,274 |
Total current assets |
74,782 |
66,927 |
|
|
|
Property and equipment, net |
901 |
946 |
Deferred tax asset, net – non current |
9,315 |
11,245 |
Other assets, net |
1,382 |
1,423 |
|
$ 86,380 |
$ 80,541 |
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 2,812 |
$ 7,363 |
Accrued expenses and other current
liabilities |
15,387 |
10,788 |
Total liabilities |
18,199 |
18,151 |
|
|
|
Stockholders' equity: |
|
|
Preferred stock, $0.01 par value;
authorized 1,250,000 shares; none issued |
---- |
---- |
Common stock, $0.001 par value;
authorized 12,500,000 shares; 8,406,448 and 8,218,726 shares issued
and 7,995,511 and 7,807,789 shares outstanding at March 31, 2012
(unaudited) and December 31, 2011, respectively |
8 |
8 |
Additional paid-in capital |
95,481 |
95,291 |
Accumulated other comprehensive
income |
2,943 |
2,727 |
Accumulated deficit |
(25,497) |
(30,882) |
Treasury stock, 410,937 common shares at
March 31, 2012 and December 31, 2011, at cost |
(4,754) |
(4,754) |
Total stockholders' equity |
68,181 |
62,390 |
|
|
|
|
$ 86,380 |
$ 80,541 |
ADAMS GOLF, INC.
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts) (unaudited)
|
|
|
|
|
|
|
Three Months
Ended |
|
March
31, |
|
2012 |
2011 |
|
|
|
Net sales |
$ 37,799 |
$ 30,186 |
Cost of goods sold |
20,157 |
16,030 |
Gross profit |
17,642 |
14,156 |
|
|
|
Operating expenses: |
|
|
Research and development expenses |
755 |
699 |
Selling and marketing expenses |
7,306 |
6,586 |
General and administrative expenses |
1,767 |
2,751 |
Total operating expenses |
9,828 |
10,036 |
Operating income |
7,814 |
4,120 |
|
|
|
Other expense: |
|
|
Interest expense, net |
(7) |
(14) |
Other income (expense), net |
(5) |
(1) |
|
|
|
Income before income taxes |
7,802 |
4,105 |
Income tax expense |
2,417 |
66 |
Net income |
$ 5,385 |
$ 4,039 |
|
|
|
Net income per common share - basic |
$ 0.68 |
$ 0.53 |
- diluted |
$ 0.66 |
$ 0.50 |
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (in thousands)
(unaudited) |
|
|
Three Months Ended
March 31, |
|
2012 |
2011 |
Comprehensive income: |
|
|
Net income |
$ 5,385 |
$ 4,039 |
Foreign currency translation |
216 |
360 |
Comprehensive income |
$ 5,601 |
$ 4,399 |
CONTACT: Pamela High
Chief Financial Officer
Adams Golf
(972) 673-9000
InvestorInfo@adamsgolf.com
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