Acushnet Holdings Corp. reported a slight decline in operating earnings on a 0.8 percent dip in sales
First Quarter 2017 Financial Results
- First-quarter net sales of $433.6 million, down 1.4 percent year over year, or down 0.8 percent in constant currency
- First-quarter net income attributable to Acushnet Holdings Corp. of $38.1 million, up $14.4 million year over year
- First-quarter adjusted EBITDA of $78.5 million, down 0.9 percent year over year
Quarterly Cash Dividend
Acushnet declared a quarterly cash dividend of 12 cents per share, $8.9 million on an aggregate quarterly basis
Wally Uihlein, Acushnet president and CEO, said, “So far in 2017, the global golf industry is in a good place. While the first few months of industry sell-in are always affected by items like weather patterns and retail trends, the outlook continues to be promising as the golf season gets underway around the world. At Acushnet, our proven strategy, focus on the dedicated golfer and strong relationships with trade partners continue to be important differentiators and keys to our ongoing success. The results to date are encouraging and, as we measure ourselves over the longer term and across cycles, we are pleased with our ongoing progress and remain optimistic about the future.”
David Maher, Acushnet COO, said, “It is a solid beginning to the year for both Titleist and FootJoy, fueled by new product innovation and supported by our global reach and sound execution by our associates. This is a good first step and we remain on track to meet our 2017 goals. Our U.S. business performed well and we showed continued growth outside of the U.S. as we implement our strategy worldwide. A highlight was the successful launch of the 2017 Pro V1 and Pro V1x golf balls. Players on the worldwide professional tours have swiftly converted to these new models and golfers in all markets are excited about the performance advancements.”
Consolidated net sales decreased by 1.4 percent, or by 0.8 percent on a constant currency basis:
- 2.9 percent increase in net sales (3.1 percent increase on a constant currency basis) of Titleist golf balls as a result of strong demand for the new Pro V1 and Pro V1x balls launched in the first quarter of 2017
- 11.7 percent decrease in net sales (10.8 percent decrease on a constant currency basis) of Titleist golf clubs. Demand for the model 917 drivers and fairways was offset by lower sales of Vokey wedges, irons and Japan-specific VG3 clubs that are each in their second year of their two year product cycle
- 7.2 percent increase in net sales (7 percent increase on a constant currency basis) of Titleist golf gear as a result of strength in travel gear and Titleist gloves as well as the successful introduction of the new Players stand bags and new headwear
- 1.7 percent decrease in net sales (0.4 percent decrease on a constant currency basis) in FootJoy golf wear primarily as a result of a decline in footwear, partially offset by increases in apparel and gloves
Consolidated net sales in the United States decreased by 3 percent primarily as a result of the U.S. off-course retail channel being impacted by reduced store count compared with last year due to the retail disruption in 2016.
Acushnet posted year-on-year gains in net sales in regions outside the United States of 0.3 percent, up 1.6 percent on a constant currency basis, with Korea up 24.1 percent and EMEA up 0.8 percent, offset by Japan down 10.6 percent.
Net income attributable to Acushnet improved by $14.4 million to $38.1 million, primarily due to lower interest expense and higher income from operations compared to the first quarter of 2016.
Adjusted EBITDA was $78.5 million, down 0.9 percent year over year. Adjusted EBITDA margin was 18.1 percent for the first quarter versus 18 percent for the prior-year period.
Acushnet Holdings’ board of directors today declared a quarterly cash dividend in an amount of 12 cents per share of common stock. The dividend will be payable on June 16, 2017, to stockholders of record on June 2, 2017. The number of shares currently outstanding is 74,451,977.
- Consolidated net sales are expected to be in the range of $1,565 to $1,595 million in 2017.
- Consolidated net sales on a constant currency basis are expected to increase in the range of 1.8 percent to 3.7 percent in 2017.
- Adjusted EBITDA is expected to be in the range of $220 million to $230 million in 2017
Photo courtesy Titleist