Adams Golf, Inc.'s revenues decreased 6% in the third quarter ended Sept. 30, to $17.7 million from $18.9 million a year ago. The company reported a net loss of $1.2 million, or 18 cents a share, for the third quarter compared to net loss of $0.3 million, or 5 cents, for the comparable period of 2007. In the third quarter of 2007, earnings benefited from the receipt of a $0.5 million one-time breakup fee received in connection with a potential purchase of a competitive golf brand.
The company reported net sales of $79.0 million for the nine month period ended Sept. 30, 2008 compared to net sales of $77.1 million for the comparable period of 2007, a gain of 2%. The company reported net income of $1.2 million, or 16 cents per diluted share, for the nine month period ended Sept. 30, 2008 compared to net income of $5.9 million, or 77 cents per diluted share, for the comparable period of 2007.
“Given current economic conditions, I am pleased with the companys overall performance during Q3 and for 2008 year-to-date,” said Mr. Chip Brewer, CEO and President of Adams Golf.
“Our revenue results compare favorably to overall industry performance. According to the National Golf Foundation golf club sales were down 11.8% in Q3 and approximately 9.5% year-to-date. Furthermore, our revenues from on going products, i.e. products not launched in the reporting quarter, were up nearly 8% year-over-year. Lastly, we believe that we remain in a strong financial position with a balance sheet and cash position consistent with where we expect to be on a seasonal basis.”
Brewer continued, “Our strategy is to create long-term shareholder value by re-investing in and growing our business. In a down-market cycle, we believe that our results can best be measured by market share gains and that our company continues to gain market share in its primary categories as well as increase its brand strength. The September Golf Datatech market share reports show our U.S. wood share at 6.7% vs. 5.5% last year, an increase of 22% and our U.S. iron share at 9.0% vs. 8.5% last year, an increase of 6%”
“Furthermore,” he continued, “our Idea a3/a3os model remains the # 1 selling model of irons in the U.S. and independent consumer research shows that we have increased our position as the leader in hybrids. According to the Darrell Survey, we also continue to lead the hybrid count on the PGA, Nationwide and Champions tours. I believe these improvements are tangible and specific evidence that our long term growth and brand development strategy is working and believe these trends, if sustained, are an excellent argument for long term value creation.
“In the long run, I believe this period will strengthen our company, thereby providing the foundation for outstanding performance when market conditions do once again turn in our favor,” Brewer concluded.
