True Temper Sports, Inc. has announced its 2003 third quarter and year-to-date results. True Temper is the leading manufacturer of golf shafts in the world. The company markets a complete line of shafts under the True Temper and Grafalloy shaft brands, and sells these brands in over 30 countries. 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.
Net sales on a year-to-date basis through September increased 9.2% to $88.8 million from $81.3 million during the same period in 2002. Net income increased to $8.6 million in 2003 from $7.6 million during the first nine months of 2002. Adjusted EBITDA during the first nine months increased by $3.2 million to $27.8 million in 2003 from $24.7 million in 2002. Net cash provided from operations on a year to date basis increased by $2.1 million to $20.4 million in 2003 compared to $18.3 million in 2002.
In his comments about the Company’s performance, Scott Hennessy, president and CEO said, “Despite the challenging worldwide economy over the last couple of years, we are pleased to report our fifth consecutive quarter of improved sales and operating performance. As a result of our continued market penetration in premium steel golf shafts, and the growth of our performance sports revenues, we have been able to achieve record sales and profits in a sluggish operating environment.
“For the twelve month period ending September, 2003, our sales have grown to $114.9 million and Adjusted EBITDA has increased to $35.6 million, while net cash provided by operating activities reached $22.0 million during this period. Our sales momentum has increased on the strength of new premium lightweight steel shaft sales, along with the strong market success of our new Grafalloy Blue(TM) graphite shaft.
“These two factors, coupled with the continued expansion of performance sports revenues from bicycle components and hockey stick shafts, contributed to our year over year growth. In fact, our performance sports revenues have grown by over 42% during the first nine months of 2003. 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 year-to-date international sales increased by 22.7% when compared to the first nine months of 2002.”
In his comments about the Company’s outlook, Mr. Hennessy said, “While our long term visibility into the future remains limited, recent incoming orders have been quite strong and indicate a positive outlook going forward. In fact, over the past two months new orders have increased 16% versus the same period a year ago and provide an indication for sustainable revenue growth. Retail sales for the golf equipment industry appear to be rebounding and we believe that we are well positioned to take full advantage of this increase in activity.”
True Temper management is scheduled to discuss the Company’s operating performance in a conference call on Monday 17th November 2003 at 10:00 a.m. Eastern Time. Interested parties may participate by calling 800-370-8105 just prior to the start time. Callers should request the True Temper third quarter conference call led by Scott Hennessy, president and CEO, under conference ID number 3892077. A replay of the conference call will be available from approximately 11:30 a.m. Eastern Time on 17th November until 11:59 p.m. Eastern Time on 22nd November 2003. The replay may be accessed by calling either 800-642-1687 or 706-645-9291 and by entering the conference ID number 3892077.
True Temper Sports, Inc., Int. +1-901-746-2020
True Temper Sports www.truetemper.com/
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