Acushnet (US:GOLF)2025-05-07 10:01Financial Performance - First quarter net sales were $703.4 million, down 0.6% year over year, but up 1.2% in constant currency[6] - Net income attributable to Acushnet Holdings Corp. increased 13.2% to $99.4 million, primarily due to a non-cash pre-tax gain of $20.9 million related to the FootJoy golf shoe joint venture[12] - Adjusted EBITDA for the first quarter was $138.9 million, down 9.6% year over year, with an adjusted EBITDA margin of 19.7%[12] - Net sales for the three months ended March 31, 2025, were $703.4 million, a decrease of 0.6% compared to $707.6 million in the same period of 2024[31] - Gross profit for the first quarter of 2025 was $337.2 million, down from $342.4 million in 2024, reflecting a gross margin of approximately 47.9%[24] - Net income attributable to Acushnet Holdings Corp. increased to $99.4 million in Q1 2025, compared to $87.8 million in Q1 2024, representing a growth of 13.5%[24] - Adjusted EBITDA for Q1 2025 was $138.856 million, down from $153.691 million in Q1 2024, resulting in a decrease of about 9.6%[43] - Adjusted EBITDA margin decreased to 19.7% in Q1 2025 from 21.7% in Q1 2024[43] Sales Performance - Titleist golf equipment net sales increased by 2.2% (3.8% in constant currency), driven by higher sales volumes of Pro V1 and Pro V1x golf balls[11] - FootJoy golf wear net sales decreased by 6.6% (4.9% in constant currency), primarily due to lower sales volumes in footwear and apparel[11] - Net sales in regions outside the United States decreased by 3.5%, but increased by 0.8% on a constant currency basis[9] - The United States market saw a net sales increase of 1.4% to $424.2 million in Q1 2025, up from $418.2 million in Q1 2024[32] - The company experienced a decrease in FootJoy golf wear sales, which fell by 6.6% to $178.4 million in Q1 2025 compared to $191.1 million in Q1 2024[31] Expenses and Costs - Research and development expenses rose to $18.9 million in Q1 2025, up from $16.5 million in Q1 2024, indicating a focus on innovation[24] - Interest expense for Q1 2025 was $13.815 million, compared to $13.076 million in Q1 2024, reflecting an increase of approximately 5.7%[43] - Income tax expense decreased to $21.570 million in Q1 2025 from $23.407 million in Q1 2024, a reduction of about 7.9%[43] - Share-based compensation decreased slightly to $6.941 million in Q1 2025 from $7.424 million in Q1 2024[43] - Restructuring costs significantly decreased to $53, down from $6.967 million in Q1 2024[43] - Transformation costs were $3.158 million in Q1 2025, compared to $3.825 million in Q1 2024[43] Cash and Assets - Cash dividend declared at $0.235 per share, payable on June 20, 2025[13] - During the quarter, the company repurchased 540,944 shares at an average price of $67.73, totaling $36.6 million[14] - Total assets as of March 31, 2025, were $2.4 billion, an increase from $2.2 billion at the end of 2024[27] - The company reported a total current asset increase to $1.2 billion in Q1 2025, compared to $973.9 million in Q4 2024[27] - Cash, cash equivalents, and restricted cash decreased to $40.6 million at the end of Q1 2025 from $53.1 million at the beginning of the year[29] Market Outlook - The company is not providing updates to its previously issued consolidated full-year outlook due to macro-economic uncertainty[15] - The golf industry remains structurally healthy, with a growing number of participants and resilient rounds of play despite adverse weather conditions[5] Non-GAAP Measures - Adjusted EBITDA and Adjusted EBITDA margin are used as supplemental measures to evaluate ongoing operating performance, although specific figures were not disclosed in the provided data[34] - A non-cash gain of $20.9 million was recorded in Q1 2025 related to the FootJoy golf shoe joint venture deconsolidation[42] - The company noted that a reconciliation of non-GAAP Adjusted EBITDA to GAAP net income for 2025 is not available due to high variability and low visibility of certain charges[42]