Net income was $9,318,000 against a pre-IPO loss of $5,526,000 last year in the third quarter, on a 2% increase in sales to $347,263,000 from $339,318,000 driven by a solid launch of new hybrids and irons. Gross margin expanded 60 basis points to 49.8% on better club and footwear product margins, partially offset by lower ball margins. SG&A was $1 million lower, comping against last year’s bad debt expense from retail bankruptcies and IPO expenses, but advertising spend increased this year. Interest expense was just $4.0 million vs. $15.7 million last year, reflecting the post-IPO capital structure.

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