Ashworth got a nice bump from both its International business and its Callaway license in the fiscal fourth quarter ended October 31, but it was the addition of the Gekko brands and its distribution network that helped boost consolidated net revenue 49.3% to $48.3 million from $32.3 million in the year-ago quarter. Excluding the $10.1 million contribution from Gekko, which includes the Kudzu and The Game brands, Q4 sales would have still increased 18.0% for the period to $38.1 million, thanks in large part to a 49.9% increase in Callaway sales and a 56.1% in the International segment in the quarter.
Consolidated fourth quarter net income increased 116.4% to $1.9 million, or 14 cents per diluted share, compared to $877,000, or 7 cents per diluted share, in Q4 last year.
Net revenue for the domestic segment increased 48.2% to $41.1 million from $27.7 million in Q4 last year. Net revenue from the International segment increased to $7.2 million, or 14.9% of sales, from $4.6 million, or 14.2% of sales, in the year-ago period. While Ashworth brand sales increased 9.1% to $27.6 million on the quarter, it fell to 57.2% of total consolidated sales, while Callaway brand sales maintained its 21.8% share of the business $10.5 million for the quarter.
Consolidated inventories at year-end increased 10.7% but were essentially flat excluding Gekko.
ASHW is forecasting full year 2005 EPS in the 76 cents to 82 cents per diluted share range, representing a 27% to 37% increase in earnings over the 60 cents earned in fiscal 2004, and sales are forecast to grow between 20% and 24% to a range of $207.0 million to $215.0 million, compared to $173.1 million in fiscal 2004. The company expects first quarter EPS between zero and two cents per diluted share on net revenues in the $36.7 million to $38.3 million range.
