On August 6, 2024, Acushnet Holdings Corp (GOLF, Financial) released its 8-K filing detailing the financial results for the second quarter and year-to-date 2024. Acushnet Holdings Corp is engaged in the design, development, manufacture, and distribution of golf products, including golf balls, golf shoes, golf clubs, wedges, putters, golf gloves, golf gear, and golf wear. The company operates through segments such as Titleist golf balls, Titleist golf clubs, Titleist golf gear, and FootJoy golf wear, with a significant portion of its revenue generated in the United States.
Performance and Challenges
For the second quarter of 2024, Acushnet Holdings Corp reported net sales of $683.9 million, a slight decrease of 0.8% year-over-year, but a 0.6% increase on a constant currency basis. The net income attributable to Acushnet Holdings Corp was $71.4 million, down 4.4% from the previous year. Adjusted EBITDA for the quarter was $131.0 million, a decrease of 0.8% year-over-year.
Year-to-date, the company reported net sales of $1,391.4 million, up 1.1% year-over-year, and a 2.3% increase on a constant currency basis. Net income attributable to Acushnet Holdings Corp for the first six months was $159.2 million, a decline of 5.2% from the previous year. Adjusted EBITDA for the first six months was $284.7 million, up 2.1% year-over-year.
Financial Achievements
Despite the challenges, Acushnet Holdings Corp achieved growth in key segments. Titleist golf balls saw a 4.2% increase in net sales for the second quarter, driven by higher sales volumes of Pro V1 and Pro V1x, and the latest generation AVX golf balls. However, Titleist golf clubs experienced a 5.6% decrease in net sales due to lower sales volumes of drivers, fairways, hybrids, and Super Select putters.
Geographically, net sales in the United States increased, with notable growth in Titleist golf balls (8.5%) and FootJoy golf wear (4.8%). However, net sales outside the United States decreased by 4.4%, primarily due to lower sales in the Rest of World region.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Net Sales | $683.9 million | $689.4 million | -0.8% |
| Net Income | $71.4 million | $74.7 million | -4.4% |
| Adjusted EBITDA | $131.0 million | $132.1 million | -0.8% |
Balance Sheet and Cash Flow
As of June 30, 2024, Acushnet Holdings Corp reported total assets of $2,274.2 million, up from $2,196.7 million at the end of 2023. The company's cash and cash equivalents increased to $80.3 million from $65.4 million. Total liabilities stood at $1,365.2 million, compared to $1,283.8 million at the end of 2023.
Net cash provided by operating activities for the first six months of 2024 was $102.1 million, down from $119.6 million in the same period of 2023. The company used $22.1 million in investing activities and $63.0 million in financing activities during the first half of 2024.
Analysis and Outlook
Acushnet Holdings Corp's performance in the second quarter reflects the challenges faced by the company, including lower sales volumes in certain product categories and increased interest expenses. However, the growth in Titleist golf balls and the resilience of the U.S. market are positive indicators.
The company's reaffirmation of its full-year 2024 outlook, with expected net sales of $2,450 to $2,500 million and Adjusted EBITDA of $385 to $405 million, suggests confidence in its growth strategies and market position. The upcoming launch of new products, including Titleist GT drivers and FootJoy and KJUS apparel, is expected to drive future growth.
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Explore the complete 8-K earnings release (here) from Acushnet Holdings Corp for further details.
