PLANO, Texas– Adams Golf (OTCBB:ADGF) today reported record net sales of $94.6 million for the year ended December 31, 2007, compared to $76.0 million for the year ended December 31, 2006, a gain of 24% year-over-year. The Company reported net income of $9.4 million, or $1.32 per fully diluted share (adjusted for the February 19, 2008 1-for-4 reverse split) for 2007, compared to net income of $9.0 million, or $1.24 per fully diluted share (split adjusted) for 2006. In 2007, the Company benefited from the recording of a deferred tax asset of $4.8 million, which brings the Company's total deferred tax asset on its balance sheet to $10.2 million. In 2006, the Company benefited from the recording of a deferred tax asset of $5.4 million.
The Company reported net sales of $17.5 million for the fourth quarter ended December 31, 2007, compared to $13.1 million for the comparable period of 2006, a gain of 34% year-over-year. The Company reported net income of $3.5 million, or $0.49 per fully diluted share (split adjusted) for the fourth quarter ended December 31, 2007, compared to net income of $4.4 million, or $0.61 per fully diluted share (split adjusted) for the comparable period of 2006. In the fourth quarter of 2007, the Company recorded a deferred tax asset of $4.8 million, as noted above. In the fourth quarter of 2006, the Company recorded a deferred tax asset of $5.4 million.
The Company's aggregate cash and cash equivalents balance was $11.3 million as of December 31, 2007. In the fourth quarter of 2007, the Company repurchased 15,433 shares of its common stock (split adjusted) under its current, previously announced stock repurchase plan. The Company repurchased an aggregate of 91,966 shares of its common stock (split adjusted) in 2007 under the plan.
"We continue to be pleased with the Company's performance," said Mr. Chip Brewer, CEO and President of Adams Golf. "Over the last five years we have delivered a 20% compound average growth rate in revenues and consistent profitability, while simultaneously investing in our brand and organizational resources. In 2007, we delivered both record annual revenues and increased year-over-year profitability. Our revenue growth continues to be driven by our Idea hybrid iron sets.
"To position the company for long term viability, continued growth and enhanced long term profitability we made considerable investments in our business over the last twelve months. These include investments in our product development team, marketing and tour exposure. Among the most visible of these investments has been the signing of prominent PGA Tour players Aaron Baddeley and Rory Sabbatini, who are ranked 18th and 9th, respectively, in the current world rankings, to endorsement agreements aimed at broadening our brand appeal and exposure.
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 using terminology such as "may," "will," "expect," "forward," "future," "intend," "estimate," "anticipate," "plan," "seek" or "believe," and "belief." 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: the ability to maintain historical growth in revenue and profitability; product development difficulties; product approval and conformity 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; the success of our tour strategy; our dependence on a limited number of customers; 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; investor audience, interest or valuation; and 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
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