Aldila Inc. the golf shafts manufacturer, announced net sales of $11.3 million and a net loss of $535,000, or 10 cents a share, for the three months ending March 31. That compares to sales of $16.1 million and net income of $707,000, or 13 cents, for the comparable period in 2010.
“Our golf shaft sales during the quarter continued to exhibit the softness we experienced in the fourth quarter. While there have been pockets of success this year with new club offerings, generally the golf market remains down versus historic levels. The market remains highly competitive and unpredictable. As I stated in our fourth quarter report, I believe this year we will see a stronger second half of the year versus the first half as new programs we are involved in are launched beginning sometime in the third and fourth quarters,” said Peter Mathewson, Chairman of the Board and CEO.
“The 2011 PGA Tour is off to a great start for Aldila. Through The Heritage Classic, players using Aldila shafts have already won 9 events, including both World Golf Championship events, the Accenture Match Play Championship and the Cadillac Championship. Aldila remains the most popular shaft manufacturer on the PGA Tour with the most wood and hybrid shafts in play. There are more Aldila shafts in play on Tour for one reason: performance. As the ultimate proving ground for new golf technology, our leadership position on Tour validates our position as the leading innovator of high performance graphite golf shafts. We are continuing to develop new shaft models and collect feedback from players to refine shaft designs that will be introduced later this year,” said Mathewson.
“Our Composite Materials business recorded a 14 percent increase in the first quarter of 2011 versus the first quarter of 2010. We continue to see opportunities for growth and are focusing our efforts towards realizing these new sales. Non-recreational market segments are our highest priority and offer the greatest potential for significant increases in sales. While qualification efforts can be lengthy, we are making progress on several fronts that appear encouraging,” Mathewson said.
“The integration of the Victory Archery acquisition and transition of manufacturing to Vietnam are progressing well. The first production line has been installed in our Vietnam facility and limited production has been underway during the quarter. A second production line will be installed and operational shortly. We are encouraged with the quality and the speed in which our workforce is learning the production process. We believe the quality of manufacturing will improve versus the Mexico factory which has been producing Victory arrows because of the sophistication of our production and quality systems in our Vietnam factory,” said Mathewson.
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
Three months ended
NET SALES $ 11,332 $ 16,119
COST OF SALES 9,184 11,886
Gross profit 2,148 4,233
SELLING, GENERAL AND ADMINISTRATIVE 2,977 3,203
Operating (loss) income (829) 1,030
OTHER INCOME (EXPENSE):
Interest income 2 1
Interest expense (10) (22)
Other, net (6) 91
(LOSS) INCOME BEFORE INCOME TAXES (843) 1,100
(BENEFIT) PROVISION FOR INCOME TAXES (308) 393
NET (LOSS) INCOME $ (535) $ 707
NET (LOSS) INCOME PER COMMON SHARE $ (0.10) $ 0.14
NET (LOSS) INCOME PER COMMON SHARE, ASSUMING DILUTION $ (0.10) $ 0.13
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 5,350 5,202
WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON
EQUIVALENT SHARES 5,350 5,242