The sales of hybrid clubs, individually and in sets, continue to fuel the success of Adams Golf, which reported a 35 percent increase in revenues for 2006.
For the year ended Dec. 31, the Plano, Texas-based equipment company generated sales of $76 million compared with $56.4 million in 2005. The company posted net income of $9 million; up nearly three-fold from $3.2 million the previous year. (In 2006, Adams benefited from the recording of a deferred tax asset of $5.4 million. In 2005, the company benefited from the reversal of a legal accrual in the amount of $1.8 million and received a $1 million settlement from an insurance claim.)
In a written statement, Chip Brewer, Adams’ chief executive officer and president, said: “Our growth for the year was driven primarily by our Idea hybrid iron sets which, according to Golf Datatech LLC, have been the top-selling brand of irons in off-course golf specialty retail sales since December of 2005.”
He also cited recent product launches such as the Idea Tech OS and the Idea Pro 8-piece iron sets for improving fourth-quarter sales, which increased 35 percent to $13.1 million from $9.7 million in the same period of 2005. Net income was $4.4 million; in the fourth quarter of 2005, Adams posted a net loss of $1 million.
According to Brewer, one of the company’s goals is to expand its presence in the women’s golf equipment market, which partly explains Adams’ recent acquisition of certain assets of Women’s Golf Unlimited.