Message #8 From:
NewsBot Date: November 8, 2006 01:55:00 PM
ADGO News Adams Golf Announces Results for Third Quarter 2006
PLANO, Texas--(BUSINESS WIRE)--Adams Golf (OTCBB:ADGO) today reported net sales of $15.0 million for
the third quarter ended September 30, 2006 as compared to $10.2 million
in the comparable period of 2005. The Company reported a net loss of
$0.5 million, or $0.02 fully diluted per share for the third quarter
ended September 30, 2006, as compared to a net loss of $0.4 million, or
$0.02 fully diluted per share for the comparable period of 2005. In the
2005 third quarter, the Company benefited from the reversal of a legal
accrual in the amount of $1.8 million pretax.
For the nine months ended September 30, 2006, net sales were $63.0
million as compared to net sales of $46.8 million in the comparable
period of 2005. The Company reported net income of $4.6 million in the
2006 period, or $0.20 fully diluted per share, as compared to net income
of $4.3 million and fully diluted earnings per share of $0.19 in the
comparable period of the prior year.
"I’m very pleased with the company’s
sales, earnings growth and overall progress year to date," said Mr. Chip
Brewer, CEO and President of Adams Golf. "Our growth has been primarily
driven by our Idea hybrid iron sets which, according to Golf Datatech,
LLC, have been the #1 selling brand of irons in Off Course Golf
Specialty retail sales since December of 2005. Additionally, our
individual hybrids have become the #1 hybrid played by professionals on
the combined professional men’s tours (PGA,
Champions and Nationwide) for the year to date period, according to
results from the Darrell Survey. Lastly, we’ve
continued to make investments in our brand and overall organization,
particularly our R&D organization.”
Adams Golf will host a conference call at 5 p.m. Eastern time on
Thursday, November 9, 2006, with Chip Brewer, CEO and President, and
Eric Logan, Chief Financial Officer, to review Adams' 2006 third quarter
financial results. For telephone access to the conference call dial
(800) 374-0113 or (706) 758-9607 for international calls, and request
connection to the Adams Golf conference call. The conference ID # is
1775996.
This press release contains "forward-looking statements" made under
the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. The statements include, but are not limited to statements
regarding our ability to continue manufacturing products that are
commercially acceptable to consumers, statements which may imply past
performance as an indicator of future trends, and statements using
terminology such as "may," "will," "expect," "intend," "estimate,"
"anticipate," "plan," "seek" or "believe". Such statements reflect the
current view of the Company with respect to future events and are
subject to certain risks, uncertainties and assumptions related to
certain factors including, without limitation, the following: risks
relating to product development; risks that past performance may not be
an accurate indicator of future trends; risks that products may not meet
with approval and conform to governing body regulations; assembly
difficulties; competing product introductions; patent infringement
risks; uncertainty of the ability to protect intellectual property
rights; market demand and acceptance of products; the impact of changing
economic conditions; the success of our marketing strategy; our
dependence on a limited number of customers and suppliers; business
conditions in the golf industry; reliance on third parties, including
suppliers; the actions of competitors, including pricing, advertising
and product development risks concerning future technology; the
management of sales channels and re-distribution; and one-time events
and other factors detailed under "Risk Factors" in our Securities and
Exchange Commission filings. These filing can be obtained by visiting
the corporate governance section of our website at www.adamsgolf.com
or by contacting Adams Golf Investor Relations at InvestorInfo@adamsgolf.com.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that
such expectations will prove to be correct. Based upon changing
conditions, should any one or more of these risks or uncertainties
materialize, or should any underlying assumptions prove incorrect,
actual results may vary materially from those described herein. Except
as required by federal securities laws, Adams Golf undertakes no
obligation to publicly update or revise any written or oral
forward-looking statements, whether as a result of new information,
future events, changed circumstances or any other reason after the date
of this press release. All subsequent written and oral forward-looking
statements attributable to the Company or persons acting on its behalf
are expressly qualified in their entirety by the applicable cautionary
statements.
CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands, except share
amounts)
ASSETS
September 30, 2006
December 31, 2005
(unaudited)
Current assets:
Cash and cash equivalents
$ 11,701
$ 10,747
Trade receivables, net of allowance for doubtful accounts of $624 (unaudited)
and $952 in 2006 and 2005, respectively
13,869
14,171
Inventories, net
22,869
16,151
Prepaid expenses
759
754
Other current assets
14
27
Total current assets
49,212
41,850
Property and equipment, net
635
630
Other assets, net
1,231
1,622
$ 51,078
$ 44,102
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 7,228
$ 4,691
Accrued expenses
6,296
7,284
Total liabilities
13,524
11,975
Stockholders' equity:
Preferred stock, $0.01 par value; authorized 5,000,000 shares; none
issued Common stock, $.001 par value; authorized 50,000,000 shares;
24,454,994 and 23,471,653 shares issued and 23,660,110 and
22,814,153 shares outstanding at September 30, 2006 (unaudited) and
December 31, 2005, respectively
--
--
24
23
Additional paid-in capital
90,280
89,499
Accumulated other comprehensive income
1,099
888
Accumulated deficit
(50,527)
(55,147)
Treasury stock, 794,884 and 657,500 common shares, at cost, at
September 30, 2006 (unaudited) and December 31, 2005, respectively
