Aldila reported that fourth quarter net sales rose 6.6% from $9.1 million in 2002 to $9.8 million in the final quarter of 2003. The company managed to reduce their net loss for the quarter as well, down 28.3% from ($1.7 million) in 2002 to ($1.3 million) in 2003.

Aldila would have actually posted a net income of $800,000 in the quarter if not for a $2.2 million impairment charge related to the company’s investment in Carbon Fiber Technology LLC, a joint venture that Aldila is in the process of selling (SEW_0407).

Gross margins for Q4 were up 1,200 basis points from a meager 9.4% in 2002 to 21.2% for Q4 2003. Much of this was due to the average selling price of golf shaft units increasing 12.7% over the 2002 fourth quarter.

SG&A expense dropped 440 basis points from $1.7 million, or 18.7% of sales, to $1.4 million, or 14.3% of sales. Operating income moved into the black jumping to $0.7 million from an operating loss of ($1.1 million) last year.
Aldila full year sales inched up 1.1% to $37.5 million from $37.8 million for full year 2002. Improved gross margins, which increased 670 basis points to 19.1% for 2003 versus 12.4% in 2002, helped in narrowing the company’s net loss by 39.3% to $1.7 million for the year from $2.8 million in the previous year. SG&A expenses were down 110 basis points to 18.5% of sales compared to 19.6% of sales last year.

The Golf division showed shipments of both value and premium golf shaft units in the 2003 fourth quarter declined 10.5% and 6.6%, respectively, for a total decline of units shipped of 8.0% compared to the comparable quarter in 2002. For the 2003 fiscal year net sales were essentially flat with the prior year. For the entire year, the average selling price of golf shaft units sold increased 10.9% and units shipped declined by 14.5% as compared to 2002.

The Non-Golf business, which is predominantly comprised of hockey products and composite pre-pregs, showed improvement in 2003. The business with Mission Hockey “grew nicely” in 2003. Sales of composite pre-pregs are expected to grow in 2004 based on the level of potential new accounts qualifying our materials.