The manufacturer of graphite golf shafts has announced operating results for the third quarter and nine months ended 30th September 2003. For the third quarter net sales were $8.0 million, compared to net sales of $6.5 million for the 2002 third quarter, a 24.0% increase. Aldila reported net income of $189,000 ($.04 per share) for the third quarter 2003 compared to a net loss of $699,000 ($0.14 loss per share) for the third quarter of 2002.
For the nine-months ended 30th September 2003, net sales were $28.0 million compared to $28.4 million for the nine-month period ended September 30, 2002, a decrease of 1.2%. The company reported a net loss of $451,000 ($.09 loss per share) for the nine-month period ended 30th September 2003, compared to a net loss of $1.1 million ($.22 loss per share) for the nine-month period ended 30th September 2002.
In the quarter ending 30th September 2003, the company’s cash and cash equivalents balance increased $1.1 million, resulting in an ending balance of $6.0 million, with currently have no outstanding borrowings.
“We are encouraged with the progress we are making in our business which is reflected in our positive results in the historically weak third quarter,” said Peter R. Mathewson, chairman and chief executive officer. “Net consolidated sales in the third quarter increased 24%, and the average selling price of golf shaft units sold increased 20.9% over the 2002 third quarter. Value golf shaft units sold in the 2003 third quarter, which have the lowest gross margins, declined 45% and were somewhat offset by a 12% increase in premium golf shaft unit sales for a net 5% decline in total golf shaft units sold from the 2002 third quarter. Our cash balance continued to grow and we generated positive earnings for the first time in 10 quarters. The company continues to consolidate its operations, which are expected to result in further cost savings in 2004.”
“Our new NV shaft continues to generate momentum in both segments of the premium branded market. Virtually every major golf club OEM will offer NV as a custom upgrade option for 2004 and several major companies have chosen to offer it for stock custom programs which have a strong retail presence. On the distribution side of the business, NV has a very strong position at all of our major distributors and we believe the stage is set for brisk sales in 2004. New NV offerings for 2004 include a 55 gram wood shaft and a Hybrid iron shaft, which makes the NV the most complete range of high performance premium graphite shafts available on the market today”, Mr. Mathewson said.
“Worldwide professional tour use of the NV continues to grow,” he continued. “Since its introduction in February, NV has become a leading shaft model on the PGA Tour and has dominated the Nationwide Tour counts. Numerous tour victories, including the 2003 British Open, have positioned NV near the top of this highly competitive market.
“Our hockey business with Mission Hockey continues to grow with an expanding product line and further growth in the composite hockey stick market as that market continues to convert from traditional wood sticks.
“Negotiations continue regarding Carbon Fiber Technology (“CFT”) since our announcement of September 17, 2003 in which the company stated that CFT, a joint venture limited liability company owned by it and its joint venture partner, had signed a non-binding letter of interest to sell selected assets, including property, plant, equipment, and know-how to an independent third party at a price to be negotiated.
The company repurchased 20,199 shares of its common stock during the third quarter of 2003 at prices ranging between $1.71 and $2.07.
Aldila, Inc. is a leader among manufacturers of graphite golf shafts used in clubs assembled and marketed throughout the world by major golf club companies, component distributors and custom club makers. Aldila manufactures and assembles hockey sticks and blades, in addition to the manufacture of composite prepreg material for its golf shaft business and external sales. Aldila also manufactures carbon fiber for internal use through an ownership interest in Carbon Fiber Technology LLC. In June 2003, Aldila announced its intention to divest this ownership interest.
Aldila is publicly traded on NASDAQ with the symbol ALDA. For further information on Aldila’s graphite shafts contact Neil Gray at GMS on +44 (0) 1438 718399 (neil@gmsgolf.co.uk)
Aldila www.aldila.com
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