PLANO, TEXAS, November 8, 2006 – 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.
Contact:
Patty Walsh
Director, Investor Relations
Adams Golf
(972) 673-9595
pattywalsh@adamsgolf.com