Acushnet : Announces Fourth Quarter 2022 Financial Results | MarketScreener

Acushnet Holdings Corp. Announces

Full Year and Fourth Quarter 2022 Financial Results,

Declares Increased Quarterly Cash Dividend, Announces Increased Share Repurchase Authorization,

Introduces 2023 Outlook

Key Highlights:

• Full 12 months internet gross sales of $2.27 billion, up 5.7% 12 months over year, up 11.2% in fixed foreign money
• Full year internet earnings attributable to Acushnet Holdings Corp. of $199.3 million, up $20.4 million yr over yr
• Full yr Adjusted EBITDA of $338.4 million, up $10.1 million year over yr
• Fourth quarter net sales of $447.4 million, up 6.4% year over yr, up 14.3% in fixed currency
• Fourth quarter web loss attributable to Acushnet Holdings Corp. of $0.1 million improved by $26.3 million in comparison with 2021
• Fourth quarter Adjusted EBITDA of $25.4 million, up $30.4 million 12 months over year
• Returned $52.2 million to shareholders by way of quarterly dividend funds during 2022
• Repurchased 4.1 million shares for $190.8 million during 2022, reducing total shares outstanding by approximately 5%
• The Company supplied its full year 2023 Outlook, with expected net gross sales of $2.33 to $2.38 billion and Adjusted EBITDA of $345 to $365 million. On a constant currency foundation, consolidated internet gross sales are expected to be within the vary of up 5.0% to up 7.2%.

FAIRHAVEN, MA – March 1, 2023 – Acushnet Holdings Corp. (NYSE: GOLF) (“Acushnet”), the worldwide chief in the design, growth, manufacture and distribution of performance-driven golf products, today reported monetary results for the complete year and fourth quarter ended December 31, 2022.

“As we continue to build momentum across our brands, we are pleased to report the Acushnet group delivered one other sturdy year in 2022, including healthy acceleration in Q4,” stated David Maher, Acushnet’s President and Chief Executive Officer. “The Company’s commitment to product growth, manufacturing and provide chain excellence contributed to growth across all segments and areas, leading to an 11% fixed forex gross sales increase in 2022.”

Mr. Maher continued, “Titleist golf balls continue to be the overwhelming selection of PGA and LPGA Tour players, and Pro V1 golf balls have been the successful choice of all four males’s Major Champions in 2022. We are happy with our capacity to grow gross sales in this segment despite raw material availability challenges through the 12 months. Double digit sales progress in our Titleist golf membership, Titleist gear and FootJoy golf put on segments was pushed by a broad range of innovative new products, together with new TSR drivers that shortly grew to become probably the most performed model on the PGA Tour.

“We are encouraged by wholesome golf business fundamentals, with the U.S. golfer inhabitants increasing again in 2022 and with similar developments in key regions outside the U.S. Looking ahead to 2023, we anticipate to continue our story of progress across all manufacturers and regions, fueled by an exciting line up of new product launches. Our new Pro V1 and Pro V1x fashions are the next era of the most trusted golf balls within the sport. TSR drivers and fairways are off to a fantastic start available within the market and Scotty Cameron Super Select putters will launch later this month. FootJoy, Titleist gear and KJUS will all characteristic product updates and thrilling new innovation tales in 2023.

“I want to thank my fellow associates for his or her dedication and resolve in executing our core methods, and for their unwavering focus on delivering the highest quality services and products to our commerce partners and devoted golfers around the world. Looking ahead, we are assured that our diversified portfolio of leading products, rising capability inside our provide chain and devoted group of Acushnet associates will enable us to ship long-term value for our shareholders.”

Summary of Full Year 2022 Financial Results

Year ended

Increase

Constant Currency

December 31,

Increase

(in millions)

2022

2021

$

change percent change

$

change

percent change

Net sales

$

2,270.3

$

2,147.9

$

122.4

5.7 %

$

240.7

11.2 percent

Net income attributable to Acushnet Holdings Corp

$

199.3

$

178.9

$

20.4

11.4 %

Adjusted EBITDA

$

338.4

$

328.3

$

10.1

3.1 percent

Consolidated internet gross sales for the full 12 months elevated 5.7%, or 11.2% on a constant currency foundation, primarily on account of larger gross sales volumes and better average promoting prices.

On a geographic foundation, consolidated net gross sales within the United States were larger pushed by increases of 17.2% in Titleist golf golf equipment, 4.9% in Titleist golf balls, 4.7% in FootJoy golf put on and 10.3% in Titleist golf gear. The enhance in Titleist golf golf equipment was primarily pushed by higher gross sales volumes of SM9 wedges, Phantom X putters, T-Series irons and our newly launched TSR drivers and fairways. The increase in Titleist golf balls was primarily because of greater common selling costs and better volumes. The enhance in FootJoy golf put on was primarily driven by larger average promoting prices of footwear and higher gross sales volumes of apparel. The enhance in Titleist golf gear was primarily pushed by larger common promoting prices throughout all product classes.

Net gross sales in areas outdoors of the United States had been up 1.9%, or 13.5% on a relentless foreign money foundation. In EMEA, web sales increased throughout all reportable segments, with the primary quarter of 2022 having the most important enhance due to the adverse influence of government-ordered shutdowns on this area in the course of the first quarter of 2021. In Korea and Rest of World, web gross sales increased throughout all reportable segments. In Japan, web sales increased in FootJoy golf wear and Titleist golf clubs.

Segment specifics:

• 1.7% improve in internet gross sales (5.7% increase on a continuing forex basis) of Titleist golf balls, largely because of greater sales volumes and common selling costs. Sales volumes have been negatively impacted by certain uncooked materials availability.
• 10.5% improve in internet sales (16.3% increase on a relentless forex basis) of Titleist golf golf equipment. This increase was largely because of higher sales volumes of our SM9 wedges, Phantom X putters, T-Series irons and TSR drivers and fairways. This increase was partially offset by decrease sales volumes of hybrids which were in their second model 12 months.
• 6.4% improve in web gross sales (12.5% increase on a constant currency basis) of Titleist golf gear. This enhance was largely because of higher common selling costs across all product categories.
• 6.4% enhance in web gross sales (12.2% enhance on a relentless forex basis) in FootJoy golf put on. This increase was largely because of elevated sales volumes throughout all product classes.

Net income attributable to Acushnet improved by $20.4 million to $199.3 million, up 11.4% year over yr, primarily as a result of an increase in income from operations.

Adjusted EBITDA was $338.4 million, up 3.1% 12 months over year. Adjusted EBITDA margin was 14.9% versus 15.3% for the prior yr period.

Summary of Fourth Quarter 2022 Financial Results

Three months

Increase/(Decrease)

Constant Currency

ended December 31,

Increase

(in millions)

2022

2021

$

change

percent change

$

change

percent change

Net sales

$

447.4

$

420.6

$

26.8

6.4 %

$

60.1

14.3 %

Net loss attributable to Acushnet Holdings Corp

$

(0.1)

$

(26.4)

$

26.3

(99.6)%

Adjusted EBITDA

$

25.4

$

(5.0)

$

30.4

*

_______________________________________________________________________________

* Percentage change not meaningful

Consolidated internet sales for the quarter increased 6.4%, or 14.3% on a continuing foreign money foundation. The enhance was primarily associated to an increase in Titleist golf clubs driven by our newly introduced TSR drivers and fairways, a rise in Titleist golf balls primarily due to higher sales volumes throughout all fashions and an increase in Titleist golf gear primarily because of sales volume increases in golf baggage and headwear.

On a geographic foundation, consolidated web gross sales in the United States have been greater pushed by will increase of 31.1% in Titleist golf clubs, 14.7% in Titleist golf balls and 15.6% in Titleist golf gear. The improve in Titleist golf clubs was primarily pushed by greater sales volumes of our TSR drivers and fairways launched in the third quarter of 2022. The enhance in Titleist golf balls was driven by increased volumes throughout all fashions. The enhance in Titleist golf gear was primarily pushed by higher common promoting costs and higher volumes of golf baggage and headwear.

Net sales in areas outdoors the United States decreased 4.2%, or up 12.3% on a constant foreign money foundation. In Japan, internet sales increased as a outcome of larger sales volumes in Titleist golf clubs primarily as a outcome of our newly introduced TSR drivers and fairways. In Rest of World, web sales elevated across all reportable segments. In

EMEA, net sales increased across all reportable segments besides Titleist golf golf equipment. In Korea, net sales decreased primarily as a end result of lower sales volumes in FootJoy golf put on and decrease gross sales volumes of products that aren’t allocated to considered one of our reportable segments.

Segment specifics:

• 6.3% enhance in internet gross sales (12.1% increase on a continuing foreign money basis) of Titleist golf balls, largely due to elevated gross sales volumes throughout all fashions.
• 21.9% improve in net sales (32.1% enhance on a constant forex basis) of Titleist golf clubs primarily because of greater gross sales volumes of our TSR drivers and fairways launched in the third quarter of 2022.
• 16.1% improve in internet sales (26.2% enhance on a constant forex basis) of Titleist golf gear primarily pushed by higher sales volumes in golf luggage and headwear reflecting improvements in supply chain constraints.
• 6.5% decrease in internet gross sales (0.2% increase on a relentless foreign money basis) in FootJoy golf put on. The improve in fixed currency was primarily pushed by a gross sales quantity enhance in apparel largely offset by lower sales volumes in our footwear and glove classes.

Net loss attributable to Acushnet improved $26.3 million to a lack of $0.1 million from a lack of $26.4 million, primarily on account of a rise in income from operations due to greater gross revenue and decrease operating expenses. Gross revenue increased primarily due to elevated gross sales volumes in Titleist golf clubs and Titleist golf balls and lower inbound freight costs, partially offset by the unfavorable influence of adjustments in international currency trade rates. Operating bills decreased throughout all reportable segments primarily because of lower advertising and promotional expenses and employee-related bills.

Adjusted EBITDA was $25.4 million, compared to a loss of $5.0 million within the prior yr. Adjusted EBITDA margin was 5.7% for the fourth quarter versus (1.2)% for the prior 12 months period.

Cash Dividend and Share Repurchase

Acushnet’s Board of Directors today declared a quarterly cash dividend of $0.195 per share of its common stock. The dividend will be payable on March 24, 2023 to shareholders of report as of March 10, 2023. The number of shares outstanding as of February 24, 2023 was 66,945,802.

During the quarter, the Company repurchased 1,131,471 shares of its widespread stock on the open market at a mean price of $45.08 for an combination of $51.0 million. On January 23, 2023, the Company purchased 2,168,528 shares of its frequent inventory from Magnus Holdings Co., Ltd., a wholly-owned subsidiary of Fila Holdings Corp., for an aggregate of $100.0 million in satisfaction of its previously disclosed share repurchase obligation. On February 9, 2023, the Company’s Board of Directors authorized the Company to repurchase as much as a further $250.zero million of its issued and outstanding widespread inventory, bringing the whole authorization up to $700.0 million since the share repurchase program was established in 2018.

2023 Outlook

The Company expects full 12 months consolidated web gross sales to be roughly $2,325 to $2,375 million and Adjusted EBITDA to be roughly $345 to $365 million. On a constant forex foundation, consolidated net sales are expected to be in the range of up 5.0% to up 7.2%. The Company’s outlook assumes no important worsening of the COVID-19 pandemic, extra provide chain disruptions or modifications within the impression of foreign currency. The Company plans to share extra particulars of the 2023 Outlook during its investor conference name.

Investor Conference Call

Acushnet will hold a convention call at 8:30 am (Eastern Time) on March 1, 2023 to discuss the monetary results and host a query and answer session. A reside webcast of the conference name shall be accessible at www.AcushnetHoldingsCorp.com/ir. A replay archive of the webcast might be out there shortly after the call concludes.

About Acushnet Holdings Corp.

We are the global chief in the design, development, manufacture and distribution of performance-driven golf merchandise, that are well known for his or her high quality excellence. Driven by our concentrate on dedicated and discerning golfers and the golf retailers that serve them, we believe we’re the most genuine and enduring company within the golf trade. Our mission – to be the performance and quality leader in each golf product category by which we compete – has remained consistent since we entered the golf ball enterprise in 1932. Today, we are the steward of two of the most revered manufacturers in golf – Titleist, considered one of golf’s leading efficiency equipment manufacturers, and FootJoy, certainly one of golf’s leading efficiency wear brands. Additional information could be discovered at www.acushnetholdingscorp.com.