Austin, TX 11/18/11 (StreetBeat) --For the three months ended September 30, 2011, Adams Golf (Nasdaq: ADGF) recently reported that its net sales totaled $20.5 million, compared to $19.7 million for the same three month period in 2010. This represented a 4 percent increase. The company earned a net profit of $0.5 million, or $0.06 per fully diluted share, for the three months ended September 30, 2011, just under the $0.07 per fully diluted share reported for the same three months in 2010.Commenting on the results, Chip Brewer, CEO and President of Adams Golf, said, “We were pleased with our third quarter and year-to-date financial results, especially in light of today's economic conditions. Furthermore, and perhaps most importantly, we continued to make progress on our brand development and market share objectives during the quarter:”
Domestic business grew 12 percent for the third quarter of this year as compared to 2010, reflecting both market share and distribution gains according to the company. International business declined 23 percent for the third quarter year-over-year. The company anticipates that international revenue growth will resume in the first half of 2012.
The company ended the quarter with a strong balance sheet, reporting aggregate cash and cash equivalents of $11.3 million and no outstanding balance on a credit facility maintained with Wells Fargo.
Adams Golf gained market share over the past year. According to Golf Datatech LLC, through September, the company’s year-to-date US iron dollar share, in the combined on and off course channels, was 10.87 percent, up 9 percent year-over-year. Year-to-date wood dollar share in the same channels was 5.82 percent, up 7 percent year-over-year.
Brewer shared his outlook for the future, commenting that, "Looking forward, although we recognize today's economic uncertainties and lower consumer confidence, we also believe that year to date the golf equipment business has weathered these storms reasonably well and is in a gradual state of recovery. Specific to our business, we are pleased by our performance over the last several quarters during which we believe we have delivered positive financial results and simultaneously strengthened our brand and reinvested for the future.”
"Whatever the economic conditions in Q4 and 2012 may be, we remain both confident in our strategy and dedicated to creating long term shareholder value via continuing our revenue growth and brand development trends," concluded Mr. Brewer.
The company introduced new Idea a12os irons and hybrids during the quarter and those clubs have generally been receiving positive reviews from both consumers and the trade. They plan to roll out an innovative new fitting system for both hybrids and hybrid iron sets during the fourth quarter.
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