Adams Golf reported record net sales of $37.8 million for the three months ended March 31, 2012, as compared to $30.2 million for the three months ended March 31, 2011, an increase of 25 percent year-over-year. Adams Golf recorded a net profit of $5.4 million, or 66 cents per fully diluted share, for the three months ended March 31, 2012, as compared to $4.0 million, or 50 cents per fully diluted share, for the comparable period of 2011.
“We are excited about our strong start to 2012 and the continued brand momentum,” said Mr. Barney Adams, Interim CEO of Adams Golf. “Our Q1 results benefited from our ability to grow our brand and our business, both domestically and internationally, our great product offering and technology especially Velocity Slot technology in our fairway woods and hybrids.”
“During the first quarter:
— Revenues from our domestic business grew 25 percent for the
first quarter 2012 as compared to the first quarter 2011, reflecting both
market share and distribution gains.
— International growth continues to be a key objective for
our company and we perceive this as an area of strong future growth
potential. During Q1 this year, our international revenues increased 24 percent over first quarter 2011.
— Our financial position and balance sheet remain in excellent shape. As of March 31, 2012, our net working capital increased to
$56.6 million from $48.8 million at March 31, 2011 and our total net
assets book value increased to $68.2 million, or $8.53 per share (calculated as total assets less total liabilities divided by outstanding shares).
— We continued to strengthen our brand through tour
exposure and sustained our position as the # 1 hybrid on the PGA, Nationwide and Champions tours combined.
— We were encouraged with the market response to our current product offerings, especially the Speedline Fast 12 woods, the
XTD fairway and Super XTD hybrid along with the Idea a12OS iron product lines, all of which are experiencing success in the marketplace. Our continued success with the Velocity Slot Technology incorporated into our 2012 fairway woods and hybrids is yielding market share growth.
— Independent market research from Golf Datatech shows that
over the last year: our overall brand rating was at an all-time high, purchase interest in our products continued to increase, and we
have increased our lead as the perceived leader in hybrid technology.”
“In summary, we are encouraged with our Q1 results and our progress on
brand and business development. We are excited about the many
opportunities of future growth of the company,” concluded Mr. Adams.
