Ashworth Inc. Reports 40% Increase in First Quarter Net Earnings.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)--Feb. 28, 2001 Ashworth Inc. (Nasdaq:ASHW) today announced financial results for the first quarter of fiscal 2001 ended January January: see month. 31, 2001. Consolidated net revenue for the first quarter of fiscal 2001 increased 23.1% to $27,706,000 as compared to $22,499,000 for the same period of the prior year. Consolidated net income for the first quarter of fiscal 2001 increased 39.6% to $381,000 as compared to $273,000 in the same period of the prior year. The company reported 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. net earnings per share of $0.03 for the first quarter of fiscal 2001 as compared to diluted net earnings per share of $0.02 for the same period of last year. Net revenue for the domestic segment increased 22.3% to $24,128,000 for the first quarter of fiscal 2001 as compared to $19,733,000 for the same period of fiscal 2000. Net revenue for the international segment increased 29.4% to $3,578,000 for the first quarter of fiscal 2001 as compared to $2,766,000 in the same period of the prior year. Commenting on the company's first quarter results, Randall Randall may refer to the following: In places:
Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased strength in our business. Specifically, we experienced substantial growth in domestic revenue, driven mainly by a 21.0% increase in Ashworth's core golf channel, a 49.5% increase in Ashworth's retail/department store channel, and a 17.1% increase in the corporate channel. Ashworth's international business grew 29.4%, and was driven by a 71.5% increase from Ashworth's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. subsidiary. We are encouraged by the momentum in Ashworth's business." Consolidated gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the first quarter improved to 35.9% from 35.7% in the same period last year. This increase is primarily a result of improved sourcing and inventory control. Inventory increased 21.0% to $42,912,000 from $35,474,000 at January 31, 2000 and was in line with Ashworth's future booking increases. Strong top-line growth, coupled with improved gross margin and expense control, resulted in improved operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of fiscal 2001. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying increased 16.5% to $28,066,000 at January 31, 2001 compared to $24,089,000 at January 31, 2000, significantly lower than the 24.0% increase in consolidated wholesale net revenue for the first quarter of fiscal year 2001. Selling, general and administrative (SG&A) expenses for the first quarter of 2001 increased 22.0% to $9,070,000 as compared to the same period last year, primarily as a result of increased selling expenses due to revenue increases as well as investment in infrastructure. As a percentage of net revenue, SG&A expenses decreased to 32.7% for the first quarter from 33.0% for the first quarter last year. Herrel added, "The strength of our brand is becoming increasingly apparent and the demand for our product has remained strong. In this regard, Ashworth has been selected a lead apparel supplier by the USGA USGA United States Golf Association USGA Uhren & Schmuck Gassner (Germany) USGA US Global Nanospace Inc. (stock symbol) USGA Undergraduate Student Government Association for the next four US Open Championships and by the Royal and Ancient Golf Club of St. Andrews for the next three Open Championships in the United Kingdom, an honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. never before bestowed on an apparel company. "While we are committed to our core products, we are constantly refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar our product offerings and have continued to introduce new and diversified diversified (di·verˑ·s products as a means to fuel future growth. With a focus on technically advanced and unique fabrics, we have introduced innovative outwear, fleece fleece, mat of wool formed by shearing a sheep in one continuous operation. The average fleece weighs from 5 to 10 lb (2.3–4.5 kg); in highbred wool sheep such as the American Merinos a ram's fleece may reach 30 lb (13.6 kg). , and the new Ashworth(R) 7 line, all designed to appeal to the classic, contemporary needs of our customers off course. Importantly, we received a strongly encouraging response to Ashworth's new products (including Ashworth(R) 7) as well as Ashworth's core product lines during January Market Week in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and 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. Golf Show in Orlando. Additionally, the Ashworth brand experienced very positive sell through during the Holiday season which is translating to larger square footage in stores, giving Ashworth better presence in golf and retail/department store channels." Herrel concluded, "We look forward to building on the success of the first quarter and are enthusiastic about our ability to continue to grow the Company profitably. We have strengthened our brand image, continue to offer fresh and innovative new products, and are demonstrating that our multi-channel business strategy is working. As previously disclosed, our outlook for fiscal 2001 is positive and we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about achieving top line growth in the range of 13% to 17% and bottom line growth of between 20% to 29% for the year." Interested shareholders are invited to listen to the first quarter earnings conference call scheduled for Wednesday, February 28, 2001 at 11:00 a.m. Eastern Time. The call will be broadcast live 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 archive will be available shortly after the call and will be accessible until March 9, 2001. Additionally, a replay can be accessed by dialing 800/633-8284, access code "18043258," and will be available through March 2, 2001. Ashworth Inc. is a Southern California-based 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" . Our new Website is available 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, the impact of competitive products and pricing, the success of the women's and corporate divisions, 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 Balance Sheets
As of January 31, 2001 and 2000
(Unaudited)
January 31, January 31,
2001 2000
ASSETS
CURRENT ASSETS
Cash and cash equivalents $894,000 $1,020,000
Accounts receivable-trade, net $28,066,000 $24,089,000
Inventories, net $42,912,000 $35,474,000
Other current assets $8,509,000 $5,554,000
Total current assets $80,381,000 $66,137,000
Property and equipment, net $16,327,000 $13,178,000
Other assets $1,800,000 $2,370,000
$98,508,000 $81,685,000
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $13,772,000 $3,280,000
Accounts payable -- trade $3,807,000 $3,111,000
Other current liabilities $3,491,000 $3,013,000
Total current liabilities $21,070,000 $9,404,000
Long-term debt $3,472,000 $2,583,000
Other long-term liabilities $1,341,000 $1,096,000
Stockholders' equity $72,625,000 $68,602,000
$98,508,000 $81,685,000
=========== ===========
ASHWORTH INC.
Consolidated Statements of Income
First Quarter ended January 31, 2001 and 2000
(Unaudited)
Summary of Results of Operations
2001 2000
First Quarter
Net Revenue $27,706,000 $22,499,000
Cost of Sales $17,760,000 $14,469,000
Gross Profit $9,946,000 $8,030,000
Selling, General and
Administrative expenses $9,070,000 $7,432,000
Income from Operations $876,000 $598,000
Other Income (Expense):
Interest Income $3,000 $33,000
Interest Expense ($331,000) ($86,000)
Other Income, net $87,000 ($94,000)
Total Other Income, net ($241,000) ($147,000)
Income Before Provision for
Income Tax Expense $635,000 $451,000
Provision for Income Tax Expense ($254,000) ($178,000)
Net Income $381,000 $273,000
=========== ===========
Earnings Per Share -- BASIC $0.03 $0.02
Weighted Average Common
Shares Outstanding $13,118,000 $13,684,000
=========== ===========
Earnings Per Share -- DILUTED $0.03 $0.02
Adjusted Weighted Average Shares
and Assumed Conversions $13,437,000 $13,696,000
=========== ===========
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