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Financial report summary
?Competition
Nike, Inc. - Ordinary Shares • Bridgestone • Topgolf Callaway Brands • Under Armour Inc - Ordinary Shares • AdidasRisks
- A reduction in the number of rounds of golf played or in the number of golf participants could materially adversely affect our business, financial condition and results of operations.
- Unfavorable weather conditions may impact the number of playable days and rounds played in a given year.
- Consumer spending habits and macroeconomic factors may affect the number of rounds of golf played and related spending on golf products.
- Demographic factors may affect the number of golf participants and related spending on our products.
- Changes to the Rules of Golf with respect to equipment could materially adversely affect our business, financial condition and results of operations.
- A significant disruption in the operations of our manufacturing, assembly or distribution facilities could materially adversely affect our business, financial condition and results of operations.
- Many of our raw materials or components of our products are provided by a sole or limited number of third‑party suppliers and manufacturers.
- A disruption in the operations of our suppliers could materially adversely affect our business, financial condition and results of operations.
- The cost of raw materials and components could affect our operating results.
- Our operations are conducted worldwide and our results of operations are subject to currency transaction risk and currency translation risk that could materially adversely affect our business, financial condition and results of operations.
- We may not successfully manage the frequent introduction of new products or satisfy changing consumer preferences, quality and regulatory standards.
- Failure to successfully innovate and offer high‑quality products may adversely affect our ability to compete in the market for our products.
- Failure to adequately enforce and protect our intellectual property rights could materially adversely affect our business, financial condition and results of operations.
- We may be involved in lawsuits to protect, defend or enforce our intellectual property rights, which could be expensive, time consuming and unsuccessful.
- Our products may infringe the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products.
- Changes to patent laws could adversely affect our ability to protect our intellectual property.
- We face intense competition in each of our markets and if we are unable to maintain a competitive advantage, loss of market share, sales or profitability may result.
- We may have limited opportunities for future growth in sales of certain of our products, including golf balls, golf shoes and golf gloves.
- A severe or prolonged economic downturn could adversely affect our customers’ financial condition, their levels of business activity and their ability to pay trade obligations.
- A decrease in corporate spending on our custom logo golf balls could materially adversely affect our business, financial condition and results of operations.
- We depend on retailers and distributors to market and sell our products, and our failure to maintain and further develop our sales channels could materially adversely affect our business, financial condition and results of operations.
- Consolidation of retailers or concentration of retail market share among a few retailers may increase and concentrate our credit risk, put pressure on our margins and impair our ability to sell products.
- Our business depends on strong brands, and if we are not able to maintain and enhance our brands we may be unable to sell our products.
- Our business operations are subject to seasonal fluctuations, which could result in fluctuations in our operating results and stock price.
- Our business and results of operations are also subject to fluctuations based on the timing of new product introductions.
- We have significant international operations and are exposed to risks associated with doing business globally.
- Failure to comply with laws, regulations and policies, including the FCPA or other applicable anti‑corruption legislation, could result in fines and criminal penalties and materially adversely affect our business, financial condition and results of operations.
- Our business, financial condition and results of operations could be materially adversely affected if professional golfers do not endorse or use our products.
- The value of our brands and sales of our products could be diminished if we, the golfers who use our products or the golf industry in general are associated with negative publicity.
- If we inaccurately forecast demand for our products, we may manufacture insufficient or excess quantities, which could materially adversely affect our business, financial condition and results of operations.
- We may experience a disruption in the service, or a significant increase in the cost, of our primary delivery and shipping services for our products and component parts or a significant disruption at shipping ports.
- We rely on complex information systems for management of our manufacturing, distribution, sales, finance, accounting and other functions. If our information systems fail to perform these functions adequately or if we experience an interruption in our operations, including a breach in cybersecurity, our business, financial condition and results of operations could be materially adversely affected.
- Cybersecurity risks could disrupt our operations and negatively impact our reputation.
- Failure to comply with data privacy and security laws and regulations could adversely affect our operating results and business.
- If the technology‑based systems that give consumers the ability to shop with us online do not function effectively, our ability to grow our eCommerce business globally could be adversely affected.
- Goodwill and identifiable intangible assets represent a significant portion of our total assets and any impairment of these assets could negatively impact our results of operations and shareholders’ equity.
- Our current senior management team and other key employees are critical to our success and if we are unable to attract and/or retain key employees and hire qualified management, technical and manufacturing personnel, our ability to compete could be harmed.
- Sales of our products by unauthorized retailers or distributors could adversely affect our authorized distribution channels and harm our reputation.
- We may not be successful in our efforts to grow our presence in existing international markets and expand into additional international markets.
- We are exposed to a number of different tax uncertainties, including potential changes in tax laws, unanticipated tax liabilities and limitations on utilization of tax attributes after any change of control, which could materially adversely affect our business, financial condition and results of operations.
- Our insurance policies may not provide adequate levels of coverage against all claims and we may incur losses that are not covered by our insurance.
- We are subject to product liability, warranty and recall claims, and our insurance coverage may not cover such claims.
- We may be subject to litigation and other regulatory proceedings which may result in the expense of time and resources and could materially adversely affect our business, financial condition and results of operations.
- We are subject to environmental, health and safety laws and regulations, which could subject us to liabilities, increase our costs or restrict our operations in the future.
- We may require additional capital in the future and we cannot give any assurance that such capital will be available at all or available on terms acceptable to us and, if it is available, additional capital raised by us may dilute holders of our common stock.
- Our growth initiatives require significant capital investments and there can be no assurance that we will realize a positive return on these investments.
- Our business could be materially adversely affected as a result of the risks associated with acquisitions and investments.
- If our estimates or judgments relating to our critical accounting estimates prove to be incorrect, our financial condition and results of operations could be adversely affected.
- Terrorist activities and international political instability may decrease demand for our products and disrupt our business.
- Our business could be harmed by the occurrence of natural disasters or pandemic diseases.
- A high degree of leverage could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or in our industry, expose us to interest rate risk to the extent of our variable rate debt, and prevent us from meeting our obligations under our indebtedness.
- Servicing our indebtedness requires a significant amount of cash. Our ability to generate sufficient cash depends on many factors, some of which are not within our control.
- We and our subsidiaries may be able to incur significant amounts of debt, which could exacerbate the risks associated with our current indebtedness.
- The Indenture that governs the Notes and the credit agreement governing our Second Amended Credit Facility contain restrictions that limit our flexibility in operating our business.
- We may utilize derivative financial instruments to reduce our exposure to market risks from changes in interest rates on our variable rate indebtedness and we may be exposed to risks related to counterparty credit worthiness or non‑performance of these instruments.
- The interests of Magnus and Fila and any of their successors or transferees may conflict with other holders of our common stock.
- The market price of shares of our common stock may be volatile, which could cause the value of your investment to decline.
- Our share repurchase program could be suspended or terminated, may not enhance long-term stockholder value, and may increase the volatility of the price of our stock and diminish our cash reserves.
- If we are unable to maintain effective internal controls over financial reporting, we may not be able to produce timely and accurate financial statements, which could have a material adverse effect on our business and stock price.
- We cannot assure you that we will pay dividends on our common stock, and our indebtedness and other factors could limit our ability to pay dividends on our common stock.
- Acushnet Holdings Corp. is a holding company with no operations of its own and, as such, it depends on its subsidiaries for cash to fund all of its operations and expenses, including future dividend payments, if any.
- You may be diluted by the future issuance of additional common stock in connection with our incentive plans, acquisitions or otherwise.
- Future sales, or the perception of future sales, by us or our existing shareholders in the public market could cause the market price for our common stock to decline.
- Anti‑takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that you might consider favorable.
- If securities analysts do not publish research or reports about our business or if they downgrade our stock or our sector, our stock price and trading volume could decline.
Management Discussion
- ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
- We are the global leader in the design, development, manufacture and distribution of performance-driven golf products, and these products are widely recognized for their quality excellence. Today, we are the steward of two of the most revered brands in golf—Titleist, one of golf’s leading performance equipment brands, and FootJoy, one of golf’s leading performance wearable brands.
- Our target market is dedicated golfers, who are the cornerstone of the worldwide golf industry. These dedicated golfers are avid and skill-biased, prioritize performance and commit the time, effort and money to improve their game. We seek to leverage a pyramid of influence product and promotion strategy, whereby our products are the most played by the world's best players, creating aspirational appeal for a broad range of golfers who want to emulate the performance of the game’s best players.