PLANO, TEXAS, March 14, 2007 – Adams Golf (OTCBB:ADGO) today reported net sales of $13.1 million for its fourth quarter ended Dec. 31, 2006, as compared to $9.7 million in the comparable period of 2005. The Company reported net income of $4.4 million, or $0.15 per fully diluted share for the fourth quarter ended Dec. 31, 2006, as compared to a net loss of $1.0 million, or $0.04 per fully diluted share for the comparable period of 2005. In the 2006 fourth quarter, the Company recorded a deferred tax asset of $5.4 million, which represents its estimate of future usage of our net operating loss tax carry forward.
For the year ended Dec. 31, 2006, net sales were $76.0 million, as compared to $56.4 million for the year ended Dec. 31, 2005. The Company had net income of $9.0 million, or $0.31 per fully diluted share for 2006, as compared to net income of $3.2 million, or $0.12 per fully diluted share in 2005. In the 2006 fiscal year, the Company benefited from the recording of a deferred tax asset of $5.4 million, as noted above. In the 2005 fiscal year, the Company benefited from the reversal of a legal accrual in the amount of $1.8 million and the receipt of $1.0 million for the settlement of an insurance claim.
The Company’s aggregate cash and cash equivalents balance was $9.5 million as of Dec. 31, 2006. In the fourth quarter of 2006, the Company repurchased 141,736 shares under its current stock repurchase plan. The Company repurchased an aggregate of 279,120 shares of its common stock in fiscal 2006.
"I’m very pleased with the Company’s results for 2006," said Mr. Chip Brewer, CEO and president of Adams Golf. "Our growth for the year was driven primarily by our Idea hybrid iron sets which, according to Golf Datatech, LLC, have been the top-selling brand of irons in off-course golf specialty retail sales since December of 2005. We benefited in the fourth quarter of 2006 from our launches of the Idea Tech OS 8-piece hybrid iron sets and the Idea Pro 8-piece hybrid iron sets and individual hybrids. Our individual hybrids finished 2006 as the #1 hybrid played by professionals on the combined professional men’s tours (PGA, Champions and Nationwide), according to results from the Darrell Survey. We also announced in the fourth quarter of 2006 our intent to purchase certain assets of Women’s Golf Unlimited, which is consistent with our goal of expanding our presence in the growing women’s golf equipment market. That acquisition closed in the first quarter of 2007. Lastly, we’ve continued to make investments in our brand and overall organization, particularly our R&D group."
Adams Golf will host a conference call at 5:30 p.m. Eastern Daylight time on Thursday, March 15, 2007, with Chip Brewer, CEO and President, and Eric Logan, Chief Financial Officer, to review Adams’ 2006 fourth quarter and full year 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 2273498.
Developing high-performance and technologically innovative golf products is the cornerstone of Adams Golf. From the initial design, through manufacturing and servicing, Adams Golf is committed to helping golfers of all abilities enjoy the game of golf. For more information on Adams Golf, visit adamsgolf.com.
Contact:
Jeff Wood – (972) 673-9585 – woodj@adamsgolf.com
Mary Beth Lacy – (760) 346-6942 – mb@mblacy.com
