ALDILA, has announced net sales of $20.8 million and net income of $4.3 million ($0.78 fully diluted per share) for the three months ended March 31, 2006. In the comparable 2005 first quarter, the company had net sales of $17.8 million and net income of $3.3 million ($0.61 fully diluted per share).
“We are pleased with the strong results achieved in our first quarter of 2006. Driven by increased revenues from golf shafts, prepreg and hockey products, our sales increased by 17% versus the first quarter of last year. Our net income of $4.3 million or $0.78 fully diluted per share represents the best quarter the Company has had in its history. The average selling price of golf shafts increased by 4% quarter on quarter on a 7% increase in unit sales. Branded sales increased by 2% and co-branded sales increased 100% versus the 2005 quarter and together represented 57% of our golf shaft sales in the current quarter as compared to 54% in the comparable quarter of last year. Gross profit increased by $2.2 million to $9.7 million for the first quarter of 2006 as compared to $7.4 million for the first quarter of 2005. Gross margin, driven by higher average selling prices, increased to 47% for the first quarter of 2006 as compared to 42% for the same quarter of 2005. The Company’s backlog of sales orders as of March 31, 2006 of $12.3 million was slightly higher than the $12.2 million at March 31, 2005. Our cash balance was $16.7 million at March 31, 2006,” said Mr. Peter R. Mathewson, chairman of the board and CEO.
“Our NV™ Pink wood shaft is enjoying very good acceptance as several OEMs are now offering it in their custom programs. We are about to begin sales of our VS Proto wood and hybrid shafts. These bright blue shafts feature Next Generation Micro Laminate Technology™ that incorporate carbon nano tubes with our new A65 Performance Resin System enabling the use of advanced ultra high modulus graphite fibers. The VS Proto wood shaft has been doing very well on the PGA Tour and has become our most popular shaft model in play. The VS Proto Hybrid 95 has won every Darrell Survey Hybrid shaft count this PGA season making it the number one hybrid shaft on tour. As the year progresses, we expect numerous OEM stock custom and custom upgrade programs to include the VS Proto wood and hybrid shaft. The selling price of this new super premium shaft family will be higher than our NV™ shafts,” said Mr. Mathewson.
“We have made the decision to expand and diversify our shaft manufacturing capacity and have selected a site in Vietnam. The new factory to be built and owned by Aldila will be located in the Vietnam Singapore Industrial Park ( “VSIP”), located 17 km from Ho Chi Minh City. The VSIP is within easy reach of the city’s international airport and major seaports. As a self-contained industrial park, the VSIP offers international companies a world class manufacturing environment with reliable utilities and one-stop customer services, including an on-site customs office. Aldila has been issued an Investment License and should soon have a Land Lease Agreement in place with factory construction to begin soon after. The target is to have the factory operational by the first quarter of 2007,” Mr. Mathewson said.