There, I said it.  I am here after all to both irritate and educate.

Now before you get all torch and pitchforky on me, let me explain.  Not too long ago, I heard some talk about Brunswick’s kickass Q1 and marrying it to the idea that the billiards industry is turning around.  This, sadly, is not the case.  I wish it was, it is not.  Did Brunswick have a good Q1?  As my midwestern friends say, youbetcha.  They posted a 15% increase in sales, with $844 million for the quarter with a net loss of $13 million (which was far less than the street estimate).  Hell, they’ve even seen their credit status upgraded by Moody’s. from negative to stable.

When you break down the numbers though, you’ll see why I say that Brunswick doesn’t matter.

  • Marine Engine Segment – $445.7 million, up 30%
  • Boat Segment – $243.6 million, up 19%
  • Fitness Segment – $119 million, flat
  • Bowling and Billiards – $91.9 million, down 8%

Now I’m not some Bud Fox here, but look at how much of Brunswick is actually related to billiards.  If you take the entire segment, you’ve got maybe 10% or so of their entire business.  Keep in mind now that the segment isn’t “billiards”.  Its “bowling and billiards”.  What does this mean you ask?  According to the company’s 10-Q, the segment consists of “retail bowling centers; bowling equipment and products; and billiards tables and accessories”.  They don’t break the billiards out from the bowling, but I’m pretty sure we can figure out that billiards goes beyond being the redheaded stepchild in this company.  Billiards is Hugo the deformed fish head eating freak that they keep in the attic.

Don’t get me wrong here.  I know that Brunswick has done a great deal for pool over the years and for that I applaud them.  I’m not saying they’re a bad company or bad people.  Hell, I spend most of my playing time on a Brunswick table.  All I’m saying is that pool is no longer a significant part of their business.  I’d guess that the only reason the company hasn’t spun off the bowling and billiards segment yet is because of the fact that it is historically intertwined with the billiards industry.  If they could jettison the business, it would be a boon for shareholders.   Because let’s face it, when you look at the facts (i.e. the numbers) this is an albatross for the company.  Every segment is making money except for bowling and billiards.  They won’t though, since the value of their billiards business is closely tied to the name Brunswick, which I doubt they’d be willing to sell off or license.

As far as Brunswick being a bellwether for the industry, we should look at the 8% decline in business for that segment along with their decisions to pull sponsorship dollars and be concerned.  Really though, it doesn’t much matter.  I’m just saying.