House & Home
House and Home
House and Home 
Fri, May 14, 2010
Thu, May 13, 2010
POWAY, CA--(Marketwire - May 13, 2010) - ALDILA, INC. (
"We experienced an increase of 9% in our golf shaft sales in the first quarter versus the first quarter of 2009 on a 19% increase in units shipped. Our average selling price declined by 8% versus the first quarter last year. The momentum from our fourth quarter 2009 carried through the first quarter as our China and Vietnam factories were running at high levels throughout the quarter. The 'sell in' at retail has been relatively strong as the inventory levels throughout the retail channels were reduced as compared to the first quarter last year," said Mr. Peter R. Mathewson, Chairman of the Board and CEO.
"Although 'sell in' was good, initial sell through has not been as promising. Bad weather across most of the United States in January and February hindered store sales. The critical sales months of March, April and May will likely determine the strength of the sell through for this year," said Mr. Mathewson.
"The 2010 PGA Tour is underway and Aldila is off to another hot start. We opened up the year on the PGA Tour with wins at the SBS Championship, AT&T Pebble Beach National Pro-Am and the World Golf Championship-Accenture Match Play Championship. Players using Aldila shafts have also had multiple top ten finishes, including five players in the top ten at The Masters. Aldila continues to enjoy a leadership position on the PGA Tour with more players using our wood and hybrid shafts than any other competitors' shafts. The 2010 Nationwide Tour is just getting underway and Aldila continues to see ongoing success on this Tour as well. We were the most popular wood and hybrid shafts at the Moonah Classic and the Fresh Express Classic," said Mr. Mathewson.
"Our new RIP™ shaft continues to grow in popularity on Tour and is one of the most successful and sought after models available. We have scheduled a July 1, 2010 launch for the RIP™ shaft to begin sales through our distributors. We are experiencing great interest in the shaft among our OEM club partners and hope to secure major club programs later this year and into early next year. RIP™ technology is so unique that we expect a series of products to emerge over time to expand the shaft offerings building on this exciting technology," said Mr. Mathewson.
"Our Composite Materials business produced its best quarter since Q2 of 2007, as order and shipping activity remained strong during the quarter. Sales of composite materials of $2.7 million for the quarter ended March 31, 2010 increased by 83% versus the comparable quarter of last year. The additions of key personnel to the Composite Materials Division is also beginning to have a positive effect on our prospects going forward in continuing to grow our business," said Mr. Mathewson.
"The Company increased its advertising and promotional spending during the quarter by 29% in support of its branded products, which includes the RIP™ shaft. The increase in advertising and promotion spending helped drive an increase in selling, general and administrative expense of 13% during the quarter as compared to the comparable quarter of last year. We continue to closely watch our spending and anticipate future savings during the year from our de-listing from the NASDAQ and listing on the OCTQX U.S. Premier. Our cash is strong at $5.9 million on hand after paying down $2.6 million in debt during the quarter," Mr. Mathewson said.
Aldila will host a conference call at 5 P.M. Eastern Time, on May 13, 2010, with Peter R. Mathewson, Chairman & CEO, Robert J. Cierzan, Senior Vice President, Composite Materials and Scott M. Bier, Vice President, Chief Financial Officer, to review Aldila's First Quarter 2010 financial results. For telephone access to the conference call dial 1-888-690-2876 or 1-913-312-1466 for international calls and request connection to the Aldila conference call, Participant Passcode: 8094574. A live webcast of the conference call can be accessed on the Aldila website at [ http://www.aldila.com ]. An archive of the webcast will be available through our website for 90 days following the conference call.
This press release contains forward-looking statements based on our expectations as of the date of this press release. These statements necessarily reflect assumptions that we make in evaluating our expectations as to the future. Forward-looking statements are necessarily subject to risks and uncertainties. Our actual future performance and results could differ from that contained in or suggested by these forward-looking statements as a result of a variety of factors. Our filings with the Securities and Exchange Commission and OTC Disclosure and News Service present a detailed discussion of the principal risks and uncertainties related to our future operations, in particular our Annual Report on Form 10-K for the year ended December 31, 2009, under "Business Risks" in Part I, Item 1, and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in Part I, Item 7 of the Form 10-K, and reports on Form 10-Q and Form 8-K, all of which can be obtained at [ www.sec.gov ]. Our future filings will be included on the OTCQX U.S. Premier website, which can be found at [ www.otcqx.com ].
The forward-looking statements in this press release are particularly subject to the risks that:
-- consumer discretionary spending will continue to be flat or decline, which could have a material impact on our business; -- our product offerings, including the NV®, VS Proto™, DVS®, VooDoo® and RIP™ shaft lines and product offerings outside the golf industry, will not achieve or maintain success with consumers or customers; -- we will not maintain or increase our market share at our principal customers; -- demand for clubs manufactured by our principal customers will decline, thereby affecting their demand for our shafts; -- demand for composite materials by our principal customers will decline; -- the market for graphite shafts will continue to be extremely competitive, affecting selling prices and profitability; -- our international operations will be adversely affected by political instability, currency fluctuations, export/import regulations or other risks typical of multi-national operations, particularly those in less developed countries; -- the Company will not be able to acquire adequate supplies of carbon fiber at reasonable market prices; -- acts of terrorism, natural disasters, or disease pandemics interfere with our manufacturing operations or our ability to ship our finished products.
For additional information about Aldila, Inc., please go to the Company's website at [ www.aldila.com ].
ALDILA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) March 31, December 31, 2010 2009 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 5,926 $ 7,104 Accounts receivable 8,640 7,535 Inventories 9,248 9,280 Deferred tax assets 579 562 Prepaid expenses and other current assets 727 679 ------------ ------------ Total current assets 25,120 25,160 PROPERTY, PLANT AND EQUIPMENT 11,448 11,649 DEFERRED TAXES 1,528 1,528 OTHER NON-CURRENT ASSETS 206 235 ------------ ------------ TOTAL ASSETS $ 38,302 $ 38,572 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 5,634 $ 4,141 Income taxes payble 462 158 Accrued expenses 2,162 2,438 Short term debt 917 1,300 Other current liability 509 509 ------------ ------------ Total current liabilities 9,684 8,546 LONG-TERM LIABILITIES: Deferred rent 114 111 Long term debt - 2,167 Other long-term liabilities 1,332 1,332 ------------ ------------ Total liabilities 11,130 12,156 ------------ ------------ COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, $.01 par value; authorized 5,000,000 shares; no shares issued - - Common stock, $.01 par value; authorized 30,000,000 shares; issued and outstanding 5,202,156 shares as of March 31, 2010 and as of December 31, 2009 52 52 Additional paid-in capital 44,667 44,618 Accumulated deficit (17,547) (18,254) ------------ ------------ Total stockholders' equity 27,172 26,416 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 38,302 $ 38,572 ============ ============ ALDILA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED (In thousands, except per share data) Three months ended March 31, -------- -------- 2010 2009 -------- -------- NET SALES $ 16,119 $ 13,803 COST OF SALES 11,886 10,941 -------- -------- Gross profit 4,233 2,862 -------- -------- SELLING, GENERAL AND ADMINISTRATIVE 3,203 2,830 -------- -------- Operating income 1,030 32 -------- -------- OTHER INCOME (EXPENSE): Interest income 1 2 Interest expense (22) (58) Other, net 91 (16) -------- -------- INCOME (LOSS) BEFORE INCOME TAXES 1,100 (40) PROVISION FOR INCOME TAXES 393 8 -------- -------- NET INCOME (LOSS) $ 707 $ (48) ======== ======== NET INCOME (LOSS) PER COMMON SHARE $ 0.14 $ (0.01) ======== ======== NET INCOME (LOSS) PER COMMON SHARE, ASSUMING DILUTION $ 0.13 $ (0.01) ======== ======== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 5,202 5,174 ======== ======== WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES 5,242 5,174 ======== ======== ALDILA, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (In thousands) Three months ended March 31, -------- -------- 2010 2009 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 707 $ (48) Depreciation and amortization 422 456 Stock-based compensation 49 116 Loss on disposal of fixed assets - 7 Changes in working capital items, net 411 2,412 -------- -------- Net cash provided by operating activities 1,589 2,943 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (217) (165) Proceeds from sales of property, plant and equipment - 5 -------- -------- Net cash used for investing activities (217) (160) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Payments for term loan (2,250) (250) Borrowings against line of credit - 1,400 Payments for line of credit (300) (4,000) -------- -------- Net cash used for financing activities (2,550) (2,850) -------- -------- NET DECREASE IN CASH AND CASH EQUIVALENTS (1,178) (67) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 7,104 6,157 -------- -------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,926 $ 6,090 ======== ========