Earnings call transcript Q1 2023

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Operator

Hello everyone and thank you for standing by. Welcome to the Acushnet Company's First Quarter 2023 Earnings Call. My name is Emily and I'll be coordinating your call today. [Operator Instructions]

I will now turn the call over to our host Sondra Lennon, Vice President of Financial Planning and Analysis. ahead. go Please

Sondra Lennon

Thank Holding everyone. joining today us Good first you quarter Acushnet Corp's call. XXXX for morning, for earnings conference

this Maher, David Officer; our morning and Financial me Chief Executive Pacheco, and our Officer. Chief Tom Joining President are

in expectations David, uncertainty forward-looking the everyone Actual to these on statements circumstances. will making are to we and the on current would forward-looking like based Before I statements differ over and call may I to materially turn be call expectations. changes are remind subject that today. results Acushnet's These from

cause For press a list actual accompany filings of results slides and the U.S. differ, factors our today's that Exchange see the and our could with please that presentation to release, Securities Commission.

reference a press such with the Securities can including make and to reconciliations financial our Throughout why constant how filings Exchange currency be and the we to as items slides EBITDA. at basis use presentation this items in Explanations of we of in adjusted this Commission. the and accompany will metrics, release, and found revenues GAAP and metrics non-GAAP these these today's U.S. in schedules that discussion,

that on stated. sales to this throughout and decreases unless increases are note presentation also a Please basis references currency constant year-on-year otherwise

period context As comparisons, or we trends provides feel March And we month this performance XXXX to measurement the period. XX, comparable year-to-date results X will month as and when X the to ended best and of to referring our the business. refer

over With that, turn to David. call the I'll

David Maher

good Sondra, morning, and Thanks, everyone.

agility manufacturing, as start management team great capacity talented and demand. to your and development, are adding to to strengthening Acushnet results, the and excelling fronts. product report doing strong Acushnet a am reflected appreciate My our pace I keep steady chain our capabilities, in the with pleased on As work we adapting interest teammates supply by always, the year and is on Holdings.

segment to digits, and to in Titleist and portfolio, diversity XX% clubs, double the increase company of the region reported the the balls, overall in each helping quarter with fuel Acushnet million gains quarter. growing golf the health $XXX year-over-year Showcasing gear and

And leverage million, from grew shifts slate XX% benefiting adjusted by favorable the operating from $XXX launches. generating EBITDA delivered of results line of and our bottom mix as product for new period full Acushnet

We are pleased consumer, start core year across momentum which our few our the with businesses. a is translating this share will the and to Tom details of in minutes. greater continued

and launch our Titleist over increased Pro new now VX segment in all year, regions. of overview, balls golf Pro XX% the by last Shifting VXx successful to led

shipped we our For the Pro more context, commentary roughly supply the of on chain. and last X.X million which is VXs strengthening health dozen to compared year, franchise

quickly XX than one the prestigious brand. notched XX% competitors by Augusta titles models National X the usage Amateur the to the the of of trusted more with golf making most Titleist events. played have at competitor. New was in balls than are wins And XX and the nearest professional more their worldwide tours XX% contributing mark last Pro VX most across through times ball their Women's number Titleist week, two

VXx, last at Lilia first her week's X Chevron switching them, of to Vu Pro two And including played since won and major new Championship. tournaments has

par the with ball. Pro stretch is XX incredible she under golf During her VXx new

year inventories backstock On in to to and our side, are levels. are good channel normalize ball golf building shape the the steadily Titleist we supply start

ball XXXX. inventories healthiest are golf levels global Our their since at

months. through Pro the and summer Although, models in we AVX remain do tight anticipate that supply VX will

a golf to also million. Titleist with increasing $XXX sales year clubs strong XX% the start posted to

quarter. pleased we competitive so its first light in as TSRs launches build of spring season fairway many TSR are especially and driver in this New momentum with the enters and to performance continues franchise

tours World most at the strength affirming the Women's wedge one the is and the DP competitive iron spectrum. XXXX and PGA and National number was of on driver, Titleist TSR played the clubs Augusta driver across Titleist Amateur. the

select team to of Our leading super franchise. putters strengthen March, as in did the all lineup this continue we great work launching new Cameron putter Scotty successfully

good Our we club availability golf expect upcoming the healthy to overall component be is times season. shape, in and throughout lead

prioritize of which custom On a chain the for demand Titleist favorable legend This year's as most gear our these Gear needed. to supply XX% complications with against and where early we outsize and in service has quarter. is new gear, most is ensure player chain quarter strong last limited was it and and for great supply custom adapting up our operations. the reflects momentum done comp product sandbags, lease available year's results, our last demand team some first the shipment build April seen growth as was quarter, impacted work by and when

as March posted $XXX start quarter. up Now the customization we benefits enhanced recently on-time quarter the increase season. had for delivery capabilities. in to FJ April as we terrific to an Similar early FootJoy, apparel and X% shipped we strive the which digits, for custom custom was sales sales of realize fulfillment million, from demand gear, to another double apparel some or

pleased this in The brand team to fortified momentum, KJUS are which especially And innovation. performance, premier, the energy by with style quarter. helping and new one FJ shoe comfort HyperFlex category. and FJs in position golf traditions its in number defined FJ the as positive are stand out are with we and launches golf the

our mention on was of over which ongoing is quarter. the noted development but this slide, and XX% in the Not growth up KJUS business, worthy

building does to prospects, continued expansion. and the operational brand's enthused as excellence are team great and product long-term We support about KJUS around growth work a foundation momentum our

peak you growth up set the for segments. new a and the U.S. FootJoy position reflect XX% spring across also market at for periods. with quarter, all Now Korea work see teams summer taking look the the and our and and stage Japan set the from pace of the good to regions, revenues Titleist products and coming

with the last the of year's against rounds to flat comping EMEA in Globally, expectations were outsize in the across while spite and period driver Our U.S. growth. a not is first business for play, quarter was in declines single flat quarter the annual U.S. line the in global unfavorable major needed rounds from low quarter, Overall, participation quarter. for digits healthy West and second due Rounds weather much the of cups. remains the are as enter golf to projected down again rainfall. outside we resilient resulting

sound the Before and target courses game handing their by dedicated to investments in resilience capabilities reflected shape, many consumer, the Tom, affirm confidence operational Acushnet's call great professional healthy strong games are as product meaningful capital and enhance will lines with value I making proposition engagement in financially is and is in over and the of long-term to the the sport and ratings, the our golf Interest appeal. golfer. company's

Acushnet's very inventories this time of channel healthy for are year. to and retail returned normal levels have well-stocked inventories are and shops total golf

have Korea. the pockets are attention, in that U.S., often there footwear is As the in case, apparel clubs our golf including and in Japan,

monitor are and teams and if well-conditioned Our adapt as situations will to necessary. these

dedicated profile we In Acushnet golf industry is of time on footing is the pressures, game's avidity favorable consumer demographic be the proven and and the to to to summary, firm macro-economic resilient player. our core due the while immune for over and not have well-positioned future

FootJoy, done season. service compelling ability experiences teams in our golf nice product the to upcoming global in products and Titleist, we confident work positioning throughout shops, have deliver Our KJUS are and

attention I the your now to pass Thanks morning. for Tom. this over will call

Tom Pacheco

Thanks, morning, and David, good everyone.

with Acushnet. to thanking another Starting deliver to I strong up reported talented reported strong like on they reportable and Nine, both for for effects yet effort associates XXXX. begin all the would forth constant quarter outstanding results consolidated XX% start the Slide put our up sales is This by were our their quarter in net $XXX QX segments versus XX% currency year basis. a million and in level growth to with on showing a QX

up unfavorable $XX for margin by and the prior primarily currency basis Gross sales versus XX.X% or gross segments. points. result in of margins million all and increase the reportable volumes inbound $XXX costs, gross the gross the first of year, lower profit freight was XXX offset impact is partially XX% higher quarter up across profit and were The million,

SG&A up higher was sales advertising from increase XXXX in R&D million The increased expense the year. was prior million an was and and or XX% due launches in expense million, SG&A to expense and product selling new $XX compared $XXX to expense, up in QX to volumes, $XX due slightly increase increase compared costs. mainly to related promotional primarily related expense, administrative primarily employee to

higher XX% higher $XXX up more interest coming a the million, and last operations million was or than balances increase remainder from the to expense from quarter $XX million coming in Income up XXXX. for little the year, with $X debt to quarter Interest compared compared rates. of was half from the

year, Our a effective shift QX XX.X% was of result income earnings. primarily down of jurisdictional rate tax from our because in XX.X%, a for mix of last

of to million, earnings a attributable prior as to presentation. slide Holdings for reconciliation Acushnet QX appendix EBITDA net income from $XX the compared There up million or in or the XXXX was adjusted of to our year. $XX million, well was EBITDA Net million $XXX the and income XX% adjusted in up release was XX% $XX as

under $XXX XX, unrestricted approximately we with Total revolving credit our At flexibility. outstanding available Slide end was facility. to cash strength about of borrowings the hand. of sheet the of $XX on million Moving million QX, remaining balance us million provide our to approximately of had debt continues $XXX

up Our receivable our Consolidated our up in recent at year program, at end QX acquisitions. total $XXX working the outstanding QX million, from of day XXXX. sales leverage results ratio QX of and an day from days, prior XX was compared X.X our debt primarily of QX. share of to the repurchase increase $XX million in X increase was times The accounts end was the our capital, and

$XXX an declines We golf previous up and from gear end catch XXXX. at in golf continue of increase material $XX the balls million we saw as shortages. during clubs, million the was overall expected to from raw the FootJoy and or of Inventory inventory quarter, play QX end down X% in

inventory XXXX and will continue with golf are slight prepare before seasonal to our launches are a normal product levels in with for QX, trend comfortable season. and we our that and Overall, decreases and QX, we quality in further position inventory towards when QX confident we increase

$XXX in $XX capital, an flows cash Cash use from million of flow the of comes lower operations compared an The of million for of from same quarter working to outflow in the XXXX. primarily improvement for mainly from inventory. operations period a outflow XXXX first was

to in continue to And the business. increase QX investments full-year capital full-year We we as in our Strategic XXXX ball around same make to we to meaningful compared continue the expenditures XXXX. our golf to make golfer on capabilities the in investments million continue investments Investment further fitting about our expect about our as capacity and $XX We $XX assembly Program, still club connection. to during make QX, world, CapEx our CapEx spent enhance million,

continued Slide financial to results capital Moving strong our strategy. the execution allocation our of support XX,

priority and evaluate will continue highest a acquisitions in and business golfer favorable OpEx drive growth products with the that appeal investing focus other remains And connection, excellence. dedicated and investments we align believe on Our our with focus form in these operational investments innovation, at product premium We a on CapEx that performance strategy the our and golfers. of to return. advance that potential to long-term

Directors and approximately resulted a $X.XXX $XX to In shareholders And of paid dividend, payable cash on a cash outflow of declared free of will of X. million. flow continues QX June focus we $XX capital a Our to returning XX be announced result on approximately in strong outflow of March, Board shareholders which a to previously cash This million. our on cash share, priority. June our record today high in generating quarterly per dividend

stock of $XXX end about At $XXX purchased shares from we QX, had under million. QX, Magnus our approximately common shares During for share authorization. for X.X about we of repurchase million, including million X.X remaining $XXX million million approximately current our the

is Our return believe a shareholders. for a proposition, total creates element of continue we capital our allocation foundational long-term which to compelling strategy Acushnet's value

the maintaining to steady they're on meaningful and launches our our see introductions we until year to to of are about outlook guidance, are first over and the half Acushnet products, to pleased we through solid get our and our not product as the success guidance with is Shifting the we practice our we our in Slide for of continue it with of golf year. the start year. are shifts Overall, the XX, our excited recent we upcoming balance pleased demand make

the a the by to year expect, show and balance to be tempered expect a or you As would headwind growth overall currency outlook still expected constant our economic full in the year. on continues currency be basis QX, is caution, for the somewhat segments more for of we environment given to all so

continue air to lower We freight inbound utilization. expect from reduced to rates and freight benefit

from from pre-pandemic However, lower levels. and input some we at costs than albeit of higher some activity, headwinds expect the promotional return

these we are our Taking XXXX factors consideration, reaffirming into full-year guidance.

the X% We billion up range EBITDA consolidated be to expect the expect be On $X.XXX the And at X.X% expected compared reported basis sales of on currency to up million adjusted and to to X.X%. the of are $XXX a basis, midpoint. to to between be we in in net up sales consolidated million $X.XXX constant full-year billion a XXXX at midpoint. net range $XXX X%

strong conclusion, in trade In our and again QX. deliver associates results enabled us to partners

and health of the beyond we solid brands, for the goals deliver our industry, return While We business. for being economic confident, uncertainty, or shareholders. making in we momentum current will beat our are remain meet financial and total we investments a structural cautious long-term our the are XXXX of the the by given and pleased

With that, over turn call I Q&A. will to Sondra now for the

Sondra Lennon

could please the line Tom. we Thanks, for open questions? Operator,

Operator

Daniel Stephens. go Instructions] with Please today Imbro comes first Daniel? [Operator Our question from ahead.

Daniel Imbro

I well morning, for Yes. taking share TSR, despite impressive good product. holding our golf pretty market the launching club want really Thanks seems to competitors start on be questions. side, in David, it Hi, I to everybody. think

later We some kind products have launch large XQ. additional seen other competitors of in

is curious Just how be Maybe or more that more? plays year? years, promotion competitors So Could just you you I think the could pricing changing the coming front? launches pricing? out golf the kind inventory you characterize you that promotional clubs, the through for anything products you're unfold backdrop the And all the out? it do this not just competitive from that how stuff MSRP channel are on guess, of in think seeing seeing

David Maher

Daniel. morning, Yes. Good

anticipate we then we And of first the first is quarter, for years, We lot every launched are competitive in pleased competitive quarter QX activity. is we whole even launches this with a very first and So the year. the lot of which of case, TSR. do off, and spring years as every in case typically braced of odd whole a

commentary We're inventories which are time on certainly seeing at shops season year for much as ready full golf and levels, the inventories of ahead.

a good for there some seen concern, you bring do So any have we've areas not been meaningful point, up extensions.

puts about as four, and industry thinks ago. base a a base the forth new think I bigger products, little is golfer golfer existed As some years bit new everybody than three, or five

think getting terms here started. But I similar in really, just of up say too in to England, many country world, in remind the weeks how New golf the I'll in just parts Europe, We're the of soon and story impacting respects, is getting many that started. in that's market, in everybody two

of So the next really couple an full. golf best in the what months. there's characterizes plays amount And out of shops are is appropriate a inventory will depend on marketplace, lot over and

with terms at with way like product Again, approach, life it our the TSR. we of cycles. In we come our we own like two-year plans

what of of of QX And our in anticipates out the anything, like the more will. storm launches. modeling way But through you we what first if weathered and competitive sort we then typically of than year get we launches competitive part the we've the see

Daniel Imbro

up extension Is there years freight could could TSR guys clarifier, that quick of full more and the today lineup or a look as you use did couple at? some ago you to Right guys well. be

David Maher

Yes.

are tell TSR-X, TSR-X spectrum. I'll a was this be in one fitting I market where different TSR-X bass we spectrum like hits a market. different where the in think spring the put TSR-X lightweight big the of is would like you we did part the our of lineup part the we hits addition an now not the were and we are. part core a just emerging wedges, it's some Vokey volume But But of we really play.

fitting new weight there out to consumer commentary wedge. around the and new seeing lighter we're Again, generally that's that on some just interests

not be for the space enter important this of did volume quarter year. but think to space an us we play, that we in a But So first in. major again,

Daniel Imbro

Great, that's just last then helpful. guidance. on the And question

I this think investor's morning. an focus it's been

puts it's up guidance. beat, talked why like momentum pick about the didn't the of continuing, the the Given sounds and you Can you takes David.

remarks there FootJoy mention in forward for shipments did April some -- You and launch your that that was prepared got pulled March. April gear into

a If you why third maybe what that keeping then into you the after guidance about it just quantify the pull here was talk year? and could forward March, of and solid you're

David Maher

most Yes, as peak February, couple happen March, last so the to season tends has the did we years over custom throughput April. in custom of the been it demand, of challenging

our gear and compelled We were pull apparel in that the in FootJoy around moving us and some allowed fast keep just the to demand those this custom really title moving operations U.S. So to and engines U.S. forward.

the I put past And it been guidance to we've a long as Daniel, range, unfold with just at time about quarter it's just first that our million is relates in just happens in practice, this so much the and prudent think $X says and because our that it's for the million much then what $XX of what context. we selling. see you season see sell-through, to get to

coming practice think the second and we Certainly in shifts Sunbelt. just get to decent meaningful open from guidance our of it's there's quarter. amount the We a past markets defer it's prudent through until sell-through any been

pleased prudent coming bit play the little the but see the obviously over start, we a right are unfold with to We think things it's months.

Daniel Imbro

Perfect. and moving the this of I appreciate to spring. best Thanks. luck code the morning all

Operator

Our ahead. comes Compass Casey, with Point. Casey from question Alexander today next go please

Casey Alexander

questions. quick morning. Yes. A of Hi, good couple

purchase any previously? generating the made longer-term expense that you IP are you all, of First from savings

Tom Pacheco

of model. owned quarter -- said Yes, Casey. an royalty model are to the last shifted from so as we that morning, sort we a Good --

associated the shifted costs that, the the the of so line out given sold duration And amortization is line benefit there a goods item into life amortization of and in that intangibles. the of And cost the the P&L of item. of

Casey Alexander

Alright, you. great. Thank

Secondly, or program? debt in long-term the back to still on bring both? that down share you of you repurchase re-engaging And some outstanding? before to remains priorities do how have increase repurchase still room share open you would on the given much kind Would do shift

David Maher

$XXX So had a little share over repurchase at the end QX, under our remaining of current we million authorization.

of function end end QX the -- QX the at a always anything point But level else. our in debt as of year. is increased the is our always highest QX much as seasonality Our is of borrowing

fact, in And we've debt below already $XXX at already April, our end of the million. is

So we been we've would anticipate a continuing manner repurchases in doing. similar what our with to share

I said, the be of time think mid-next year. sort we expect authorization to utilized last we current fully

Casey Alexander

Is you. of And Or was Thank great. one-time that and items there distribution just EBITDA one to is, last back the of couple Okay, that fulfillment a question a added investments. quarters off? dollars that runs custom million it see then before expect over into from my should we quarter? number

David Maher

should bleeding see QX. into the over least two little that a and at bit to next quarters expect You potentially

Casey Alexander

I great. your taking you questions. very appreciate Thank my Okay, much.

David Maher

Thanks, Casey. Thank you.

Sondra Lennon

Thank you, operator.

Next question, please.

Operator

The go ROTH question next with Please Partners. from ahead. JP Wollam comes Capital

JP Wollam

Whether repurchase Maybe can for shorter, Is we questions point any cycles. about the high level? consumers know, could you're right first trends you the club business? it's, just thanks start if from taking Great, on anything with now? you seeing just there out Maybe, a today.

if macro guys so you any would on there's be just have that going thoughts know, much You there? interested talk I

David Maher

launches. I'll that two-year bring business, product We how operate on club of to run question Yes. right? the sort first we

and for year some and wedges. drivers So we're, two, and putters, metals one in in of in irons we're and year

well. serves So again, that us I think

sense to seen of I it the resilience we've ups downs a helps think club the some mitigate club and And of years. stability the over our that lends it of business business. and

experience also as we consumers great that our that with of out correlates biased partners think when the think clubs, of our for our our It a cycle very, the consumers, golf majority sell and best our behavior business, we fitting own for and for very get our in importantly, that's businesses custom in some repurchase our of importantly real and products. is fit positive most retail in we

we're what seeing, at be activity to fitting As continues the to nice a level.

in a I reflected think our job nice results categories. in we've where done all that's

and would for in probably golf we contributes metric that's and results to to the fittings, know, engagement in for the terms You demand globally continue levels most our that is at important outlook and our of that fitting interest look and coming we see level months, fitting high clubs.

JP Wollam

maybe of then ball just to Great, thank things. you. the over And shifting side

normal if talk think to I then, if your remarks is was still where if to year? this it's impacting something to lower you maybe comment know, there's, than normal you year, And are about Or because relative kind of any the of could there backstop pain you know, Whether it's of the that, Maybe, backstop? just levels. next sales? building points missed just in the normal any there's trying early kind levels. you quantify

Tom Pacheco

Yes, year was capacity. raw a at resumed that full ago, so started, availability. And about we commentary materials we production on

up. when our capacity ramped availability raw improved, So available, material

expect by market get in today, enough next may we're VX, don't anticipate the back we'll that months, we really we'll very than in much think in the somewhat of a VXx. outages. edX, we this cycle. do year, end over like be as shape, Pro full we'd good leaner be So normal And But about And is to little to of it we're we're a our good tight we do will, have the to going a comment of think inventories couple Pro we where spot see. that backstock of

but franchise, You sequentially, dozen the produce commentary half about the commentary team's to comment, we our this made million ones a the probie more ability year last health than can on also product. on that shipped of I again, tell a

we'd say like in And we We spread of have some we do back fairly product be broadly. and place again, will make little lean. to we sure just we a outages. anticipate year, I we're bit everything do where allocations avoid the to be would end normalized by term levels. think anticipate inventories do we to going can near But availability more But the we don't to we outages are, field

JP Wollam

Great, thank you very much.

Sondra Lennon

Operator. Thank you, JP.

Next question, please.

Operator

Zatzkin with (sic) Our question [KeyBanc]. KeyCorp Noah. comes from go Please next ahead, Noah

Noah Zatzkin

taking for question. Thanks my

know, noting guess the terms premium you maintaining that. avid end, to typically kind like see caution kind know, extended of to a guidance for at me, of recession? in you you what from Do you a Historically, your high-level you how the just around in the in brands see consumers of kind Do being know, do repurchase do know, related I positioned, You question Like related think and about macro you trade-down? cycles? see a of the Thanks. golfer behavior recession? of you

David Maher

Yes, it's so than them theme, be resilient dedicated that to guess. any their strong decades, talk we more if a about through over of And most we've it to and profile. been their passionate this there's to golfer, common game also ability speaks for the I demographic lot relatively a the speaks our bunch tends and

We consumables a to equipment see tends do We pulled a trade down than our extended best sometimes certainly up see lot and purchased lifecycles not be durables, better we see consumers. of consumer our hand from resilient. So bit. the

rounds And consumer. If well, from XXX. period to we we recessionary our go last hold back up the tend to play core again, fairly see of

that consumer down core the our I and much off top built spending of around. the that's that down at of in really as were anything think macro XX%. pin I was commentary you strength line COBRA our business back think consumer was about out you half we've our range built, we've on time, as We we which and owned the

Noah Zatzkin

retail side, April and anecdotally March. retail, into just seen and I improvement want on thinking us how helpful weather kind of the equipment year. or Have you Thanks. improvement you about or know, Very the challenging heard think retail Moving through in heard of maybe on side? kind obviously moving

David Maher

XX%, because off in will was in is U.S.-centric off point California X% consider you think be view, often Yes. But rounds which percent. when is were answer market so Arizona just a our plus more running. healthy, I down particularly almost very the U.S. XX I'll this

more some the So you pretty health rounds which at about know, not. rounds, good look serious when in Coast, far you of term long West profile, you than given the the weather is, feel positive

Golf see think down we pretty equipment, was out numbers of we that That's Again, holds The the up quarter X%. in apparel total well. through Datatech, March. on spending

low. any haven't that. seen either deviation And or from APR, We high

So stable. we think it's described best it's think we as

this, much a March of see of function so when what is going season than you're excuse April to in or rather me, So of the much starts.

still weather weather in parts we're lot And very of dependent a and country. variable the of

season You less weather get get May. see is that some good the you if uptick. than of fittings happen, and get you And deferred an some into if weather, favorable we that starts of activity

would months from is April really three I So we year. characterize on first saw too dissimilar of the the not what

Noah Zatzkin

you. Very helpful. Thank

Sondra Lennon

Thank you, our operator.

Next question, please.

Operator

Our Feinseth next question ahead. comes go from Ivan with please Tigress Ivan, Financial.

Ivan Feinseth

the demographic the some trends to questions. like you the player results start me discussion increasing year. what players into Increasing rounds Can see game? that engagement shaping great will on my new you drive? give and taking to And for golf, you of congratulations Thank continue of come

David Maher

trends golfers, year the to the last segments what fifth speak where data Golf growing XXXX game in time, real of the handful years a mark Ivan, from and so obviously Yes, and of point over were row National juniors a seen some high-level demographic the the fastest women. Foundation, added I'll a positive to that we've thanks, a lot lot is we over

the like game. be trends demographic we'd in So the overall

broader point know, increase there our the few XX% that's really spot. that play golfer I what ago, to spend our about We've seen we've you the sweet game. XX% the of will commensurate That the talked And a marketplace. of in businesses I XX% we the dedicated Democrat business built the in around. also of who increase minutes is dollars with to players our point rounds the and

in more National capacity at Foundation We that rounds there as are there. positive. clubs golf a see out So that's at whether look the anecdotally, the look many and respects, And that capacity versus would the rounds would many for at and I of some we say, we that's memberships. data real Golf of put how held up out

full, golf, full So generally in particular. in clubs there's marketplace private golf a

the and U.S. markets. So to look fundamental again game the around of really and And trends that's largest the foundational world, third second Japan commentary. very When which healthy. Korea, the are we are and

a think, we see quarter. up X% single up trends couple You in know, commentary much but digits do think a similar years. as were little coming quarter, of X% bit, were related, the weather I check that as of we much like really I Actually Japan down Korea the the off in and last rounds over low strong more they see that's run

of So globe, you do of based and be increasing. see weather. in you're see the tough to the you're some number on Rounds weather. around flows this the steady we healthy, and to face heady, ebbs think going play really point, golfers at And look you going if some

But the where at and Public look in of today where clubs it was healthy reflect rounds versus memberships. by very that game five of their horses of and large, play. their if terms is that ago, years in you reflect terms

great where goes You mark. question Here the know from? it is

of travel our couple very up it's has game And of at high of that, spending will from say been vacations look I of have lot a stopped being that that a see standpoint, years historically We the of we and participation belief returned. lot for on a held play positive. our golf. as while given levels. we understand sports and that those spite where around had ago rounds And folks were money well, a observation and flat real activities that and in from we new discretionary and time

Sondra Lennon

other any questions? Ivan, have did you additional

Ivan Feinseth

people for or know, that want play can way drive your Analogies to play, see the that, you that improve they example. as in sales they to improvements continue you equipment

Sondra Lennon

question the cut Thank Ivan, you the repeat could you. of you that? in out beginning

Ivan Feinseth

Sorry.

And the do want what so of technological equipment games ongoing Or what upgrades? people's kind you you For and in upgrades? new buy happening drive more for them equipment improve drive people that example, club as see to to catalysts do clubs? then play that developments additional to see

David Maher

will I industry terms make add, and continued One, in better, that's But twofold. we're to are ways that. a Yes know, We're products there innovation distance. we product a regulated of of built around heavily to really of think it's industry terms improvements, innovation, in right. you an still do lot product just

an Ivan is case, and footwear this even to extent. true our In balls clubs, with and and

Our lot that activities. sure predicated and playing on players We path fitting they're for equipment experience the of for paths forward know whole improvement make very game. best some customization to that best also of a through benefiting is the is for

So the category. that in same I put

even we know benefit are it's do of a I lot golfers a our would for As fitting from who clubs today. be activities. We and again, equipment fitting or innovation, innovation, there whole there or But fitting footwear. expanding still whether out of balls lot fittings put experience it

Ivan Feinseth

you. start Again, the on year. great congratulations Thank the to

David Maher

Thank you. Well, thanks, everybody.

season in for look we get and We interest always, we hope the and out little a appreciate forward play your talking and Acushnet. to nice As I'll you to spring hopefully, quarter. bit a after

Operator

now may concludes call This everyone, disconnect and our you, you for joining us Thank lines. your today.

Acushnet (GOLF) 4 May 232023 Q1 Earnings call transcript