Golfsmith International Holdings, Inc. reported net revenues declined 13.5% in the first quarter to $68.8 million from $79.2 million a year ago. The decline reflected an 11.7% decrease in comparable store sales and a 24.8% decrease in revenues from its direct channel. The net loss of $5.1 million, or 32 cents a share, in the period, was slightly less than the net loss of $5.4 million, or 34 cents, a year ago.


Operating loss totaled $5.4 million for the first quarter of fiscal 2009 compared to a loss of $5.2 million for the first quarter of fiscal 2008. The company recorded a $0.5 million non-recurring charge, or 3 cents per diluted share, related to severance associated with organizational changes recorded in this yearÂ’s first quarter. Operating results for the first quarter of fiscal 2008 included a $1.8 million non-recurring charge, or 11 cents per diluted share, related to the same.


As of April 4, 2009, the company had $45.2 million of outstanding borrowings under its credit facility, borrowing availability of $16.4 million, and total inventory of $94.1 million. This compares to $65.4 million of outstanding borrowings under its credit facility, $2.2 million of borrowing availability, and $100.5 million of inventory at March 29, 2008. Average store inventory declined 7.8% at April 4, 2009 as compared to March 29, 2008.

Martin Hanaka, Chairman and CEO commented, “While the recession continues to pressure spending in our industry, it is also making us a better organization as we focus on initiatives to increase efficiencies, reduce operating expenses and lower inventory levels, in which all areas we have made very good progress. As a result of these efforts, along with same stores sales that outperformed our plan for the quarter, we were able to generate free cash flow in the quarter and finish the period in an even stronger financial position. We will carry this improved operating platform, our differentiated merchandise assortment, and our Guest-First in-store experience into the future, and remain confident that we will gain market share.”


 














































































































































































































































































 
Golfsmith International Holdings, Inc.
Consolidated Statements of Operations
   
 
Three Months Ended
April 4, March 29,
  2009     2008  

(unaudited)

 
Net revenues $ 68,792,904 $ 79,235,496
Cost of products sold   46,022,438     52,075,606  
Gross profit 22,770,466 27,159,890
 
Selling, general and administrative 27,817,929 32,335,834
Store pre-opening/closing expenses   348,226     28,144  
Total operating expenses 28,166,155 32,363,978
 
Operating loss (5,395,689 ) (5,204,088 )
 

Interest income (expense), net

(477,140 ) (987,699 )
Other income (expense), net 56,750 6,561
   
Loss before income taxes (5,816,079 ) (6,185,226 )
 
Income tax benefit   689,766     742,227  
 
Net loss $ (5,126,313 ) $ (5,442,999 )
 
Net loss per share:
Basic $ (0.32 ) $ (0.34 )
Diluted $ (0.32 ) $ (0.34 )
 
Weighted average number of shares outstanding:
Basic 16,032,183 15,839,215
Diluted 16,032,183 15,839,215