Acushnet : Announces Second Quarter 2021 Financial Results

Acushnet Holdings Corp. Announces

Second Quarter and Year-to-Date 2021 Financial Results

Second Quarter and Year-to-Date 2021 Financial Results

• Second quarter net sales of $624.9 million, up 108.3% year over year, up 99.9% in constant currency; up 35.2% compared to 2019
• Year-to-datenet sales of $1,205.7 million, up 70.1% year over year, up 64.1% in constant currency; up 34.6% compared to 2019
• Second quarter net income attributable to Acushnet Holdings Corp. of $81.1 million, up $78.8 million year over year; up $42.6 million compared to 2019
• Year-to-datenet income attributable to Acushnet Holdings Corp. of $166.0 million, up $154.8 million year over year; up $92.6 million compared to 2019
• Second quarter Adjusted EBITDA of $127.8 million, up 286.1% year over year; up 68.8% compared to 2019
• Year-to-dateAdjusted EBITDA of $263.0 million, up 206.2% year over year; up 88.0% compared to 2019

FAIRHAVEN, MA - August 5, 2021 - Acushnet Holdings Corp. (NYSE: GOLF) ("Acushnet"), a global leader in the design, development, manufacture and distribution of performance-driven golf products, today reported financial results for the three and six months ended June 30, 2021.

"Demand across all Acushnet product categories remains robust and contributed to another terrific quarter for the company," said David Maher, Acushnet Company's President and Chief Executive Officer. "Our strong performance was led by sales across our product portfolio, including new Titleist Pro V1 and Pro V1x golf balls, TSi drivers, and our FootJoy and KJUS brands. We look forward to building on our momentum in the second half with a wide range of product introductions led by new Titleist T Series irons and new FJ footwear and HydroKnit outerwear."

Maher continued, "As we move into the second half of 2021 and see escalating positive COVID-19 cases in many regions, our highest priority remains the health and safety of our associates. While we expect golfer engagement to remain healthy, we do expect to face various levels of disruption within our supply chain. My Acushnet teammates are skilled at adapting and I have the utmost confidence in their ability to navigate these uncertainties with excellence as we seek to deliver the highest quality products and services to our trade partners and dedicated golfers around the world."

1

Summary of Second Quarter 2021 Financial Results

		Three months ended	Increase/(Decrease)		Constant Currency
		June 30,			Increase/(Decrease)
(in millions)		2021			2020		$	change		% change	$	change		% change
Net sales	$	624.9		$	300.0		$	324.9		108.3 %		$	299.6		99.9 %
Net income attributable to Acushnet Holdings Corp.	$	81.1	$	2.3		$	78.8	*
Adjusted EBITDA	$	127.8		$	33.1		$	94.7		286.1 %

_______________________________________________________________________________

*Percentage change not meaningful

Consolidated net sales for the quarter increased by 108.3%. On a constant currency basis, consolidated net sales were up 99.9% largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020 coupled with sales volume increases across all reportable segments, as rounds of play and consumer demand for golf-related products remained elevated during the second quarter of 2021. Sales volume growth of products that are not allocated to one of our four reportable segments also contributed to the increase in net sales.

On a geographic basis, net sales in the United States increased by 117.1% in the quarter driven by an increase of $65.8 million in Titleist golf balls, an increase of $43.7 million in FootJoy golf wear, an increase of $41.1 million in Titleist golf clubs and an increase of $17.1 million in Titleist golf gear, all driven by the same factors discussed above.

Net sales in regions outside the United States were up 100.0% and up 83.7% on a constant currency basis. The increase in net sales in all regions was primarily driven by increased sales across all reportable segments, driven by the same factors discussed above.

Segment specifics:

• 98.1% increase in net sales (91.6% increase on a constant currency basis) of Titleist golf balls, largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020 combined with higher sales volumes of our latest generation Pro V1 and Pro V1x golf balls launched in the first quarter of 2021.
• 111.0% increase in net sales (103.6% increase on a constant currency basis) of Titleist golf clubs, largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020. Also contributing to the increase were higher sales volumes and average selling prices across all product categories.
• 100.6% increase in net sales (92.9% increase on a constant currency basis) of Titleist golf gear, largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020. Sales volumes increased across all product categories.
• 141.0% increase in net sales (129.3% increase on a constant currency basis) in FootJoy golf wear, largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020. Sales volumes increased across all product categories and average selling prices were higher in apparel and gloves.

2

Net income attributable to Acushnet Holdings Corp. increased by $78.8 million to $81.1 million, year over year, primarily as a result of an increase in income from operations, partially offset by an increase in income tax expense.

Adjusted EBITDA was $127.8 million, up 286.1% year over year. Adjusted EBITDA margin was 20.4% for the second quarter versus 11.0% for the prior year period.

Summary of First Six Months 2021 Financial Results

		Six months ended	Increase/(Decrease)		Constant Currency
		June 30,			Increase/(Decrease)
(in millions)		2021			2020		$	change		% change	$	change		% change
Net sales	$	1,205.7		$	708.7		$	497.0		70.1 %		$	454.0		64.1 %
Net income attributable to Acushnet Holdings Corp.	$	166.0	$	11.2		$	154.8	*
Adjusted EBITDA	$	263.0		$	85.9		$	177.1		206.2 %

_______________________________________________________________________________

*Percentage change not meaningful

Consolidated net sales for the first six months increased by 70.1%. On a constant currency basis, consolidated net sales were up 64.1% largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020 coupled with sales volume increases across all reportable segments, as rounds of play and consumer demand for golf-related products remained elevated during the first six months of 2021. Sales volume growth of products that are not allocated to one of our four reportable segments also contributed to the increase in net sales.

On a geographic basis, net sales in the United States increased by 75.2% in the six month period driven by an increase of $107.4 million in Titleist golf balls, an increase of $78.4 million in Titleist golf clubs, an increase of $57.1 million in FootJoy golf wear and an increase of $22.3 million in Titleist golf gear, all driven by the same factors discussed above.

Net sales in regions outside the United States were up 65.0% and up 52.8% on a constant currency basis. The increase in net sales in all regions was primarily driven by increased sales across all reportable segments driven by the same factors discussed above.

Segment specifics:

• 72.1% increase in net sales (67.1% increase on a constant currency basis) of Titleist golf balls, largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020 combined with higher sales volumes of our latest generation Pro V1 and Pro V1x golf balls launched in the first quarter of 2021.
• 86.4% increase in net sales (80.7% increase on a constant currency basis) of Titleist golf clubs, largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020. Also contributing to the increase were higher sales volumes and average selling prices across all product categories.
• 55.6% increase in net sales (49.7% increase on a constant currency basis) of Titleist golf gear, largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020. Sales volumes increased across all product categories.

3

• 63.1% increase in net sales (56.3% increase on a constant currency basis) in FootJoy golf wear, largely due to the adverse impact of government-ordered shutdowns in the second quarter of 2020. Sales volumes increased and average selling prices were higher across all product categories.

Net income attributable to Acushnet Holdings Corp. improved by $154.8 million to $166.0 million, year over year, primarily as a result of an increase in income from operations, partially offset by an increase in income tax expense.

Adjusted EBITDA was $263.0 million up 206.2% year over year. Adjusted EBITDA margin was 21.8% for the first six months versus 12.1% for the prior year period.

Cash Dividend and Share Repurchase

Acushnet's Board of Directors today declared a quarterly cash dividend of $0.165 per share of common stock. The dividend will be payable on September 17, 2021 to shareholders of record on September 3, 2021. The number of shares outstanding as of July 30, 2021 was 73,905,679.

During the quarter, the Company repurchased 88,500 shares of common stock on the open market at an average price of $49.51 for an aggregate of $4.4 million. In addition, on April 2, 2021 the Company repurchased from Magnus Holdings Co., Ltd., a wholly-owned subsidiary of Fila Holdings Corp., 355,341 shares of common stock for an aggregate of $11.1 million, in completion of the Company's previously discussed share repurchase obligations.

Impact of COVID-19 on our Business

In March 2020, the World Health Organization declared a pandemic related to the novel coronavirus ("COVID-19"), which led to government-ordered shutdowns of non-essential businesses, travel restrictions and restrictions on public gatherings and, as a result, our results of operations for the second quarter and first half of 2020 were negatively impacted. As restrictions were eased, the game of golf experienced a surge in rounds of play around the world, which resulted in increased demand for our products. On a Company-wide basis, we quickly began to experience demand pressures across all brands and product categories, which challenged, and continue to challenge, our supply chain and our ability to service our trade partners and golfers.

During the first half of 2021, rounds of play remained high and we continued to see an increase in demand for our products, leading to increased sales volumes across all reportable segments. However, during this period, we also experienced supply chain disruptions causing shortages of various raw materials and increased freight charges.

While government-ordered shutdowns and restrictions have eased in most regions and mass vaccination programs are underway, the emergence of virus variants and resurgences of positive cases has led to a return to tighter restrictions in some regions and could prompt tighter restrictions in other regions which could further disrupt our supply chain. Although we have seen increased rounds of play and demand for golf-related products, over the course of the pandemic, this could change as mass vaccination programs continue to advance and restrictions are further eased on other activities.

4

2021 Outlook

The Company expects full-year consolidated net sales to be approximately $1,930 to $1,990 million and Adjusted EBITDA to be approximately $285 to $305 million. On a constant currency basis, consolidated net sales are expected to be in the range of up 16.8% to 20.6%. The Company's outlook assumes no significant worsening of the COVID-19 pandemic, including incremental closures of global markets and additional supply chain disruptions. The Company plans to share additional details of the 2021 Outlook during its investor conference call.

Investor Conference Call

Acushnet will hold a conference call at 8:30 am (Eastern Time) on August 5, 2021 to discuss the financial results and host a question and answer session. A live webcast of the conference call will be accessible at www.AcushnetHoldingsCorp.com/ir. A replay archive of the webcast will be available shortly after the call concludes.

About Acushnet Holdings Corp.

We are the global leader in the design, development, manufacture and distribution of performance-driven golf products, which are widely recognized for their quality excellence. Driven by our focus on dedicated and discerning golfers and the golf shops that serve them, we believe we are the most authentic and enduring company in the golf industry. Our mission - to be the performance and quality leader in every golf product category in which we compete - has remained consistent since we entered the golf ball business in 1932. Today, we are the steward of two of the most revered brands in golf - Titleist, one of golf's leading performance equipment brands, and FootJoy, one of golf's leading performance wear brands. Additional information can be found at www.acushnetholdingscorp.com.

5