Adams Golf reported sales dipped 3.3% in 2008 to $91.5 million from $94.6 million a year ago. The golf equipment maker lost $1.5 million, or 23 cents a share, in the year compared to net income of $9.4 million, or $1.32, in 2007. The prior year's results benefited from the recording of a deferred tax asset of $4.8 million.
The company said ita aggregate cash and cash equivalents balance was $6.0 million as of Dec. 31, 2008. The company repurchased an aggregate of 84,814 shares of its common stock in fiscal 2008.
“2008 was a year of mixed results for our company,'' said Chip Brewer, CEO and President of Adams Golf. “In the face of difficult market conditions, our earnings and revenue performance lagged expectations but fortunately were enough to sustain our strong financial position. On the positive side, our company continues to both gain market share in its primary categories and increase its brand strength. According to Golf Datatech, during 2008, our full year U.S. woods dollar market share increased by 25% and our iron dollar share increased by 10%. Furthermore, according to results from the Darrell Survey, our individual hybrids were the #1 hybrid in play on the PGA, Champions and Nationwide Tours during 2008 and we have won every count on each of these tours thus far in 2009.
“We also continued to be pleased with the recognition our products have received from prominent golf media organizations. Our recently-introduced Idea a4 and a4 OS sets of irons won Gold designations in the 2009 Golf Digest, Hot List and the individual Idea a4 and a4 OS hybrids were the category leader in ''Innovation” in the hybrid category. Our exciting new Speedline driver also won a Gold designation in the 2009 Golf Digest, Hot List. The patent pending, aerodynamic shaping of the Speedline driver lessens drag and airflow turbulence, resulting in faster club head speed and more distance,'' Brewer continued.
“We are pleased with our market share gains, improved brand strength and product positions; however, in the face of what are clearly difficult market conditions, we have also taken steps to reduce our overall expenses with a dual agenda of maintaining our brand and market share momentum while at the same time protecting our strong financial position. Accordingly, we have lowered our year-over-year fixed costs by approximately 13% and are prepared to go further if needed. At the same time we will remain a competitive marketer via multiple endemic media channels and have sustained our primary tour strategies. Our intent is to position ourselves to come out of what appears to be an extended down market with continued financial strength and at the same time increased market share and brand momentum. We are optimistic that this strategy will deliver long term shareholder value when market conditions inevitably improve,'' Brewer concluded.
