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Home Daily Golf Briefs Daily Pulse for April 30, 2018

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Web Street Golf Daily Pulse
VOLUME 8, NUMBER 84                                                         
Monday, April 30, 2018

ANY IDEA WHO SAID THIS? “We are clearly now a product and technology leader in the equipment space. We have momentum in improving overall industry fundamentals. We're excited about our start to the year and cautiously optimistic it's going to be a positive year for us and the industry as a whole.”

BRAIN TEASER: Do you know what position the team of Billy Horschel/Scott Piercy was in entering Sunday’s final round of the Zurich Classic?

ACCENTUATE THE POSITIVES: Pellucid has just released its annual update to the National Consumer Franchise Scorecard headlined as a year of decelerating decline. In advance of the industry association cheerleaders preparing to tout growth in the consumer base due to the new addition of "virtual golfers," the core historical metric of traditional players (1+ rounds during the year) and their frequency continues to edge down, albeit at a slightly slower rate than the 5-year trend, Pellucid has found.

According to its findings, recreational golfers were fractionally down, the smallest annual loss since 2006 (something to cheer bout perhaps?) as the participation rate is hovering just above 7%

Contrary to the mantra that there's a renaissance among females and juniors, both groups declined by 1-2% for the year. It saw two slight variations in '17 to the storyline by life stages as Seniors and Millennials were the contributors to the marginal decline in golfers.

For the second consecutive year, Pellucid saw erosion in the Committed golfer group (40+ rds/yr, likely trading down to Involved frequency vs. leaving the game) but this year they were the only decliners. Singles, it said, added golfers to offset the loss (that trade-off likely explains the frequency drop)

The softening in the rate of golfer decline adjusts Pellucid 2020 projection upward slightly but doesn't change its projection that, based on the current trend, they’ll be sub-20M traditional golfers in 2019 unless virtual golf and the various latent demand theories produce some significant number of real feet across real grass.

The "not-as-bad news" is that industries generally slow in decline prior to heading upward and we're seeing that pattern. The bad news is there aren’t any quantitative facts on how low or how long it will get to the stabilization point for the consumer base.
 
For those interested in a sample of the report, you can use the Register Here and Pellucid will send it along for your review. You can order the research for $199 via Pellucid's Online Store.

A BIG STATEMENT: Zurich Insurance has agreed to a seven-year extension of its sponsorship of the Zurich Classic of New Orleans. Its deal now runs until through 2026. “New Orleans has a resilient past with a bright future, and we’re proud to extend our sponsorship of the Zurich Classic, continuing our teamwork with charitable organizations,” said Zurich North America CEO Kathleen Savio.  “The Zurich Classic is a wonderful opportunity to work side by side on and off the course to create opportunities, overcome challenges and win.”

WE’RE A BUYER! Callaway Golf insiders have been sellers of the company stocks in the first quarter of 2018. However, the company is using its own money to be buyers. Callaway reported to the investment community since the beginning of the year, it has repurchased $22 million of its own shares.

THANK YOU MR PRESIDENT: Callaway revealed that the recent tax changes had a positive impact on its first quarter bottom line. “As a result of the Tax Reform Act in 2017, our first quarter tax rate in 2018 was 21.5% compared to 33.8% in the first quarter of 2017. This decreased rate had a positive benefit on our first quarter earnings and will have a positive impact on full year earnings as well,” SVP, CFO, Brian Lynch reported.

DID YOU KNOW? The Zurich Classic awards FedExCup points, official money and counts as an official victory for the winning team. However, Official World Ranking points are not issued for players’ performances for the week

WEB GEMS:

PAIN FREE: Jack Nicklaus has spoken for the first time about how an experimental stem cell therapy has enabled him to play golf again after years of debilitating back pain. READ MORE>>>

ALEXANDER THE GREAT! "It's tough to describe the emotions," he said. "I'm really happy and really proud of myself the way I played today, it's probably one of the best rounds of golf I ever played, the best round in the situation. I made pretty much no mistakes today, I'm super happy. I've been striking the ball so well off the tee and also into the greens all week. It's been so solid, it's easy to play a round when the swing is there.” READ MORE>>>

ANSWERS: “We are clearly now a product and technology leader in the equipment space. We have momentum in improving overall industry fundamentals. We're excited about our start to the year and cautiously optimistic it's going to be a positive year for us and the industry as a whole.”--Callaway Golf, CEO, Chip Brewer on the company’s first quarter conference call to Wall Street.

Billy Horschel/Scott Piercy were sitting at -17, T5 before entering the final round of the Zurich Classic of New Orleans.

THE INFORMATION CONTAINED IS BELIEVED TO BE RELIABLE, BUT IT IS NOT GUARANTEED. THE OPINION EXPRESSED IS THAT OF TERRY MCANDREW AND SHOULD NOT BE CONSIDERED A SOLICITATION TO BUY OR SELL SECURITIES IN ANY OF THE COMPANIES DISCUSSED WITHIN THIS NEWSLETTER. CONTENTS OF THIS NEWSLETTER MAY NOT BE REPRINTED OR REBROADCAST WITHOUT THE EXPRESSED WRITTEN CONSENT OF TMAC GOLF