Acushnet Holdings Corp. · NYSE:GOLF
Acushnet — Q1 2023 Earnings Presentation
15 slides from Acushnet's earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Earnings Call
First Quarter 2023 Earnings Call May 4, 2023
Slide 2: Disclaimers
DISCLAIMERS FORWARD-LOOKING STATEMENTS The forward-looking statements contained in this presentation are based on management’s current expectations and are subject to uncertainty and changes in circumstances. We cannot assure you that future developments affecting us will be those that we have antic
Slide 3: Q1 2023 Performance
Q1 2023 Performance David Maher President and Chief Executive Officer
Slide 4: Q1 Overview
Q1 OVERVIEW Growth Growth ($ in millions) Q1 2023 Y/Y Y/Y @ CC Net sales $686.3 13.2% 17.2% Adjusted EBITDA(1) $146.8 22.3% Matt Fitzpatrick Gaby Lopez Cameron Young (1) See Appendix for Adjusted EBITDA reconciliation 4
Slide 5: Q1 Net Sales by Segment
Q1 NET SALES BY SEGMENT Growth Growth ($ in millions) Q1 2023 Y/Y Y/Y @ CC Titleist Golf Balls $192.0 17.2% 20.6% Titleist Golf Clubs $180.8 12.4% 16.3% Titleist Golf Gear $67.0 51.9% 57.4% FootJoy Golf Wear $205.3 3.9% 7.8% 5
Slide 6: Q1 Net Sales by Region
Q1 NET SALES BY REGION Growth Growth ($ in millions) Q1 2023 Y/Y Y/Y @ CC United States $369.9 25.3% 25.3% EMEA $104.8 (6.8)% 0.2% Japan $46.4 1.3% 15.9% Korea $89.0 3.9% 9.9% Rest of World $76.2 13.6% 19.8% 6
Slide 7: Outlook
OUTLOOK • Dedicated golfer resilient and engaged • Professional game healthy and courses financially sound • Channel inventories returning to normal levels • Golf industry on firm footing • Titleist, FootJoy & KJUS products well positioned in golf shops 7
Slide 8: Q1 2023 Financial Results
Q1 2023 Financial Results Tom Pacheco Chief Financial Officer
Slide 9: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS ($ in millions) Q1 2023 Q1 2022 Net sales $686.3 $606.1 Gross profit $365.7 $317.0 GM% 53.3% 52.3% SG&A $222.5 $195.7 R&D $14.5 $14.0 Income from operations $124.9 $105.4 Interest expense, net $9.9 $1.3 Other expense, net $0.7 $1.3 Income tax expense $20.7 $20.9 Effective
Slide 10: Balance Sheet and Cash Flow Highlights
BALANCE SHEET AND CASH FLOW HIGHLIGHTS ($ in millions) As of 3/31/2023 Notes Unrestricted Cash $55 Total Debt Outstanding $829 Leverage ratio 1.8x Accounts Receivable, net $435 Up ~$58M vs. 3/31/2022 Inventory $639 Down ~$36M vs. 12/31/2022 ($ in millions) 3 months ended 3/31/2023 Notes Cash Flows f
Slide 11: Capital Allocation
CAPITAL ALLOCATION • Continued execution of capital allocation strategy • Declared Q2 2023 cash dividend of $0.195 to be paid on June 16, 2023 • Repurchased ~$116 million worth of shares in Q1 2023 11
Slide 12: 2023 Financial Outlook
2023 FINANCIAL OUTLOOK ($ in millions) 2023 Outlook $2,325 - $2,375 Net Sales Up ~3.5% at the mid-point vs. 2022 Increase by ~5.0% to 7.2% Net Sales @ CC when compared to 2022 $345 - $365 Adjusted EBITDA Up ~4.9% at the mid-point vs. 2022 12
Slide 13: Q&A
Q&A
Slide 14: Appendix
APPENDIX
Slide 15: Adjusted EBITDA
ADJUSTED EBITDA ($ in millions) Q1 2023 Q1 2022 Net income attributable to Acushnet Holdings Corp. $93.3 $81.0 Interest expense, net 9.9 1.3 Income tax expense 20.7 20.9 Depreciation and amortization 12.6 10.4 Share-based compensation 7.3 5.4 Other extraordinary, unusual or non-recurring items, net