SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
March 10, 1999
TEARDROP GOLF COMPANY
(Exact name of Registrant as specified in its Charter)
Delaware 0-29014 52-105660
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(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification Number)
1080 Lousons Road, Union, New Jersey 07083
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(Address of principal executive office) (Zip Code)
Registrant's telephone number including area code: (908) 688-4445
Not Applicable
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(Former name and former address, as changed since last report)
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Item 5. Acquisition or Disposition of Assets
TearDrop Golf Company reported the information contained in the following
press release dated March 10, 1999:
TearDrop(R) Golf Company (Nasdaq: TDRP) today announced that it expects to
report net sales of approximately $60 million for the year end December 31, 1998
and a net loss of approximately $6 million, or approximately $1.50 per share.
These results compare with 1997 net sales of $9.6 million and a net loss of $9.1
million, or $4.10 per share.
The sales increase is primarily attributable to the inclusion of Armour(R) Golf
and RAM(R) Golf sales for the full year. Both golf operations were acquired by
TearDrop in the last quarter of 1997 and TearDrop's 1997 operating results only
included a portion of the fourth quarter numbers of Armour and RAM.
Rudy Slucker, Chief Executive Officer of TearDrop, commented, "When you consider
that these three companies (TearDrop, Armour and RAM) in 1997 had combined sales
of $49 million and a pro-forma net loss of $42.9 million, our results signal
that the turnaround is coming along very well. This achievement is especially
noteworthy, since it was accomplished in a year when the golf equipment industry
was hurting from excessive inventories and the industry's first major downturn
in over a decade. In addition, the significant fourth quarter order previously
announced as delayed, is beginning to be shipped to the customer. On another
positive note, as of February 28, 1999, the litigation between TearDrop and Jim
Hansberger has been settled with no material adverse impact to the Company."
Joseph Cioni, TearDrop's Chief Financial Officer, commented, "I've been involved
with a few turnarounds in my career, but never one with such a dramatic one-year
improvement as TearDrop."
Mr. Slucker further commented, "We are pleased to report that our bank has
provided a seasonal increase to TearDrop's asset-based credit facilities to $30
million, an increase of $5 million. This increase will allow us to implement the
most aggressive marketing and sales campaign in TearDrop's history. This
campaign will include our TearDrop ROLL-FACE(TM) putter infomercial starring
Fred Couples and Steve Jones; the Armour(R) Golf's 845(R)s brand vacation
promotion, and various other marketing campaigns for RAM(R) and Walter Genuin(R)
Golf Shoes. In 1998, we were very focused on consolidating our five acquisitions
and creating a corporate culture and identity. We believe this year will be
special for TearDrop as we plan on
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focusing on how good a company we can truly be."
Also announced was that John G. Raos has resigned from the Board of Directors
effective immediately for personal reasons. The board is now comprised of five
directors. "We wish to thank John Raos for his contributions as a director and
hope he will be able to rejoin the board once the issues that forced his
resignation are behind him," concluded Mr. Slucker.
The TearDrop Golf Company is the leading manufacturer of premium putters using
ROLL-FACE technology. TearDrop's wholly owned subsidiaries, Armour Golf and RAM
Golf, are two of the world's finest manufacturers of golf clubs and accessories.
TearDrop is also the exclusive North American distributor of Walter Genuin golf
shoes. Additionally, TearDrop Golf Company owns the TearDrop Professional Golf
Tour, one of the premier developmental golf tours in the world, which consists
of 75 tournaments for aspiring professionals throughout California, the
Carolinas, Florida, Georgia, Nevada and Virginia.
Except for the historical information contained herein, this news release
contains forward-looking statements which involve risks and uncertainties,
including the acceptance and pricing of new and existing products, general
economic conditions as they affect TearDrop's customers, the success of the
Company's new sales programs, substantial indebtedness, dependence upon
endorsements, increased marketing costs, the seasonal nature of the Company's
business, as well as other risks detailed from time to time in TearDrop's SEC
filings, including the report on Form 10 KSB for the year ended December 31,
1997 and the Form 10-QSB for the period ending September 30, 1998. In addition,
the information contained herein is derived from the Company's unaudited
consolidated financial statements and is preliminary in nature, and may be
subject to revision and adjustment. The results of operations for the year ended
December 31, 1998 are not necessarily indicative of the results that may be
expected for any future period.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
TEARDROP GOLF COMPANY
Dated: March 16, 1999 By: /s/ Rudy A. Slucker
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Name: Rudy A. Slucker
Title: President and Chief Executive Officer
