Acushnet Holdings Corp. (NYSE:GOLF) Q4 2023 Earnings Conference Call February 29, 2024 8:30 AM ET

Company Participants

Sondra Lennon - VP, Planning, Analysis & IR

David Maher - President & CEO

Sean Sullivan - CFO

Conference Call Participants

Megan Alexander - Morgan Stanley

Randy Konik - Jefferies

Michael Swartz - Truist Securities

Joseph Altobello - Raymond James

George Kelly - ROTH MKM

Noah Zatzkin - KeyBanc Capital Markets

Operator

Hello, everyone, and welcome to the Acushnet Holdings Corp 4Q 2023 earnings call, and thank you for standing by. My name is Daisy, and I'll be coordinating this call today. [Operator Instructions]

I would now like to hand the call over to your host. I would now like to hand the call over to your host.

Sondra Lennon

Good morning, everyone. Thank you for joining us today for Acushnet Holdings Corp's Fourth Quarter and Full Year 2023 Earnings Conference Call. Joining me this morning are David Maher, our President and Chief Executive Officer; and Sean Sullivan, our Chief Financial Officer.

Before turning the call over to David, I would like to remind everyone that we will be making forward-looking statements on the call today. These forward-looking statements are based on Acushnet's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations. For a list of factors that could cause actual results to differ, please see today's press release, the slides that accompany our presentation, and our filings with the U.S. Securities and Exchange Commission.

Throughout this discussion, we will make reference to non-GAAP financial metrics, including items such as revenues at constant currency and adjusted EBITDA. Explanations of how and why we use these metrics and reconciliations of these items to a GAAP basis can be found in the schedules in today's press release, the slides that accompany this presentation, and in our filings with the U.S. Securities and Exchange Commission.

Please also note that references throughout this presentation to year-on-year sales increases and decreases are on a constant currency basis unless otherwise stated. As we feel this measurement best provides context as to the performance and trends of our business. And when referring to year-to-date or full-year results or comparisons, we will refer to the 12-month period ended December 31, 2023 and the comparable 12-month period.

With that, I'll turn the call over to David.

David Maher

Thanks, Sondra, and good morning everyone. I am pleased to report on Acushnet's 2023 results and our outlook for 2024. As you see here on Slide 4, 2023 net sales of $2.38 billion and adjusted EBITDA of $376 million represent growth of 6% and 11%, respectively. The company also generated $372 million in operating cash flow for the year. These results are made possible, thanks to the talented and dedicated Acushnet team. Growth was fueled by Titleist golf balls, which increased 13%, led by strong demand for our new Pro V1 models.