Acushnet (GOLF) - 2024 Q4 - Annual Results

Financial Performance - Full year net sales reached $2.46 billion, an increase of 3.2% year over year, and 3.9% in constant currency[3] - Full year gross margin improved to 48.3%, up 130 basis points year over year[3] - Full year net income attributable to Acushnet Holdings Corp. was $214.3 million, up $15.9 million or 8.0% year over year[4] - Adjusted EBITDA for the full year was $404.4 million, reflecting a 7.5% increase year over year[9] - Fourth quarter net sales were $445.2 million, up 7.8% year over year, and 7.9% in constant currency[10] - Net income for 2024 was $201.8 million, a slight increase from $198.6 million in 2023, representing a growth of 1.2%[36] - Total net sales for 2024 reached $2.46 billion, up by $75.1 million or 3.2% compared to $2.38 billion in 2023[39] - The company reported a gross profit of $377.9 million for the three months ended December 31, 2024, compared to $371.8 million in the same period of 2023[43] Market Segments - Titleist golf equipment net sales increased by 6.2% year over year, driven by higher sales volumes of SM10 wedges and GT drivers[7] - FootJoy golf wear experienced a 2.6% decrease in net sales, primarily due to lower sales volumes across all product categories[7] - Golf clubs segment saw a significant increase in sales, rising by $62.6 million or 9.5% to $721.3 million in 2024[38] - The FootJoy golf wear segment experienced a decline in sales, decreasing by $15.4 million or 2.6% to $574.6 million in 2024[38] - The United States market contributed $1.45 billion in sales, reflecting a $96.8 million increase or 7.2% from the previous year[39] Cash Flow and Assets - Cash flows provided by operating activities decreased to $245.1 million in 2024 from $371.8 million in 2023, a decline of 34%[36] - Total assets as of December 31, 2024, were $2,180.2 million, slightly down from $2,196.7 million in 2023[33] - Cash and cash equivalents decreased to $53.1 million in 2024 from $65.4 million in 2023[33] - Cash, cash equivalents, and restricted cash at the end of 2024 were $53.1 million, down from $65.4 million at the end of 2023[36] Expenses and Liabilities - Operating expenses for Q4 2024 were $209.9 million, compared to $201.5 million in Q4 2023, reflecting a 4.0% increase[32] - Total liabilities increased to $1,383.0 million in 2024 from $1,283.8 million in 2023, representing a 7.8% rise[33] - Research and development expenses for the year were $67.8 million, up from $64.8 million in 2023, indicating a 4.5% increase[32] - Interest expense for the year ended December 31, 2024, increased to $52.6 million from $41.3 million in 2023, representing a rise of 27.5%[54] Shareholder Returns - The company declared a quarterly cash dividend increase of 9.3% to $0.235 per share[15] - The company repurchased 442,867 shares at an average price of $67.69, totaling $30 million during the quarter[16] Future Outlook - The 2025 outlook projects net sales between $2,485 million and $2,535 million, with an expected adjusted EBITDA of $405 to $420 million[18] - Acushnet Holdings Corp. anticipates continued growth in consolidated net sales and Adjusted EBITDA for 2025[27] - The company plans to continue focusing on product innovation and market expansion strategies to drive future growth[47] Adjusted EBITDA - Adjusted EBITDA for the year ended December 31, 2024, was $404.4 million, an increase from $376.1 million in 2023, reflecting a growth of 7.7%[54] - Adjusted EBITDA margin for the year ended December 31, 2024, was 16.5%, compared to 15.8% in 2023, indicating an improvement of 0.7 percentage points[54] - Adjusted EBITDA for the three months ended December 31, 2024, was $12.4 million, compared to a negative $1.5 million in the same period of 2023[54] Losses and Costs - The company reported a basic net loss per share of $0.02 for Q4 2024, compared to a loss of $0.41 in Q4 2023[32] - For the three months ended December 31, 2024, the company reported a net loss of $1.1 million, a significant improvement from a net loss of $26.8 million in the same period of 2023[54] - Restructuring costs associated with the closure of footwear manufacturing lines amounted to $11.0 million for the three months ended December 31, 2024[54] - The company incurred $3.0 million in transformation costs related to IT system optimization for the three months ended December 31, 2024[54] - The net (loss) income attributable to noncontrolling interests for the year ended December 31, 2024, was a loss of $12.5 million, compared to a gain of $0.2 million in 2023[54] - The company reported a net (loss) income attributable to Acushnet Holdings Corp. of $214.3 million for the year ended December 31, 2024, up from $198.4 million in 2023, marking an increase of 8.9%[54] Variability in Results - The company anticipates ongoing variability in future GAAP results due to potential extraordinary items, making forward-looking reconciliations challenging[54]