True Temper Sports, Inc. reported net sales increased 14.2% to $37.7 million for the second quarter of fiscal 2008, compared to $33.0 million reported during the year-ago period. Second quarter net sales, which were driven by strong demand from the steel golf shaft industry, are the largest reported quarterly revenue in the companys history.
Adjusted EBITDA for the second quarter were $10.4 million, a 31.8% increase from $7.9 million posted in year-ago period. Gross profit percentage for True Temper increased 37% from the year-ago period while SG & A expenses improved by a margin of 32%. The companys net loss for the 2008 second quarter narrowed to $0.1 million from a loss of $2.3 million a year ago.
Likewise, True Tempers performance sports business continues its rapid growth, as the company reported a second quarter growth of 75% that followed up on a first quarter growth of 88%.
“The strength of the True Temper and Project X franchises have been clearly demonstrated during the first six months of 2008, as we have seen sales improvement in both our traditional and new products offered under these two flagship brands,” said Scott Hennessy, president and CEO of True Temper.
Looking ahead, Hennessey said the company would continue to expect continued sales gains, but also anticipated some moderation of the growth rate during the back end of 2008.
“We are anticipating continued sales growth in the performance sports category during the second half, but again, at a more modest rate.” Hennessey said, “ while we remain somewhat more cautious going into the back half, it is certainly clear that 2008 will mark a new annual sales record ”