July 29, 2005 19:00 ET

Jazz Golf Reports Third Quarter Results

WINNIPEG, MANITOBA--(CCNMatthews - July 29, 2005) - Jazz Golf Equipment Inc. (TSX VENTURE:JZZ.A) The company reports a net loss of $271,601 on third quarter revenue of $2,364,261 for the three months ending May 31, 2005 compared to a net income of $116,931 on revenue of $2,856,403 for the same period in the previous year. The loss per share for the most recently completed quarter is ($0.01) compared to ($0.00) for the third quarter of the previous year. Gross profit decreased to $686,881 for the most recently completed quarter compared to $1,252,681 for the same quarter last year.

On a year to date basis Jazz has experienced a net loss of $1,522,397 compared to $873,698 in the comparable nine months last year. Sales for the nine months amounted to $3,512,789 compared to $4,205,021 last year and gross profit on a year to date basis is $807,349 compared to $1,671,146 for the comparable nine-month period last year.

Erratic weather patterns across the country led to varying levels of regional performance. In general, the golf season came off to a slower start than has traditionally been the case and this combined with a surplus of golf equipment in the marketplace presented a challenge to the company.

While new product launches were the focus of the company, gross profit was affected by a fair degree of clearance activity as a number of previous years' product lines were also sold.

General and administrative expenses have decreased 20% to $350,941 over the same quarterly period last year, and have decreased 15% to $969,177 from $1,134,515 on a year to date basis. The decrease is largely due to a reduction in bad debt expense from the same quarter last year. Selling and marketing expenses decreased 26% to $411,487 from $554,757 in the quarter and have decreased 18% to $791,128 from $962,289 on a year to date basis. The quarterly decrease and the decrease on a year over year basis is due to a better aligned sales incentive structure than last year as well as more efficient advertising, sponsorship, and catalogue printing spending. The company has placed increasing focus on managing its controllable expenses.

Interest and bank charges are up from $61,808 to $69,662 in the most recently completed quarter and are up to $223,510 from $168,674 on a year to date basis. The large increase is a result of fees associated with higher levels of bank debt. Interest on long term debt is $126,392 for the quarter compared to $83,079 in the same quarter last year and is up to $345,932 from $279,366 on a year to date basis. The increase is due to higher levels of subordinated debt associated with accrued interest and additional borrowings in the first quarter.

New products continue to gain momentum in the marketplace including the Sandra Post Oakville Plus series, the "Bear Cat" driver and the Fat Cat Calico series.

Financial statements and management discussion and analysis are available at www.sedar.com .

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

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