TOPGOLF CALLAWAY BRANDS CORP. CARLSBAD, Calif., Jan. 29, 2015 /PRNewswire/ -- Callaway Golf Company (NYSE:ELY) today announced its 2014 full year and fourth quarter financial results. For the full year, despite challenging conditions that beset the golf industry for much of 2014, including unfavorable weather and changes in foreign currency exchange rates, Callaway returned to profitability for the first time since 2008.
Callaway reported full year sales growth of 5% for 2014 driven by growth in most major product categories (woods +8%; irons +12%; golf balls +4%; and accessories and other +2%) and growth in all geographic segments (United States +5%; Japan +3%; Europe +11%; Rest of Asia +7%; and Other foreign countries +1%). Additionally, income from operations improved significantly to $31 million compared to a loss of ($11) million in 2013 and fully diluted earnings per share increased to $0.20 compared to a loss of ($0.31) in 2013. This positive turnaround was driven by the increase in sales, improvements in gross margins of 310 basis points, and flat operating expenses, all of which more than offset an approximately $6 million increase in other expense due to a decrease in foreign currency contract gains. The 2014 results also benefitted from a $17 million decrease in pre-tax charges related to the cost reduction initiatives that were completed in 2013.
For the fourth quarter, 2014 sales were $135 million, an increase of 6% compared to last year due primarily to increased sales of woods (+21%), irons (+27%) and golf balls (+3%). The increase in woods and irons was led by a strategic change in product launch timing resulting in the fourth quarter release of the Big Bertha 815 family of woods and Big Bertha Beta Irons and Hybrids compared to no similar product launches in 2013. Although the Company generally reports a loss during the fourth quarter due to the seasonality of its business, this increase in sales, together with a 440 basis point improvement in gross margins, allowed the Company to reduce its net loss per share to ($0.54) compared to a net loss per share of ($0.65) last year. The 2014 results also benefitted from a $6 million decrease in pre-tax charges related to the cost reduction initiatives that were completed in 2013.
GAAP RESULTS
For the fourth quarter of 2014, the Company reported the following results, as compared to the same period in 2013:
Dollars in
millions
except per
share
amounts % of Sales % of Sales Improvement/ (Decline)
2014 2013
--- ---- ----
Net Sales $135 - $127 - $8
--------- ---- --- ---- --- ---
Gross Profit $37 27% $29 23% $8
------------ --- --- --- --- ---
Operating
Expenses $76 57% $75 59% ($1)
--------- --- --- --- --- ---
Operating
Income/
(Loss) ($39) (29%) ($45) (36%) $6
--------- ---- ---- ---- ---- ---
Other
Income/
(Expense) - - ($3) (3%) $3
---------- --- --- --- --- ---
Net Income/
(Loss) ($42) (31%) ($49) (39%) $7
----------- ---- ---- ---- ---- ---
Earnings/
(Loss) per
share
(Diluted) ($0.54) - ($0.65) - $0.11
----------- ------ --- ------ --- -----
For the full year of 2014, the Company reported the following results, as compared to the same period in 2013:
Dollars in
millions
except per
share
amounts % of Sales % of Sales Improvement/ (Decline)
2014 2013
--- ---- ----
Net Sales $887 - $843 - $44
--------- ---- --- ---- --- ---
Gross Profit $358 40% $315 37% $43
------------ ---- --- ---- --- ---
Operating
Expenses $327 37% $326 39% ($1)
--------- ---- --- ---- --- ---
Operating
Income/
(Loss) $31 4% ($11) (1%) $42
--------- --- --- ---- --- ---
Other
Income/
(Expense) ($9) (1%) ($3) - ($6)
---------- --- --- --- --- ---
Net Income/
(Loss) $16 2% ($19) (2%) $35
----------- --- --- ---- --- ---
Earnings/
(Loss) per
share
(Diluted) $0.20 - ($0.31) - $0.51
----------- ----- --- ------ --- -----
"We are pleased with our results for 2014," commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. "Notwithstanding challenging market conditions for the golf industry as a whole, we were able to grow sales, increase our market share and return to profitability for the first time since 2008 - a significant milestone for us in our turnaround. Our return to profitability has clearly benefitted from the many actions we have taken during the last few years to improve our operating efficiencies, as evidenced in part by our 300+ basis point improvement in gross margins in 2014. Also, our continued emphasis on cost management has allowed us to increase our investments in tour and marketing and still hold our operating expenses essentially flat with 2013. All in all, we are pleased with how our turnaround has progressed thus far."
"Looking forward, while the recent weakening of foreign currencies will adversely impact our 2015 GAAP results, we expect our underlying operational performance to continue to improve in 2015," continued Mr. Brewer. "Given the strength of our product line for 2015, which was well received at the recent PGA show in Orlando, and anticipated additional improvements in our operations, we expect for 2015 on a constant currency basis not only sales growth and market share gains, but also further improvements in gross margins and profitability. Golf is a momentum business and fortunately momentum is now on our side."
Business Outlook for 2015
Given the significant effects that the recent weakening of foreign currencies will have on the Company's GAAP results in 2015, the Company has provided guidance on both a GAAP and constant currency basis. The GAAP guidance is generally based upon a blend of current foreign currency exchange rates and the exchange rates at which the Company entered into hedge transactions. The Company's hedging program will mitigate but not eliminate the effects of future foreign currency rate changes and therefore any such future changes will affect the Company's GAAP guidance. The Company provided the following estimated full year results for 2015:
2015 GAAP Estimate 2015 Constant Currency
Estimate 2014 Actual
Net Sales $855 - $880 million $895 - $920 million $887 million
--------- ------------------- ------------------- ------------
The Company estimates that its 2015 net sales will decline 1% - 4% due to significant changes in foreign currency rates compared to 2014. On a constant currency basis, net sales are estimated to increase by approximately 1% - 4%. This growth is being driven by an estimated 5% - 6% growth in the Company's core channel business, partially offset by a change in product launch timing and a reduction in closeout sales compared to 2014.
2015 GAAP Estimate 2015 Constant Currency
Estimate 2014 Actual
Gross
Margins 40.0% 42.5% 40.4%
-------- ---- ---- ----
The Company estimates that its 2015 gross margins as a percent of sales will be about the same as in 2014. On a constant currency basis, the Company estimates that gross margins will improve by 210 basis points as compared to 2014. This improvement is expected to result from continued supply chain improvements and a more favorable sales mix.
2015 GAAP Estimate 2015 Constant Currency
Estimate 2014 Actual
Operating
Expenses $335 million $345 million $327 million
--------- ------------ ------------ ------------
The Company estimates that 2015 operating expenses will increase by 2% on a GAAP basis and by 6% on a constant currency basis. This anticipated increase, on a currency neutral basis, is primarily due to planned additional investment in marketing and tour as well as other normal annual cost increases, partially offset by the Company's continued focus on cost management.
2015 GAAP Estimate 2015 Constant Currency
Estimate 2014 Actual
Pre-tax
income ($1) - $8 million $29 - $38 million $22 million
------- ----------------- ----------------- -----------
Due to the effects of changes in foreign currency rates, the Company estimates that its GAAP Pre-tax income will decrease despite anticipated improvement in operational performance. On a constant currency basis, the Company estimates that its pre-tax income will increase by 32% - 73% as compared to 2014. The Company estimates that its 2015 income tax provision will be approximately $7 million on both a GAAP and constant currency basis.
2015 GAAP Estimate 2015 Constant Currency
Estimate 2014 Actual
Earnings/(Loss) ($0.09) - $0.01 $0.28 - $0.38 $0.20
Per Share
---------
The Company estimates that its fully diluted earnings/loss per share will decline significantly - solely as a result of adverse changes in foreign currency exchange rates as compared to 2014. On a constant currency basis, the Company estimates that its earnings per share would increase by 40% - 90% due to the strength of its 2015 product line and the many operational improvements implemented over the last couple of years. The Company's 2015 earnings per share estimates assume a base of 79 million shares as compared to 78 million shares in 2014.
Conference Call and Webcast
The Company will be holding a conference call at 2:00 p.m. PST 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. PST on Thursday, February 5, 2015. 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 financial results or projected financial results on a "constant currency basis." This information estimates the impact of changes in foreign currency rates on the translation of the Company's current or projected future period financial results 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 rates on the Company's results or business. For additional information concerning the effect of changes in foreign currency rates on the Company's 2015 forecast, see attached schedules.
Excluded Items. The Company presented certain of the Company's financial results excluding sales related to the Top-Flite and Ben Hogan brands or the products that were transitioned to a third party model, including apparel and footwear in certain regions.
Adjusted EBITDA. The Company provided information about its results, excluding interest, taxes, depreciation and amortization expenses, and impairment charges ("Adjusted EBITDA").
2013 Non-GAAP Information. 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 the estimated 2015 sales, sales growth, gross margins, operating expenses, pre-tax income, and earnings/loss per share (or related share count), as well as the Company's recovery and future gross margins or profitability, the creation of shareholder value, future market share gains, market conditions, brand momentum, and improved operations or performance, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon 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 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/20150129/172345-INFO
Callaway Golf Company
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited)
December 31,
------------
2014 2013
---- ----
ASSETS
Current assets:
Cash and cash equivalents $37,635 $36,793
Accounts receivable, net 109,848 92,203
Inventories 207,229 263,492
Other current assets 29,321 29,115
------
Total current assets 384,033 421,603
Property, plant and
equipment, net 58,093 71,341
Intangible assets, net 116,654 118,113
Other assets 66,031 52,806
------ ------
Total assets $624,811 $663,863
========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $123,251 $157,120
Accrued employee compensation and
benefits 37,386 31,585
Asset-based credit facility 15,235 25,660
Accrued warranty expense 5,607 6,406
Deferred taxes 26 -
Income tax liability 2,623 5,425
-----
Total current liabilities 184,128 226,196
Long-term liabilities 149,149 153,048
Shareholders' equity 291,534 284,619
------- -------
Total liabilities and
shareholders' equity $624,811 $663,863
========
Callaway Golf Company
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Quarter Ended
December 31,
------------
2014 2013
---- ----
Net sales $134,606 $127,170
Cost of sales 97,690 97,909
------ ------
Gross profit 36,916 29,261
Operating expenses:
Selling 49,445 46,645
General and
administrative 18,203 19,461
Research and
development 8,382 8,502
-----
Total operating expenses 76,030 74,608
------ ------
Loss from operations (39,114) (45,347)
Other expense, net (445) (3,494)
---- ------
Loss before income taxes (39,559) (48,841)
Income tax provision 1,980 658
----- ---
Net loss $(41,539) $(49,499)
======== ========
Loss per common share:
Basic ($0.54) ($0.65)
Diluted ($0.54) ($0.65)
Weighted-average common shares outstanding:
Basic 77,582 76,358
Diluted 77,582 76,358
Year Ended
December 31,
------------
2014 2013
---- ----
Net sales $886,945 $842,801
Cost of sales 529,019 528,043
------- -------
Gross profit 357,926 314,758
Operating expenses:
Selling 234,231 226,496
General and
administrative 61,662 68,087
Research and
development 31,285 30,937
------
Total operating expenses 327,178 325,520
------- -------
Income (loss) from operations 30,748 (10,762)
Other expense, net (9,109) (2,560)
------ ------
Income (loss) before income
taxes 21,639 (13,322)
Income tax provision 5,631 5,599
----- -----
Net income (loss) 16,008 (18,921)
Dividends on convertible
preferred stock - 3,332
--- -----
Net income (loss) allocable to
common shareholders $16,008 $(22,253)
======= ========
Earnings (loss) per common share:
Basic $0.21 ($0.31)
Diluted $0.20 ($0.31)
Weighted-average common shares outstanding:
Basic 77,559 72,809
Diluted 78,385 72,809
Callaway Golf Company
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Year Ended
December 31,
------------
2014 2013
---- ----
Cash flows from operating activities:
Net income (loss) $16,008 $(18,921)
Adjustments to
reconcile net
income (loss) to
net cash
provided by
(used in)
operating
activities:
Depreciation and amortization 21,236 25,543
Deferred taxes, net 604 (2,309)
Non-cash share-based compensation 5,740 3,533
(Gain) loss on disposal of long-
lived assets (1,331) 2,242
Discount amortization on
convertible notes 739 702
Changes in assets and liabilities (6,116) (19,739)
------ -------
Net cash provided
by (used in)
operating
activities 36,880 (8,949)
----------
Cash flows from investing activities:
Capital
expenditures (10,753) (13,038)
Proceeds from
sale of
property, plant
and equipment 458 4,148
Investment in
golf-related
ventures (13,072) (13,637)
Other investing
activities (1,699) -
----------
Net cash used in
investing
activities (25,066) (22,527)
----------
Cash flows from financing activities:
(Repayment of)
proceeds from
credit
facilities, net (10,425) 25,660
Exercise of stock
options 2,291 1,652
Dividends paid (3,105) (5,599)
Acquisition of
treasury stock (1,006) -
Credit facility
amendment costs (608) -
Equity issuance
costs (7) (341)
Other financing
activities (26) (32)
----------
Net cash (used
in) provided by
financing
activities (12,886) 21,340
----------
Effect of exchange
rate changes on
cash 1,914 (5,074)
----- ------
Net increase
(decrease) in cash
and cash
equivalents 842 (15,210)
Cash and cash
equivalents at
beginning of
period 36,793 52,003
------ ------
Cash and cash
equivalents at end
of period $37,635 $36,793
======= =======
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 Year Ended
December 31, Growth/(Decline) December 31, Growth/(Decline)
------------ ---------------- ------------ ----------------
2014 2013 (1) Dollars Percent 2014 2013 (1) Dollars Percent
---- ------- ------- ------- ---- ------- ------- -------
Net sales:
Woods $36,594 $30,361 $6,233 21% $269,468 $249,809 $19,659 8%
Irons 38,327 30,078 8,249 27% 200,174 178,771 21,403 12%
Putters 9,021 14,324 (5,303) -37% 81,161 87,787 (6,626) -8%
Accessories and other 30,193 32,501 (2,308) -7% 199,153 195,330 3,823 2%
Golf balls 20,471 19,906 565 3% 136,989 131,104 5,885 4%
$134,606 $127,170 $7,436 6% $886,945 $842,801 $44,144 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
Constant Currency Excluding Businesses Excluding Businesses
Quarter Ended Growth (Decline) Sold or Transitioned Year Ended Constant Currency Sold or Transitioned
------------- ----------
December 31, Growth (Decline) vs. 2013(1) Growth (Decline) vs. 2013 (2) December 31, Growth Growth vs. 2013(1) Growth vs. 2013 (2)
------------ --------------- ------------ ------
2014 2013 Dollars Percent Percent Percent 2014 2013 Dollars Percent Percent Percent
---- ---- ------- ------- ------- ------- ---- ---- ------- ------- ------- -------
Net sales:
United States $50,026 $50,335 $(309) -1% -1% -1% $421,773 $401,478 $20,295 5% 5% 6%
Europe 19,352 16,535 2,817 17% 19% 31% 134,401 121,477 12,924 11% 4% 10%
Japan 38,555 32,177 6,378 20% 36% 36% 166,162 161,598 4,564 3% 12% 12%
Rest of Asia 15,749 17,363 (1,614) -9% -8% -7% 89,602 84,073 5,529 7% 5% 5%
Other foreign countries 10,924 10,760 164 2% 9% 9% 75,007 74,175 832 1% 8% 9%
------
$134,606 $127,170 $7,436 6% 11% 13% $886,945 $842,801 $44,144 5% 7% 8%
======== ======== ====== ======== ======== =======
(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 Year Ended
December 31, December 31, Growth/(Decline)
Growth
------
2014 2013 (1) Dollars Percent 2014 2013 (1) Dollars Percent
---- ------- ------- ------- ---- ------- ------- -------
Net sales:
Golf clubs $114,135 $107,264 $6,871 6% $749,956 $711,697 $38,259 5%
Golf balls 20,471 19,906 565 3% 136,989 131,104 5,885 4%
$134,606 $127,170 $7,436 6% $886,945 $842,801 $44,144 5%
======== ======== ====== ======== ======== =======
Income before income taxes:
Golf clubs (2) $(27,032) $(31,231) $4,199 13% $50,891 $32,738 $18,153 55%
Golf balls (2) (2,127) (3,387) 1,260 37% 15,222 (3,472) 18,694 538%
Reconciling items (3) (10,400) (14,223) 3,823 27% (44,474) (42,588) (1,886) -4%
--------
$(39,559) $(48,841) $9,282 19% $21,639 $(13,322) $34,961 262%
======== ======== ====== ======= ======== =======
(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 $2.1 million and $2.3 million, respectively, during the quarter ended December 31, 2013, and $6.4 million and $7.0 million, respectively, during the year ended December 31, 2013. There were no charges related to these
initiatives in 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)
2013 Non-GAAP Reconciliation to GAAP Reported Results:
Quarter Ended December 31,
--------------------------
2013
----
Non-GAAP Callaway Golf (1) Cost Reduction Initiatives(1) (3) Non-Cash Tax Adjustment(2) Total as Reported
------------------------- -------------------------------- ------------------------- -----------------
Net sales $127,170 $ - $ - $127,170
Gross profit 33,036 (3,775) - 29,261
% of sales 26% -3% n/a 23%
Operating expenses 72,880 1,728 - 74,608
------ ----- --- ------
Loss from operations (39,844) (5,503) - (45,347)
Other expense, net (2,806) (688) - (3,494)
------ ---- --- ------
Loss before income taxes (42,650) (6,191) - (48,841)
Income tax provision (benefit) (16,420) (2,383) 19,461 658
------- ------ ------ ---
Net loss (26,230) (3,808) (19,461) (49,499)
------- ------ ------- -------
Net loss allocable to common shareholders $(26,230) $(3,808) $(19,461) $(49,499)
======== ======= ======== ========
Diluted loss per share: $(0.34) $(0.05) $(0.26) $(0.65)
Weighted-average shares outstanding: 76,358 76,358 76,358 76,358
(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.
Year Ended December 31,
-----------------------
2013
----
Non-GAAP Callaway Golf (1) Cost Reduction Initiatives(1) (3) Non-Cash Tax Adjustment (2) Total as Reported
------------------------- -------------------------------- -------------------------- -----------------
Net sales $842,801 $ - $ - $842,801
Gross profit 325,907 (11,149) - 314,758
% of sales 39% -1% n/a 37%
Operating expenses 320,801 4,719 - 325,520
------- ----- --- -------
Income from operations 5,106 (15,868) - (10,762)
Other expense, net (1,872) (688) - (2,560)
------ ---- --- ------
Income (loss) before income taxes 3,234 (16,556) - (13,322)
Income tax provision (benefit) 1,245 (6,374) 10,728 5,599
----- ------ ------ -----
Net income (loss) 1,989 (10,182) (10,728) (18,921)
Dividends on convertible preferred stock 3,332 - - 3,332
----- --- --- -----
Net loss allocable to common shareholders $(1,343) $(10,182) $(10,728) $(22,253)
======= ======== ======== ========
Diluted loss per share: $(0.02) $(0.14) $(0.15) $(0.31)
Weighted-average shares outstanding: 72,809 72,809 72,809 72,809
(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.
2014 Trailing Twelve Month EBITDA 2013 Trailing Twelve Month EBITDA
--------------------------------- ---------------------------------
EBITDA: Quarter Ended Quarter Ended
------------- -------------
March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31,
2014 2014 2014 2014 Total 2013 2013 2013 2013 Total
---- ---- ---- ---- ----- ---- ---- ---- ---- -----
Net income
(loss) $55,312 $3,369 $(1,134) $(41,539) $16,008 $41,660 $10,071 $(21,153) $(49,499) $(18,921)
Interest
expense, net 2,648 2,612 2,037 1,764 9,061 2,157 2,470 1,975 1,963 8,565
Income tax
provision 1,474 1,873 304 1,980 5,631 2,469 1,435 1,037 658 5,599
Depreciation and
amortization
expense 5,697 5,460 5,222 4,857 21,236 6,956 6,472 6,265 5,850 25,543
----- ----- ----- ----- ----- ----- ----- -----
EBITDA $65,131 $13,314 $6,429 $(32,938) $51,936 $53,242 $20,448 $(11,876) $(41,028) $20,786
======= ======= ====== ======== ======= ======= ======= ======== ======== =======
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SOURCE Callaway Golf Company
