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Adams Golf Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
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10qk

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Adams Golf Inc. (ADGF) filed Quarterly Report for the period ended 2010-09-30.

Adams Golf Inc. has a market cap of $32.7 million; its shares were traded at around $4.54 with and P/S ratio of 0.43. ADGF is in the portfolios of Mario Gabelli of GAMCO Investors.
This is the annual revenues and earnings per share of ADGF over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ADGF.


Highlight of Business Operations:

Selling and marketing expenses increased to $4.9 million for the three months ended September 30, 2010 from $4.5 million for the comparable period in 2009. The increase was primarily the result of an increase in compensation expense of $0.3 million during the period.

General and administrative expenses increased to $2.1 million for the three months ended September 30, 2010 from $1.6 million for the comparable period in 2009. The increase was primarily the result of an increase in compensation expense of $0.4 million during the period.

Cost of goods sold decreased to $40.7 million, or 55.2% of total net sales, for the nine months ended September 30, 2010 from $46.0 million, or 71.7% of total net sales, for the comparable period of 2009. The decrease as a percentage of total net sales was primarily due to the results of an inventory write-down to lower of cost or market during the second quarter of 2009 totaling $3.6 million coupled with a change in the product mix and decreased promotional programs, such as free or discounted products, during the 2010 period.

Selling and marketing expenses increased to $17.3 million for the nine months ended September 30, 2010 from $15.9 million for the comparable period in 2009. The increase was primarily the result of an increase in commission expense of $0.7 million resulting from increased net sales and an increase in marketing and tour expense of $0.2 million and an increase of $0.5 million in compensation expense during the period.

General and administrative expenses increased to $6.5 million for the nine months ended September 30, 2010 from $5.2 million for the comparable period in 2009. The increase was primarily the result of an increase in compensation expense of $1.0 million and legal expense of $0.3.

Cash and cash equivalents decreased to $10.3 million at September 30, 2010 compared to $12.6 million at December 31, 2009. During the period, the primary change in cash flow used in operations was an increase in accounts receivable of $6.1 million and inventory of $3.5 million and the payment of the $5.0 million in settlement expense for the shareholder suit. This increase was partially offset by an increase in accrued expenses and accounts payable of $3.3 million.

Read the The complete Report

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