EX-99 2 pr11607.htm PRESS RELEASE EXHIBIT 99.1

NEWS RELEASE

 

FOR IMMEDIATE RELEASE

Adams Golf Announces Results for Third Quarter 2007

PLANO, TEXAS, November 6, 2007 - Adams Golf, Inc. (OTCBB:ADGO) today reported net sales of $18.9 million for the third quarter ended September 30, 2007 as compared to $15.0 million in the third quarter of 2006, an increase of 27%. The Company reported a net loss of $0.3 million, or $0.01 per fully diluted share for the third quarter ended September 30, 2007, as compared to a net loss of $0.5 million, or $0.02 per fully diluted share for the comparable period of 2006.

"We were pleased with our revenue growth in Q3 and the perceived strengthening of both our brand and our organization," stated Mr. Chip Brewer, President and CEO of Adams Golf. "We believe that these accomplishments, if sustained, will lead to long term improvements in profitability and shareholder value. The revenue growth was driven by the launch of our Idea a3 hybrid iron sets late in the second quarter and the launch of our Idea a3 OS hybrid iron sets late in the third quarter. Hybrid iron sets continue to grow as a percentage of total iron sets sold at retail, and we continue to enjoy a definitive leadership position in this category."

Adams Golf will host a conference call at 4:30 p.m. Eastern time on Wednesday, November 7th, 2007, with Chip Brewer, CEO and President, and Eric Logan, Chief Financial Officer, to review Adams' 2007 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 23302872.

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," "expect," "intend," "estimate," "anticipate," "plan," "seek," "continued," "continue" 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)

ASSETS

 

September 30,
2007

December 31,
2006

 

   (unaudited)

 

Current assets:

   

   Cash and cash equivalents

$   12,577 

$    9,472 

   Trade receivables, net of allowance for doubtful accounts of    $640 (unaudited) and $702 in 2007 and 2006, respectively

17,949 

13,553 

   Inventories, net

23,724 

24,651 

   Prepaid expenses

924 

686 

   Other current assets

        1,527 

      1,371 

      Total current assets

56,701 

49,733 

     

Property and equipment, net

738 

719 

Deferred tax asset - non current

4,052 

4,052 

Other assets, net

     1,232 

      1,099 

$  62,723 

$  55,603 

     

LIABILITIES AND STOCKHOLDERS' EQUITY

     

Current liabilities:

   

   Accounts payable

$   5,747 

$     6,271 

   Accrued expenses

    8,355 

     7,463 

      Total liabilities

   14,102 

   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;    25,903,574 and 24,895,226 shares issued and 24,660,813 and    23,958,606 shares outstanding at September 30, 2007 (unaudited) and    December 31, 2006, respectively

26 

25 

   Additional paid-in capital

91,421 

90,630 

   Accumulated other comprehensive income

1,514 

887 

   Accumulated deficit

(40,203)

(46,147)

   Treasury stock, 1,242,761 and 936,627 common shares, at cost, at    September 30, 2007 (unaudited) and December 31, 2006, respectively

   (4,137)

    (3,526)

      Total stockholders' equity

   48,621 

    41,869 

     
 

$  62,723 

$  55,603 

     

ADAMS GOLF, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2007

2006

2007

2006

Net sales

$  18,929 

$  14,960 

$  77,140 

$  62,958 

Cost of goods sold

    11,189 

    8,575 

    43,904 

    34,952 

      Gross profit

7,740 

6,385 

33,236 

28,006 

Operating expenses:

   Research and development expenses

884 

652 

2,513 

1,889 

   Selling and marketing expenses

5,429 

4,292 

18,845 

15,805 

   General and administrative expenses

   2,276 

   1,979 

   6,384 

   5,820 

         Total operating expenses

   8,589 

   6,923 

   27,742 

   23,514 

         Operating income (loss)

   (849) 

   (538)

   5,494 

   4,492 

Other income (expense):

Interest income (expense), net

102 

68 

146 

146 

   Other income (expense), net

         454 

         (8)

        418 

        35 

      Income (loss) before income taxes

(293)

(478)

6,058

4,673 

Income tax expense

         34 

         22 

           114

         53 

      Net income (loss)

$     (327)

$   (500)

$   5,944

$   4,620

Net income (loss) per common share - basic

$ (0.01)

$  (0.02)

$    0.25 

$    0.20 

                                                       - diluted

$ (0.01)

$  (0.02)

$    0.19 

$    0.16