Workflow
Acushnet (GOLF) - 2024 Q3 - Quarterly Results
GOLFAcushnet (GOLF)2024-11-07 11:08

Net Sales Performance - Third quarter net sales of 620.5million,up4.6620.5 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 620.5million,upfrom620.5 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 213.9millionin2024comparedto213.9 million in 2024 compared to 181.0 million in 2023[37] - Third quarter net sales in the United States increased by 6.2% to 374.2millionin2024from374.2 million in 2024 from 352.5 million in 2023[38] - Nine months net sales for Titleist golf balls increased by 3.8% to 646.0millionin2024from646.0 million in 2024 from 622.1 million in 2023[39] - Nine months net sales in the United States increased by 6.9% to 1,201.0millionin2024from1,201.0 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 56.2million,down1.956.2 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 57.3millioninQ32023[32]−NetincomefortheninemonthsendedSeptember30,2024,was57.3 million in Q3 2023[32] - Net income for the nine months ended September 30, 2024, was 209.998 million, a decrease from 225.029millionin2023[36]−NetincomeattributabletoAcushnetHoldingsCorp.forSeptember2024was225.029 million in 2023[36] - Net income attributable to Acushnet Holdings Corp. for September 2024 was 56.224 million, compared to 57.307millioninSeptember2023[50]−GrossprofitforQ32024roseto57.307 million in September 2023[50] - Gross profit for Q3 2024 rose to 337.4 million, compared to 308.5millioninQ32023,a9.4308.5 million in Q3 2023, a 9.4% increase[32] - Basic net income per common share for Q3 2024 was 0.89, compared to 0.86inQ32023[31]AdjustedEBITDAandMargins−ThirdquarterAdjustedEBITDAof0.86 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 107.394million,anincreasefrom107.394 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 7.0millionrelatedtorestructuringcosts[49]−AdjustedEBITDAforthethreeandninemonthsendedSeptember30,2024,includes7.0 million related to restructuring costs[49] - Adjusted EBITDA for the three and nine months ended September 30, 2024, includes 2.1 million and 8.0million,respectively,relatedtoITsystemoptimization[49]−AdjustedEBITDAmarginisusedbythecompanytoevaluatebusinessstrategiesandoperatingperformance[48]Product−SpecificSalesPerformance−Titleistgolfclubsnetsalesincreased18.28.0 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 2,500million,withconstantcurrencygrowthexpectedat3.22,500 million, with constant currency growth expected at 3.2% to 5.3%[22] - Full-year 2024 Adjusted EBITDA outlook narrowed to 395 to 405million,comparedtopreviousguidanceof405 million, compared to previous guidance of 385 to 405million[22]CashFlowandFinancialPosition−Cash,cashequivalents,andrestrictedcashincreasedto405 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 65.4millionasofDecember31,2023[34]−Accountsreceivable,net,grewto65.4 million as of December 31, 2023[34] - Accounts receivable, net, grew to 367.5 million as of September 30, 2024, compared to 201.4millionasofDecember31,2023[34]−Inventoriesdecreasedto201.4 million as of December 31, 2023[34] - Inventories decreased to 497.5 million as of September 30, 2024, down from 615.5millionasofDecember31,2023[34]−Totalassetsincreasedto615.5 million as of December 31, 2023[34] - Total assets increased to 2.28 billion as of September 30, 2024, up from 2.20billionasofDecember31,2023[34]−Long−termdebtroseto2.20 billion as of December 31, 2023[34] - Long-term debt rose to 708.0 million as of September 30, 2024, compared to 671.8millionasofDecember31,2023[34]−CashflowsprovidedbyoperatingactivitiesfortheninemonthsendedSeptember30,2024,were671.8 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 296.930millionin2023[36]ExpensesandCosts−ResearchanddevelopmentexpensesforQ32024were296.930 million in 2023[36] Expenses and Costs - Research and development expenses for Q3 2024 were 18.9 million, up from 16.2millioninQ32023,a16.516.2 million in Q3 2023, a 16.5% increase[32] - Interest expense, net for September 2024 was 13.187 million, compared to 9.389millioninSeptember2023[50]−IncometaxexpenseforSeptember2024was9.389 million in September 2023[50] - Income tax expense for September 2024 was 13.198 million, up from 11.252millioninSeptember2023[50]−DepreciationandamortizationforSeptember2024was11.252 million in September 2023[50] - Depreciation and amortization for September 2024 was 13.965 million, compared to 12.807millioninSeptember2023[50]−Share−basedcompensationforSeptember2024was12.807 million in September 2023[50] - Share-based compensation for September 2024 was 9.031 million, up from 5.305millioninSeptember2023[50]−RestructuringcostsforSeptember2024were5.305 million in September 2023[50] - Restructuring costs for September 2024 were 432 thousand, compared to a negative 10thousandinSeptember2023[50]−TransformationcostsforSeptember2024were10 thousand in September 2023[50] - Transformation costs for September 2024 were 2.655 million, slightly down from 2.848millioninSeptember2023[50]−NetlossattributabletononcontrollinginterestsforSeptember2024was2.848 million in September 2023[50] - Net loss attributable to noncontrolling interests for September 2024 was 949 thousand, compared to 261thousandinSeptember2023[50]ShareRepurchase−Thecompanyrepurchased1,080,560sharesofitscommonstockatanaveragepriceof261 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]