True Temper Sports, Inc. saw 70% of its revenues come from sales of steel golf shafts in 2004; a market in which True Temper sees itself having a 68% worldwide share. TRUE claims an 8% share of the graphite shaft segment.
Net sales for 2004 decreased 15.3% to $98.4 million from $116.2 million in 2003. Gross margin for the year was 26.8% of sales, more than a 1,300 point drop from the 40.2% of sales seen in 2003. TRUE posted a loss of $20.1 million for the year versus net income of $10.9 million in the prior year.
For the fourth quarter, net sales totaled $21.5 million, a 21.6% decrease from $27.4 million in the fourth quarter of 2003. TRUE posted a negative gross margin for the quarter (-21.1%), compared to a 39.2% gross margin in Q4 last year. Net income was also in the red for the quarter at a loss of $14.5 million, down from a $2.2 million profit in the year-ago period.
Inventories were up nearly 40% at year-end to $21.9 million, compared to $15.7 million at 2003 year-end.
