Aldila, Inc. saw net sales fall 22.5% to $10.6 million in the second quarter from $13.6 million in the year-ago period. The company's net loss for the period widended to $627,000, or a 12 cents loss per share, for Q2, comapred to a net loss of $523,000, or a loss of 10 cents per share, in the 2008 second quarter.
“We continued our cost reduction effort during the quarter. The company reduced its selling, general and administrative expenses ('SG&A') by 25% during the quarter ended June 30, 2009 as compared to the comparable period in 2008,” said Mr. Peter R. Mathewson, Chairman of the Board & CEO. “SG&A is down 27% for the six months ended June 30, 2009 as compared to the same period in 2008. The company is actively managing its working capital and has increased its cash and cash equivalents by $680,000 as of June 30, 2009 from December 31, 2008, while reducing its total outstanding debt by $3.1 million during that same period. Our backlog as of June 30, 2009 was $6.8 million, an increase of 37% over our backlog at the end of the first quarter of 2009, but down 12% versus the second quarter of 2008.”
“We experienced a 21% decline in our golf shaft sales in the second quarter of 2009 versus the second quarter of 2008. The average selling price of our golf shafts sold decreased by 6% on a 16% decline in unit sales in the second quarter of 2009 versus the second quarter 2008. We continued to see a very difficult market throughout the quarter. The contraction of the golf club market is estimated to be on the order of 20-30% and there is uncertainty as to when it will return to previous levels. We believe our market share remains strong based on the various programs we have been awarded for 2010 product lines set to begin late in the third quarter. Our customers continue to be cautious and take a conservative approach to their business in light of the economic climate,” Mr. Mathewson said.
“Aldila continues to enjoy tremendous success on the PGA and Nationwide Tours in 2009. Through the British Open Championship, Aldila high performance shafts were used by the champions of 10 events on this year's PGA Tour; including the Mercedes-Benz Championship, the WGC-Accenture Match Play Championship and The Masters. Aldila shafts have also been the most popular for woods and hybrids at every Major Championship and World Golf Championship held this year. At the majority of all the other events on the PGA Tour, Aldila has also been the shaft of choice for woods and hybrids. On the Nationwide Tour, Aldila shafts continue to win the wood shaft count on a regular basis and have also been used to win 10 events so far this year. Aldila was also the shaft of choice for the majority of players in both woods and hybrids at the 2009 PGA Club Professional National Championship. The Aldila VooDoo� continues to be our leading shaft on Tour and has been used to win 9 events so far this year. Aldila's newest shaft currently being tested on Tour, the Aldila RIP(TM), continues to grow in popularity and has already been used to win one event on the PGA Tour. The RIP(TM) is scheduled to be released next year in the Aldila product line,” said Mr. Mathewson.
“Our Composite Materials Division sales declined by 32% during the second quarter 2009 as compared to the second quarter of 2008, as customer demand continued to remain weak. We are continuing our focused approach to expand our sales in non-recreational segments of the market. We have made two key hires to strengthen our sales and factory operations,” Mr. Mathewson said.
“Our Vietnam factory is performing up to our expectations at this time and we transferred our VooDoo� technology successfully to our China operation during the quarter, allowing us to cut our workforce roughly in half at our Mexico operation, including substantial fixed cost personnel. We will continue to analyze our Mexico operations for the potential of further reduction,” said Mr. Mathewson.
