Ashworth Inc. Reports Fiscal 2002 First Quarter Financial Results; Announces Strong Response to the New Fall/Holiday 2002 Ashworth and Callaway Golf Apparel Lines At PGA Show.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)--March 7, 2002 Ashworth Inc.(R) (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 first quarter ended Jan. 31, 2002. In addition, the company reported that it had received a strong response to the new Ashworth and Callaway Callaway may refer to:
(2) (Programmable Gate Array) See gate array and FPGA. Show in Orlando Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. and January January: see month. 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 . Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net revenue for the first quarter 2002 was $19.8 million as compared to $27.7 million for the first quarter of 2001. The company reported a first quarter net loss of $966,000 or $0.07 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 $381,000 or $0.03 per diluted share in the same quarter of the prior year. Net revenue for the domestic segment decreased 27.0% to $17.6 million from $24.1 million in the same period of the prior year. Net revenue for the international segment decreased 38.9% to $2.2 million from $3.6 million in the same period of the prior year. Randall Randall may refer to the following: In places:
Herrel continued, "Ashworth Inc.'s early 2002 Fall/Holiday future bookings, which includes both Ashworth and Callaway Golf(R) apparel's brands are trending up approximately 80% compared to last year. Domestic Ashworth brand future bookings for Fall 2002 are currently trending up approximately 25%. Callaway Golf(R) apparel bookings are approximately 50% of Ashworth's bookings indicating, we believe, that the Callaway Golf(R) apparel line could become a major apparel brand very soon and represent one of the most successful launches of a new golf apparel line in history." Herrel concluded, "The response to the 2002 Ashworth and Callaway Golf(R) apparel lines introduced at the PGA Show and Market Week in New York has exceeded our expectations. While it is still early in the booking cycle for Fall/Holiday 2002, selected Department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , green grass shops and off course specialty retailers are booking higher levels of the Ashworth line relative to last year and adding the new Callaway Golf(R) apparel line. While the near term environment remains uncertain, we remain committed to leveraging our leadership position in the golf industry and capitalizing on future opportunities." In reviewing the company's financial position, 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 stated, "We are pleased with our improved inventory management system, which resulted in a 14.9% year over year inventory decline. Consolidated gross margin for the first quarter decreased 0.5% to 35.4%. The relatively minimal decrease was primarily due to fixed expenses spread over a lower sales base. Additionally, SG&A expenses declined 6.6% from $9.1 million to $8.5 million during the quarter. Excluding the expenses related to the new Callaway Golf(R) apparel product line, SG&A expenses would have decreased $1.5 million or 16.5% from the prior year. This decline was a result of the cost initiatives implemented in the second half of FY2001, which included a workforce reduction of approximately 14% and aggressive expense management efforts. 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 decreased 1.1% year over year. The slower rate of decline in receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed relative to the sales decrease was due to slower collections from some of our accounts as a result of the slow economy, and we have increased our reserve accordingly. In addition, our borrowing from the bank line decreased 15.3% from $13.1 million to $11.1 million compared to the first quarter of fiscal 2001." Tsang concluded, "We believe our overall financial condition remains very sound, which provides a solid platform for growth as industry and economic conditions improve. In view of the early Fall/Holiday pre-book trend for both Ashworth and Callaway Golf(R) apparel, we are currently maintaining our sales and earnings guidance for fiscal 2002." Ashworth currently expects sales of $125 million to $130 million and 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 $0.40 to $0.48 during fiscal 2002. Investors and all others are invited to listen to a conference call discussing the first quarter and fiscal 2002 outlook, today at 4:30 p.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 Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , March 15, 2002. Additionally, a 48-hour telephone replay will be accessible by calling 877/289-8525 for domestic callers and 416/640-1917 for international callers; enter pass code 175385. 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 Web site 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 Callaway Golf(R) apparel lines, 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 Oct. 31, 2001.
ASHWORTH INC.
Consolidated Statements of Income
First Quarter ended Jan. 31, 2002 and 2001
(Unaudited)
Summary of Results of Operations
2002 2001
--------------------------------
First Quarter
-------------
Net Revenue $ 19,811,000 $ 27,706,000
Cost of Sales 12,793,000 17,760,000
------------ ------------
Gross Profit 7,018,000 9,946,000
Selling, General and
Administrative expenses 8,497,000 9,070,000
------------ ------------
Income (Loss) from Operations (1,479,000) 876,000
Other Income (Expense):
Interest Income 7,000 3,000
Interest Expense (151,000) (331,000)
Other Expense, net 13,000 87,000
------------ ------------
Total Other Expense, net (131,000) (241,000)
Income (Loss) Before Provision for
Income Tax (Expense) Benefit (1,610,000) 635,000
Provision for Income Tax (Expense)
Benefit 644,000 (254,000)
------------ ------------
Net Income (Loss) ($ 966,000) $ 381,000
============ ============
Income (Loss) Per Share - BASIC ($ 0.07) $ 0.03
Weighted Average Common
Shares Outstanding 13,161,000 13,118,000
============ ============
Income (Loss) Per Share - DILUTED ($ 0.07) $ 0.03
Adjusted Weighted Average Shares
and Assumed Conversions 13,161,000 13,437,000
============ ============
ASHWORTH INC.
Consolidated Balance Sheets
As of Jan. 31, 2002 and 2001
(Unaudited)
January 31, January 31,
ASSETS 2002 2001
------ ----------- -----------
CURRENT ASSETS
Cash and cash equivalents $ 1,626,000 $ 894,000
Accounts receivable-trade, net 27,769,000 28,066,000
Inventories, net 36,512,000 42,912,000
Other current assets 10,115,000 8,509,000
----------- -----------
Total current assets 76,022,000 80,381,000
Property and equipment, net 18,042,000 16,327,000
Other assets 3,883,000 1,800,000
----------- -----------
$97,947,000 $98,508,000
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
-----------------------------
CURRENT LIABILITIES
Notes Payable $11,100,000 $13,090,000
Current portion of long-term
debt 659,000 682,000
Accounts payable - trade 4,769,000 3,807,000
Other current liabilities 3,156,000 3,491,000
----------- -----------
Total current liabilities 19,684,000 21,070,000
Long-term debt 3,002,000 3,472,000
Other long-term liabilities 1,261,000 1,341,000
Stockholders' equity 74,000,000 72,625,000
----------- -----------
$97,947,000 $98,508,000
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