Acushnet (GOLF)2024-11-07 11:08Net Sales Performance - Third quarter net sales of $620.5 million, up 4.6% year over year, and up 5.0% in constant currency[1] - Year-to-date net sales of $2,011.9 million, up 2.2% year over year, and up 3.1% in constant currency[1] - Net sales for Q3 2024 increased to $620.5 million, up from $593.4 million in Q3 2023, representing a 4.6% growth[32] - Third quarter net sales for Titleist golf clubs increased by 18.2% to $213.9 million in 2024 compared to $181.0 million in 2023[37] - Third quarter net sales in the United States increased by 6.2% to $374.2 million in 2024 from $352.5 million in 2023[38] - Nine months net sales for Titleist golf balls increased by 3.8% to $646.0 million in 2024 from $622.1 million in 2023[39] - Nine months net sales in the United States increased by 6.9% to $1,201.0 million in 2024 from $1,123.8 million in 2023[40] Net Income and Profitability - Third quarter net income attributable to Acushnet Holdings Corp. of $56.2 million, down 1.9% year over year[1] - Net income attributable to Acushnet Holdings Corp. for Q3 2024 was $56.2 million, slightly down from $57.3 million in Q3 2023[32] - Net income for the nine months ended September 30, 2024, was $209.998 million, a decrease from $225.029 million in 2023[36] - Net income attributable to Acushnet Holdings Corp. for September 2024 was $56.224 million, compared to $57.307 million in September 2023[50] - Gross profit for Q3 2024 rose to $337.4 million, compared to $308.5 million in Q3 2023, a 9.4% increase[32] - Basic net income per common share for Q3 2024 was $0.89, compared to $0.86 in Q3 2023[31] Adjusted EBITDA and Margins - Third quarter Adjusted EBITDA of $107.4 million, up 8.7% year over year, with an Adjusted EBITDA margin of 17.3%[1][12] - Adjusted EBITDA for September 2024 was $107.394 million, an increase from $98.790 million in September 2023[50] - Adjusted EBITDA margin for September 2024 was 17.3%, up from 16.6% in September 2023[50] - Adjusted EBITDA for the nine months ended September 30, 2024, includes $7.0 million related to restructuring costs[49] - Adjusted EBITDA for the three and nine months ended September 30, 2024, includes $2.1 million and $8.0 million, respectively, related to IT system optimization[49] - Adjusted EBITDA margin is used by the company to evaluate business strategies and operating performance[48] Product-Specific Sales Performance - Titleist golf clubs net sales increased 18.2% (18.7% in constant currency) driven by higher sales volumes of newly introduced GT drivers and fairways[9] - Titleist golf gear net sales increased 8.2% (8.8% in constant currency) mainly due to higher sales volumes in travel and golf bag product categories[9] - FootJoy golf wear net sales decreased 2.6% (2.3% in constant currency) primarily due to lower sales volumes in footwear and apparel[10] Financial Guidance - Full-year 2024 consolidated net sales guidance reaffirmed at $2,450 to $2,500 million, with constant currency growth expected at 3.2% to 5.3%[22] - Full-year 2024 Adjusted EBITDA outlook narrowed to $395 to $405 million, compared to previous guidance of $385 to $405 million[22] Cash Flow and Financial Position - Cash, cash equivalents, and restricted cash increased to $99.1 million as of September 30, 2024, up from $65.4 million as of December 31, 2023[34] - Accounts receivable, net, grew to $367.5 million as of September 30, 2024, compared to $201.4 million as of December 31, 2023[34] - Inventories decreased to $497.5 million as of September 30, 2024, down from $615.5 million as of December 31, 2023[34] - Total assets increased to $2.28 billion as of September 30, 2024, up from $2.20 billion as of December 31, 2023[34] - Long-term debt rose to $708.0 million as of September 30, 2024, compared to $671.8 million as of December 31, 2023[34] - Cash flows provided by operating activities for the nine months ended September 30, 2024, were $246.228 million, down from $296.930 million in 2023[36] Expenses and Costs - Research and development expenses for Q3 2024 were $18.9 million, up from $16.2 million in Q3 2023, a 16.5% increase[32] - Interest expense, net for September 2024 was $13.187 million, compared to $9.389 million in September 2023[50] - Income tax expense for September 2024 was $13.198 million, up from $11.252 million in September 2023[50] - Depreciation and amortization for September 2024 was $13.965 million, compared to $12.807 million in September 2023[50] - Share-based compensation for September 2024 was $9.031 million, up from $5.305 million in September 2023[50] - Restructuring costs for September 2024 were $432 thousand, compared to a negative $10 thousand in September 2023[50] - Transformation costs for September 2024 were $2.655 million, slightly down from $2.848 million in September 2023[50] - Net loss attributable to noncontrolling interests for September 2024 was $949 thousand, compared to $261 thousand in September 2023[50] Share Repurchase - The company repurchased 1,080,560 shares of its common stock at an average price of $64.80 for an aggregate of $70.0 million during the quarter[21] Currency Impact - Constant currency net sales are used to evaluate sales performance without the impact of foreign exchange rate changes[42]