TOPGOLF CALLAWAY BRANDS CORP. CARLSBAD, Calif., Oct. 23, 2014 /PRNewswire/ -- Callaway Golf Company (NYSE:ELY) today announced its first nine months and third quarter 2014 financial results, reflecting its continued improvements in market share, tour success, and operating efficiencies, as well as its anticipated return to profitability for the full year, which would be the first time since 2008. Despite softer than expected market conditions, Callaway reported for the first nine months of 2014 a 5% increase in net sales driven by growth in woods (+6%), irons (+9%), golf balls (+5%) and accessories and other (+3%). In addition, the Company's improvements in gross margins (+280 basis points) and effective cost management (operating expenses were flat despite incremental investments in tour and marketing) allowed the Company to offset an almost $10 million increase in other expense, resulting primarily from adverse changes in foreign currency contract values. The 2014 results also benefitted from a $10 million decrease in pre-tax charges related to the cost-reduction initiatives that were completed in 2013. As a result, during the first nine months of 2014, income from operations doubled to $70 million and fully diluted earnings per share increased 83% to $0.66.
For the third quarter of 2014, sales were $169 million, a decrease of 5% compared to last year due to continued industry softness and the timing of new product launches compared to the same period last year. This decline in net sales, however, was more than offset by a 540 basis point improvement in gross margins, an $8 million improvement in operating expenses, and a $5 million improvement in other income due to positive changes in foreign currency contract values. As a result, income from operations improved to a loss of $3 million compared to a loss of $17 million for the third quarter last year and loss per share improved to a loss of $0.01 compared to a loss of $0.32 for the same period last year.
GAAP RESULTS
For the third quarter of 2014, the Company reported the following results, as compared to the same period in 2013:
Dollars in
millions
except per
share
amounts Third Quarter 2014 % of Sales Third Quarter 2013 % of Sales Improvement/ (Decline)
----------- ------------------ ---------- ------------------ ---------- ----------------------
Net Sales $169 - $178 - ($9)
--------- ---- --- ---- --- ---
Gross Profit $65 39% $59 33% $6
------------ --- --- --- --- ---
Operating
Expenses $68 40% $76 43% $8
--------- --- --- --- --- ---
Operating
Loss ($3) (2%) ($17) (10%) $14
--------- --- --- ---- ---- ---
Other
Income/
(Expense) $2 1% ($3) (2%) $5
---------- --- --- --- --- ---
Net Loss ($1) (1%) ($21) (12%) $20
-------- --- --- ---- ---- ---
Loss per
share
(Diluted) ($0.01) - ($0.32) - $0.31
---------- ------ --- ------ --- -----
For the first nine months of 2014, the Company reported the following results, as compared to the same period in 2013:
Dollars in
millions
except per
share
amounts Nine Months 2014 % of Sales Nine Months 2013 % of Sales Improvement/ (Decline)
----------- ---------------- ---------- ---------------- ---------- ----------------------
Net Sales $752 - $716 - $36
--------- ---- --- ---- --- ---
Gross Profit $321 43% $285 40% $36
------------ ---- --- ---- --- ---
Operating
Expenses $251 33% $251 35% -
--------- ---- --- ---- --- ---
Operating
Income $70 9% $35 5% $35
--------- --- --- --- --- ---
Other
Income/
(Expense) ($9) (1%) $1 - ($10)
---------- --- --- --- --- ----
Net Income $58 8% $31 4% $27
---------- --- --- --- --- ---
Earnings per
share
(Diluted) $0.66 - $0.36 - $0.30
------------ ----- --- ----- --- -----
"Overall, we are pleased with our results for the third quarter and first nine months," commented Chip Brewer, President and Chief Executive Officer. "While challenging market conditions have made sales growth in the first nine months of this year more difficult than we would have liked, we are encouraged by our market share gains and are confident that we are outperforming the industry. We are also benefitting from the many actions we have taken these past two years to improve our operating efficiencies, as we have been able to achieve significant improvements in profitability despite the effect of the headwinds on top-line performance."
"We believe we are well-positioned for the balance of 2014 and for 2015," continued Mr. Brewer. "Our brand continues to build momentum, our organization is strengthening, and we have an incredible product pipeline, including the Big Bertha Alpha Drivers, the Big Bertha Irons and Hybrids and our new Japan line of Big Bertha Beta Irons and Hybrids that are launching in the fourth quarter. As a result, we expect our recovery to continue with steady improvement in profitability."
Outlook for 2014
Given an improving industry outlook for the fourth quarter, coupled with the Company's planned new product launches, the Company is increasing its full year earnings guidance and updating its other guidance. The revised full year guidance is as follows:
Full Year
-- Net sales for the full year 2014 are currently estimated to be
approximately $890 million, an increase of 6% compared to $843 million
in 2013. The Company's prior guidance was $880 million to $900 million.
The Company believes this growth rate will exceed the overall market and
be driven by brand momentum and market share gains.
-- Gross margins are currently estimated to be approximately 41.0%,
compared to prior guidance of 41.7%. This decrease is primarily the
result of unfavorable changes in foreign currency exchange rates. Gross
margins were 37.3% in 2013. This anticipated improvement in 2014 is
expected to result from improved operating efficiencies, improved
pricing and mix of product sales, and the decrease in charges related to
the cost-reduction initiatives.
-- Operating expenses are currently estimated to be approximately $336
million, an improvement compared to previous guidance of $345 million
due to the favorable impact of foreign currency exchange rates and lower
stock price as well as effective cost management. The 2014 estimate is
an increase compared to $326 million in 2013 due to a planned increase
in investments in tour and marketing, higher variable sales related
expenses, and modest cost of living increases.
-- Pre-tax income is estimated to range from $18 million to $20 million,
with a corresponding tax provision of approximately $5.6 million.
Pre-tax income in 2013 was a loss of $13.3 million with a corresponding
tax provision of $5.6 million.
-- Fully diluted earnings per share is estimated to range from $0.15 to
$0.18 on a base of 78 million shares, compared to a 2013 loss per share
of $0.31 on 73 million shares. If the Company is successful in achieving
these results, it would be the Company's first full year net profit
since 2008 and would represent a significant milestone in the Company's
turnaround.
Preliminary Outlook for 2015
The Company believes that it will continue to grow market share in 2015 and that industry conditions will improve. The Company, however, is anticipating continued headwinds from adverse changes in foreign currency exchange rates and retailer conservatism during the first half of 2015, as well as a reduction in closeout sales in 2015 compared to 2014. The Company believes that these factors will be offset by full year sales growth of 5%-6% in the Company's core channel business in 2015. The Company further cautioned that the strategic change in product launch timing will adversely impact its first quarter 2015 sales comparisons to 2014, although it will benefit the Company in the long-term. Considering all of these positive and negative factors, the Company is currently estimating that its net sales will grow 1%-2% on a consolidated basis in 2015. The Company also expects steady improvement in its profitability in 2015.
Conference Call and Webcast
The Company will be holding a conference call at 2:00 p.m. PDT today to discuss the Company's financial results, outlook and business. The call will be broadcast live over the Internet and can be accessed at www.callawaygolf.com. To listen to the call, please go to the website at least 15 minutes before the call to register and for instructions on how to access the broadcast. A replay of the conference call will be available approximately three hours after the call ends, and will remain available through 9:00 p.m. PDT on Thursday, October 30, 2014. The replay may be accessed through the Internet at www.callawaygolf.com.
Non-GAAP Information
The GAAP results contained in this press release and the financial statement schedules attached to this press release have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). To supplement the GAAP results, the Company has provided certain non-GAAP financial information as follows:
Constant Currency Basis. The Company provided certain information regarding the Company's net sales or projected net sales on a "constant currency basis." This information estimates the impact of changes in foreign currency exchange rates on the translation of the Company's current or projected future period net sales as compared to the applicable comparable prior period. This impact is derived by taking the current or projected local currency results and translating them into U.S. Dollars based upon the foreign currency exchange rates for the applicable comparable prior period. It does not include any other effect of changes in foreign currency exchange rates on the Company's results or business.
Excluded Items. The Company presented certain of the Company's financial results excluding sales related to the products that were transitioned to a third party model, including apparel in certain regions.
Adjusted EBITDA. The Company provided information about its results, excluding interest, taxes, depreciation and amortization expenses, and impairment charges ("Adjusted EBITDA").
In addition, because the Company previously reported its 2013 results on a GAAP and Non-GAAP basis, the Company has included in the schedules to this release a reconciliation of such information for 2013. The non-GAAP information presented in this release and related schedules should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP. The non-GAAP information may also be inconsistent with the manner in which similar measures are derived or used by other companies. Management uses such non-GAAP information for financial and operational decision-making purposes and as a means to evaluate period over period comparisons and in forecasting the Company's business going forward. Management believes that the presentation of such non-GAAP information, when considered in conjunction with the most directly comparable GAAP information, provides additional useful comparative information for investors in their assessment of the underlying performance of the Company's business without regard to these items. The Company has provided reconciling information in the attached schedules.
Forward-Looking Statements: Statements used in this press release that relate to future plans, events, financial results, performance or prospects, including statements relating to estimated 2015 or 2014 full year sales, sales growth, gross margins, operating expenses, pre-tax income, and earnings per share, as well as the Company's recovery and improved profitability, the creation of shareholder value, future market share gains, industry or market conditions, brand momentum, improved financial performance and future product launches or sales, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are based upon current information and expectations and are subject to various risks and unknowns including delays, difficulties, or increased costs in implementing the Company's turnaround strategy; consumer acceptance of and demand for the Company's products; the level of promotional activity in the marketplace; unfavorable weather conditions, future consumer discretionary purchasing activity, which can be significantly adversely affected by unfavorable economic or market conditions; future retailer purchasing activity, which can be significantly negatively affected by adverse industry conditions and overall retail inventory levels; and future changes in foreign currency exchange rates and the degree of effectiveness of the Company's hedging programs. Actual results may differ materially from those estimated or anticipated as a result of these risks and unknowns or other risks and uncertainties, including continued compliance with the terms of the Company's credit facility; delays, difficulties or increased costs in the supply of components needed to manufacture the Company's products or in designing or manufacturing the Company's products; any rule changes or other actions taken by the USGA or other golf association that could have an adverse impact upon demand or supply of the Company's products; a decrease in participation levels in golf; and the effect of terrorist activity, armed conflict, natural disasters or pandemic diseases on the economy generally, on the level of demand for the Company's products or on the Company's ability to manage its supply and delivery logistics in such an environment. For additional information concerning these and other risks and uncertainties that could affect these statements, the golf industry, and the Company's business, see the Company's Annual Report on Form 10-K for the year ended December 31, 2013 as well as other risks and uncertainties detailed from time to time in the Company's reports on Forms 10-K, 10-Q and 8-K subsequently filed with the Securities and Exchange Commission. 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 republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
About Callaway Golf
Through an unwavering commitment to innovation, Callaway Golf Company (NYSE:ELY) creates products designed to make every golfer a better golfer. Callaway Golf Company manufactures and sells golf clubs and golf balls, and sells golf accessories, under the Callaway Golf® and Odyssey® brands worldwide. For more information please visit www.callawaygolf.com.
Contacts: Brad Holiday
Patrick Burke
(760) 931-1771
http://photos.prnewswire.com/prnvar/20091203/CGLOGO
Logo - http://photos.prnewswire.com/prnh/20091203/CGLOGO
Callaway Golf Company
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited)
September 30, December 31,
2014 2013
---- ----
ASSETS
Current assets:
Cash and cash
equivalents $33,462 $36,793
Accounts
receivable,
net 143,090 92,203
Inventories 185,583 263,492
Other current
assets 29,484 29,115
Total current
assets 391,619 421,603
Property, plant and equipment, net 61,881 71,341
Intangible assets, net 117,250 118,113
Other assets 56,794 52,806
------ ------
Total assets $627,544 $663,863
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts
payable and
accrued
expenses $98,914 $157,120
Accrued
employee
compensation
and benefits 29,212 31,585
Asset-based
credit
facility - 25,660
Accrued
warranty
expense 5,882 6,406
Income tax
liability 3,577 5,425
Total current
liabilities 137,585 226,196
Long-term liabilities 149,750 153,048
Shareholders' equity 340,209 284,619
------- -------
Total
liabilities
and
shareholders'
equity $627,544 $663,863
Callaway Golf Company
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Quarter Ended
September 30,
-------------
2014 2013
---- ----
Net sales $168,572 $178,229
Cost of sales 103,265 118,820
------- -------
Gross profit 65,307 59,409
Operating expenses:
Selling 46,871 49,871
General and
administrative 12,918 18,870
Research and
development 8,144 7,689
-----
Total
operating
expenses 67,933 76,430
------ ------
Loss from operations (2,626) (17,021)
Other income (expense), net 1,796 (3,095)
----- ------
Loss before income taxes (830) (20,116)
Income tax provision 304 1,037
--- -----
Net loss (1,134) (21,153)
Dividends on convertible preferred
stock - 1,766
--- -----
Net loss allocable to common
shareholders $(1,134) $(22,919)
======= ========
Loss per common share:
Basic ($0.01) ($0.32)
Diluted ($0.01) ($0.32)
Weighted-average common shares outstanding:
Basic 77,646 72,649
Diluted 77,646 72,649
Nine Months Ended
September 30,
-------------
2014 2013
---- ----
Net sales $752,339 $715,631
Cost of sales 431,329 430,134
------- -------
Gross profit 321,010 285,497
Operating expenses:
Selling 184,786 179,851
General and
administrative 43,459 48,626
Research and
development 22,903 22,435
------
Total
operating
expenses 251,148 250,912
------- -------
Income from operations 69,862 34,585
Other (expense) income, net (8,664) 934
------ ---
Income before income taxes 61,198 35,519
Income tax provision 3,651 4,941
----- -----
Net income 57,547 30,578
Dividends on convertible preferred
stock - 3,332
--- -----
Net income allocable to common
shareholders $57,547 $27,246
======= =======
Earnings per common share:
Basic $0.74 $0.38
Diluted $0.66 $0.36
Weighted-average common shares outstanding:
Basic 77,551 71,613
Diluted 93,384 86,870
Callaway Golf Company
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
-------------
2014 2013
---- ----
Cash flows from operating activities:
Net income $57,547 $30,578
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization 16,379 19,693
Deferred taxes, net (179) 303
Non-cash share-
based compensation 3,979 2,592
(Gain) loss on
disposal of long-
lived assets (1,097) 2,428
Discount amortization on
convertible notes 551 523
Changes in assets
and liabilities (38,838) (48,559)
------- -------
Net cash provided by
operating activities 38,342 7,558
Cash flows from investing activities:
Capital expenditures (8,803) (8,920)
Proceeds from sale of
property, plant and
equipment 458 4,025
Investment in golf-
related ventures (4,712) (7,189)
Net cash used in
investing activities (13,057) (12,084)
Cash flows from financing activities:
Repayment of credit
facilities, net (25,660) -
Exercise of stock
options 2,222 -
Dividends paid (2,330) (4,882)
Acquisition of treasury
stock (1,006) -
Credit facility
amendment costs (608) -
Equity issuance
costs (7) (274)
Net cash used in
financing activities (27,389) (5,156)
Effect of exchange rate changes on cash (1,227) (4,922)
------ ------
Net decrease in cash and cash equivalents (3,331) (14,604)
Cash and cash equivalents at beginning of period 36,793 52,003
------ ------
Cash and cash equivalents at end of period $33,462 $37,399
======= =======
Callaway Golf Company
Consolidated Net Sales and Operating Segment Information and Non-GAAP Reconciliation
(In thousands)
(Unaudited)
Net Sales by Product Category Net Sales by Product Category
----------------------------- -----------------------------
Quarter Ended Nine Months Ended
September 30, Growth/(Decline) September 30, Growth/(Decline)
------------- ---------------- ------------- ----------------
2014 2013 (1) Dollars Percent 2014 2013 (1) Dollars Percent
---- ------- ------- ------- ---- ------- ------- -------
Net sales:
Woods $52,147 $53,876 $(1,729) -3% $233,639 $219,448 $14,191 6%
Irons 36,721 38,636 (1,915) -5% 162,240 148,693 13,547 9%
Putters 13,643 19,812 (6,169) -31% 72,268 73,462 (1,194) -2%
Accessories
and other 40,842 39,883 959 2% 167,673 162,830 4,843 3%
Golf balls 25,219 26,022 (803) -3% 116,519 111,198 5,321 5%
----------
$168,572 $178,229 $(9,657) -5% $752,339 $715,631 $36,708 5%
======== ======== ======= ======== ======== =======
(1)The prior year amounts have
been restated to reflect the
Company's current year
allocation methodology related
to freight revenue and costs,
certain discounts and other
reserves not specific to a
product type.
Net Sales by Region Net Sales by Region
------------------- -------------------
Constant Currency Constant Currency
Excluding Businesses Excluding Businesses
Quarter Ended Constant Currency Sold or Transitioned Nine Months Ended Constant Currency Sold or Transitioned
------------- -----------------
September 30, Growth (Decline) Growth vs. 2013(1) Growth vs. 2013 (2) September 30, Growth/(Decline) Growth vs. 2013(1) Growth vs. 2013 (2)
------------- --------------- ----------------- ------------------ ------------- ---------------- ----------------- ------------------
2014 2013 Dollars Percent Percent Percent 2014 2013 Dollars Percent Percent Percent
---- ---- ------- ------- ------- ------- ---- ---- ------- ------- ------- -------
Net sales:
United
States $74,532 $66,998 $7,534 11% 11% 12% $371,749 $351,143 $20,606 6% 6% 6%
Europe 24,567 26,493 (1,926) -7% -14% -10% 115,049 104,942 10,107 10% 2% 6%
Japan 35,090 48,575 (13,485) -28% -23% -23% 127,607 129,421 (1,814) -1% 7% 7%
Rest of Asia 21,736 23,747 (2,011) -8% -13% -13% 73,852 66,709 7,143 11% 8% 9%
Other
foreign
countries 12,647 12,416 231 2% 3% 3% 64,082 63,416 666 1% 8% 9%
----------
$168,572 $178,229 $(9,657) -5% -6% -5% $752,339 $715,631 $36,708 5% 6% 7%
======== ======== ======= ======== ======== =======
(1)Calculated by applying 2013
exchange rates to 2014 reported
sales in regions outside the
U.S.
(2)Calculated by applying 2013
exchange rates to 2014 reported
sales in regions outside the
U.S. and excludes sales related
to businesses sold or licensed.
Operating Segment Information Operating Segment Information
----------------------------- -----------------------------
Quarter Ended Nine Months Ended
September 30, September 30, Growth/(Decline)
Growth/(Decline)
----------------
2014 2013 (1) Dollars Percent 2014 2013 (1) Dollars Percent
---- ------- ------- ------- ---- ------- ------- -------
Net sales:
Golf clubs $143,353 $152,207 $(8,854) -6% $635,821 $604,433 $31,388 5%
Golf balls 25,219 26,022 (803) -3% 116,518 111,198 5,320 5%
----------
$168,572 $178,229 $(9,657) -5% $752,339 $715,631 $36,708 5%
======== ======== ======= ======== ======== =======
Income before income taxes:
Golf clubs (2) $3,760 $(5,060) $8,820 174% $77,922 $63,969 $13,953 22%
Golf balls (2) 543 (2,772) 3,315 120% 17,350 (85) 17,435 NM
Reconciling items (3) (5,133) (12,284) 7,151 -58% (34,074) (28,365) (5,709) 20%
$(830) $(20,116) $19,286 96% $61,198 $35,519 $25,679 72%
===== ======== ======= ======= ======= =======
(1)The prior year amounts have been
reclassed to reflect the Company's
current year allocation methodology
related to freight revenue and
costs, certain discounts and other
reserves not specific to a product
type.
(2)In connection with the 2012 Cost
Reduction Initiatives, the
Company's golf clubs and golf balls
segments recognized pre-tax charges
of $1.0 million and $0.5 million,
respectively during the three months
ended September 30, 2013, and $4.3
million and $4.7 million,
respectively, during the nine months
ended September 30, 2013. There
were no costs associated with the
2012 Cost Reduction Initiatives
recorded in the three and nine
months ended September 30, 2014.
(3)Represents corporate general and
administrative expenses and other
income (expense) not utilized by
management in determining segment
profitability.
Callaway Golf Company
Supplemental Financial Information - Non-GAAP Information and Reconciliation
(In thousands, except per share data)
(Unaudited)
Non-GAAP Reconciliation to GAAP Reported Results:
Quarter Ended September 30,
---------------------------
2013
----
Non-GAAP Callaway Golf (1) Cost Reduction Initiatives(1) (3) Non-Cash Tax Adjustment(2) Total as Reported
------------------------- -------------------------------- ------------------------- -----------------
Net sales $178,229 $ - $ - $178,229
Gross profit 60,414 (1,005) - 59,409
% of sales 34% -1% n/a 33%
Operating expenses 75,577 853 - 76,430
------ --- --- ------
Loss from operations (15,163) (1,858) - (17,021)
Other expense, net (3,095) - - (3,095)
------ --- --- ------
Loss before income taxes (18,258) (1,858) - (20,116)
Income tax provision (benefit) (7,030) (716) 8,783 1,037
------ ---- ----- -----
Net loss (11,228) (1,142) (8,783) (21,153)
Dividends on convertible preferred stock 1,766 - - 1,766
----- --- --- -----
Net loss allocable to common shareholders $(12,994) $(1,142) $(8,783) $(22,919)
======== ======= ======= ========
Diluted loss per share: $(0.18) $(0.02) $(0.12) $(0.32)
Weighted-average shares outstanding: 72,649 72,649 72,649 72,649
(1)For comparative purposes, the
Company applied an annualized
statutory tax rate of 38.5% to
derive non-GAAP results.
(2)Impact of applying statutory tax
rate of 38.5% to non-GAAP results.
(3)Primarily includes costs
associated with the reorganization
of the Company's golf ball
manufacturing supply chain and costs
related to transitioning the
Company's European apparel business
to a third party model.
Nine Months Ended September 30,
-------------------------------
2013
----
Non-GAAP Callaway Golf (1) Cost Reduction Initiatives(1) (3) Non-Cash Tax Adjustment (2) Total as Reported
------------------------- -------------------------------- -------------------------- -----------------
Net sales $715,631 $ - $ - $715,631
Gross profit 292,871 (7,374) - 285,497
% of sales 41% -1% n/a 40%
Operating expenses 247,921 2,991 - 250,912
------- ----- --- -------
Income (loss) from operations 44,950 (10,365) - 34,585
Other income, net 934 - - 934
--- --- --- ---
Income (loss) before income taxes 45,884 (10,365) - 35,519
Income tax provision (benefit) 17,665 (3,991) (8,733) 4,941
------ ------ ------ -----
Net income (loss) 28,219 (6,374) 8,733 30,578
Dividends on convertible preferred stock 3,332 - - 3,332
----- --- --- -----
Net income (loss) allocable to common
shareholders $24,887 $(6,374) $8,733 $27,246
======= ======= ====== =======
Diluted earnings (loss) per share: $0.33 $(0.07) $0.10 $0.36
Weighted-average shares outstanding: 86,870 86,870 86,870 86,870
(1)For comparative purposes, the
Company applied an annualized
statutory tax rate of 38.5% to
derive non-GAAP results.
(2)Impact of applying statutory tax
rate of 38.5% to non-GAAP results.
(3)Includes costs associated with the
reorganization of the Company's golf
ball manufacturing supply chain,
workforce reductions and costs
related to transitioning the
Company's European apparel business
to a third party model.
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2014 Trailing Twelve Month Adjusted EBITDA 2013 Trailing Twelve Month Adjusted EBITDA
------------------------------------------ ------------------------------------------
Adjusted EBITDA: Quarter Ended Quarter Ended
------------- -------------
December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30,
2013 2014 2014 2014 Total 2012 2013 2013 2013 Total
---- ---- ---- ---- ----- ---- ---- ---- ---- -----
Net income (loss) $(49,499) $55,312 $3,369 $(1,134) $8,048 $(70,749) $41,660 $10,071 $(21,153) $(40,171)
Interest expense,
net 1,963 2,648 2,612 2,037 9,260 1,919 2,157 2,470 1,975 8,521
Income tax
provision 658 1,474 1,873 304 4,309 2,246 2,469 1,435 1,037 7,187
Depreciation and
amortization
expense 5,850 5,697 5,460 5,222 22,229 7,835 6,956 6,472 6,265 27,528
Impairment charges - - - - - 4,877 - - - 4,877
--- --- --- --- --- ----- --- --- --- -----
Adjusted EBITDA $(41,028) $65,131 $13,314 $6,429 $43,846 $(53,872) $53,242 $20,448 $(11,876) $7,942
======== ======= ======= ====== ======= ======== ======= ======= ======== ======
SOURCE Callaway Golf Company
