Ashworth, Inc. Reports Fiscal 2001 Financial Results; Reports Strong Response to Pre-Launch of the New Callaway Golf Apparel Line.Business Editors CARLSBAD Carlsbad, cities, United States Carlsbad (kärlz`băd). 1 City (1990 pop. 63,126), San Diego co., S Calif., on the Pacific coast; settled in the 1880s, inc. 1952. , Calif.--(BUSINESS WIRE)--Dec. 12, 2001 Ashworth, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ASHW), a leading golf lifestyle sportswear company, today announced financial results for the fourth quarter and fiscal year ended October October: see month. 31, 2001. In addition, the Company reported that it had received a very strong response to the new Callaway Callaway may refer to:
As announced on November November: see month. 8, 2001, Ashworth reported that the impact of the September September: see month. 11th tragedy and an economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. have negatively affected the Company's sales and net income for its fourth quarter ended October 31, 2001. Consequently, consolidated net revenue for fiscal 2001 was $124.7 million as compared to $125.9 million for fiscal 2000. Consolidated net income for the year was $2.8 million compared to $6.6 million in the prior year. The Company reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.21 for the year as compared to $0.49 for fiscal 2000. Net revenue for the domestic segment decreased 1.8% to $107.7 million from $109.7 million in the prior year. Net revenue for the international segment increased 4.9% to $17.0 million from $16.2 million in the prior year. Consolidated net revenue for the fourth quarter 2001 was $20.3 million as compared to $27.2 million for the fourth quarter of 2000. The Company reported a fourth quarter net loss of $2.2 million or $0.16 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to consolidated net income of $1.1 million or $0.08 per share in the same quarter of the prior year. Net revenue for the domestic segment decreased 29.1% to $17.8 million from $25.1 million in the same period of the prior year. Net revenue for the international segment increased 19.0% to $2.5 million from $2.1 million in the same period of the prior year. Randall Randall may refer to the following: In places:
tr.v. be·set, be·set·ting, be·sets 1. To attack from all sides. 2. To trouble persistently; harass. See Synonyms at attack. 3. by multiple external factors including broad economic weakness, a decline in rounds played, poor weather, and the aftermath of September 11th. While these external factors impacted our financial results, the year included a number of notable accomplishments. We continued strengthening our brand equity by partnering with golf's premier organizations. We were identified in a survey as the best overall golf apparel supplier by golf retailers, which is a testament to the operational initiatives we have implemented over the last few years. As important is that we secured our strategic alliance with Callaway Golf Company Callaway Golf Company is an American golf company based in Carlsbad, California. They manufacture woods, irons, wedges, putters and golf balls and license its name for apparel, footwear, timepieces and accessories. ." "We responded to the slowing sales trends by adjusting those elements of our business within our control," added Terence Terence (Publius Terentius Afer) (tĕr`əns), b. c.185 or c.195 B.C., d. c.159 B.C., Roman writer of comedies, b. Carthage. As a boy he was a slave of Terentius Lucanus, a Roman senator, who brought him to Rome, educated him, and gave him his Tsang Tsang can refer to:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and Chief Financial Officer. "We leveraged our improved sourcing and inventory management systems, to better match our orders to our sales demand, resulting in a 4.5% year-over-year inventory decline. Additionally, we implemented a 12% workforce reduction and expense management initiatives, which we expect will result in significant savings in annual SG&A expenses in FY 2002 before the addition of Callaway start up expenses. We expect to benefit from these initiatives through higher profitability as industry conditions improve." Mr. Herrel continued, "Although sales declined immediately following September 11th due to order cancellations and general caution among retailers, more recently sales trends have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. , though retailers remain relatively cautious in light of the continuing economic weakness and consumer uncertainty. Based on these recent trends, we are cautious regarding our near-term near-term adj. Of, for, or involving a short period of time in the near future. outlook, but remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our long term growth prospects, for both the Ashworth brand and Callaway Golf Apparel line." Ashworth, Inc.'s Spring/Summer 2002 global bookings, which include both Ashworth and Callaway brands, increased 9.0% versus last year. The Ashworth brand's domestic Spring/Summer bookings decreased 4.6%. International Spring/Summer bookings increased 21.2%. Domestic Spring booking trends reflect the retailers' delaying of basic replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. orders until their season starts. Spring basic or replenishment styles have shifted toward more at-once deliveries. Mr. Herrel concluded, "Even though the Callaway Golf Apparel line has yet to officially launch, the potential of the brand is being recognized by both industry professionals and retailers. We have established a separate sales force for the Callaway line and have to date retained 23 of the industry's most experienced professionals. We believe we have successfully attracted these highly qualified individuals because they realize the outstanding growth potential. Additionally, retailer demand for the line is growing and we now expect first year sales of $8 million, higher than our initial $6 million expectation. Callaway Golf Apparel's spring pre-launch package for April delivery only has exceeded our expectations resulting in orders of approximately $2.9 million and will be launched in over 900 doors." The Company believes this is the beginning of one of the largest and most successful golf apparel launches in recent times. The official launch of the line will take place in late January January: see month. 2002 at the PGA (1) (Professional Graphics Adapter) An early IBM PC display standard for 3D processing with 640x480x256 resolution. It was not widely used. (2) (Programmable Gate Array) See gate array and FPGA. Show in Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. . The Company reiterated its sales and earnings guidance for fiscal 2002. Although pre-books and order trends remain volatile, Ashworth currently expects sales of $125 million to $130 million and diluted earnings per share of $0.40 to $0.48 during fiscal 2002. Investors and all others are invited to listen to a conference call discussing the fourth quarter and fiscal 2001 results. The conference call is scheduled for Wednesday Wednesday: see week. , December 12 at 10:00 a.m. Eastern Time. The call will be broadcast over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.ashworthinc.com. An online replay will be available until Friday, December 14, 2001. Additionally, a replay will be accessible by calling (888) 509-0081 and (416) 695-9728 for international callers. Ashworth, Inc. is a designer of men's and women's golf-inspired lifestyle sportswear distributed domestically and internationally in golf pro shops, resorts and upscale department and specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" . Ashworth(R) products include four main brand extensions. Ashworth Collection(TM) is a range of upscale sportswear designed to be worn on and off course. Ashworth Authentics AUTHENTICS, civ. law. This is the name given to a collection of the Novels of Justinian, made by an anonymous author. It is called authentic on account of its authority. 2. There is also another collection which bears the name of authentics. (TM) showcases the most popular items from the Ashworth line. Ashworth Weather Systems(R) utilizes technology to create a balance between fashion and function in any climatic condition. Ashworth 7(TM) addresses the demand for business casual sportswear. Ashworth is the exclusive licensing partner, in selected markets, for men's and women's Callaway Golf(R) apparel. To learn more, please visit our Website at www.ashworthinc.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. related to the Company's market position, finances, operating results, marketing plans and strategies. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks include the timely development and acceptance of new products, as well as strategic alliances, the impact of competitive products and pricing, the success of the women's and corporate distribution channels, the preliminary nature of bookings information, the ongoing risk of excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. , potential inadequacy of booked reserves and other risks described in Ashworth, Inc.'s SEC reports, including the report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended October 31, 2000.
ASHWORTH, INC.
Consolidated Statements of Income
Fourth Quarter ended October 31, 2001 and 2000
(Unaudited)
Summary of Results of Operations
2001 2000
------------ ------------
Fourth Quarter
--------------
Net Revenue $20,348,000 $27,172,000
Cost of Sales 12,689,000 16,476,000
------------ ------------
Gross Profit 7,659,000 10,696,000
Selling, General and
Administrative expenses 10,978,000 8,727,000
------------ ------------
Income (Loss) from
Operations (3,319,000) 1,969,000
Other Income (Expense):
Interest Income 7,000 146,000
Interest Expense (195,000) (141,000)
Other Expense, net (124,000) (184,000)
------------ ------------
Total Other Expense, net (312,000) (179,000)
Income (Loss) Before Provision
for Income Tax (Expense)
Benefit (3,631,000) 1,790,000
Provision for Income Tax
(Expense) Benefit 1,453,000 (730,000)
------------ ------------
Net Income (Loss) ($2,178,000) $1,060,000
============ ============
Income (Loss) Per Share
-- BASIC ($0.17) $0.08
Weighted Average Common
Shares Outstanding 13,176,000 13,154,000
============ ============
Income (Loss) Per Share
-- DILUTED ($0.16) $0.08
Adjusted Weighted Average Shares
and Assumed Conversions 13,300,000 13,331,000
============ ============
Twelve Months
-------------
Net Revenue $124,727,000 $125,947,000
Cost of Sales 76,448,000 76,963,000
------------ ------------
Gross Profit 48,279,000 48,984,000
Selling, General and
Administrative expenses 42,117,000 36,603,000
------------ ------------
Income from Operations 6,162,000 12,381,000
Other Income (Expense):
Interest Income 21,000 204,000
Interest Expense (1,352,000) (640,000)
Other Expense, net (117,000) (957,000)
------------ ------------
Total Other Expense, net (1,448,000) (1,393,000)
Income Before Provision for
Income Tax Expense 4,714,000 10,988,000
Provision for Income
Tax Expense (1,885,000) (4,391,000)
------------ ------------
Net Income $2,829,000 $6,597,000
============ ============
Income Per Share -- BASIC $0.22 $0.49
Weighted Average Common
Shares Outstanding 13,140,000 13,406,000
============ ============
Income Per Share -- DILUTED $0.21 $0.49
Adjusted Weighted Average Shares
and Assumed Conversions 13,408,000 13,467,000
============ ============
ASHWORTH, INC.
Consolidated Balance Sheets
As of October 31, 2001 and 2000
(Unaudited)
October 31, October 31,
ASSETS 2001 2000
------ ------------ ------------
CURRENT ASSETS
Cash and cash equivalents $1,055,000 $1,231,000
Accounts receivable-trade,
net 26,817,000 25,578,000
Inventories, net 35,841,000 37,526,000
Other current assets 7,076,000 6,308,000
------------ ------------
Total current assets 70,789,000 70,643,000
Property and equipment,
net 18,645,000 14,848,000
Other assets 3,966,000 1,880,000
------------ ------------
$93,400,000 $87,371,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Notes Payable $5,950,000 $1,490,000
Current portion of
long-term debt 659,000 692,000
Accounts payable -- trade 4,204,000 4,477,000
Other current liabilities 3,306,000 3,988,000
------------ ------------
Total current
liabilities 14,119,000 10,647,000
Long-term debt 3,166,000 3,293,000
Other long-term
liabilities 1,202,000 1,457,000
Stockholders' equity 74,913,000 71,974,000
------------ ------------
$93,400,000 $87,371,000
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion