Sacks Parente Golf, Inc. Reports Second Quarter 2024 Financial Results and Provides Corporate Update
Sacks Parente Golf, Inc. (NASDAQ: SPGC) reported strong financial results for Q2 2024. Revenue increased 132% sequentially to $813,000, driven by sales of higher-margin Newton shafts. Gross margin remained steady at 60%. The company saw a significant increase in orders from Club Champion and expanded its Newton Golf Shaft division with the addition of the Newton Motion Fairway Wood shaft.
Sacks Parente introduced a Weekly Driver Performance Pool program for PGA TOUR Champions players using their Newton Motion driver shafts. Executive Chairman Greg Campbell noted continued momentum in Q3, with revenue expected to accelerate sequentially. The company's advertising efforts have paid off, leading to increased brand recognition and positive feedback from both professional and amateur golfers.
Sacks Parente Golf, Inc. (NASDAQ: SPGC) ha riportato risultati finanziari solidi per il secondo trimestre 2024. I ricavi sono aumentati del 132% rispetto al trimestre precedente, raggiungendo $813,000, grazie alle vendite dei bastoni Newton con margini più elevati. Il margine lordo è rimasto stabile al 60%. L'azienda ha registrato un aumento significativo degli ordini da Club Champion e ha ampliato la sua divisione Newton Golf Shaft con l'aggiunta del bastone da fairway Newton Motion.
Sacks Parente ha introdotto un programma settimanale di performance per i driver dedicato ai giocatori del PGA TOUR Champions che utilizzano i bastoni driver Newton Motion. Il Presidente Esecutivo Greg Campbell ha sottolineato la continua spinta nel terzo trimestre, con ricavi previsti in accelerazione rispetto al trimestre precedente. Gli sforzi pubblicitari dell'azienda hanno dato risultati, portando a una maggiore riconoscibilità del marchio e feedback positivi da parte di golfisti sia professionisti che amatori.
Sacks Parente Golf, Inc. (NASDAQ: SPGC) reportó resultados financieros sólidos para el segundo trimestre de 2024. Los ingresos aumentaron un 132% secuencialmente, alcanzando $813,000, impulsados por las ventas de ejes Newton de mayor margen. El margen bruto se mantuvo estable en un 60%. La compañía vio un aumento significativo en los pedidos de Club Champion y amplió su división Newton Golf Shaft con la adición del eje de madera fairway Newton Motion.
Sacks Parente introdujo un programa semanal de rendimiento de drivers para jugadores del PGA TOUR Champions que utilizan sus ejes de driver Newton Motion. El Presidente Ejecutivo Greg Campbell destacó que hay un impulso continuo en el tercer trimestre, con ingresos que se espera aumenten secuencialmente. Los esfuerzos publicitarios de la compañía han dado sus frutos, lo que ha llevado a un mayor reconocimiento de marca y comentarios positivos tanto de golfistas profesionales como amateurs.
Sacks Parente Golf, Inc. (NASDAQ: SPGC)는 2024년 2분기에 강력한 재무 결과를 발표했습니다. 수익은 이전 분기 대비 132% 증가하여 $813,000에 달했으며, 이는 고마진인 뉴턴 샤프트의 판매에 의해 추진되었습니다. 총 마진은 60%로 안정적으로 유지되었습니다. 회사는 클럽 챔피언으로부터의 주문이 크게 증가했으며, 뉴턴 골프 샤프트 부문도 뉴턴 모션 페어웨이 우드 샤프트의 추가로 확장되었습니다.
Sacks Parente는 PGA 투어 챔피언 선수들이 뉴턴 모션 드라이버 샤프트를 사용하는 주간 드라이버 성능 풀 프로그램을 도입했습니다. 그렉 캠벨 총괄 회장은 3분기에 지속적인 동력이 있으며, 수익이 이전 분기 대비 가속화될 것으로 예상된다고 언급했습니다. 회사의 광고 노력은 결실을 맺어 브랜드 인지도와 전문 및 아마추어 골퍼로부터 긍정적인 피드백을 이끌어냈습니다.
Sacks Parente Golf, Inc. (NASDAQ: SPGC) a annoncé des résultats financiers solides pour le deuxième trimestre 2024. Le chiffre d'affaires a augmenté de 132 % par rapport au trimestre précédent, atteignant 813 000 $, grâce aux ventes des shafts Newton à marge plus élevée. La marge brute est restée stable à 60 %. La société a constaté une augmentation significative des commandes de Club Champion et a élargi sa division Newton Golf Shaft avec l'ajout du shaft Newton Motion Fairway Wood.
Sacks Parente a introduit un programme hebdomadaire de performance des drivers pour les joueurs du PGA TOUR Champions utilisant leurs shafts de driver Newton Motion. Le président exécutif Greg Campbell a noté une dynamique continue au troisième trimestre, avec des revenus prévus pour s'accélérer par rapport au trimestre précédent. Les efforts publicitaires de l'entreprise ont porté leurs fruits, menant à une reconnaissance accrue de la marque et à des retours positifs de la part des golfeurs professionnels et amateurs.
Sacks Parente Golf, Inc. (NASDAQ: SPGC) hat starke Finanzergebnisse für das zweite Quartal 2024 gemeldet. Der Umsatz stieg im Vergleich zum vorherigen Quartal um 132% auf 813.000 USD, was auf den Verkauf von hochwertigeren Newton-Schäften zurückzuführen ist. Die Bruttomarge blieb stabil bei 60%. Das Unternehmen verzeichnete einen signifikanten Anstieg der Bestellungen von Club Champion und erweiterte seine Newton Golf Shaft-Sparte mit der Hinzufügung des Newton Motion Fairway Wood-Schafts.
Sacks Parente führte ein wöchentliches Leistungsprogramm für Driver für PGA TOUR Champions-Spieler ein, die ihre Newton Motion-Driver-Schäfte verwenden. Der Executive Chairman Greg Campbell betonte, dass die positive Entwicklung im dritten Quartal anhalte, wobei ein Anstieg der Umsätze im Vergleich zum vorherigen Quartal erwartet wird. Die Werbemaßnahmen des Unternehmens haben sich ausgezahlt und zu einer höheren Markenbekanntheit sowie positivem Feedback von professionellen und Amateur-Golfern geführt.
- Revenue increased 132% sequentially to $813,000 in Q2 2024
- Gross margin maintained at 60% for Q2 and first half of 2024
- Significant increase in orders from Club Champion in Q2 2024
- Expansion of Newton Golf Shaft division with new Fairway Wood shaft
- Positive feedback from professional and amateur golfers on Newton Motion shafts
- Expectation of accelerating revenue growth in Q3 2024
- None.
Insights
Sacks Parente Golf's Q2 2024 results show promising growth, with revenue jumping
The increased orders from Club Champion and expansion into fairway wood shafts suggest potential for continued growth. The PGA TOUR Champions program could boost brand visibility, potentially leading to increased sales. While the growth trajectory is positive, investors should note that the company is likely still operating at a loss given its early stage and marketing investments.
The golf equipment market is highly competitive, but Sacks Parente seems to be carving out a niche with its Newton shafts. The
However, the golf industry can be cyclical and sensitive to economic conditions. The company's reliance on a single product line (Newton shafts) for the majority of its revenue poses a risk. Diversification into other golf accessories could help mitigate this. The positive feedback from PGA TOUR Champions players could serve as valuable social proof, potentially accelerating adoption among amateur golfers.
Camarillo, Calif., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Sacks Parente Golf, Inc. (NASDAQ: SPGC), (the “Company” or “Sacks Parente”), a technology-forward golf company with a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, reports its financial results for its fiscal second quarter ended June 30, 2024 and provides a business update.
Financial Highlights
- Revenue of
$813,000 in 2Q24 increased132% sequentially from$350,000 in 1Q24 - Gross margin of
60% in 2Q24 and for the six months ended June 30, 2024 was driven by sales of higher-margin Newton shafts that accounted for approximately80% of the Company’s revenue over the first two quarters of 2024 - Significant increase in orders received from Club Champion during the 2Q24
Recent Corporate Highlights
- Introduced a Weekly Driver Performance Pool program for players on the PGA TOUR Champions that use the Company’s Newton Motion driver shafts in tournaments
- Expanded the Newton Golf Shaft division with the addition of the Newton Motion Fairway Wood shaft to complement the initial Newton Motion Driver shaft
“Brand recognition and sales of our Newton Motion replacement shafts surged in the second quarter and has continued into the third quarter. Revenue more than doubled in the second quarter from the first quarter thanks to this product momentum in the Newton segment, and we currently see revenue accelerating sequentially in the third quarter,” commented Greg Campbell, Sacks Parente’s Executive Chairman. “Our advertising efforts continue to pay off handsomely, and we are seeing more momentum for our Newton driver shaft among the players on the PGA TOUR Champions. These are competitive professionals who recognize and appreciate superior products, so it is gratifying to know that our engineering and product development have hit the mark with this very elite group. It is also rewarding to receive similarly positive feedback from ‘weekend golfers’ with regard to how Newton Motion shafts have added distance and control to their game. We look forward to additional revenue growth and brand building in the third quarter.”
About Sacks Parente Golf
Sacks Parente Golf, Inc. serves as the parent entity of technology-forward golf companies that help golfers elevate their game. With a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, the Company’s innovative accomplishments include: the First Vernier Acuity putter, patented Ultra-Low Balance Point (ULBP) putter technology, weight-forward Center-of-Gravity (CG) design, and pioneering ultra-light carbon fiber putter shafts.
In consideration of its growth opportunities in golf shaft technologies, the Company expanded its manufacturing business in April of 2022 to develop the advanced Newton brand of premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. It is the Company’s intent to manufacture and assemble substantially all products in the United States, while also expanding into golf apparel and other golf-related product lines to enhance its growth.
The Company’s future expansions may include broadening its offerings through mergers, acquisitions or internal developments of product lines that are complementary to its premium brand. The Company currently sells its products through resellers, the Company’s websites, Club Champion retail stores, and distributors in the United States, China, Japan, and South Korea. For more information, please visit the Company’s website at https://sacksparente.com/. Additional social media: @sacksparentegolf @newtonshafts
Forward Looking Statements
This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering and the anticipated use of the net proceeds. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the Company’s offering filed with the SEC. Copies of these documents are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Contacts:
Company:
Steve Handy, CFO
Sacks Parente Golf, Inc.
Email: investors@sacksparente.com
www.sacksparente.com
Investor Relations:
CORE IR
Email: investors@sacksparente.com
Phone: (516) 222-2560
SACKS PARENTE GOLF, INC.
CONDENSED BALANCE SHEETS
(Amounts rounded to nearest thousands, except share amounts)
| June 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 2,786,000 | $ | 5,338,000 | ||||
| Accounts receivable | 157,000 | 53,000 | ||||||
| Inventory, net of reserve for obsolescence of | 477,000 | 248,000 | ||||||
| Prepaid expenses and other current assets | 171,000 | 196,000 | ||||||
| Total Current Assets | 3,591,000 | 5,835,000 | ||||||
| Property and equipment, net | 504,000 | 379,000 | ||||||
| Right-of-use asset, net | 50,000 | 65,000 | ||||||
| Software licensing agreement, net | 76,000 | 110,000 | ||||||
| Deposits | 5,000 | 5,000 | ||||||
| Total Assets | $ | 4,226,000 | $ | 6,394,000 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 437,000 | $ | 401,000 | ||||
| Lease liability, current | 32,000 | 31,000 | ||||||
| Software licensing obligation, current | 54,000 | 41,000 | ||||||
| Customer deposits | - | 2,000 | ||||||
| Total Current Liabilities | 523,000 | 475,000 | ||||||
| Software licensing fee obligation, net of current | 59,000 | 95,000 | ||||||
| Lease liability, net of current | 17,000 | 34,000 | ||||||
| Total Liabilities | 599,000 | 604,000 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ Equity: | ||||||||
| Preferred stock $.01 par value, 5,000,000 shares authorized, no shares issued and outstanding | - | - | ||||||
| Common stock, $.01 par value, 45,000,000 shares authorized, 1,459,587 and 1,459,587, shares issued and outstanding, respectively | 15,000 | 15,000 | ||||||
| Additional paid-in-capital | 16,277,000 | 16,092,000 | ||||||
| Accumulated deficit | (12,665,000 | ) | (10,317,000 | ) | ||||
| Total Stockholders’ Equity | 3,627,000 | 5,790,000 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 4,226,000 | $ | 6,394,000 | ||||
SACKS PARENTE GOLF, INC.
CONDENSED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2024 and 2023
(Unaudited)
(Amounts rounded to nearest thousands, except share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Sales | $ | 813,000 | $ | 47,000 | $ | 1,163,000 | $ | 137,000 | ||||||||
| Cost of goods sold | 324,000 | 32,000 | 468,000 | 78,000 | ||||||||||||
| Gross profit | 489,000 | 15,000 | 695,000 | 59,000 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | 1,484,000 | 647,000 | 2,755,000 | 1,563,000 | ||||||||||||
| Research and development | 207,000 | 18,000 | 397,000 | 43,000 | ||||||||||||
| Total operating expenses | 1,691,000 | 665,000 | 3,152,000 | 1,606,000 | ||||||||||||
| Loss from operations | (1,202,000 | ) | (650,000 | ) | (2,457,000 | ) | (1,547,000 | ) | ||||||||
| Interest income (expense), net | 47,000 | (22,000 | ) | 109,000 | (42,000 | ) | ||||||||||
| Net loss | $ | (1,155,000 | ) | $ | (672,000 | ) | $ | (2,348,000 | ) | $ | (1,589,000 | ) | ||||
| Net loss per share – basic and diluted | $ | (0.79 | ) | $ | (0.62 | ) | $ | (1.61 | ) | $ | (1.47 | ) | ||||
| Weighted average common shares outstanding – basic and diluted | 1,459,587 | 1,083,450 | 1,459,587 | 1,081,654 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
SACKS PARENTE GOLF, INC.
CONDENSED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2024 and 2023
(Unaudited)
(Amounts rounded to nearest thousands)
| Six Months Ended June 30, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| Cash Flows from Operating Activities | |||||||||||||
| Net Loss | $ | (2,348,000 | ) | $ | (1,589,000 | ) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||
| Depreciation | 63,000 | 10,000 | |||||||||||
| Amortization of deferred software licensing agreement | 34,000 | - | |||||||||||
| Change in reserve for inventory obsolescence | (47,000 | ) | 25,000 | ||||||||||
| Vesting of options | 185,000 | 227,000 | |||||||||||
| Shares issued for services | - | 225,000 | |||||||||||
| Changes in ROU asset | 15,000 | 15,000 | |||||||||||
| Accrued interest | - | 42,000 | |||||||||||
| Changes in operating assets and liabilities | |||||||||||||
| Accounts receivable | (104,000 | ) | (6,000 | ) | |||||||||
| Inventory | (182,000 | ) | 22,000 | ||||||||||
| Prepaids and other current assets | 25,000 | 13,000 | |||||||||||
| Accounts payable and accrued expenses | 36,000 | 67,000 | |||||||||||
| Accrued payroll to officers | - | 653,000 | |||||||||||
| Lease liability | (16,000 | ) | (17,000 | ) | |||||||||
| Customer deposits | (2,000 | ) | - | ||||||||||
| Net cash used in operating activities | (2,341,000 | ) | (313,000 | ) | |||||||||
| Cash Flows from Investing Activities | |||||||||||||
| Purchase of property and equipment | (188,000 | ) | (3,000 | ) | |||||||||
| Net cash used in investing activities | (188,000 | ) | (3,000 | ) | |||||||||
| Cash Flows from Financing Activities | |||||||||||||
| Software licensing obligation | (23,000 | ) | - | ||||||||||
| Payment of equipment purchase obligation | - | (15,000 | ) | ||||||||||
| Deferred offering costs | - | (11,000 | ) | ||||||||||
| Proceeds from private sale of common stock subject to possible redemption | - | 180,000 | |||||||||||
| Net cash provided by financing activities | (23,000 | ) | 154,000 | ||||||||||
| Net decrease in cash | (2,552,000 | ) | (162,000 | ) | |||||||||
| Cash and restricted cash beginning of period | 5,338,000 | 171,000 | |||||||||||
| Cash and restricted cash end of period | $ | 2,786,000 | $ | 9,000 | |||||||||
| Supplemental disclosures of cash flow information: | |||||||||||||
| Cash paid for interest | $ | - | $ | - | |||||||||
| Cash paid for income taxes | $ | - | $ | - | |||||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||||||
| Accrued deferred offering costs | $ | - | $ | 177,000 | |||||||||
| New right of use asset and lease liability | $ | - | $ | 43,000 | |||||||||
FAQ
What was Sacks Parente Golf's (SPGC) revenue for Q2 2024?
What was the gross margin for Sacks Parente Golf (SPGC) in Q2 2024?
What new product did Sacks Parente Golf (SPGC) introduce in Q2 2024?
How did Sacks Parente Golf (SPGC) engage with professional golfers in Q2 2024?
