CARLSBAD, Calif., Feb. 7, 2018 /PRNewswire/ -- Callaway Golf
Company (NYSE:ELY) announced today its full year 2017 financial
results and provided financial guidance for 2018.
"2017 was another exciting year for Callaway Golf," commented
Chip Brewer, President and Chief
Executive Officer of Callaway Golf Company. "On a full year basis
compared to 2016, our net sales increased $178 million (20%), our gross margins increased
160 basis points, and our Adjusted EBITDA increased 72% to
$100 million. These results were
fueled by the success of our 2017 product line, including the EPIC
woods and irons, and reflect the benefits of our strategy of
investing in areas tangential to golf as the OGIO and TravisMathew
acquisitions led a $100+ million increase in net sales in our Gear,
Accessories and Other operating segment."
Mr. Brewer continued, "Admittedly, our success in 2017 has made
2018 a high hurdle, but we believe we are up to the challenge.
Looking ahead, we are encouraged not only by improving golf
industry fundamentals but also by the strength of our 2018 product
line. The initial enthusiasm surrounding the Rogue line of woods
and irons has been strong due to the new and improved Jailbreak
Technology that we incorporated into the driver as well as the
fairway woods and hybrids. Our 2018 iron lineup is our
strongest ever and we are also excited about the great leap in
Graphene technology in our new Chrome Soft golf balls. Lastly, our
brand momentum remains strong and we believe we continue to be
the #1 golf club brand both in the U.S. and on a global
basis."
GAAP and Non-GAAP Results
In addition to the Company's results prepared in accordance
with GAAP, the Company provided information on a non-GAAP basis.
The purpose of this non-GAAP presentation is to provide additional
information to investors regarding the underlying performance of
the Company's business without certain non-recurring items and on a
more comparable tax basis as described below.
This non-GAAP information presents the Company's financial
results for the fourth quarter and full year of 2017 excluding the
non-recurring transaction and transition-related expenses for the
OGIO and TravisMathew acquisitions ($2
million in Q4 and $11 million
for the full year) and the non-recurring impacts of the recent 2017
Tax Cuts and Jobs Act (the "Tax Legislation") and other
non-recurring tax adjustments which collectively resulted in a net
additional $3 million of tax expense
for Q4 and the full year.
Additionally, the full year presentation of non-GAAP results
excludes from the 2016 results a gain of $18
million from the sale of a small portion of the Company's
Topgolf investment. Lastly, in order to make 2016 more comparable
to 2017 for evaluation purposes, the Company has also presented Q4
and full year 2016 results on a non-GAAP basis by excluding the
impact of the valuation allowance reversal and then using an annual
effective tax rate of 41.3%. The Company also provided
information concerning its earnings before interest, taxes,
depreciation and amortization expense, the non-recurring OGIO and
TravisMathew transaction and transition-related costs and the
Topgolf gain ("Adjusted EBITDA").
The manner in which this non-GAAP information is derived is
discussed further toward the end of this release, and the Company
has provided in the tables to this release a reconciliation of the
non-GAAP information to the most directly comparable GAAP
information.
Summary of Full Year 2017 Financial Results
The Company announced the following GAAP and non-GAAP financial
results for full year 2017 (in millions, except gross margin and
EPS):
|
2017 RESULTS (GAAP)
|
|
NON-GAAP
PRESENTATION
|
|
2017
|
2016
|
Change
|
|
2017
non-GAAP
|
2016
non-GAAP
|
Change
|
|
Net Sales
|
$1,049
|
$871
|
$178
|
|
$1,049
|
$871
|
$178
|
|
Gross
Profit
Gross
Margin
|
$480
45.8%
|
$385
44.2%
|
$95
160 b.p.
|
|
$483
46.0%
|
$385
44.2%
|
$98
180 b.p.
|
|
Operating
Expenses
|
$402
|
$341
|
$61
|
|
$393
|
$341
|
$52
|
|
Operating
Income
|
$79
|
$44
|
$35
|
|
$90
|
$44
|
$46
|
|
Income Tax
Provision/(Benefit)
|
$26
|
($133)
|
$159
|
|
$27
|
$17
|
$10
|
|
Net Income
|
$41
|
$190
|
($149)
|
|
$51
|
$23
|
$28
|
|
Diluted
EPS
|
$0.42
|
$1.98
|
($1.56)
|
|
$0.53
|
$0.24
|
$0.29
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
2016
|
Change
|
|
|
|
|
Adjusted
EBITDA
|
$100
|
$58
|
$42
|
|
|
For the full year 2017, the Company's net sales increased
$178 million to $1,049 million compared to $871 million for 2016. The 20% increase in net
sales reflects increases in all operating segments and in all
reporting regions, as well as market share gains in those regions.
These increases are attributable to the strength of the
Company's 2017 product line, including continued success of the
current year EPIC driver and fairway woods, increased golf ball
sales, and increased gear, accessories and other primarily as a
result of the Company's acquisitions of TravisMathew and OGIO and
the Company's apparel joint venture in Japan which was formed in July 2016.
For the full year 2017, the Company's gross margin increased to
45.8% compared to 44.2% for 2016. The 160 basis point increase was
primarily due to a favorable shift in product mix toward the higher
margin EPIC woods and irons combined with overall higher average
selling prices, less discounting and lower promotional
activity.
Operating expenses increased $61
million to $402 million for
2017 compared to $341 million for
2016. This increase is primarily due to the addition in 2017 of
incremental operating expenses from the Japan apparel joint venture (which was formed
in July 2016), higher variable
expense due to the increase in sales, increased investment in
marketing and tour, the consolidation of the OGIO and TravisMathew
businesses, as well as $9 million in
TravisMathew and OGIO non-recurring transaction and
transition-related expenses.
For 2017, earnings per share was $0.42, compared to $1.98 for 2016. On a non-GAAP basis, which
excludes the impact of the 2017 TravisMathew and OGIO non-recurring
expenses, excludes the 2017 non-recurring, non-cash tax expenses,
excludes the 2016 Topgolf gain and excludes the reversal of the
valuation allowance in 2016 as discussed above, the Company would
have reported earnings per share for 2017 of $0.53, compared to earnings per share of
$0.24 for 2016.
Summary of Fourth Quarter 2017 Financial Results
The Company announced the following GAAP and non-GAAP financial
results for the fourth quarter of 2017 (in millions, except
gross margin and EPS):
|
2017 RESULTS
(GAAP)
|
|
NON-GAAP
PRESENTATION
|
|
Q4 2017
|
Q4
2016
|
Change
|
|
Q4 2017
non-GAAP
|
Q4 2016
non-GAAP
|
Change
|
|
Net Sales
|
$192
|
$164
|
$28
|
|
$192
|
$164
|
$28
|
|
Gross
Profit
Gross
Margin
|
$80
41.6%
|
$63
38.6%
|
$17
300 b.p.
|
|
$81
42.4%
|
$63
38.6%
|
$18
380 b.p.
|
|
Operating
Expenses
|
$100
|
$80
|
$20
|
|
$100
|
$80
|
$20
|
|
Operating
Income/(Loss)
|
($20)
|
($17)
|
($3)
|
|
($19)
|
($17)
|
($2)
|
|
Income Tax
Provision/(Benefit)
|
($4)
|
($137)
|
$133
|
|
($7)
|
($5)
|
($2)
|
|
Net
Income/(Loss)
|
($19)
|
$123
|
($142)
|
|
($15)
|
($9)
|
($6)
|
|
Diluted
EPS
|
($0.20)
|
$1.28
|
($1.48)
|
|
($0.15)
|
($0.09)
|
($0.06)
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2017
|
Q4 2016
|
Change
|
|
|
|
|
Adjusted
EBITDA
|
($15)
|
($10)
|
($5)
|
|
|
For the fourth quarter of 2017, the Company's net sales
increased $28 million to $192 million compared to $164 million for the same period in 2016. The 17%
increase in net sales is attributable to the continued success of
the EPIC driver and fairway woods and increased net sales of gear,
accessories and other primarily as a result of the Company's recent
acquisitions of OGIO and TravisMathew.
For the fourth quarter of 2017, the Company's gross margin was
41.6% compared to fourth quarter 2016 gross margin of 38.6%. The
300 basis point increase was primarily due to a favorable shift in
product mix toward the higher margin EPIC woods combined with
overall higher average selling prices.
Operating expenses increased $20
million to $100 million in the
fourth quarter of 2017 compared to $80
million for the same period in 2016. This increase is
primarily due to the addition in 2017 of operating expenses from
the consolidation of the OGIO and TravisMathew businesses, higher
variable expense due to the increase in sales and increased spend
in research, marketing and tour.
Fourth quarter 2017 loss per share was ($0.20), compared to earnings per share of
$1.28 for the fourth quarter of
2016. On a non-GAAP basis, which excludes the impact of the
non-recurring OGIO and TravisMathew transaction and
transition-related expenses, excludes the non-recurring, non-cash
tax adjustments in 2017 and excludes the reversal of the valuation
allowance in 2016 as discussed above, the Company would have
reported a loss per share for the fourth quarter of 2017 of
($0.15), compared to a loss per share
of ($0.09) for the fourth quarter of
2016.
Business Outlook for 2018
Basis for 2017 Non-GAAP Results. In order to make
the 2018 guidance more comparable to 2017, as discussed above, the
Company has presented 2017 results on a non-GAAP basis by excluding
from 2017 the non-recurring expenses related to OGIO and
TravisMathew. Furthermore, the Company excluded from full year 2017
the non-cash, non-recurring tax expense items mentioned
above.
Full Year 2018
|
(in millions,
except gross margin and EPS):
|
|
Full Year
2018
|
2018
GAAP
Estimate
|
2017
Non-GAAP
Results
|
|
Net Sales
|
$1,115 -
$1,135
|
$1,049
|
|
Gross
Margin
|
46.5%
|
46.0%
|
|
Operating
Expenses
|
$426
|
$393
|
|
Earnings Per
Share
|
$0.64 -
$0.70
|
$0.53
|
The Company estimates full year 2018 net sales growth of 6% -
8%. The increase is driven by 2-3% growth in the core
business with the balance coming from a full year of TravisMathew
operating results as well as continued double digit growth in that
business. This assumes a flat to slightly improving overall market
and slight favorability in foreign currency rates.
The Company estimates that its 2018 gross margin will be
approximately 50 basis points higher than 2017. This increase
is being driven by continued pricing opportunities as well as a
positive mix benefit of the TravisMathew business, which generally
has higher gross margins than the Company's equipment business.
The Company estimates that its 2018 operating expenses will be
approximately $33 million higher than
the non-GAAP 2017 operating expenses. This increase is being
driven primarily by the addition of a full year of expenses for the
TravisMathew business as well as higher variable expense related to
the projected increased sales and select investments in the core
business including R&D, tour, selling, and marketing.
The Company's 2018 earnings per share estimate assumes an
effective tax rate of approximately 26% due to the reduced tax
rates under the Tax Legislation as compared to 2017 full year
non-GAAP effective tax rate of 34%. These estimates also
assume a base of 97 million shares in 2018, approximately flat with
2017.
First Quarter 2018
|
(in millions,
except gross margin and EPS):
|
|
First Quarter
2018
|
2018
GAAP
Estimate
|
2017
Non-GAAP
Results
|
|
Net Sales
|
$365 -
$375
|
$309
|
|
Earnings Per
Share
|
$0.48 -
$0.52
|
$0.30
|
The Company estimates first quarter 2018 net sales growth of 18%
- 21%. The increase is driven by launch timing in the core
business as well as the addition of the TravisMathew
business. Along with launching the Rogue woods, the Company
is also launching a full line of Rogue irons, new MD4 wedges and a
new Chrome Soft line of golf balls.
Conference Call and Webcast
The Company will be holding a conference call at 2:00 p.m. PT 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
http://ir.callawaygolf.com/. To listen to the call, and to access
the Company's presentation materials, 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.
PT on February 14, 2018.
The replay may be accessed through the Internet at
http://ir.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
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 period. It does not include any other effect
of changes in foreign currency rates on the Company's results or
business.
Adjusted EBITDA. The Company provides information
about its results excluding interest, taxes, depreciation and
amortization expenses, as well as non-recurring OGIO and
TravisMathew transaction-related expenses and the second quarter
2016 gain realized from the sale of a small portion of the
Company's Topgolf investment.
Other Adjustments. The Company presents certain of its
financial results (i) excluding tax benefits received from the
reversal of a significant portion of its deferred tax valuation
allowance, (ii) excluding gains from the sale of a small portion of
its Topgolf investment, (iii) excluding the non-recurring OGIO and
TravisMathew transaction-related expenses and (iv) by applying an
assumed estimated statutory tax rate of 38.5% to interim period
results for 2016.
In addition, the Company has included in the schedules to this
release a reconciliation of certain non-GAAP information to the
most directly comparable GAAP information. 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 Company's estimated 2018
sales, gross margins, operating expenses, and earnings per share
(or related tax rate and share count), future industry or market
conditions, and the assumed benefits to be derived from investments
in the Company's core business or the OGIO and TravisMathew
acquisitions, 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 unanticipated delays, difficulties or
increased costs in integrating the acquired OGIO and TravisMathew
businesses or implementing the Company's growth strategy generally;
any changes in U.S. trade, tax or other policies, including impacts
of the 2017 Tax Cuts and Jobs Act or restrictions on imports or an
increase in import tariffs; consumer acceptance of and demand for
the Company's products; competitive pressures; 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
facilities; delays, difficulties or increased costs in the supply
of components or commodities needed to manufacture the Company's
products or in manufacturing the Company's products; the ability to
secure professional tour player endorsements at reasonable costs;
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, 2016 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 bags, accessories and apparel in the golf and lifestyle
categories, under the Callaway Golf®, Odyssey®, OGIO and
TravisMathew brands worldwide. For more information please
visit www.callawaygolf.com, www.odysseygolf.com,
www.OGIO.com, and www.travismathew.com.
|
Contacts:
|
Brian
Lynch
|
|
Patrick
Burke
|
|
(760)
931-1771
|
|
CALLAWAY GOLF
COMPANY
|
|
CONSOLIDATED
CONDENSED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
December
31,
2017
|
|
December
31,
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
85,674
|
|
|
|
$
|
125,975
|
|
|
Accounts receivable,
net
|
|
94,725
|
|
|
|
127,863
|
|
|
Inventories
|
|
262,486
|
|
|
|
189,400
|
|
|
Other current
assets
|
|
23,099
|
|
|
|
17,187
|
|
|
Total current
assets
|
|
465,984
|
|
|
|
460,425
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
70,227
|
|
|
|
54,475
|
|
|
Intangible assets,
net
|
|
282,187
|
|
|
|
114,324
|
|
|
Investment in
golf-related ventures
|
|
70,495
|
|
|
|
48,997
|
|
|
Deferred taxes,
net
|
|
91,398
|
|
|
|
114,707
|
|
|
Other
assets
|
|
10,866
|
|
|
|
8,354
|
|
|
Total
assets
|
|
$
|
991,157
|
|
|
|
$
|
801,282
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
176,127
|
|
|
|
$
|
132,521
|
|
|
Accrued employee
compensation and benefits
|
|
40,173
|
|
|
|
32,568
|
|
|
Asset-based credit
facilities
|
|
87,755
|
|
|
|
11,966
|
|
|
Accrued warranty
expense
|
|
6,657
|
|
|
|
5,395
|
|
|
Other current
liabilities
|
|
2,367
|
|
|
|
—
|
|
|
Income tax
liability
|
|
1,295
|
|
|
|
4,404
|
|
|
Total current
liabilities
|
|
314,374
|
|
|
|
186,854
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
17,408
|
|
|
|
5,828
|
|
|
Total Callaway Golf
Company shareholders' equity
|
|
649,631
|
|
|
|
598,906
|
|
|
Non-controlling
interest in consolidated entity
|
|
9,744
|
|
|
|
9,694
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
991,157
|
|
|
|
$
|
801,282
|
|
|
CALLAWAY GOLF
COMPANY
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
December 31,
|
|
2017
|
|
2016
|
|
Net sales
|
$
|
191,657
|
|
|
$
|
163,695
|
|
|
Cost of
sales
|
111,991
|
|
|
100,584
|
|
|
Gross
profit
|
79,666
|
|
|
63,111
|
|
|
Operating
expenses:
|
|
|
|
|
Selling
|
65,272
|
|
|
52,013
|
|
|
General and
administrative
|
25,177
|
|
|
19,485
|
|
|
Research and
development
|
9,669
|
|
|
8,376
|
|
|
Total operating
expenses
|
100,118
|
|
|
79,874
|
|
|
Loss from
operations
|
(20,452)
|
|
|
(16,763)
|
|
|
Other income
(expense), net
|
(2,678)
|
|
|
3,768
|
|
|
Loss before income
taxes
|
(23,130)
|
|
|
(12,995)
|
|
|
Income tax
benefit
|
(4,354)
|
|
|
(137,193)
|
|
|
Net income
(loss)
|
(18,776)
|
|
|
124,198
|
|
|
Less: Net income
attributable to non-controlling interests
|
610
|
|
|
927
|
|
|
Net income (loss)
attributable to Callaway Golf Company
|
$
|
(19,386)
|
|
|
$
|
123,271
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
Basic
|
($0.20)
|
|
|
$1.31
|
|
|
Diluted
|
($0.20)
|
|
|
$1.28
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
Basic
|
94,573
|
|
|
94,114
|
|
|
Diluted
|
94,573
|
|
|
96,316
|
|
|
|
|
|
|
Year
Ended
December
31,
|
|
2017
|
|
2016
|
|
Net sales
|
$
|
1,048,736
|
|
|
$
|
871,192
|
|
|
Cost of
sales
|
568,288
|
|
|
486,181
|
|
|
Gross
profit
|
480,448
|
|
|
385,011
|
|
|
Operating
expenses:
|
|
|
|
|
Selling
|
270,890
|
|
|
235,556
|
|
|
General and
administrative
|
94,153
|
|
|
71,969
|
|
|
Research and
development
|
36,568
|
|
|
33,318
|
|
|
Total operating
expenses
|
401,611
|
|
|
340,843
|
|
|
Income from
operations
|
78,837
|
|
|
44,168
|
|
|
Gain on sale of
golf-related ventures
|
—
|
|
|
17,662
|
|
|
Other expense,
net
|
(10,782)
|
|
|
(3,437)
|
|
|
Income before income
taxes
|
68,055
|
|
|
58,393
|
|
|
Income tax provision
(benefit)
|
26,388
|
|
|
(132,561)
|
|
|
Net income
|
41,667
|
|
|
190,954
|
|
|
Less: Net income
attributable to non-controlling interests
|
861
|
|
|
1,054
|
|
|
Net income
attributable to Callaway Golf Company
|
$
|
40,806
|
|
|
$
|
189,900
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
Basic
|
$0.43
|
|
|
$2.02
|
|
|
Diluted
|
$0.42
|
|
|
$1.98
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
Basic
|
94,329
|
|
|
94,045
|
|
|
Diluted
|
96,577
|
|
|
95,845
|
|
|
CALLAWAY GOLF
COMPANY
|
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOW
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
Year
Ended
December
31,
|
|
2017
|
|
2016
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
|
41,667
|
|
|
$
|
190,954
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
17,605
|
|
|
16,586
|
|
|
Inventory step-up amortization
|
3,112
|
|
|
—
|
|
|
Deferred
taxes, net
|
24,594
|
|
|
(141,447)
|
|
|
Non-cash
share-based compensation
|
12,647
|
|
|
8,965
|
|
|
(Gain)/loss on disposal of long-lived assets
|
1,490
|
|
|
(116)
|
|
|
Gain on
sale of golf related investments
|
—
|
|
|
(17,662)
|
|
|
Unrealized losses (gains) on foreign currency hedges
|
1,023
|
|
|
(683)
|
|
|
Changes in assets and
liabilities
|
15,561
|
|
|
21,113
|
|
|
Net cash provided by
operating activities
|
117,699
|
|
|
77,710
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Acquisitions, net of
cash acquired
|
(183,478)
|
|
|
—
|
|
|
Capital
expenditures
|
(26,203)
|
|
|
(16,152)
|
|
|
Investments in golf
related ventures
|
(21,499)
|
|
|
(1,448)
|
|
|
Proceeds from sales
of property and equipment
|
587
|
|
|
20
|
|
|
Note
receivable
|
—
|
|
|
3,104
|
|
|
Proceeds from sale of
golf related investments
|
—
|
|
|
23,429
|
|
|
Net cash (used in)
provided by investing activities
|
(230,593)
|
|
|
8,953
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
(repayments of) credit facilities, net
|
75,789
|
|
|
(3,003)
|
|
|
Proceeds from
long-term debt
|
11,815
|
|
|
—
|
|
|
Exercise of stock
options
|
5,362
|
|
|
2,637
|
|
|
Distributions to
non-controlling interests
|
(974)
|
|
|
—
|
|
|
Credit facility
amendment costs
|
(2,246)
|
|
|
—
|
|
|
Dividends paid,
net
|
(3,773)
|
|
|
(3,764)
|
|
|
Acquisition of
treasury stock
|
(16,617)
|
|
|
(5,144)
|
|
|
Other Financing
Activity
|
—
|
|
|
20
|
|
|
Net cash provided by
(used in) financing activities
|
69,356
|
|
|
(9,254)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
3,237
|
|
|
(1,235)
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(40,301)
|
|
|
76,174
|
|
|
Cash and cash
equivalents at beginning of period
|
125,975
|
|
|
49,801
|
|
|
Cash and cash
equivalents at end of period
|
$
|
85,674
|
|
|
$
|
125,975
|
|
|
CALLAWAY GOLF
COMPANY
|
|
Consolidated Net
Sales and Operating Segment Information and Non-GAAP
Reconciliation
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
Net Sales by
Product Category
|
|
Net Sales by
Product Category
|
|
Three Months
Ended
December 31,
|
|
Growth/(Decline)
|
|
Non-
GAAP
Constant
Currency
vs.
2016(1)
|
|
Year
Ended
December 31,
|
|
Growth/(Decline)
|
|
Non-
GAAP
Constant
Currency
vs.
2016(1)
|
|
2017
|
|
2016
|
|
Dollars
|
|
Percent
|
|
Percent
|
|
2017
|
|
2016
|
|
Dollars
|
|
Percent
|
|
Percent
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woods
|
$
|
45,214
|
|
|
$
|
33,021
|
|
|
$
|
12,193
|
|
|
36.9
|
%
|
|
37.8%
|
|
$
|
307,865
|
|
|
$
|
216,094
|
|
|
$
|
91,771
|
|
|
42.5
|
%
|
|
44.0%
|
|
Irons
|
48,454
|
|
|
54,108
|
|
|
(5,654)
|
|
|
(10.4)
|
%
|
|
(10.2)%
|
|
250,636
|
|
|
278,562
|
|
|
(27,926)
|
|
|
(10.0)
|
%
|
|
(9.2)%
|
|
Putters
|
13,433
|
|
|
14,512
|
|
|
(1,079)
|
|
|
(7.4)
|
%
|
|
(7.1)%
|
|
84,595
|
|
|
87,725
|
|
|
(3,130)
|
|
|
(3.6)
|
%
|
|
(2.7)%
|
|
Golf balls
|
26,485
|
|
|
31,205
|
|
|
(4,720)
|
|
|
(15.1)
|
%
|
|
(15.9)%
|
|
162,546
|
|
|
152,261
|
|
|
10,285
|
|
|
6.8
|
%
|
|
7.1%
|
|
Gear/Accessories/Other
|
58,071
|
|
|
30,849
|
|
|
27,222
|
|
|
88.2
|
%
|
|
89.7%
|
|
243,094
|
|
|
136,550
|
|
|
106,544
|
|
|
78.0
|
%
|
|
80.3%
|
|
$
|
191,657
|
|
|
$
|
163,695
|
|
|
$
|
27,962
|
|
|
17.1
|
%
|
|
17.5%
|
|
$
|
1,048,736
|
|
|
$
|
871,192
|
|
|
$
|
177,544
|
|
|
20.4
|
%
|
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Calculated by applying 2016 exchange rates to 2017 reported sales
in regions outside the U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales by
Region
|
|
Net Sales by
Region
|
|
Three Months
Ended
December 31,
|
|
Growth/(Decline)
|
|
Non-GAAP
Constant
Currency
vs.
2016(1)
|
|
Year
Ended
December 31,
|
|
Growth
|
|
Non-GAAP
Constant
Currency
vs.
2016(1)
|
|
2017
|
|
2016
|
|
Dollars
|
|
Percent
|
|
Percent
|
|
2017
|
|
2016
|
|
Dollars
|
|
Percent
|
|
Percent
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
94,313
|
|
|
$
|
67,440
|
|
|
$
|
26,873
|
|
|
39.8
|
%
|
|
39.8%
|
|
$
|
566,365
|
|
|
$
|
447,613
|
|
|
$
|
118,752
|
|
|
26.5
|
%
|
|
26.5%
|
|
Europe
|
20,948
|
|
|
21,634
|
|
|
(686)
|
|
|
(3.2)
|
%
|
|
(9.1)%
|
|
139,515
|
|
|
122,805
|
|
|
16,710
|
|
|
13.6
|
%
|
|
16.9%
|
|
Japan
|
51,900
|
|
|
49,573
|
|
|
2,327
|
|
|
4.7
|
%
|
|
10.0%
|
|
199,331
|
|
|
170,760
|
|
|
28,571
|
|
|
16.7
|
%
|
|
21.3%
|
|
Rest of
Asia
|
13,578
|
|
|
15,256
|
|
|
(1,678)
|
|
|
(11.0)
|
%
|
|
(13.4)%
|
|
76,540
|
|
|
67,099
|
|
|
9,441
|
|
|
14.1
|
%
|
|
12.2%
|
|
Other foreign
countries
|
10,918
|
|
|
9,792
|
|
|
1,126
|
|
|
11.5
|
%
|
|
8.5%
|
|
66,985
|
|
|
62,915
|
|
|
4,070
|
|
|
6.5
|
%
|
|
5.3%
|
|
$
|
191,657
|
|
|
$
|
163,695
|
|
|
$
|
27,962
|
|
|
17.1
|
%
|
|
17.5%
|
|
$
|
1,048,736
|
|
|
$
|
871,192
|
|
|
$
|
177,544
|
|
|
20.4
|
%
|
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Calculated by applying 2016 exchange rates to 2017 reported sales
in regions outside the U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Segment
Information
|
|
|
|
Operating Segment
Information
|
|
|
|
Three Months
Ended
December 31,
|
|
Growth/(Decline)
|
|
|
|
Year
Ended
December 31,
|
|
Growth
|
|
|
|
2017
|
|
2016(1)
|
|
Dollars
|
|
Percent
|
|
|
|
2017
|
|
2016(1)
|
|
Dollars
|
|
Percent
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golf Club
|
$
|
107,101
|
|
|
$
|
101,641
|
|
|
$
|
5,460
|
|
|
5.4
|
%
|
|
|
|
$
|
643,096
|
|
|
$
|
582,381
|
|
|
$
|
60,715
|
|
|
10.4
|
%
|
|
|
|
Golf Ball
|
26,484
|
|
|
31,205
|
|
|
(4,721)
|
|
|
(15.1)
|
%
|
|
|
|
162,546
|
|
|
152,261
|
|
|
10,285
|
|
|
6.8
|
%
|
|
|
|
Gear/Accessories/Other
|
58,072
|
|
|
30,849
|
|
|
27,223
|
|
|
88.2
|
%
|
|
|
|
243,094
|
|
|
136,550
|
|
|
106,544
|
|
|
78.0
|
%
|
|
|
|
$
|
191,657
|
|
|
$
|
163,695
|
|
|
$
|
27,962
|
|
|
17.1
|
%
|
|
|
|
$
|
1,048,736
|
|
|
$
|
871,192
|
|
|
$
|
177,544
|
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golf clubs
|
$
|
(7,294)
|
|
|
$
|
(7,149)
|
|
|
$
|
(145)
|
|
|
(2.0)
|
%
|
|
|
|
$
|
77,018
|
|
|
$
|
48,489
|
|
|
$
|
28,529
|
|
|
58.8
|
%
|
|
|
|
Golf balls
|
(646)
|
|
|
1,968
|
|
|
(2,614)
|
|
|
(132.8)
|
%
|
|
|
|
26,854
|
|
|
23,953
|
|
|
2,901
|
|
|
12.1
|
%
|
|
|
|
Gear/Accessories/Other
|
3,209
|
|
|
1,470
|
|
|
1,739
|
|
|
118.3
|
%
|
|
|
|
30,631
|
|
|
18,223
|
|
|
12,408
|
|
|
68.1
|
%
|
|
|
|
Reconciling
items(2)
|
(18,399)
|
|
|
(9,284)
|
|
|
(9,115)
|
|
|
(98.2)
|
%
|
|
|
|
(66,448)
|
|
|
(32,272)
|
|
|
(34,176)
|
|
|
(105.9)
|
%
|
|
|
|
$
|
(23,130)
|
|
|
$
|
(12,995)
|
|
|
$
|
(10,135)
|
|
|
(78.0)
|
%
|
|
|
|
$
|
68,055
|
|
|
$
|
58,393
|
|
|
$
|
9,662
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
The Company changed its operating segments as of January 1,
2017. Accordingly, prior period amounts have been
reclassified to conform with the current period
presentation.
|
|
|
|
(2)
Represents corporate general and administrative expenses and other
income (expense) not utilized by management in determining segment
profitability.
|
|
|
CALLAWAY GOLF
COMPANY
|
|
Supplemental
Financial Information and Non-GAAP Reconciliation
|
|
(Unaudited)
|
|
(In thousands,
except per share data)
|
|
|
Three Months Ended
December 31, 2017
|
|
Three Months Ended
December 31, 2016
|
|
Total As
Reported
|
|
Acquisition
Costs(1)
|
|
Non-Cash
Tax
Adjustment(2)
|
|
Non-GAAP
|
|
Total As
Reported
|
|
Release of Tax
VA(3)
|
|
Non-Cash
Tax
Adjustment(4)
|
|
Non-GAAP
|
|
Net sales
|
$
|
191,657
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
191,657
|
|
|
$
|
163,695
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
163,695
|
|
|
Gross
profit
|
79,666
|
|
|
(1,641)
|
|
|
—
|
|
|
81,307
|
|
|
63,111
|
|
|
—
|
|
|
—
|
|
|
63,111
|
|
|
% of sales
|
41.6
|
%
|
|
—
|
|
|
—
|
|
|
42.4
|
%
|
|
38.6
|
%
|
|
—
|
|
|
—
|
|
|
38.6
|
%
|
|
Operating
expenses
|
100,118
|
|
|
36
|
|
|
—
|
|
|
100,082
|
|
|
79,874
|
|
|
—
|
|
|
—
|
|
|
79,874
|
|
|
Loss from
operations
|
(20,452)
|
|
|
(1,677)
|
|
|
—
|
|
|
(18,775)
|
|
|
(16,763)
|
|
|
—
|
|
|
—
|
|
|
(16,763)
|
|
|
Other income
(expense), net
|
(2,678)
|
|
|
—
|
|
|
—
|
|
|
(2,678)
|
|
|
3,768
|
|
|
—
|
|
|
—
|
|
|
3,768
|
|
|
Loss before income
taxes
|
(23,130)
|
|
|
(1,677)
|
|
|
—
|
|
|
(21,453)
|
|
|
(12,995)
|
|
|
—
|
|
|
—
|
|
|
(12,995)
|
|
|
Income tax (benefit)
provision
|
(4,354)
|
|
|
(886)
|
|
|
3,394
|
|
|
(6,862)
|
|
|
(137,193)
|
|
|
(156,588)
|
|
|
24,762
|
|
|
(5,367)
|
|
|
Net income
(loss)
|
(18,776)
|
|
|
(791)
|
|
|
(3,394)
|
|
|
(14,591)
|
|
|
124,198
|
|
|
156,588
|
|
|
(24,762)
|
|
|
(7,628)
|
|
|
Less: Net income
attributable to non-controlling interests
|
610
|
|
|
—
|
|
|
—
|
|
|
610
|
|
|
927
|
|
|
—
|
|
|
—
|
|
|
927
|
|
|
Net income (loss)
attributable to Callaway Golf Company
|
$
|
(19,386)
|
|
|
$
|
(791)
|
|
|
$
|
(3,394)
|
|
|
$
|
(15,201)
|
|
|
$
|
123,271
|
|
|
$
|
156,588
|
|
|
$
|
(24,762)
|
|
|
$
|
(8,555)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
($0.20)
|
|
|
($0.01)
|
|
|
($0.04)
|
|
|
($0.15)
|
|
|
$1.28
|
|
|
$1.63
|
|
|
($0.26)
|
|
|
($0.09)
|
|
|
Weighted-average
shares outstanding:
|
94,573
|
|
|
94,573
|
|
|
94,573
|
|
|
94,573
|
|
|
96,316
|
|
|
96,316
|
|
|
96,316
|
|
|
96,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Represents non-recurring costs associated with the acquisitions of
Ogio International, Inc. in January 2017, and TravisMathew in
August 2017.
|
|
|
(2) Represents
approximately $7.5 million of non-recurring income tax expense
resulting from the 2017 Tax Cuts and Jobs Act, partially offset by
a non-recurring benefit of approximately $4.1 million related to
the revaluation of taxes on intercompany transactions, resulting
from the 2016 release of the valuation allowance against the
Company's U.S. deferred tax assets.
|
|
|
(3) Non-cash
tax benefit due to the reversal of a significant portion of the
Company's deferred tax valuation allowance in Q4 of
2016.
|
|
|
(4) In the
fourth quarter of 2016, the Company reversed a significant portion
of its valuation allowance on its U.S. deferred tax assets. Also as
a result of the reversal, the Company was required to retroactively
recognize Federal U.S. income taxes for all of 2016. For
comparability to the fourth quarter of 2017, the Company applied
the Company's estimated annual effective tax rate (excluding the
reversal of the valuation allowance) of 41.3% to calculate
pro-forma results for the fourth quarter of 2016.
|
|
CALLAWAY GOLF
COMPANY
|
|
Supplemental
Financial Information and Non-GAAP Reconciliation
|
|
(Unaudited)
|
|
(In thousands,
except per share data)
|
|
|
Year Ended
December 31, 2017
|
|
Year Ended
December 31, 2016
|
|
Total As
Reported
|
|
Acquisition
Costs(1)
|
|
Non-Cash
Tax
Adjustment(2)
|
|
Non-GAAP
|
|
Total As
Reported
|
|
Topgolf
Gain(3)
|
|
Release of Tax
VA(4)
|
|
Non-GAAP
|
|
Net sales
|
$
|
1,048,736
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,048,736
|
|
|
$
|
871,192
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
871,192
|
|
|
Gross
profit
|
480,448
|
|
|
(2,439)
|
|
|
—
|
|
|
482,887
|
|
|
385,011
|
|
|
—
|
|
|
—
|
|
|
385,011
|
|
|
% of sales
|
45.8
|
%
|
|
—
|
|
|
—
|
|
|
46.0
|
%
|
|
44.2
|
%
|
|
—
|
|
|
—
|
|
|
44.2
|
%
|
|
Operating
expenses
|
401,611
|
|
|
8,825
|
|
|
—
|
|
|
392,786
|
|
|
340,843
|
|
|
—
|
|
|
—
|
|
|
340,843
|
|
|
Income (loss) from
operations
|
78,837
|
|
|
(11,264)
|
|
|
—
|
|
|
90,101
|
|
|
44,168
|
|
|
—
|
|
|
—
|
|
|
44,168
|
|
|
Other income
(expense), net
|
(10,782)
|
|
|
—
|
|
|
—
|
|
|
(10,782)
|
|
|
14,225
|
|
|
17,662
|
|
|
—
|
|
|
(3,437)
|
|
|
Income (loss) before
income taxes
|
68,055
|
|
|
(11,264)
|
|
|
—
|
|
|
79,319
|
|
|
58,393
|
|
|
17,662
|
|
|
—
|
|
|
40,731
|
|
|
Income tax provision
(benefit)
|
26,388
|
|
|
(4,118)
|
|
|
3,394
|
|
|
27,112
|
|
|
(132,561)
|
|
|
7,188
|
|
|
(156,588)
|
|
|
16,839
|
|
|
Net income
(loss)
|
41,667
|
|
|
(7,146)
|
|
|
(3,394)
|
|
|
52,207
|
|
|
190,954
|
|
|
10,474
|
|
|
156,588
|
|
|
23,892
|
|
|
Less: Net income
attributable to non-controlling interests
|
861
|
|
|
—
|
|
|
—
|
|
|
861
|
|
|
1,054
|
|
|
—
|
|
|
—
|
|
|
1,054
|
|
|
Net income (loss)
attributable to Callaway Golf Company
|
$
|
40,806
|
|
|
$
|
(7,146)
|
|
|
$
|
(3,394)
|
|
|
$
|
51,346
|
|
|
$
|
189,900
|
|
|
$
|
10,474
|
|
|
$
|
156,588
|
|
|
$
|
22,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
$0.42
|
|
|
($0.07)
|
|
|
($0.04)
|
|
|
$0.53
|
|
|
$1.98
|
|
|
$0.11
|
|
|
$1.63
|
|
|
$0.24
|
|
|
Weighted-average
shares outstanding:
|
96,577
|
|
|
96,577
|
|
|
96,577
|
|
|
96,577
|
|
|
95,845
|
|
|
95,845
|
|
|
95,845
|
|
|
95,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Represents non-recurring costs associated with the acquisitions of
Ogio International, Inc. in January 2017, and TravisMathew in
August 2017.
|
|
|
(2) Represents
approximately $7.5 million of non-recurring income tax expense
resulting from the 2017 Tax Cuts and Jobs Act, partially offset by
a non-recurring benefit of approximately $4.1 million related to
the revaluation of taxes on intercompany transactions, resulting
from the 2016 release of the valuation allowance against the
Company's U.S. deferred tax assets.
|
|
|
(3) Represents
a gain on the sale of a small portion of the Company's Topgolf
investment as well as the income tax impact on the gain due to the
reversal of the Company's deferred tax valuation allowance in Q4 of
2016.
|
|
|
(4) Non-cash
tax benefit due to the reversal of a significant portion of the
Company's deferred tax valuation allowance in Q4 of
2016.
|
|
2017 Trailing
Twelve Month Adjusted EBITDA
|
|
2016 Trailing
Twelve Month Adjusted EBITDA
|
|
Quarter
Ended
|
|
Quarter
Ended
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
December
31,
|
|
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
Total
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
Total
|
|
Net income
(loss)
|
$
|
25,689
|
|
|
$
|
31,443
|
|
|
$
|
3,060
|
|
|
$
|
(19,386)
|
|
|
$
|
40,806
|
|
|
$
|
38,390
|
|
|
$
|
34,105
|
|
|
$
|
(5,866)
|
|
|
$
|
123,271
|
|
|
$
|
189,900
|
|
|
Interest expense,
net
|
715
|
|
|
550
|
|
|
642
|
|
|
2,004
|
|
|
3,911
|
|
|
621
|
|
|
347
|
|
|
431
|
|
|
348
|
|
|
1,747
|
|
|
Income tax provision
(benefit)
|
13,206
|
|
|
16,050
|
|
|
1,486
|
|
|
(4,354)
|
|
|
26,388
|
|
|
1,401
|
|
|
1,937
|
|
|
1,294
|
|
|
(137,193)
|
|
|
(132,561)
|
|
|
Depreciation and
amortization expense
|
4,319
|
|
|
4,178
|
|
|
4,309
|
|
|
4,799
|
|
|
17,605
|
|
|
4,157
|
|
|
4,180
|
|
|
4,204
|
|
|
4,045
|
|
|
16,586
|
|
|
EBITDA
|
$
|
43,929
|
|
|
$
|
52,221
|
|
|
$
|
9,497
|
|
|
$
|
(16,937)
|
|
|
$
|
88,710
|
|
|
$
|
44,569
|
|
|
$
|
40,569
|
|
|
$
|
63
|
|
|
$
|
(9,529)
|
|
|
$
|
75,672
|
|
|
Gain on sale of
Topgolf investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,662)
|
|
|
—
|
|
|
—
|
|
|
(17,662)
|
|
|
OGIO and TravisMathew
acquisition costs
|
3,956
|
|
|
2,254
|
|
|
3,377
|
|
|
1,677
|
|
|
11,264
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted
EBITDA
|
$
|
47,885
|
|
|
$
|
54,475
|
|
|
$
|
12,874
|
|
|
$
|
(15,260)
|
|
|
$
|
99,974
|
|
|
$
|
44,569
|
|
|
$
|
22,907
|
|
|
$
|
63
|
|
|
$
|
(9,529)
|
|
|
$
|
58,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALLAWAY GOLF COMPANY
Consolidated
Net Sales by Product Category Reclassified For New Segment
Presentation
(Unaudited)
(In thousands)
Effective January 1, 2017, the
Company changed its operating segments and established a new
operating segment, Gear, Accessories and Other. As a result of this
change, the Golf Clubs operating segment is now comprised of the
woods, irons and putters product categories, and the Golf Ball
operating segment is comprised of golf balls. The accessories and
other product category, which was previously reported within the
Golf Clubs operating segment, is now included in the new Gear,
Accessories and Other operating segment. Accordingly, as a result
of this change, net sales by product category for 2016 and all
interim periods therein were reclassified to conform with the new
operating segment presentation as follows: (i) sales of pre-owned
clubs, which were previously in accessories and other, are now
reported by product type within woods, irons and putters; (ii)
sales of packaged sets, which were previously reported in
accessories and other, are now reported within irons; and (iii)
sales of golf apparel and footwear, golf bags, golf gloves, travel
gear, headwear and other golf-related accessories, retail apparel
sales from the Company's joint venture in Japan, in addition to royalties from licensing
of the Company's trademarks and service marks for various soft
goods, which were previously reported in accessories and other, are
now reported in the Gear, Accessories and Other operating
segment.
The table below represents the Company's 2016 consolidated net
sales by product category as previously reported.
|
Three Months
Ended
|
|
Year
Ended
|
|
March 31,
2016
|
|
June 30,
2016
|
|
September 30,
2016
|
|
December 31,
2016
|
|
December 31,
2016
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woods
|
$
|
86,070
|
|
31.4
|
%
|
|
$
|
50,478
|
|
20.6
|
%
|
|
$
|
35,733
|
|
19.0
|
%
|
|
$
|
29,532
|
|
18.0
|
%
|
|
$
|
201,813
|
|
23.2
|
%
|
|
Irons
|
59,232
|
|
21.6
|
%
|
|
63,416
|
|
25.8
|
%
|
|
50,272
|
|
26.8
|
%
|
|
39,027
|
|
23.8
|
%
|
|
211,947
|
|
24.3
|
%
|
|
Putters
|
29,750
|
|
10.9
|
%
|
|
25,013
|
|
10.2
|
%
|
|
17,290
|
|
9.2
|
%
|
|
13,989
|
|
8.5
|
%
|
|
86,042
|
|
9.9
|
%
|
|
Golf balls
|
41,416
|
|
15.1
|
%
|
|
46,996
|
|
19.1
|
%
|
|
32,640
|
|
17.4
|
%
|
|
31,205
|
|
19.1
|
%
|
|
152,257
|
|
17.5
|
%
|
|
Gear, accessories and
other
|
57,585
|
|
21.0
|
%
|
|
59,691
|
|
24.3
|
%
|
|
51,915
|
|
27.6
|
%
|
|
49,942
|
|
30.5
|
%
|
|
219,133
|
|
25.2
|
%
|
|
$
|
274,053
|
|
100.0
|
%
|
|
$
|
245,594
|
|
100.0
|
%
|
|
$
|
187,850
|
|
100.0
|
%
|
|
$
|
163,695
|
|
100.0
|
%
|
|
$
|
871,192
|
|
100.0
|
%
|
The table below represents the Company's 2016 consolidated net
sales by product category reclassified to conform with the new
segment presentation in the comparable periods of 2017.
|
Reclassified
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March 31,
2016
|
|
June 30,
2016
|
|
September 30,
2016
|
|
December 31,
2016
|
|
December 31,
2016
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woods
|
$
|
89,248
|
|
32.6
|
%
|
|
$
|
54,583
|
|
22.2
|
%
|
|
$
|
39,332
|
|
20.9
|
%
|
|
$
|
33,021
|
|
20.2
|
%
|
|
$
|
216,094
|
|
24.8
|
%
|
|
Irons
|
75,600
|
|
27.6
|
%
|
|
84,458
|
|
34.4
|
%
|
|
64,305
|
|
34.2
|
%
|
|
54,108
|
|
33.1
|
%
|
|
278,562
|
|
32.0
|
%
|
|
Putters
|
30,213
|
|
11.0
|
%
|
|
25,410
|
|
10.3
|
%
|
|
17,591
|
|
9.4
|
%
|
|
14,512
|
|
8.9
|
%
|
|
87,725
|
|
10.1
|
%
|
|
Golf balls
|
41,416
|
|
15.1
|
%
|
|
46,996
|
|
19.1
|
%
|
|
32,640
|
|
17.4
|
%
|
|
31,205
|
|
19.1
|
%
|
|
152,261
|
|
17.5
|
%
|
|
Gear, accessories and
other
|
37,576
|
|
13.7
|
%
|
|
34,147
|
|
13.9
|
%
|
|
33,982
|
|
18.1
|
%
|
|
30,849
|
|
18.8
|
%
|
|
136,550
|
|
15.7
|
%
|
|
$
|
274,053
|
|
100.0
|
%
|
|
$
|
245,594
|
|
100.0
|
%
|
|
$
|
187,850
|
|
100.0
|
%
|
|
$
|
163,695
|
|
100.0
|
%
|
|
$
|
871,192
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/callaway-golf-company-announces-full-year-2017-financial-results-reflecting-20-sales-growth-and-significant-increases-in-operating-performance-and-cash-generation-and-provides-2018-financial-guidance-300595360.html
SOURCE Callaway Golf Company