Adams Golf reported net sales increased 35.1% to $13.1 million for the fourth quarter from $9.7 million in the comparable period last year. Domestic sales lagged slightly behind International, though were still well up for the quarter, increasing 34.7% to $11.3 million from $8.4 million in the year-ago quarter. International sales increased 40.1% to $1.8 million from $1.3 million last year.
All product categories were up for Adams except for Drivers, which is the companys smallest segment in terms of dollars sold. Drivers sales were down 55.4% to $0.5 million in Q4 from $1.2 million for the fourth quarter of 2005. Irons and Fairway Woods were both up more than enough to offset the drivers decrease, with Irons, the companys largest category, increasing 61.7% in the quarter to $9.2 million from $5.7 million last year. Sales of Fairway Woods increased 9.4% to $2.3 million, up from $2.1 million in Q4 last year.
The company used the sales gains to swing from last year's net loss of $1.0 million to net income of $4.4 million for the most recent quarter. In diluted earnings per share terms, the company posted net income of 15 cents compared to a net loss of 4 cents in the year-ago quarter. In the 2006 fourth quarter, the company recorded a deferred tax asset of $5.4 million, which represents its estimate of future usage of its net operating loss tax carry forward.
| Adams Golf, Inc. | |||
| Full Year Results | |||
| (in $ mm) | 2006 | 2005 | Change |
| Total Sales | $76.0 | $56.4 | 34.7% |
| U.S. Sales | $63.0 | $48.5 | 29.9% |
| International | $13.0 | $7.9 | 64.2% |
| Drivers | $7.3 | $15.7 | -53.5% |
| Irons | $51.6 | $23.9 | 116% |
| Fairway Woods | $14.8 | $14.5 | 2.1% |
| Wedges/Other | $2.2 | $2.3 | -3.3% |
| GM % | 44.4% | 46.3% | -190 bps |
| Net Income | $9.0 | $3.2 | +178% |
| Diluted EPS | 31¢ | 12¢ | +158% |
| Inventory* | $24.7 | $16.2 | +52.6% |
| Accts Rec* | $13.6 | $14.2 | -4.4% |
| *at year-end | |||
