Adams Golf reported sales increased 35.0 percent in the first quarter to $30.2 million from $22.4 million a year ago.
Adams Golf recorded a net profit of $4.0 million, or 50 cents per fully diluted share, for the three months ended March 31, 2011, as compared to $1.7 million, or 21 cents per fully diluted share, for the comparable period of 2010.
“We are very pleased with our start in 2011 and continue to be optimistic regarding our long term prospects,” said Mr. Chip Brewer, CEO and President of Adams Golf. “Our Q1 results benefited from improved year-over-year operations performance (in 2010 our Q1 revenues were constrained by inventory availability) as well as improving market conditions and our ability to grow our brand and our business at large, both domestically and internationally.”
“Furthermore, and perhaps most importantly, we continued to make progress on our brand, product and business development objectives during the quarter:
* According to Golf Datatech LLC, for the first quarter of 2011, in the combined On and Off Course Channels, our US iron dollar share was 12.0%, flat versus Q1 2010 and up 8.4% versus Q4 2010. Our wood dollar share in the same channels was 6.7%, up 2.1% over Q1 2010 and up 11.9% over Q4 2010. These results continue a long term growth trend that has extended over several years now.
* As for market conditions, Golf Datatech LLC reports that the US iron market experienced 17% year-over-year expansion in dollar sell through for Q1 2011, while the wood market experienced 22% growth.
* 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 26% over the previous year. We continue to focus resources towards the development of this business, including but not limited to, establishing a third party distribution center to better service and develop the European market, which became fully functional during this quarter.
* During Q1 we successfully closed on the acquisition of the Yes! Golf assets and began to work through the integration and re-launch efforts both domestically and internationally. We believe the Yes! brand name and technology will provide us the opportunity for future growth in the putter category.
* Our financial position and balance sheet remain in excellent shape. As of March 31, 2011, our net working capital increased to $39.1 million from $31.0 million at March 31, 2010 and our total net assets book value increased to $51.7 million, or $6.72 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.
* We were encouraged with the market response to our current product offerings, especially the Speedline Fast 11 fairway woods and Idea Tech V3 product lines, both of which are experiencing nice success in the marketplace.
* Independent market research from Golf Datatech shows that over the last year; our overall brand continued to strengthen, purchase interest in our products increased, 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 remain dedicated to working towards future growth of the company and are optimistic regarding our potential to create long term shareholder value,” concluded Brewer.
