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Acushnet
🇺🇸 NYSE:GOLF
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Dec 31, 2019

Acushnet Q4 2019 Earnings Report

Acushnet's Q4 2019 financial results were announced, revealing increased sales and earnings driven by successful product launches.

Key Takeaways

Acushnet Holdings Corp. reported a 7.3% increase in net sales and a 57.0% increase in net income for the fourth quarter of 2019, driven by successful product launches and growth across key segments.

Net sales for Q4 2019 increased by 7.3% year-over-year to $368.3 million.

Net income attributable to Acushnet Holdings Corp. for Q4 2019 rose by 57.0% year-over-year to $17.9 million.

Adjusted EBITDA for Q4 2019 increased by 23.3% year-over-year to $44.5 million.

The company's performance was driven by successful product launches, particularly in the Titleist golf balls segment.

Total Revenue
$368M
Previous year: $343M
+7.3%
EPS
$0.24
Previous year: $0.15
+60.0%
Adjusted EBITDA Margin
12.1%
Previous year: 10.5%
+15.2%
Gross Profit
$187M
Previous year: $175M
+6.7%
Cash and Equivalents
$34.2M
Previous year: $31M
+10.2%
Free Cash Flow
$24.6M
Previous year: $21.5M
+14.1%
Total Assets
$1.82B
Previous year: $1.69B
+7.4%

Acushnet

Acushnet

Acushnet Revenue by Segment

Acushnet Revenue by Geographic Location

Forward Guidance

Acushnet's 2020 outlook includes an estimated negative impact of the coronavirus of approximately $40 million in consolidated net sales and $18 million in Adjusted EBITDA and an estimated negative impact of unmitigated tariffs of approximately $5 million in Adjusted EBITDA. Consolidated net sales are expected to be approximately $1,665 to 1,705 million. Consolidated net sales on a constant currency basis are expected to be in the range of down 0.5% to up 1.9%. Adjusted EBITDA is expected to be approximately $220 to $240 million.

Positive Outlook

  • Commitment to sustaining Pro V1 momentum.
  • Launching new AVX, Tour Soft and Velocity models.
  • Poised to launch new Vokey SM8 wedges and Cameron Special Select Putters in the first quarter.
  • Launching new Titleist metals later in the year.
  • Several new Titleist gear and FootJoy products and the continued growth and development of KJUS throughout 2020.

Challenges Ahead

  • Estimated negative impact of the coronavirus of approximately $40 million in consolidated net sales.
  • Estimated negative impact of the coronavirus of approximately $18 million in Adjusted EBITDA.
  • Estimated negative impact of unmitigated tariffs of approximately $5 million in Adjusted EBITDA.
  • Consolidated net sales on a constant currency basis are expected to be in the range of down 0.5% to up 1.9%.
  • Adjusted EBITDA is expected to be approximately $220 to $240 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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