PART I. FINANCIAL INFORMATION [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents Acushnet Holdings Corp.'s unaudited condensed consolidated financial statements for the quarter ended March 31, 2024, prepared under U.S. GAAP [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.36 billion** as of March 31, 2024, driven by accounts receivable, while total liabilities rose to **$1.43 billion** due to higher debt Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,356,959** | **$2,196,677** | | Accounts receivable, net | $464,954 | $201,352 | | Inventories | $537,412 | $615,535 | | **Total Liabilities** | **$1,427,916** | **$1,283,805** | | Long-term debt | $833,335 | $671,819 | | **Total Shareholders' Equity** | **$919,439** | **$903,087** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales increased to **$707.6 million** in Q1 2024, but higher expenses led to a decrease in net income to **$87.8 million** and diluted EPS to **$1.35** Q1 2024 vs. Q1 2023 Performance (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | $707,554 | $686,290 | | Gross profit | $377,939 | $365,672 | | Income from operations | $121,381 | $124,904 | | Net income attributable to Acushnet | $87,762 | $93,275 | | Diluted EPS | $1.35 | $1.36 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities resulted in a **$109.5 million** net cash outflow in Q1 2024, while financing activities provided **$101.6 million**, leading to a net decrease in cash Cash Flow Summary (in thousands) | Activity | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Cash flows used in operating activities | $(109,516) | $(86,418) | | Cash flows used in investing activities | $(7,275) | $(34,834) | | Cash flows provided by financing activities | $101,571 | $119,310 | | **Net decrease in cash** | **$(16,713)** | **$(1,620)** | [Notes to Financial Statements](index=13&type=section&id=Notes%20to%20Financial%20Statements) Notes detail significant accounting policies, debt arrangements including a **$950 million** credit facility and **$350 million** notes, share repurchases, and a restructuring plan - The company has a **$950.0 million** multi-currency revolving credit facility maturing in August 2027, with **$485.2 million** outstanding as of March 31, 2024[48](index=48&type=chunk) - In October 2023, a subsidiary issued **$350.0 million** of 7.375% senior unsecured notes due 2028[51](index=51&type=chunk) - During Q1 2024, the company repurchased **547,233 shares** for **$35.3 million** and declared a quarterly dividend of **$0.215 per share**[74](index=74&type=chunk)[79](index=79&type=chunk) - A restructuring plan was approved in Q1 2024 to close certain production lines at the FDL factory, resulting in **$7.0 million** of involuntary employee termination costs[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, highlighting a **3.1%** net sales increase driven by Titleist golf products, offset by FootJoy declines, and reviews liquidity and capital resources Q1 2024 vs. Q1 2023 Key Metrics (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Sales | $707,554 | $686,290 | | Net Income Attributable to Acushnet | $87,762 | $93,275 | | Adjusted EBITDA | $153,691 | $146,782 | | Adjusted EBITDA Margin | 21.7% | 21.4% | - Net sales in the U.S. grew **13.1%** to **$418.2 million**, while sales outside the U.S. decreased by **8.5%** (**6.5%** in constant currency)[121](index=121&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) [Results of Operations Analysis](index=32&type=section&id=Results%20of%20Operations%20Analysis) Net sales increased **3.1%** to **$707.6 million**, but higher SG&A expenses, including **$7.0 million** in restructuring costs, and increased interest expense led to lower net income - Gross profit increased by **$12.2 million**, primarily from higher sales volumes in Titleist golf clubs and balls[126](index=126&type=chunk) - SG&A expenses increased due to higher advertising, administrative costs, and **$7.0 million** in restructuring charges[127](index=127&type=chunk) - Interest expense increased by **$3.2 million** due to higher interest rates and borrowing levels[129](index=129&type=chunk) [Segment Performance Analysis](index=33&type=section&id=Segment%20Performance%20Analysis) Titleist golf balls and clubs sales grew **8.3%** and **12.8%** respectively in Q1 2024, driven by new products, while FootJoy golf wear sales decreased by **6.3%** Q1 2024 Net Sales Change by Segment | Segment | % Change (Reported) | % Change (Constant Currency) | Key Drivers | | :--- | :--- | :--- | :--- | | Titleist golf balls | +8.3% | +9.4% | Higher volumes of Pro V1/V1x and new AVX models | | Titleist golf clubs | +12.8% | +14.0% | Higher volumes of new SM10 wedges and T-Series irons | | Titleist golf gear | +1.8% | +2.4% | Higher sales in travel gear, gloves, and bags | | FootJoy golf wear | -6.3% | -5.7% | Lower sales volumes across all product categories | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains **$47.1 million** in cash and **$459.8 million** in credit facility availability, deeming resources sufficient for future liquidity needs, with **$85.0 million** projected for 2024 capital expenditures - Primary liquidity sources include cash from operations and borrowings under multi-currency and local credit facilities[140](index=140&type=chunk) - As of March 31, 2024, **$459.8 million** was available under the multi-currency revolving credit facility[145](index=145&type=chunk) - Capital expenditures for full year 2024 are projected to be approximately **$85.0 million**[153](index=153&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, foreign exchange, and commodity prices, using derivatives to mitigate these exposures, with sensitivity analyses provided - A hypothetical **1%** increase in interest rates on variable-rate debt would increase annual pre-tax interest expense by **$4.2 million**[164](index=164&type=chunk) - A hypothetical **10%** weakening of the U.S. dollar would decrease the net settlement asset value of outstanding foreign exchange forward contracts by **$13.7 million**[167](index=167&type=chunk) - The company is exposed to commodity price risks for materials including polybutadiene, urethane, titanium, steel, and leather[170](index=170&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The principal executive and financial officers concluded that disclosure controls and procedures were effective as of March 31, 2024[172](index=172&type=chunk) - No material changes occurred in internal controls over financial reporting during the quarter[173](index=173&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits arising from normal business operations, with unpredictable outcomes that could be unfavorable - The company is party to lawsuits associated with the normal conduct of its business, with unpredictable outcomes[175](index=175&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2023[176](index=176&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **547,233 shares** for **$35.3 million** in Q1 2024, with **$339.7 million** remaining under the share repurchase authorization Q1 2024 Share Repurchases | Period | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Jan 2024 | 136,500 | $63.78 | | Feb 2024 | 130,000 | $66.58 | | Mar 2024 | 280,733 | $63.91 | | **Total** | **547,233** | **$64.51** | - As of March 31, 2024, **$339.7 million** remained available for share repurchases under the program[177](index=177&type=chunk) [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) On May 2, 2024, the company amended its credit agreement to transition from CDOR to Adjusted Term CORRA for Canadian dollar borrowings - The company amended its credit agreement on May 2, 2024, to transition from CDOR to Adjusted Term CORRA for Canadian dollar borrowings, effective after June 28, 2024[181](index=181&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Stock Repurchase Agreement, Third Amendment to Credit Agreement, and CEO/CFO certifications - Key exhibits filed include the Stock Repurchase Agreement dated March 14, 2024, and the Third Amendment to Credit Agreement dated May 2, 2024[185](index=185&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net sales increase of 4% year-over-year for Q1 2024, totaling $708 million [5][30] - Adjusted EBITDA for the quarter was $153.7 million, reflecting a 4.7% increase from Q1 2023 [5][30] - Gross profit increased by 3% to $378 million compared to the previous year, primarily due to higher net sales [5][30] - SG&A expenses rose by 6% to $237 million, influenced by increased advertising, IT expenses, and restructuring costs [5][30] - Interest expense increased by $3 million to $13 million due to higher interest rates [5] Business Line Data and Key Metrics Changes - Titleist golf clubs saw a 14% sales increase, driven by strong performance in the US, Japan, and EMEA [4][5] - Golf ball sales increased by 9%, supported by successful new product launches and demand fulfillment from the loyalty program [5][30] - FootJoy net sales declined by 6%, with growth in the US offset by declines in international markets [5][30] - Sales of products not allocated to a reportable segment decreased, with a notable decline in Korean Titleist apparel [4][5] Market Data and Key Metrics Changes - US market sales increased by 13%, benefiting from positive rounds of play [31] - EMEA sales declined by 5% due to poor weather conditions affecting the golf season [31] - Japan experienced a 10% decline, with gains in golf clubs offset by losses in other categories [31] - Korea saw a 12% decline, primarily due to poor weather and reduced sales in Titleist apparel [31] Company Strategy and Development Direction - The company plans to increase investment in the FJ FitLab performance fitting system to enhance customer experience [4][5] - The focus remains on executing strategic initiatives and maintaining a strong balance sheet to support organic growth and shareholder returns [6][30] - The company is optimistic about the golf industry's long-term health, driven by increased participation and demographic trends [57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite weather-related challenges impacting sales in certain regions [33][90] - The outlook for 2024 remains unchanged, with revenue expected between $2.45 billion and $2.5 billion, reflecting a 4.3% increase at the midpoint [6] - Management noted that the golf season typically gains momentum after the Masters, making Q2 critical for assessing overall performance [10][33] Other Important Information - The company returned approximately $50 million to shareholders through share repurchases and dividends [19] - The effective tax rate increased to 21.7% from 18.1% due to changes in the jurisdictional mix of earnings [5] Q&A Session Summary Question: Guidance for the year remains unchanged despite a strong Q1 - Management indicated that it is customary not to adjust guidance after Q1, as clarity on the golf season typically improves in Q2 [10][11] Question: Commentary on gross margin and promotional environment - Management stated that gross margins were in line with expectations, and promotional activity was typical for this time of year [11][12] Question: Industry outlook and participation trends - Management highlighted strong participation levels and noted that the golf industry has seen consistent growth in recent years [56][57] Question: Inventory levels and comfort with current stock - Management expressed confidence in inventory levels, indicating that they are well-positioned to meet demand [35][36] Question: Impact of weather on sales and demand - Management acknowledged that weather significantly affects demand, with positive trends in regions with favorable conditions [90]

Acushnet (GOLF) reported $707.55 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 3.1%. EPS of $1.43 for the same period compares to $1.36 a year ago.The reported revenue represents a surprise of +2.19% over the Zacks Consensus Estimate of $692.41 million. With the consensus EPS estimate being $1.24, the EPS surprise was +15.32%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

[Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management reported solid Q1 with **4% constant currency net sales growth**, driven by Titleist golf balls and clubs, strong U.S. market performance, and successful new product launches - Constant currency net sales grew **4%** in Q1, led by strong performance in the U.S. market which saw a **13% increase**[4](index=4&type=chunk) - Growth was supported by the successful launch of new products across the Titleist and FootJoy brands, including Vokey SM10 wedges, Scotty Cameron Phantom putters, and new golf ball and shoe models[4](index=4&type=chunk)[5](index=5&type=chunk) - Management views the golf industry as structurally healthy, with resilient participation despite poor weather affecting some regions early in the year[6](index=6&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Acushnet's Q1 2024 saw **3.1% net sales growth** to **$707.6 million**, a **5.9% decline** in net income to **$87.8 million**, and a **4.7% increase** in Adjusted EBITDA to **$153.7 million** Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $707.6M | $686.3M | +3.1% | +4.0% | | Net Income | $87.8M | $93.3M | -5.9% | N/A | | Adjusted EBITDA | $153.7M | $146.8M | +4.7% | N/A | [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) Sales growth was driven by Titleist golf clubs and balls, particularly in the U.S., offsetting international declines, with mixed profitability as net income decreased but Adjusted EBITDA improved [Performance by Business Segment](index=2&type=section&id=Performance%20by%20Business%20Segment) Titleist branded products led growth, with golf clubs and balls sales increasing by **12.8%** and **8.3%** respectively, driven by new products, while FootJoy golf wear sales declined by **6.3%** Q1 2024 Net Sales Growth by Segment | Segment | % Change (Reported) | % Change (Constant Currency) | Key Drivers | | :--- | :--- | :--- | :--- | | Titleist golf balls | +8.3% | +9.4% | Higher volumes of Pro V1/V1x and new models | | Titleist golf clubs | +12.8% | +14.0% | Higher volumes of new SM10 wedges and T-Series irons | | Titleist golf gear | +1.8% | +2.4% | Higher sales in travel gear, gloves, and bags | | FootJoy golf wear | -6.3% | -5.7% | Lower sales volumes across all product categories | [Performance by Geographic Region](index=2&type=section&id=Performance%20by%20Geographic%20Region) The United States was the standout performer, with net sales increasing by **13.1%** driven by strong Titleist product growth, while sales in regions outside the U.S. decreased by **8.5%** - Net sales in the United States grew **13.1%**, driven by strong performance in Titleist golf clubs (**+20.6%**), Titleist golf balls (**+15.5%**), and Titleist golf gear (**+13.9%**)[9](index=9&type=chunk) - Net sales in regions outside the United States decreased by **8.5%** (**6.5% constant currency**), primarily due to lower sales in Korea, EMEA, and Japan[10](index=10&type=chunk) [Profitability Analysis](index=4&type=section&id=Profitability%20Analysis) Net income decreased **5.9%** to **$87.8 million** due to higher interest and tax expenses, while Adjusted EBITDA rose **4.7%** to **$153.7 million**, with its margin expanding to **21.7%** - The **5.9% decrease** in net income to **$87.8 million** was mainly caused by an increase in net interest expense and income tax expense[12](index=12&type=chunk) - Adjusted EBITDA increased by **4.7%** to **$153.7 million**, with the Adjusted EBITDA margin improving to **21.7%** from **21.4%** in the prior year period[12](index=12&type=chunk) [Shareholder Returns and Capital Allocation](index=4&type=section&id=Shareholder%20Returns%20and%20Capital%20Allocation) [Dividends](index=4&type=section&id=Dividends) The Board declared a quarterly cash dividend of **$0.215 per share**, payable in June 2024 - A quarterly cash dividend of **$0.215 per share** was declared[13](index=13&type=chunk) - The dividend is payable on June 21, 2024, to shareholders of record on June 7, 2024[13](index=13&type=chunk) [Share Repurchases](index=4&type=section&id=Share%20Repurchases) Acushnet repurchased **$35.3 million** of common stock in Q1 and entered a new agreement with its majority shareholder for further stock purchases up to **$37.5 million** - In Q1, the Company repurchased **547,233 shares** on the open market for an aggregate of **$35.3 million**, at an average price of **$64.51 per share**[14](index=14&type=chunk) - A new agreement was made with Magnus Holdings Co., Ltd. for the company to purchase an equal amount of stock as open market purchases from April 1, 2024, through June 28, 2024, up to an aggregate of **$37.5 million**[14](index=14&type=chunk) [Full-Year 2024 Outlook](index=4&type=section&id=Full-Year%202024%20Outlook) [Financial Guidance](index=4&type=section&id=Financial%20Guidance) Acushnet reaffirmed full-year 2024 guidance, expecting consolidated net sales of **$2,450M - $2,500M** and Adjusted EBITDA of **$385M - $405M** Full-Year 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | Consolidated Net Sales | $2,450M - $2,500M | | Adjusted EBITDA | $385M - $405M | - On a constant currency basis, full-year consolidated net sales are expected to increase by **3.2% to 5.3%**[15](index=15&type=chunk) [Financial Statements (Unaudited)](index=7&type=section&id=Financial%20Statements%20%28Unaudited%29) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 saw net sales increase to **$707.6 million** and gross profit to **$377.9 million**, but higher expenses led to decreased net income of **$87.8 million** and diluted EPS of **$1.35** Q1 Statement of Operations Highlights (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | $707,554 | $686,290 | | Gross profit | $377,939 | $365,672 | | Income from operations | $121,381 | $124,904 | | Net income attributable to Acushnet | $87,762 | $93,275 | | Diluted EPS | $1.35 | $1.36 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to **$2.36 billion** due to higher accounts receivable, total liabilities rose to **$1.43 billion** from long-term debt, and total shareholders' equity modestly increased to **$919.4 million** Balance Sheet Highlights (in thousands) | Line Item | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total current assets | $1,174,448 | $996,692 | | Total assets | $2,356,959 | $2,196,677 | | Total current liabilities | $436,077 | $451,135 | | Long-term debt | $833,335 | $671,819 | | Total liabilities | $1,427,916 | $1,283,805 | | Total shareholders' equity | $919,439 | $903,087 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, the company used **$109.5 million** in cash from operating activities, with financing activities providing **$101.6 million** from credit facilities, resulting in an overall cash decrease of **$16.7 million** Q1 Cash Flow Summary (in thousands) | Cash Flow Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Cash flows used in operating activities | $(109,516) | $(86,418) | | Cash flows used in investing activities | $(7,275) | $(34,834) | | Cash flows provided by financing activities | $101,571 | $119,310 | | Net decrease in cash | $(16,713) | $(1,620) | [Supplemental and Non-GAAP Information](index=10&type=section&id=Supplemental%20and%20Non-GAAP%20Information) [Supplemental Net Sales Information](index=10&type=section&id=Supplemental%20Net%20Sales%20Information) This section details Q1 net sales by segment and region, highlighting strong Titleist golf clubs and balls performance, especially in the U.S., contrasting with declines in FootJoy golf wear and most international markets Q1 2024 Net Sales by Segment (in millions) | Segment | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Titleist golf balls | $208.0 | $192.0 | +8.3% | | Titleist golf clubs | $203.9 | $180.8 | +12.8% | | Titleist golf gear | $68.2 | $67.0 | +1.8% | | FootJoy golf wear | $192.4 | $205.3 | -6.3% | Q1 2024 Net Sales by Region (in millions) | Region | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | United States | $418.2 | $369.9 | +13.1% | | EMEA | $101.7 | $104.8 | -3.0% | | Japan | $37.2 | $46.4 | -19.8% | | Korea | $75.3 | $89.0 | -15.4% | | Rest of World | $75.2 | $76.2 | -1.3% | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company reconciles Net Income to Adjusted EBITDA, showing Q1 2024 Net Income of **$87.8 million** was adjusted for various expenses to arrive at an Adjusted EBITDA of **$153.7 million** - The company uses non-GAAP measures like constant currency net sales and Adjusted EBITDA to evaluate business performance, excluding items it does not consider indicative of ongoing operations[35](index=35&type=chunk)[38](index=38&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income attributable to Acushnet | $87,762 | $93,275 | | Interest expense, net | $13,076 | $9,896 | | Income tax expense | $23,407 | $20,725 | | Depreciation and amortization | $13,781 | $12,631 | | Share-based compensation | $7,424 | $7,283 | | Restructuring & Transformation costs | $10,792 | $2,956 | | Other adjustments | $(2,551) | $16 | | **Adjusted EBITDA** | **$153,691** | **$146,782** |

Analysts on Wall Street project that Acushnet (GOLF) will announce quarterly earnings of $1.24 per share in its forthcoming report, representing a decline of 8.8% year over year. Revenues are projected to reach $692.41 million, increasing 0.9% from the same quarter last year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Prior to a co ...

Financial Performance - Full Year 2023 - Net sales reached $2382 million, a 4.9% increase year-over-year, or 6.2% on a constant currency basis[6] - Adjusted EBITDA was $376.1 million, representing an 11.1% increase year-over-year[6] - Gross profit reached $1252.5 million with a gross margin of 52.6%[25] - Net income attributable to Acushnet Holdings Corp was $198.4 million[25] Segment Performance - Full Year 2023 - Titleist Golf Balls net sales were $761.7 million, a 12.2% increase year-over-year, or 13.5% on a constant currency basis[6] - Titleist Golf Clubs net sales were $658.6 million, an 8.0% increase year-over-year, or 9.5% on a constant currency basis[6] - Titleist Golf Gear net sales were $216.2 million, a 5.5% increase year-over-year, or 7.0% on a constant currency basis[6] - FootJoy Golf Wear net sales were $596.4 million, a decrease of 3.5% year-over-year, or a decrease of 2.1% on a constant currency basis[6] Regional Performance - Full Year 2023 - United States net sales were $1350 million, a 10.0% increase year-over-year[22] - EMEA net sales were $314.7 million, a decrease of 2.1% year-over-year, or a decrease of 1.4% on a constant currency basis[22] - Japan net sales were $149.4 million, a decrease of 7.2% year-over-year, or an increase of 0.1% on a constant currency basis[22] - Korea net sales were $301.8 million, a decrease of 3.5% year-over-year, or a decrease of 1.7% on a constant currency basis[22] - Rest of World net sales were $266.1 million, a 7.6% increase year-over-year, or 11.7% on a constant currency basis[22] 2024 Outlook - Net sales are projected to be between $2450 million and $2500 million, representing an increase of approximately 3.9% at the midpoint[32] - Adjusted EBITDA is projected to be between $385 million and $405 million, representing an increase of approximately 5.0% at the midpoint[32]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37935 Acushnet Holdings Corp. (Exact name of registrant as specified in its charter) Delaware 45-2644353 (State or other juri ...

Exhibit 99.1 Acushnet Holdings Corp. Announces Full Year and Fourth Quarter 2023 Financial Results, Declares Increased Quarterly Cash Dividend, Announces Increased Share Repurchase Authorization, Introduces 2024 Outlook Key Highlights: FAIRHAVEN, MA – February 29, 2024 – Acushnet Holdings Corp. (NYSE: GOLF) ("Acushnet"), the global leader in the design, development, manufacture and distribution of performance-driven golf products, today reported financial results for the full year and fourth quarter ended D ...

Financial Data and Key Metrics Changes - Acushnet reported third quarter sales of $593 million, a 6% increase year-over-year [28] - Adjusted EBITDA for the period was up 14% to $99 million [28] - Year-to-date net sales were up 10% to almost $2 billion, with adjusted EBITDA increasing 21% to $378 million [28] Business Line Data and Key Metrics Changes - Titleist Golf Clubs sales increased by 18% for the quarter and 17% year-to-date [34] - Titleist Golf Balls were up 6% in the quarter and 16% year-to-date, driven by new Pro V1 and Pro V1x models [55] - FootJoy sales increased by 3% in the quarter, primarily due to apparel, but were flat year-to-date [31] - Titleist Golf Gear saw a decrease of 19.9% in the third quarter compared to the previous year [43] - Gear sales were down 20% in the quarter but up 9% year-to-date [35] Market Data and Key Metrics Changes - The U.S. market showed strong performance with rounds of play up 4% year-to-date, contributing to an 8% growth in the third quarter [32] - Year-to-date sales in EMEA were down 1%, while Japan was up 9% and Korea down 2% [36] - Golf ball and club sales increased in all regions, but footwear and apparel sales were soft in Korea [36] Company Strategy and Development Direction - The company is focused on high-performance, high-quality golf products and is investing in customization and distribution capabilities to create operating leverage [18][40] - Acushnet plans to launch several new models in early 2024, including new T-Series irons and golf balls [37][38] - The company is maintaining its revenue outlook for 2023 between $2.35 billion and $2.4 billion, reflecting continued momentum in golf ball and club categories [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the golf industry, noting increased participation and consumer spending in the U.S. market [65][84] - The company acknowledged macroeconomic concerns but remains optimistic about the sport's resilience and growth potential [84] - Management indicated that the golf industry is at a seasonal low point, with inventories generally healthy but slightly elevated in footwear [88][89] Other Important Information - The effective tax rate for Q3 was 16.5%, down from 22.9% the previous year [48] - The company completed the issuance of $350 million in senior unsecured notes to enhance liquidity [50] - Year-to-date cash flow from operations increased significantly, primarily due to changes in working capital [51] Q&A Session Summary Question: Impact of price change on Pro V1 - Management noted that the price change for Pro V1 has settled in well, with strong sell-in and sell-through performance [8] Question: Revenue guidance and uncertainties - Management acknowledged the wider revenue guidance range compared to last year, attributing it to uncertainties in the market [11][12] Question: Retail inventory and footwear - Management indicated that overall inventories are healthy, but footwear inventories are heavier than ideal, working through the inventory cycle [88][89] Question: Competitive landscape and smaller players - Management takes competition seriously but does not see significant disruption from smaller players in the golf ball segment [112] Question: Future investments and share repurchase plans - Management expects to revisit the remaining share repurchase authorization in the first half of 2024 [109]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q3 and 9M 2023, detailing balance sheets, income, cash flows, and equity Balance Sheets (in thousands) | (in thousands) | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $1,033,521 | $1,059,076 | | **Total assets** | $2,210,567 | $2,193,807 | | **Total current liabilities** | $856,197 | $548,625 | | **Total liabilities** | $1,236,661 | $1,210,441 | | **Total shareholders' equity** | $966,646 | $976,703 | Statements of Operations (in thousands, except per share amounts) | (in thousands, except per share amounts) | Three months ended Sep 30, 2023 | Three months ended Sep 30, 2022 | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $593,381 | $558,246 | $1,969,034 | $1,822,932 | | **Gross profit** | $308,522 | $294,995 | $1,042,717 | $955,600 | | **Income from operations** | $78,605 | $76,010 | $309,999 | $269,926 | | **Net income attributable to Acushnet** | $57,307 | $51,837 | $225,237 | $199,336 | | **Diluted EPS** | $0.85 | $0.72 | $3.30 | $2.72 | Statements of Cash Flows (in thousands) | (in thousands) | Nine months ended Sep 30, 2023 | Nine months ended Sep 30, 2022 | | :--- | :--- | :--- | | **Cash flows provided by (used in) operating activities** | $296,930 | $(59,042) | | **Cash flows used in investing activities** | $(68,554) | $(29,096) | | **Cash flows used in financing activities** | $(229,202) | $(74,619) | | **Net decrease in cash, cash equivalents and restricted cash** | $(2,138) | $(173,220) | - In January 2023, the Company acquired certain trademarks from West Coast Trends, Inc. (Club Glove) for **$25.2 million**, which will be amortized over a weighted average life of **10 years** and are included in the Titleist golf gear segment[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting **8.0% net sales growth** for 9M 2023, segment results, gross margin, liquidity, and capital resources [Results of Operations - Q3 2023 vs Q3 2022](index=33&type=section&id=Results%20of%20Operations%20-%20Q3%202023%20vs%20Q3%202022) Q3 2023 net sales increased **6.3% to $593.4 million**, driven by golf clubs and balls, with gross margin at **52.0%** and net income at **$57.3 million** Net Sales by Segment (in millions) | (in millions) | Q3 2023 | Q3 2022 | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | **Titleist golf balls** | $192.6 | $181.2 | 6.3% | 6.2% | | **Titleist golf clubs** | $181.0 | $153.9 | 17.6% | 17.9% | | **Titleist golf gear** | $47.7 | $59.2 | (19.4)% | (19.9)% | | **FootJoy golf wear** | $136.7 | $131.7 | 3.8% | 3.4% | - Net sales in the United States grew **7.6% to $352.5 million**, driven by increases in Titleist golf clubs, golf balls, and FootJoy golf wear[123](index=123&type=chunk)[124](index=124&type=chunk) - Gross margin decreased to **52.0%** from **52.8%** in the prior year, primarily due to unfavorable manufacturing overhead absorption and increased promotional activity in FootJoy footwear, partially offset by lower inbound freight costs across all segments[126](index=126&type=chunk) [Results of Operations - Nine Months 2023 vs 2022](index=36&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%202023%20vs%202022) For 9M 2023, net sales grew **8.0% to $1.97 billion**, driven by Titleist golf balls and clubs, with gross margin improving to **53.0%** and net income at **$225.2 million** Net Sales by Segment (in millions) | (in millions) | 9M 2023 | 9M 2022 | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | **Titleist golf balls** | $622.1 | $546.4 | 13.9% | 15.5% | | **Titleist golf clubs** | $549.8 | $478.9 | 14.8% | 16.8% | | **Titleist golf gear** | $184.6 | $172.5 | 7.0% | 9.0% | | **FootJoy golf wear** | $500.2 | $507.1 | (1.4)% | 0.6% | - Net sales in the United States increased by **15.4% to $1.12 billion**, with growth across all reportable segments[142](index=142&type=chunk)[144](index=144&type=chunk) - Gross profit increased by **$87.1 million**, and gross margin expanded to **53.0%** from **52.4%**, primarily due to lower inbound freight costs across all segments and lower royalty expenses in Titleist golf clubs[147](index=147&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity relies on operations and credit facility; **$350.0 million** senior notes issued post-quarter to repay debt, and **$205.0 million** stock repurchased - On October 3, 2023, a subsidiary issued **$350.0 million** in **7.375% senior unsecured notes** due 2028, using the proceeds to repay **$345.6 million** of borrowings under the multi-currency revolving credit facility[168](index=168&type=chunk) - During the first nine months of 2023, the company repurchased **4,150,817 shares** of common stock for an aggregate of **$205.0 million**[171](index=171&type=chunk) - Cash flow from operating activities was **$296.9 million** for the first nine months of 2023, a significant improvement from a use of cash of **$59.0 million** in the prior-year period, primarily due to favorable changes in working capital, especially inventory[177](index=177&type=chunk)[178](index=178&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, foreign exchange, and commodity prices, using derivatives; a **1% interest rate increase** would raise annual pre-tax interest expense by **$4.9 million** - The company is exposed to interest rate risk on its variable rate debt; a hypothetical **1% increase** in interest rates would increase annual pre-tax interest expense by **$4.9 million** as of September 30, 2023[185](index=185&type=chunk)[188](index=188&type=chunk) - To manage foreign currency transaction risk, the company uses foreign exchange forward contracts with a gross U.S. dollar equivalent notional amount of **$193.2 million** as of September 30, 2023[190](index=190&type=chunk)[191](index=191&type=chunk) - The company faces commodity price and availability risks for key manufacturing materials such as polybutadiene, urethane, titanium, steel, and leather[194](index=194&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and procedures were effective as of September 30, 2023, with no material changes in internal controls - Management, including the principal executive officer and principal financial officer, concluded that the company's disclosure controls and procedures were effective as of September 30, 2023[196](index=196&type=chunk) - No changes occurred in the company's internal controls over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[197](index=197&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits arising from normal business operations, with unpredictable outcomes that could be unfavorable - The company is involved in lawsuits associated with the normal conduct of its business, but the outcome of these pending actions is not predictable[199](index=199&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors, emphasizing high leverage with **$592.8 million** indebtedness and a subsequent **$350 million** notes issuance, impacting cash flow and operations - The company's high degree of leverage, with **$592.8 million** of indebtedness at quarter-end plus a subsequent **$350 million** note issuance, could adversely affect its ability to fund operations and react to industry changes[201](index=201&type=chunk) - Key risks from high leverage include requiring substantial cash flow for debt payments, increased vulnerability to adverse economic conditions, and restrictions on strategic activities due to debt covenants[202](index=202&type=chunk) - The indenture governing the new notes and the existing credit facility contain covenants that limit the company's ability to incur additional debt, pay dividends, sell assets, and enter into transactions with affiliates[205](index=205&type=chunk)[206](index=206&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q3 2023 share repurchase activity, with **1,153,400 shares** bought at **$56.28** average, leaving **$202.4 million** authorized Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2023 | 368,313 | $55.93 | | August 2023 | 419,047 | $57.06 | | September 2023 | 366,040 | $55.76 | | **Q3 Total** | **1,153,400** | **$56.28** | - As of September 30, 2023, approximately **$202.4 million** remained available for purchase under the company's share repurchase program[207](index=207&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q3 2023 - During the three months ended September 30, 2023, no directors or officers adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[211](index=211&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including the Indenture for senior notes, CEO/CFO certifications, and XBRL data files - The exhibits filed include the Indenture for the October 3, 2023 note issuance, CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and Inline XBRL documents[213](index=213&type=chunk)