Ashworth, Inc. (NASDAQ:ASHW), a leading designer of on-course golf
apparel and golf-inspired lifestyle sportswear, today announced the
following executive management changes:
Allan Fletcher has been appointed Chief Executive Officer of Ashworth,
effective immediately.
Greg W. Slack has been appointed Chief Financial Officer of Ashworth,
effective immediately. Mr. Slack had previously served as Ashworth's
Vice President – Finance, Corporate
Controller & Principal Accounting Officer until July 2007.
Peter M. Weil, former Chief Executive Officer, has resigned to spend
more time with his family on the East Coast. Mr. Weil will continue to
provide consulting services during the 90 days following his
departure. Eric R. Hohl, former Executive Vice President, Chief
Financial Officer and Treasurer, has also left Ashworth.
"We are delighted to welcome Allan to lead the Ashworth team," said
David M. Meyer, Chairman of the Board of Directors of Ashworth. "As the
founder and chairman of Fletcher Leisure Group –
a long-standing business partner of Ashworth and Canada's leading
supplier of branded golf apparel, sportswear and golf equipment –
Allan has proven that he has exceptional insight into our business. With
more than 40 years of experience in the golf apparel industry, Allan is
uniquely qualified to help Ashworth further capitalize on the progress
it is making. Mr. Fletcher also has a true love of golf which was
instilled in him by his father, Pat Fletcher, who was a golf
professional at The Royal Montreal Golf Club and winner of the 1954
Canadian Open at Point Grey Golf Club."
Mr. Fletcher commented, "As passionate players know, the game of golf is
all about precision, patience and dedication. Ashworth's management will
be focusing on these qualities once again and build on its strong,
authentic golf brand. We will pay close attention to details and make
certain everything we do corresponds to the highest standards in the
industry."
After his appointment as Chief Executive Officer of Ashworth, Mr.
Fletcher will retain a significant ownership interest in Fletcher
Leisure Group. To ensure proper corporate governance practices, the
Board of Directors of Ashworth has charged Edward J. Fadel, President of
Ashworth, with the responsibility for overseeing Ashworth's business
relationship and contracts with Fletcher Leisure Group and reporting on
these matters directly to the Board.
Ashworth and Mr. Fletcher entered into an Employment Agreement on
October 24, 2007 which provides, among other matters, for an annual base
salary of $1.00, an option to purchase 100,000 shares of the Company's
common stock at an exercise price equal to the fair market value of the
Company's common stock on the grant date (with 50% of the options
vesting on each of the first two anniversaries of the grant date) and a
target bonus of $500,000 (depending upon achievement of Company and
individual objectives for fiscal year 2008). Option vesting will
accelerate upon either the Company's termination of Mr. Fletcher's
employment without cause or as a result of a change in control. The
option exercise period for vested options will extend until the earlier
of one year after termination of employment for any reason or ten years
after the grant date. The options will be issued pursuant to the
Ashworth 2007 Nonstatutory Stock Option Plan and in reliance upon
Nasdaq
Marketplace Rule 4350(i)(1)(A)(iv) regarding employment inducement
grants.
Mr. Meyer added, "We are also very pleased to welcome Greg Slack back to
Ashworth in his new position as Chief Financial Officer. Greg has
previously proven to be an invaluable member of the Ashworth executive
management team, and we are confident in his leadership capabilities as
he assumes this important responsibility." Mr. Meyer concluded, "We also
greatly appreciate the contributions of Peter Weil and Eric Hohl and
wish them the best in their future endeavors."
About Ashworth, Inc.
Ashworth, Inc. (NASDAQ: ASHW) is a leading designer of men's and women's
golf-inspired lifestyle sportswear distributed domestically and
internationally in golf pro shops, resorts, upscale department and
specialty stores and to corporate customers. Ashworth's three
market-leading brands include: Ashworth Collection™,
a range of upscale sportswear designed to be worn on and off course;
Ashworth Authentics™, which showcases popular
items from the Ashworth line; and Ashworth Weather Systems®,
a technical performance line. Ashworth is also an Official Apparel
Licensee of Callaway Golf Company.
Ashworth is also a leading designer, producer and distributor of
headwear and apparel under The Game® and Kudzu®
brands. The Game is a leading headwear brand to collegiate bookstores
and Kudzu products are sold into the NASCAR/racing markets and through
outdoors sports distribution channels, including fishing and hunting.
Ashworth is also the exclusive on-site event merchandiser for the
Kentucky Derby.
For more information, please visit the Company's Web site at www.ashworthinc.com.
Forward-Looking Statements
This press release contains forward-looking statements related to the
Company's market position, finances, operating results, marketing and
business plans and strategies within the meaning of Section 27A of the
Securities Act, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements may contain
the words "believes," "anticipates," "expects," "predicts," "estimates,"
"projects," "will be," "will continue," "will likely result," or other
similar words and phrases. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof. The Company undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
changed circumstances or unanticipated events unless required by law.
These statements involve risks and uncertainties that could cause actual
results to differ materially from those projected. These risks include
the uncertainties associated with implementing a successful transition
in executive leadership, the continued willingness of our lenders to
provide waivers of compliance with financial covenants, the evaluation
of strategic alternatives that may be presented, timely development and
acceptance of new products, as well as strategic alliances, the
integration of the Company's acquisition of Gekko Brands, LLC, the
impact of competitive products and pricing, the success of the Callaway
Golf apparel product line, the preliminary nature of bookings
information, the ongoing risk of excess or obsolete inventory, the
potential inadequacy of booked reserves, the successful operation of the
distribution facility in Oceanside, CA, the successful implementation of
the Company's ERP system, and other risks described in Ashworth, Inc.'s
SEC reports, including the annual report on Form 10-K for the year ended
October 31, 2006, quarterly reports on Form 10-Q filed thereafter and
amendments to any of the foregoing reports, including the Form 10-K/A
for the year ended October 31, 2006.
