True Temper Sports, Inc. has announced its 2003 first quarter results. Net sales for the first quarter increased 7.6% to $31.6 million from $29.4 million during the first quarter of 2002. Net income for the first quarter increased slightly to $2.6 million from $2.4 million in the first quarter of 2002. Adjusted EBITDA for the first quarter increased 8.0% to $8.6 million in 2003 from $8.0 million in 2002. Net cash provided from operations for the first quarter decreased by approximately $1.0 million to $5.7 million from $6.7 million in 2002.
In his comments about the Company’s performance, Scott Hennessy, President and CEO said, “Although international economic and golf industry market conditions remain quite soft, we were pleased to record our third consecutive quarter of improved sales and operating performance. Our first quarter sales increased on the strength of premium grade lightweight steel shaft sales and the expansion of performance sports revenues from sales of composite bicycle components, several new hockey stick shafts to hockey OEMs, and other recreational products within the segment. In addition, we benefited from improved foreign currency exchange rates in both Japan and the United Kingdom, which, along with increased shipments into China, generated a 45% increase in our export sales to international markets during the first quarter of 2003.”
In his comments about the Company’s future performance, Mr. Hennessy said, “The economic and golf industry climate remains sluggish and uncertain. We are hopeful that the recent success in the country’s war on terrorism will ignite consumer confidence and spending patterns, but we are also concerned with the fears over SARS and a late breaking spring season that the golf industry retail environment may remain relatively soft for the foreseeable future. Although our monthly incoming order trends have generally been positive, we have noticed a decline in the rate of growth that indicates a potential softening to our sales outlook on a comparative year over year basis. That said we are excited about our new product initiatives, such as Grafalloy Blue™, and our growing presence in the hockey and bicycle component markets, all of which posted improvements in the first quarter. At this time, with our current run rates, we expect our sales and operating performance in the second quarter of 2003 to approximate our results from the second quarter of 2002.”
True Temper Sports Inc www.truetemper.com