The combination of rising sales and improved efficiencies had an obvious impact on the bottom line at Adams Golf, with the company posting a narrowing its Q3 loss to $343,000 from a loss of $4.3 million in the year-ago period. Total net sales increased 37.6% to $9.6 million for Q3 2003 from $7.0 million in Q3 2002.
On a category basis, sales of Drivers increased 14.3% to $2.4 million, or 24.6% of total sales, but lost share as a percentage of total sales from 30.3% of ADGO sales in the year-ago period. The company attributed a “large portion” of Driver sales to the recently introduced Redline driver product line. Adams saw a decline in the Tight Lies GT driver sales.
Sales of Irons had the biggest increase for the quarter, jumping 192% to $3.8 million, or 39.4% of total net sales, from $1.3 million, or 18.9% of total net sales, in the year-ago quarter. The gain was due to the recent introduction of the Idea Irons.
Net sales of Fairway Woods increased 9.7% to $3.4 million, or 35.1% of total net sales, in Q3 from $3.1 million, or 44.9% of total net sales, in Q3 LY. The increase is primarily due to net sales generated from the recently introduced Redline fairway woods, partially offset by lower sales of Tight Lies GT fairway woods.
Domestic net sales of the company's products increased 43.4% to $9.0 million from $6.3 million while sales outside of the U.S. were dipped a bit to $663,000. Six customers collectively comprised approximately 25% of total net sales, but no customers represented greater than 10% of total net sales.
Much of the improvement in the net loss can be traced to gross margins that jumped to 43.6% from just 0.1% for the Q3 2002 period. The improvement was due in large part to sales of products yielding higher gross margins coupled with a write-down of aged inventory totaling $0.8 million.
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