EX-99.1 2 d48999exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
(ADAMSGOLF LOGO)
NEWS RELEASE
FOR IMMEDIATE RELEASE
Adams Golf Announces Results for Second Quarter 2007
PLANO, TEXAS, August 8, 2007 – Adams Golf (OTCBB:ADGO) today reported net sales of $30.4 million for the second quarter ended June 30, 2007 as compared to $25.7 million in the second quarter of 2006, a gain of 18%. The Company reported net income of $2.5 million, or $0.10 per fully diluted share for the second quarter ended June 30, 2007, as compared to net income of $1.8 million, or $0.08 per fully diluted share for the comparable period of 2006.
“We are pleased with our continued sales and earnings growth,” stated Mr. Chip Brewer, CEO and President of Adams Golf. “We continue to invest in our leadership position in the hybrid iron set category, which we believe will grow significantly in the months and years ahead. Accordingly, we launched the Idea a3 hybrid iron sets and individual hybrids at the end of the second quarter, and are pleased with the initial customer feedback and sales results. Our individual hybrids have maintained the #1 hybrid count on the combined professional men’s tours (PGA, Champions and Nationwide) for the second quarter of 2007, according to results from the Darrell Survey. We have won the hybrid count at seven PGA Tour events since the beginning of the second quarter. Adams Golf staff players have also won the last four Champion’s Tour tournaments, including the U.S. Senior Open and the Senior British Open. We continue to invest in our brand, our overall organization, particularly our R&D group, and our positions on the competitive professional tours, as we believe these investments position us for continued growth.”
Adams Golf will host a conference call at 4:30 p.m. Eastern time on Thursday, August 9th, 2007, with Chip Brewer, CEO and President, and Eric Logan, Chief Financial Officer, to review Adams’ 2007 second 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 12670983.
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,” “continued” 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 filings 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.
For more information, please contact:
Patty Walsh
Director, Investor Relations
Adams Golf
(972) 673-9595
pattywalsh@adamsgolf.com

 


 

ADAMS GOLF, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
                 
    June 30,     December 31,  
    2007     2006  
    (unaudited)          
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 7,806     $ 9,472  
Trade receivables, net of allowance for doubtful accounts of $709 (unaudited) and $702 in 2007 and 2006, respectively
    27,797       13,553  
Inventories, net
    25,189       24,651  
Prepaid expenses
    1,768       686  
Other current assets
    1,398       1,371  
 
           
 
               
Total current assets
    63,958       49,733  
 
               
Property and equipment, net
    755       719  
Deferred tax asset – non current
    4,052       4,052  
Other assets, net
    1,407       1,099  
 
           
 
  $ 70,172     $ 55,603  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Current liabilities:
               
Accounts payable
  $ 10,607     $ 6,271  
Accrued expenses
    10,531       7,463  
 
           
 
               
Total liabilities
    21,138       13,734  
 
           
 
               
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; 25,526,647 and 24,895,226 shares issued and 24,418,051 and 23,958,606 shares outstanding at June 30, 2007 (unaudited) and December 31, 2006, respectively
    26       25  
Additional paid-in capital
    91,160       90,630  
Accumulated other comprehensive income
    1,594       887  
Accumulated deficit
    (39,876 )     (46,147 )
Treasury stock, 1,108,596 and 936,627 common shares, at cost, at June 30, 2007 (unaudited) and December 31, 2006, respectively
    (3,870 )     (3,526 )
 
           
Total stockholders’ equity
    49,034       41,869  
 
           
 
  $ 70,172     $ 55,603  
 
           

 


 

ADAMS GOLF, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
 
                               
Net sales
  $ 30,403     $ 25,733     $ 58,211     $ 47,998  
 
                               
Cost of goods sold
    17,101       14,563       32,714       26,377  
 
                       
 
                               
Gross profit
    13,302       11,170       25,497       21,621  
 
                               
Operating expenses:
                               
Research and development expenses
    818       627       1,629       1,237  
Selling and marketing expenses
    7,711       6,603       13,417       11,513  
General and administrative expenses
    2,194       2,169       4,108       3,841  
 
                       
Total operating expenses
    10,723       9,399       19,154       16,591  
 
                       
Operating income
    2,579       1,771       6,343       5,030  
 
                       
 
                               
Other income (expense):
                               
Interest income (expense), net
    20       32       44       77  
Other income (expense), net
    (49 )     (3 )     (36 )     44  
 
                       
Income before income taxes
    2,550       1,800       6,351       5,151  
Income tax expense
    33       30       80       31  
 
                       
Net income
  $ 2,517     $ 1,770     $ 6,271     $ 5,120  
 
                       
 
                               
Net income per common share
                               
— basic
  $ 0.10     $ 0.08     $ 0.26     $ 0.22  
 
                       
 
                               
— diluted
  $ 0.08     $ 0.06     $ 0.20     $ 0.18