GGXY Golf Galaxy (MM)

CHICAGO, Sept. 14 /PRNewswire/ -- William Blair & Company today announced that it initiated research coverage of Golf Galaxy, Inc. (NASDAQ:GGXY), a leading specialty retailer of competitively priced brand-name golf equipment and pro shop services, with a Market Perform rating and company profile of Aggressive Growth. Analyst Bob Simonson estimated that the company, which offers a broad assortment of nationally branded products; pro shop services by PGA professionals, including lessons and club and ball fittings; and full-service club repair, would earn $0.45 per share in 2006 and $0.70 per share in 2007. "We believe Golf Galaxy has significant opportunities to expand its current base of 45 stores to more than 200 over the long term," Simonson said. "Projected same-store sales growth of 5% would produce top-line growth of 25% annually, and expected operating margin expansion would lift earnings growth to 30% annually." "Golf Galaxy is not unique, but rare: a small, rapidly growing specialty retailer without debt, even before the recent IPO," he added. "The company could well be free cash flow positive, on the basis of cash from operations minus capital expenditures, by fiscal 2008." William Blair & Company, L.L.C. ( http://www.williamblair.com/ ) is a Chicago-based investment firm, founded in 1935, offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months. William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months. William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position. For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/pages/news_story_dept.asp?uid=902&depID=4 Additional information is available upon request. William Blair & Company, L.L.C. is a member of the National Association of Securities Dealers, CRD number 1252. DATASOURCE: William Blair & Company, L.L.C. CONTACT: Tony Zimmer of William Blair & Company, L.L.C., +1-312-364-8611, Web site: http://www.williamblair.com/ http://www.williamblair.com/pages/news_story_dept.asp?uid=902&depID=4

Copyright