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 company’s 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 company’s 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