Acushnet Holdings Corp., the parent of Titleist and FootJoy, reported fourth quarter net sales of $329.8 million, up 3 percent year over year, or 1.3 percent in currency-neutral basis.

The gains were driven by:

  • 19.2 percent increase in net sales (15.5 percent increase on a constant currency basis) of Titleist golf clubs as a result of strong demand for the new model 917 drivers and fairways launched in the fourth quarter of 2016 and continued growth in Vokey wedges and Scotty Cameron putters introduced in the first quarter of 2016; offset by lower sales of irons and hybrids that were launched in the fourth quarter of 2015.
  • 9.5 percent decrease in net sales (10.1 percent decrease on a constant currency basis) in FootJoy golf wear across all categories primarily as a result of the off-course U.S. retail channel disruption caused by the bankruptcy of Golfsmith International Holdings LP.
  • 5.9 percent decrease in net sales (6.2 percent decrease on a constant currency basis) of Titleist golf balls primarily as a result of the off-course U.S. retail channel disruption and the fact that its Pro V1 and Pro V1x balls are in the second year of their two-year product cycle.

Consolidated net sales in the United States decreased by 3.6 percent primarily as a result of the offcourse U.S. retail channel disruption. Acushnet posted year-on-year gains in net sales in regions outside the United States of 9.6 percent — on a constant currency basis, such net sales would have increased by 6.2 percent, with Japan up 14.3 percent, Korea up 10.5 percent and EMEA up 8.8 percent.

The loss net loss attributable to Acushnet Holdings Corp., which went public last year, reached $0.2 million against a loss of $20.4 million a year ago.  The change was primarily due to the recognition of a loss in the fourth quarter of 2015 of $13.8 million on the fair value measurement of the common stock warrants and lower interest expense in the fourth quarter of 2016.

Fourth quarter adjusted EBITDA reached $38.1 million, up 28.9 percent year over year as a result of higher income from operations. Adjusted EBITDA margin increased to 11.6 percent for the fourth quarter from 9.2 percent for the prior year period.

Full year net sales of $1.57 billion, up 4.6 percent year over year, or 4.5 percent in currency-neutral basis. Net income was $45 million against a $1 million loss a year ago. Adjusted EBITDA reached $228.4 million, up 6.4 percent year over year

Wally Uihlein, Acushnet president and CEO, said, “2016 was a good year for Acushnet Holdings as we continued to execute on our proven strategy and strengthen our relationships with dedicated golfers and trade partners. We are pleased with how our team delivered solid revenue and Adjusted EBITDA growth in a year highlighted by industry right-sizing. We are also encouraged by indications that the industry long-term metrics appear to be stabilizing. Looking forward, we feel very good about our market position and opportunity for continued success.”

Uihlein continued, “We are confident in our strategy and ability to execute into the future. Our Board of Directors shares this confidence and today declared our first quarterly cash dividend of 12 cents per share.”

David Maher, Acushnet COO, said, “Our businesses continued to deliver solid performance over the course of 2016, driven in part by our focus on accelerating growth and share gains outside of the United States. Globally, we saw annual growth in the key business segments of golf clubs, golf wear and golf gear capped by the successful fourth quarter introduction of the 917 drivers
and fairways and the strong momentum of the new FootJoy PRO/SL shoe. Entering a new golf ball cycle, we launched the new Pro V1 and Pro V1x in January of 2017 and we are very pleased with the enthusiastic golfer reception and broad tour adoption worldwide.”

Photo courtesy Acushnet