[ADAMS GOLF LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE
Adams Golf Announces Results for First Quarter 2007
PLANO, TEXAS, May 9, 2007 - Adams Golf (OTCBB:ADGO) today
reported record net sales of $27.8 million for the first quarter
ended March 31, 2007 as compared to $22.3 million in the
comparable period of 2006, a gain of 25% year over year. The
Company's $27.8MM in net sales for the first quarter represents
its largest first quarter net sales figure since the Company went
public in 1998. The Company reported net income of $3.8 million,
or $0.12 fully diluted per share for the first quarter ended
March 31, 2007, as compared to net income of $3.3 million, or
$0.12 fully diluted per share for the comparable period of 2006.
"I'm very pleased with the company's continued sales and earnings
growth," said Mr. Chip Brewer, CEO and President of Adams Golf.
"Our growth continues to be driven by our Idea hybrid iron sets.
Additionally, our individual hybrids have become the #1 hybrid
played by professionals on the combined professional men's tours
(PGA, Champions and Nationwide) for the first quarter of 2007,
according to results from the Darrell Survey. We continue to
invest in our brand, our overall organization, particularly our
R&D organization, and our positions on the competitive
professional tours."
Adams Golf will host a conference call at 4:30 p.m. Eastern time
on Thursday, May 10th, 2007, with Chip Brewer, CEO and President,
and Eric Logan, Chief Financial Officer, to review Adams' 2007
first quarter 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 7329769.
This press release contains "forward-looking statements" made
under the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. The statements include, but are
not limited to statements regarding our ability to continue
manufacturing products that are commercially acceptable to
consumers, statements which may imply past performance as an
indicator of future trends, and statements using terminology such
as "may," "will," "expect," "intend," "estimate," "anticipate,"
"plan," "seek" or "believe". Such statements reflect the current
view of the Company with respect to future events and are subject
to certain risks, uncertainties and assumptions related to
certain factors including, without limitation, the following:
risks relating to product development; risks that past
performance may not be an accurate indicator of future trends;
risks that products may not meet with approval and conform to
governing body regulations; assembly difficulties; competing
product introductions; patent infringement risks; uncertainty of
the ability to protect intellectual property rights; market
demand and acceptance of products; the impact of changing
economic conditions; the success of our marketing strategy; our
dependence on a limited number of customers and suppliers;
business conditions in the golf industry; reliance on third
parties, including suppliers; the actions of competitors,
including pricing, advertising and product development risks
concerning future technology; the management of sales channels
and re-distribution; and one-time events and other factors
detailed under "Risk Factors" in our Securities and Exchange
Commission filings. These filing can be obtained by visiting the
corporate governance section of our website at www.adamsgolf.com
or by contacting Adams Golf Investor Relations at
InvestorInfo@adamsgolf.com.
Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to be correct. Based
upon changing conditions, should any one or more of these risks
or uncertainties materialize, or should any underlying
assumptions prove incorrect, actual results may vary materially
from those described herein. Except as required by federal
securities laws, Adams Golf undertakes no obligation to publicly
update or revise any written or oral forward-looking statements,
whether as a result of new information, future events, changed
circumstances or any other reason after the date of this press
release. All subsequent written and oral forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by the
applicable cautionary statements.
For more information, please contact:
Patty Walsh
Director, Investor Relations
Adams Golf
(972) 673-9595
pattywalsh@adamsgolf.com
ADAMS GOLF, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
ASSETS
March 31, December 31,
2007 2006
------------ ------------
(unaudited)
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Current assets:
Cash and cash equivalents $ 3,424 $ 9,472
Trade receivables, net of allowance for doubtful accounts
of $706 (unaudited) and $702 in 2007 and 2006, respectively 27,029 13,553
Inventories, net 25,207 24,651
Prepaid expenses 924 686
Other current assets 1,367 1,371
------------ ------------
Total current assets 57,951 49,733
Property and equipment, net 769 719
Deferred tax asset - non current 4,052 4,052
Other assets, net 1,542 1,099
------------ ------------
$ 64,314 $ 55,603
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 9,466 $ 6,271
Accrued expenses 8,896 7,463
------------ ------------
Total liabilities 18,362 13,734
------------ ------------
Stockholders' equity:
Preferred stock, $0.01 par value; authorized 5,000,000 shares;
none issued -- --
Common stock, $.001 par value; authorized 50,000,000 shares;
24,938,976 and 24,895,226 shares issued and 24,002,349
and 23,958,606 shares outstanding at March 31, 2007 (unaudited)
and December 31, 2006, respectively 25 25
Additional paid-in capital 90,894 90,630
Accumulated other comprehensive income 952 887
Accumulated deficit (42,393) (46,147)
Treasury stock, 936,627 common shares, at cost, at
March 31, 2007 (unaudited) and December 31, 2006 (3,526) (3,526)
------------ ------------
Total stockholders' equity 45,952 41,869
------------ ------------
$ 64,314 $ 55,603
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ADAMS GOLF, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31,
-----------------------
2007 2006
-------- --------
Net sales $ 27,808 $ 22,265
Cost of goods sold 15,613 11,813
-------- --------
Gross profit 12,195 10,452
Operating expenses:
Research and development expenses 810 610
Selling and marketing expenses 5,706 4,911
General and administrative expenses 1,915 1,672
-------- --------
Total operating expenses 8,431 7,193
-------- --------
Operating income 3,764 3,259
-------- --------
Other income (expense):
Interest income (expense), net 24 46
Other income (expense), net 13 46
-------- --------
Income before income taxes 3,801 3,351
Income tax expense 47 2
-------- --------
Net income $ 3,754 $ 3,349
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Net income per common share - basic $ 0.16 $ 0.15
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- diluted $ 0.12 $ 0.12
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