True Temper Sports, Inc. has announced its 2003 second quarter results. Net sales for the second quarter increased 8.7% to $32.5 million from $29.9 million during the second quarter of 2002. Net income for the second quarter increased slightly to $3.8 million from $3.7 million in the second quarter of 2002. Adjusted EBITDA for the second quarter increased 9.4% to $11.2 million from $10.3 million in the second quarter of 2002. Net cash provided from operations for the second quarter increased by $0.6 million to $6.3 million from $5.7 million in the second quarter of 2002.
In his comments about the company’s performance, Scott Hennessy, president and CEO said, “Though our industry and the global economy in general continue to be a challenge, we were pleased to record our fourth consecutive quarter of improved sales and operating performance. Our second quarter sales increased on the strength of new premium lightweight steel shaft sales, along with strong momentum for our new Grafalloy Blue(TM) graphite shaft. These two factors, coupled with the continued expansion of performance sports revenues from sales of bicycle components and hockey stick shafts, contributed to the year over year growth. In addition, we benefited from improved foreign currency exchange rates in all three of the major golf markets outside the United States: Japan, the United Kingdom and Australia. When combined with increased shipments into China to support the expanded club assembly operations in that region, our total international sales increased by 23% when compared to the second quarter of 2002.”
In his comments about the company’s future performance, Mr Hennessy said, “As we entered 2003, the overall retail golf industry was sluggish, and a late breaking, wet spring only added to this difficult environment. While we have seen no definitive signs of a sustained recovery, our incoming order rates have remained positive due to our new golf product introductions and the momentum building behind our performance sports sales in the hockey and bicycle component markets. We believe these factors will enable us to post revenue and profitability growth for the third quarter that will be relatively consistent with the year over year growth reported during the first half of 2003. However, as our major customers continue to shorten their lead times and reduce inventory in the various distribution channels, our visibility into the fourth quarter and full year is too limited to comment on at this time.”
True Temper Sports is the leading manufacturer of golf shafts in the world and is consistently the number one shaft on the PGA Tour. The company markets a complete line of shafts under the True Temper and Grafalloy shaft brands and sells these brands in over 30 countries throughout the world. In addition, True Temper produces and sells a variety of performance sports products to the bicycle, hockey and other recreational sports markets. True Temper Sports employs over 700 people and operates from 10 facilities located in the United States, Europe, Japan, Asia, and Australia.
True Temper www.truetemper.com