Strong revenue growth in both the International and Domestic regions propelled Adams Golf to an impressive third quarter as the golf manufacturer swung to a profit against a year-ago loss  attributed in part to a one-time charge related to a lawsuit settlement.


Total revenues improved 13.2% to $19.2 million for the third quarter on growth in the company’s two largest product segments. Once again, product launches were a key contributor to growth from Adams  as Q3 marked the introduction of several high-end lines, including the Speedline 9064 drivers and the Idea Tech hybrid iron sets. Management pointed out that there were also fewer promotions and close-outs during the quarter, which provided a solid 550 basis point boost in gross margins to 41.9% of sales.


Citing information supplied by Golf Datatech, LLC, Adams said U.S. year-to-date dollar share for Irons was up 18% year-over-year at on- and off-course channels. Year-to-date dollar share for Woods was up 7% in the same channels.


By product segment, sales of Irons improved 1.6% to 12.9 million on strength from the aforementioned Idea Tech V3 lines and the Idea Black line, Idea a7 line and a7 OS irons.  Management said a smaller portion of sales result from the close-out of the Idea a3 OS irons and integrated iron sets.


For Fairway woods, sales fell 18.2% to $2.7 million despite strength from the Idea Black line of hybrids, the Idea a7 and a7 OS hybrids and the Speedline Fast 10 fairway woods.


Drivers improved nearly three-fold off of a small base last year on strength from the Speedline 9064 family and the Speeline Fast 10 driver.  Sales jumped 158% to $3.1 million.


Br region, sales to the U.S. improved 5.8% to $15.3 million, while sales from the company’s International businesses improved 48.7% to $4.4 million. The company continues to be heavily dependant on three large customers, which comprised about 26% of Q3 net sales.


Management declined to give specific guidance, but said the recovery had been “muted” and there appears to have been further softening in the third quarter. CEO Chip Brewer added that “despite the sluggish conditions, it feels as if the market (is) slowly improving and we maintain a cautious optimism…”