Aldila, Inc. said net sales were $14.4 million while net income reached $704,000 or 13 cents earnings per share for the three months ended June 30, 2010 as compared to net sales of $10.6 million and a net loss of $627,000 or 12 cents loss per share for the second quarter of 2009.
For the six months ended June 30, 2010, the company’s net sales were $30.5 million and net income of $1.4 million or 27 cents earnings per share as compared to net sales of $24.4 million and a net loss of $675,000 or 13 cents loss per share for the six months ended June 30, 2009.
“During the second quarter we continued to see sales gains in our graphite golf shafts and our composite materials.
Our golf shaft sales increased by 26% and composite material sales increased by 100% versus the second quarter of 2009. Our consolidated sales increased by 36% versus the second quarter of 2009. For the six months ended June 30, 2010, golf shaft sales increased by 16% and composite materials increased by 92% versus the six month period in 2009. Our average selling price declined by 6% and 7% for the three and six month periods ended June 30, 2010, respectively, as compared to the comparable periods in 2009. Our backlog was $6.7 million as of June 30, 2010 as compared to $6.8 million as of June 30, 2009. Our balance sheet is strong, with $8.1 million in cash as of June 30, 2010, after paying down our debt by $3.5 million during the six month period ended June 30, 2010. As of June 30, 2010, the company has zero debt and has terminated its credit facility with Key Bank,” said Peter R. Mathewson, Chairman and CEO.
“Clearly, from our point of view the sell in season has been strong versus last year. The sell through of golf clubs at retail is still a concern as the numbers through June point to a decline in metal wood and iron club sales.
Last year, heavy promotions by equipment manufacturers were rampant with buy one get one free club deals that helped stimulate unit sales. This year’s discounting appears to be much more subdued. We believe our market share has grown over the last couple of years, and we believe our success has hinged on giving our key club partners more compelling shaft options than our competitors. Our three technology platforms of Micro Laminate Technology®, S-core Technology and our new RIP technology, offer us three platforms to design and market the world’s most advanced golf shafts,” said Mr. Mathewson.
“We continue to experience tremendous success on the PGA and Nationwide Tours this year. Aldila shafts have been used to win 8 PGA Tour events, to date. On the Nationwide Tour, our shafts have been used to win 10 times, nearly 70% of all events.
Most recently, our new RIP shaft was used to win the U.S. Open Championship and the runner-up at The British Open Championship used our VooDoo® shaft. We continue to be the leading shaft manufacturer for woods and hybrid clubs on both the PGA and Nationwide Tours. In fact, Aldila shafts are preferred in hybrid clubs by nearly a 2 to 1 margin over our competitors. Our new RIP shaft, introduced in late July, has begun shipping to our distribution network. We envision a broad family of shaft models to be developed under the RIP technology banner and several models are currently being tested for future introductions,” Mr. Mathewson said.
“Our Composite Materials Division continues to show impressive gains in sales, up 100% in the second quarter versus last year’s comparable quarter and up 92% through the six month period versus last year. The three month and six month periods ended June 30, 2010, sales of $3.1 million and $5.8 million, respectively, were record amounts for a quarter and for the first half of the year for the Composite Materials division.
The increase in sales was primarily attributed to increases in sales to customers in the recreational industry. The company also had a 162% increase in sales to customers in the industrial industry, however, the increase only represents 11% of Composite Materials sales. The company is actively pursuing new customers in an attempt to further diversify its business. Composite Materials sales represented 22% and 19% of the company’s consolidated sales for the three month and six month periods ended June 30, 2010, respectively. The company plans to further strengthen the organization during the year with the addition of some key personnel as we seek to build a solid foundation for growth,” said Mr. Mathewson.