CARLSBAD, Calif., Feb. 6, 2019 /PRNewswire/ -- Callaway Golf
Company (NYSE:ELY) announced today its full year 2018 financial
results and provided financial guidance for 2019, including
contributions from Jack Wolfskin which the Company acquired in
January 2019.
"I am very pleased with our record results for 2018," commented
Chip Brewer, President and Chief
Executive Officer of Callaway Golf Company. "On a full year basis
compared to 2017, our 2018 net sales increased $194 million (19%) and our Adjusted EBITDA
increased $55 million (55%). These
results reflect not only the strength of the Company's 2018 product
line, continued brand momentum and favorable industry and
macroeconomic conditions but also the benefits of our acquisition
growth strategy with the TravisMathew acquisition adding
incremental sales of approximately $60
million in 2018. I am very proud of our team for what we
accomplished in 2018 as well as over the last 7 years as we have
transformed Callaway into a premium golf equipment and active
lifestyle company."
Mr. Brewer continued, "Looking ahead, we are excited for
2019. Our 2019 golf product line is as strong as I have ever
seen, including the Epic Flash Driver, and the new Apex irons –
both of which received 20 out of 20 stars in the 2019 Golf Digest
Hot List. The TravisMathew and OGIO brands continue to grow and
perform above plan and I look forward to working with the Jack
Wolfskin management team to grow that brand. We are encouraged by
both our equipment and apparel businesses, and we believe that the
two portions of our business will benefit from each other while
providing us both higher long-term growth rates and scale that will
benefit our shareholders."
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 related
to our acquisitions and without certain tax adjustments in 2017
related to the adoption of the 2017 Tax Cuts and Jobs Act (the
"2017 Tax Act").
This non-GAAP information presents the Company's financial
results for the fourth quarter and full year 2018 excluding the
non-recurring transaction expenses for the Jack Wolfskin
acquisition. This non-GAAP information also presents the Company's
financial results for the fourth quarter and full year 2017
excluding the non-recurring transaction and transition expenses for
the OGIO and TravisMathew acquisitions and certain tax adjustments
related to the 2017 Tax Act which collectively resulted in a net
additional $3 million of tax expense
for the fourth quarter and full year.
The Company also provided information regarding its earnings
before interest, taxes, depreciation and amortization expense, and
the non-recurring OGIO, TravisMathew and Jack Wolfskin transaction
and transition expenses ("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 2018 Financial Results
The Company announced the following GAAP and non-GAAP financial
results for full year 2018 (in millions, except gross margin and
EPS):
2018 RESULTS
(GAAP)
|
|
NON-GAAP
PRESENTATION
|
|
2018
|
2017
|
Change
|
|
2018
Non-GAAP
|
2017
Non-GAAP
|
Change
|
Net Sales
|
$1,243
|
$1,049
|
$194
|
|
$1,243
|
$1,049
|
$194
|
Gross Profit
Gross
Margin
|
$578
46.5%
|
$480
45.8%
|
$98
70 bps
|
|
$578
46.5%
|
$483
46.0%
|
$95
50 bps
|
Operating
Expenses
|
$450
|
$402
|
$48
|
|
$446
|
$393
|
$53
|
Operating
Income
|
$128
|
$79
|
$49
|
|
$132
|
$90
|
$42
|
Income Tax
Provision/(Benefit)
|
$26
|
$26
|
$0
|
|
$26
|
$27
|
($1)
|
Net Income
|
$105
|
$41
|
$64
|
|
$104
|
$51
|
$53
|
Diluted
EPS
|
$1.08
|
$0.42
|
$0.66
|
|
$1.07
|
$0.53
|
$0.54
|
|
2018
|
2017
|
Change
|
Adjusted
EBITDA
|
$155
|
$100
|
$55
|
For full year 2018, the Company's net sales increased
$194 million to $1,243 million compared to $1,049 million in 2017. The 19% increase in net
sales reflects increases in each of the Company's operating
segments and in each reporting region. These increases are
attributable to the strength of the Company's 2018 product line,
which was led by increases in the irons, putters, golf balls and
gear/accessories/other categories. The increase in the
gear/accessories/other category is largely attributable to a full
year of increased TravisMathew sales as a result of the
TravisMathew acquisition which occurred in August 2017. The
Company's net sales in 2018 also benefitted from improved industry
and macroeconomic conditions, including favorable changes in
foreign currency exchange rates which positively impacted the
Company's net sales by approximately $14
million in 2018 compared to 2017.
For full year 2018, the Company's gross margin increased to
46.5% compared to 45.8% in 2017. The 70 basis point increase was
primarily due to a favorable shift in product mix toward the higher
margin TravisMathew business combined with overall higher average
selling prices, partially offset by higher product costs due to
more technologically advanced products.
Operating expenses increased $48
million to $450 million in
2018 compared to $402 million in
2017. This increase is primarily due to the addition in 2018 of a
full year of operating expenses from the TravisMathew business,
increased employee expenses resulting from increased headcount and
inflationary pressures, higher variable expense due to the increase
in sales, as well as increased investments in the business to
sustain the Company's growth, including investments in R&D, in
marketing and tour, and in the OGIO and TravisMathew
businesses.
For 2018, earnings per share was $1.08, compared to $0.42 for 2017. On a non-GAAP basis, the
Company would have reported earnings per share for 2018 of
$1.07, compared to earnings per share
of $0.53 for 2017, a 102% increase.
The non-GAAP results exclude from 2018 the impact of the Jack
Wolfskin transaction expenses and related hedging gains and exclude
from 2017 the impact of the 2017 TravisMathew and OGIO transaction
and transition expenses as well as certain tax adjustments related
to the 2017 Tax Act.
Summary of Fourth Quarter 2018 Financial Results
The Company announced the following GAAP and non-GAAP financial
results for the fourth quarter of 2018 (in millions, except
gross margin and EPS):
2018 RESULTS
(GAAP)
|
|
NON-GAAP
PRESENTATION
|
|
Q4
2018
|
Q4
2017
|
Change
|
|
Q4 2018
non-GAAP
|
Q4 2017
non-GAAP
|
Change
|
Net Sales
|
$181
|
$192
|
($11)
|
|
$181
|
$192
|
($11)
|
Gross Profit
Gross
Margin
|
$70
38.7%
|
$80
41.6%
|
($10)
(290)
bps
|
|
$70
38.7%
|
$81
42.4%
|
($11)
(370) bps
|
Operating
Expenses
|
$113
|
$100
|
$13
|
|
$110
|
$100
|
$10
|
Operating
Income/(Loss)
|
($43)
|
($20)
|
($23)
|
|
($40)
|
($19)
|
($21)
|
Income Tax
Provision/(Benefit)
|
($10)
|
($4)
|
($6)
|
|
($10)
|
($7)
|
($3)
|
Net
Income/(Loss)
|
($28)
|
($19)
|
($9)
|
|
($30)
|
($15)
|
($15)
|
Diluted
EPS
|
($0.30)
|
($0.20)
|
($0.10)
|
|
($0.32)
|
($0.15)
|
($0.17)
|
|
Q4 2018
|
Q4 2017
|
Change
|
Adjusted
EBITDA
|
($35)
|
($15)
|
($20)
|
For the fourth quarter of 2018, the Company's net sales
decreased $11 million to $181 million compared to $192 million for the same period in 2017. The 6%
decrease in net sales was better than the Company had planned and
reflects the 2018 product launch cadence, which was heavily
weighted toward the first half of the year. Changes in
foreign currency rates negatively impacted the Company's fourth
quarter net sales by $1.4
million.
For the fourth quarter of 2018, the Company's gross margin was
38.7% compared to fourth quarter 2017 gross margin of 41.6%. The
290 basis point decrease was primarily due to the overall decrease
in sales volume as referenced above as well as higher product costs
due to more technologically advanced products in the 2018 product
line.
Operating expenses increased $13
million to $113 million in the
fourth quarter of 2018 compared to $100
million for the same period in 2017. This increase is
primarily due to increased employee expenses resulting from
increased headcount and inflationary pressures, increased marketing
expenses, and non-recurring transaction and transition costs
related to the Jack Wolfskin transaction.
Fourth quarter 2018 loss per share was ($0.30), compared to a loss per share of
($0.20) for the fourth quarter of
2017. On a non-GAAP basis, the Company would have reported a
loss per share for the fourth quarter of 2018 of ($0.32), compared to a loss per share of
($0.15) for the fourth quarter of
2017. The non-GAAP results exclude from 2018 the impact of
the Jack Wolfskin transaction expenses and related hedging gains
and exclude from 2017 the impact of the TravisMathew and OGIO
transaction and transition expenses as well as the tax adjustments
related to the 2017 Tax Act.
Business Outlook for 2019
Basis for Full Year 2019 Non-GAAP Estimates. The Company
is assuming that overall market conditions will be flat to slightly
up in 2019 compared to 2018. The Company expects sales in its golf
equipment business to grow faster than the market with low to
mid-single digit growth, and double digit sales growth in its OGIO
and TravisMathew brands and with Jack Wolfskin performing
consistent with the sales expectations the Company previously
announced.
The Company is still in the process of determining the amount of
non-cash purchase accounting adjustments for the Jack Wolfskin
transaction. The Company currently estimates that these non-cash
adjustments will have a negative impact on 2019 earnings per share
in the amount of $0.09 to
$0.16. The non-cash
amortization expense related to the purchase accounting for the
OGIO and TravisMathew acquisitions will have a $0.01 negative impact on earnings per share in
2019, consistent with 2018.
The Company's non-GAAP guidance for 2019 excludes the impact of
the purchase accounting related to the Jack Wolfskin, TravisMathew
and OGIO acquisitions as well as $0.06 of non-recurring transaction and transition
expenses related to the Jack Wolfskin transaction. For consistency
and comparability purposes, the 2018 non-GAAP adjusted results
presented below also exclude the non-cash purchase accounting
amortization for the OGIO and TravisMathew acquisitions as well as
the $0.01 of non-recurring
transaction income related to the Jack Wolfskin acquisition.
Full Year 2019
(in millions, except EPS):
|
2019
Non-GAAP
Estimate
|
2018* Non-GAAP
Adjusted Results
|
Net Sales
|
$1,670 -
$1,700
|
$1,243
|
Gross
Margin
|
47.0%
|
46.5%
|
Operating
Expenses
|
$630
|
$445
|
Earnings Per
Share
|
$0.93 -
$1.03
|
$1.08
|
|
* For purposes of
this presentation, the 2018 Non-GAAP Adjusted Results exclude
approximately $1 million ($0.01 per share) of purchase accounting
amortization for the OGIO and Travis Mathew acquisitions. Due to
immateriality, the Company did not previously exclude these
items.
|
|
2019
|
2018*
|
Adjusted
EBITDA
|
$200 -
$215
|
$168
|
|
*This presentation of
Adjusted EBITDA also excludes non-cash stock compensation
expense.
|
The Company estimates full year 2019 net sales growth of 34% -
37%. The increase is driven by 4% - 6% growth in the core golf
equipment, apparel and accessories business with the balance coming
from the addition of the Jack Wolfskin net sales. This assumes a
flat to slightly improving overall golf market and no material
change in foreign currency exchange rates, which are expected to
have a negative $6 million impact on
2019 net sales compared to 2018 with most of the impact occurring
in the early part of the year.
The Company estimates that its 2019 gross margin will be
approximately 50 basis points higher than 2018. This increase
is being driven by continued pricing opportunities as well as a
positive mix benefit of the TravisMathew and Jack Wolfskin
businesses, which generally have higher gross margins than the
Company's golf equipment business, partially offset by the negative
impact of changes in foreign currency rates and anticipated tariff
rates.
The Company estimates that its 2019 operating expenses will be
approximately $185 million higher
than the adjusted non-GAAP 2018 operating expenses. This
increase is being driven primarily by the addition of the Jack
Wolfskin business, higher variable expense related to the projected
increased sales and select investments in the golf equipment
business, including R&D, tour, selling, and marketing, as well
as growth oriented and infrastructure investments in the Jack
Wolfskin, TravisMathew and OGIO businesses.
The Company estimates full year 2019 earnings per share of
$0.93 - $1.03, which includes approximately $34 million of incremental interest expense
related to our Term Loan B financing completed in January. The
Company's 2019 earnings per share estimate assumes an effective tax
rate of approximately 22% which is higher than 2018 due, in part,
to the higher tax rate related to the Jack Wolfskin business. These
estimates also assume a base of 97 million shares in 2019,
approximately flat with 2018.
The Company estimates full year 2019 Adjusted EBITDA growth of
19% - 28% when compared to 2018. This increase is driven by growth
in the core business and an estimated additional $33 million from the Jack Wolfskin business,
partially offset by increased tariff expense and adverse changes in
foreign currency exchange rates. Adjusted EBITDA excludes
non-cash stock compensation expense, as well as non-recurring
transaction and transition expenses related to the Jack Wolfskin
transaction.
First Quarter and First Half 2019
Basis for First Quarter and First Half 2019 Non-GAAP
Estimates. In order to make the 2019 guidance more
comparable to 2018, as discussed above, the Company has presented
2019 first quarter and first half guidance, as well as the
comparable periods in 2018, on a non-GAAP basis. The non-GAAP
presentation excludes non-cash purchase accounting amortization and
non-recurring transaction and transition expenses related to the
TravisMathew, OGIO, and Jack Wolfskin acquisitions in the amounts
of $0.14 - $0.17 for the first quarter of 2019 and
$0.16 - $0.19 for the first half of 2019. The
effect of these items on the first quarter and first half of 2018
were nominal.
(in millions, except EPS):
NON-GAAP
|
|
2019
First Quarter
Estimate
|
2018
First Quarter
Results
|
2019
First Half
Estimate
|
2018
First Half
Results
|
Net Sales
|
$498 -
$508
|
$403
|
$928 -
$948
|
$800
|
Earnings Per
Share
|
$0.45 -
$0.49
|
$0.65
|
$0.71 -
$0.78
|
$1.28
|
Adjusted
EBITDA
|
$79 - $83
|
$89
|
$132 -
$141
|
$178
|
The decrease in the estimated earnings and Adjusted EBITDA for
the first quarter and first half of 2019 compared to the same
periods in the prior year reflect the intra-year timing of the
Company's earnings. In 2019, a greater portion of the earnings are
anticipated to occur in the second half of the year as compared to
2018 due to (1) the seasonality of the Jack Wolfskin business which
generally results in only a nominal operating profit in the first
quarter and an operating loss for the second quarter, (2) more golf
equipment new product launches in the second half of 2019 and less
in the second quarter of 2019 compared to the same periods in 2018,
(3) the negative impact of changes in foreign currency exchange
rates in the first half of 2019 compared to 2018, and (4) the
timing of the incremental investments in 2019 which are weighted
more heavily to the first half.
Conference Call and Webcast
The Company will be holding a conference call at 2:00 p.m. Pacific time 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.
Pacific time on February 13,
2019. 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, TravisMathew
and Jack Wolfskin transaction and transition expenses.
Other Adjustments. The Company presents certain of its
financial results excluding the non-recurring OGIO, TravisMathew
and Jack Wolfskin transaction and transition expenses.
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 2019
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, TravisMathew and Jack
Wolfskin acquisitions, are forward-looking statements as defined
under the Private Securities Litigation Reform Act of 1995. The
words "believe," "expect," "estimate," "could," "should," "intend,"
"may," "plan," "seek," "anticipate," "project" and similar
expressions, among others, generally identify forward-looking
statements, which speak only as of the date the statements were
made and are not guarantees of future performance. 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,
TravisMathew and Jack Wolfskin businesses or implementing the
Company's growth strategy generally; the Company's ability to
successfully integrate, operate and expand the retail stores of the
acquired TravisMathew and Jack Wolfskin businesses, 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, 2017 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 Company
Callaway Golf Company (NYSE: ELY) is a premium golf equipment
and active lifestyle company with a portfolio of global brands,
including Callaway Golf, Odyssey, OGIO, TravisMathew and Jack
Wolfskin. Through an unwavering commitment to innovation, Callaway
manufactures and sells premium golf clubs, golf balls, golf and
lifestyle bags, golf and lifestyle apparel and other
accessories. For more information please
visit www.callawaygolf.com, www.odysseygolf.com,
www.OGIO.com, www.travismathew.com,
and www.jack-wolfskin.com.
Contacts:
|
Brian
Lynch
|
|
Patrick
Burke
|
|
(760)
931-1771
|
CALLAWAY GOLF
COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
(In
thousands)
|
|
|
December 31,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
63,981
|
|
|
|
$
|
85,674
|
|
Accounts receivable,
net
|
|
71,374
|
|
|
|
94,725
|
|
Inventories
|
|
338,057
|
|
|
|
262,486
|
|
Other current
assets
|
|
51,494
|
|
|
|
23,099
|
|
Total current
assets
|
|
524,906
|
|
|
|
465,984
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
88,472
|
|
|
|
70,227
|
|
Intangible assets,
net
|
|
280,508
|
|
|
|
282,187
|
|
Investment in
golf-related ventures
|
|
72,238
|
|
|
|
70,495
|
|
Deferred taxes,
net
|
|
75,079
|
|
|
|
91,398
|
|
Other
assets
|
|
11,741
|
|
|
|
10,866
|
|
Total
assets
|
|
$
|
1,052,944
|
|
|
|
$
|
991,157
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
208,653
|
|
|
|
$
|
176,127
|
|
Accrued employee
compensation and benefits
|
|
43,172
|
|
|
|
40,173
|
|
Asset-based credit
facilities
|
|
40,300
|
|
|
|
87,755
|
|
Accrued warranty
expense
|
|
7,610
|
|
|
|
6,657
|
|
Other current
liabilities
|
|
2,411
|
|
|
|
2,367
|
|
Income tax
liability
|
|
1,091
|
|
|
|
1,295
|
|
Total current
liabilities
|
|
303,237
|
|
|
|
314,374
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
15,399
|
|
|
|
17,408
|
|
Total Callaway Golf
Company shareholders' equity
|
|
724,574
|
|
|
|
649,631
|
|
Non-controlling
interest in consolidated entity
|
|
9,734
|
|
|
|
9,744
|
|
Total liabilities and
shareholders' equity
|
|
$
|
1,052,944
|
|
|
|
$
|
991,157
|
|
CALLAWAY GOLF
COMPANY
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
December 31,
|
|
2018
|
|
2017
|
Net sales
|
$
|
180,678
|
|
|
$
|
191,657
|
|
Cost of
sales
|
110,707
|
|
|
111,991
|
|
Gross
profit
|
69,971
|
|
|
79,666
|
|
Operating
expenses:
|
|
|
|
Selling
|
73,883
|
|
|
65,272
|
|
General and
administrative
|
27,458
|
|
|
25,177
|
|
Research and
development
|
11,191
|
|
|
9,669
|
|
Total operating
expenses
|
112,532
|
|
|
100,118
|
|
Loss from
operations
|
(42,561)
|
|
|
(20,452)
|
|
Other income
(expense), net
|
4,627
|
|
|
(2,678)
|
|
Loss before income
taxes
|
(37,934)
|
|
|
(23,130)
|
|
Income tax
benefit
|
(9,783)
|
|
|
(4,354)
|
|
Net loss
|
(28,151)
|
|
|
(18,776)
|
|
Less: Net income
attributable to non-controlling interests
|
348
|
|
|
610
|
|
Net loss attributable
to Callaway Golf Company
|
$
|
(28,499)
|
|
|
$
|
(19,386)
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
Basic
|
($0.30)
|
|
|
($0.20)
|
|
Diluted
|
($0.30)
|
|
|
($0.20)
|
|
Weighted-average
common shares outstanding:
|
|
|
|
Basic
|
94,505
|
|
|
94,573
|
|
Diluted
|
94,505
|
|
|
94,573
|
|
|
|
|
|
|
Year
Ended
December
31,
|
|
2018
|
|
2017
|
Net sales
|
$
|
1,242,834
|
|
|
$
|
1,048,736
|
|
Cost of
sales
|
664,465
|
|
|
568,288
|
|
Gross
profit
|
578,369
|
|
|
480,448
|
|
Operating
expenses:
|
|
|
|
Selling
|
308,709
|
|
|
270,890
|
|
General and
administrative
|
100,466
|
|
|
94,153
|
|
Research and
development
|
40,752
|
|
|
36,568
|
|
Total operating
expenses
|
449,927
|
|
|
401,611
|
|
Income from
operations
|
128,442
|
|
|
78,837
|
|
Other
income/(expense), net
|
2,830
|
|
|
(10,782)
|
|
Income before income
taxes
|
131,272
|
|
|
68,055
|
|
Income tax
provision
|
26,018
|
|
|
26,388
|
|
Net income
|
105,254
|
|
|
41,667
|
|
Less: Net income
attributable to non-controlling interests
|
514
|
|
|
861
|
|
Net income
attributable to Callaway Golf Company
|
$
|
104,740
|
|
|
$
|
40,806
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$1.11
|
|
|
$0.43
|
|
Diluted
|
$1.08
|
|
|
$0.42
|
|
Weighted-average
common shares outstanding:
|
|
|
|
Basic
|
94,579
|
|
|
94,329
|
|
Diluted
|
97,153
|
|
|
96,577
|
|
CALLAWAY GOLF
COMPANY
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(In
thousands)
|
|
|
Year
Ended
December
31,
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
105,254
|
|
|
$
|
41,667
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and amortization
|
19,948
|
|
|
17,605
|
|
Inventory step-up
|
—
|
|
|
3,112
|
|
Deferred
taxes, net
|
21,705
|
|
|
24,594
|
|
Non-cash
share-based compensation
|
13,530
|
|
|
12,647
|
|
(Gain)/loss on disposal of long-lived assets
|
(13)
|
|
|
1,490
|
|
Unrealized (gains)/losses on foreign currency hedges
|
(4,585)
|
|
|
1,023
|
|
Changes in assets and
liabilities
|
(63,557)
|
|
|
15,561
|
|
Net cash provided by
operating activities
|
92,282
|
|
|
117,699
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(36,825)
|
|
|
(26,203)
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(183,478)
|
|
Proceeds from sales
of property and equipment
|
43
|
|
|
587
|
|
Investments in golf
related ventures
|
(1,743)
|
|
|
(21,499)
|
|
Net cash used in
investing activities
|
(38,525)
|
|
|
(230,593)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
(Repayments of)
proceeds from credit facilities, net
|
(47,455)
|
|
|
75,789
|
|
(Repayments of)
proceeds from long-term debt
|
(2,186)
|
|
|
11,815
|
|
Exercise of stock
options
|
1,636
|
|
|
5,362
|
|
Distributions to
non-controlling interests
|
(821)
|
|
|
(974)
|
|
Credit facility
amendment costs
|
—
|
|
|
(2,246)
|
|
Dividends paid,
net
|
(3,788)
|
|
|
(3,773)
|
|
Acquisition of
treasury stock
|
(22,456)
|
|
|
(16,617)
|
|
Net cash (used in)
provided by financing activities
|
(75,070)
|
|
|
69,356
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(380)
|
|
|
3,237
|
|
Net decrease in cash
and cash equivalents
|
(21,693)
|
|
|
(40,301)
|
|
Cash and cash
equivalents at beginning of period
|
85,674
|
|
|
125,975
|
|
Cash and cash
equivalents at end of period
|
$
|
63,981
|
|
|
$
|
85,674
|
|
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. 2017(1)
|
|
Year Ended
December 31,
|
|
Growth/(Decline)
|
|
Non-GAAP
Constant
Currency
vs. 2017(1)
|
|
2018
|
|
2017
|
|
Dollars
|
|
Percent
|
|
Percent
|
|
2018
|
|
2017
|
|
Dollars
|
|
Percent
|
|
Percent
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Woods
|
$
|
29,279
|
|
|
$
|
45,214
|
|
|
$
|
(15,935)
|
|
|
(35.2)
|
%
|
|
(34.5)
|
%
|
|
$
|
304,459
|
|
|
$
|
307,865
|
|
|
$
|
(3,406)
|
|
|
(1.1)
|
%
|
|
(2.6)
|
%
|
Irons
|
45,097
|
|
|
48,454
|
|
|
(3,357)
|
|
|
(6.9)
|
%
|
|
(6.1)
|
%
|
|
316,463
|
|
|
250,636
|
|
|
65,827
|
|
|
26.3
|
%
|
|
24.9
|
%
|
Putters
|
10,278
|
|
|
13,433
|
|
|
(3,155)
|
|
|
(23.5)
|
%
|
|
(22.9)
|
%
|
|
96,371
|
|
|
84,595
|
|
|
11,776
|
|
|
13.9
|
%
|
|
11.9
|
%
|
Golf balls
|
30,189
|
|
|
26,485
|
|
|
3,704
|
|
|
14.0
|
%
|
|
15.0
|
%
|
|
195,654
|
|
|
162,546
|
|
|
33,108
|
|
|
20.4
|
%
|
|
19.4
|
%
|
Gear/Accessories/Other
|
65,835
|
|
|
58,071
|
|
|
7,764
|
|
|
13.4
|
%
|
|
14.0
|
%
|
|
329,887
|
|
|
243,094
|
|
|
86,793
|
|
|
35.7
|
%
|
|
34.5
|
%
|
|
$
|
180,678
|
|
|
$
|
191,657
|
|
|
$
|
(10,979)
|
|
|
(5.7)
|
%
|
|
(5.0)
|
%
|
|
$
|
1,242,834
|
|
|
$
|
1,048,736
|
|
|
$
|
194,098
|
|
|
18.5
|
%
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated by applying 2017
exchange rates to 2018 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. 2017(1)
|
|
Year Ended
December 31,
|
|
Growth
|
|
Non-GAAP
Constant
Currency
vs. 2017(1)
|
|
2018
|
|
2017
|
|
Dollars
|
|
Percent
|
|
Percent
|
|
2018
|
|
2017(2)
|
|
Dollars
|
|
Percent
|
|
Percent
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
|
97,564
|
|
|
$
|
94,313
|
|
|
$
|
3,251
|
|
|
3.4
|
%
|
|
3.4
|
%
|
|
$
|
706,332
|
|
|
$
|
564,648
|
|
|
$
|
141,684
|
|
|
25.1
|
%
|
|
25.1
|
%
|
Europe
|
18,989
|
|
|
20,948
|
|
|
(1,959)
|
|
|
(9.4)
|
%
|
|
(6.4)
|
%
|
|
149,602
|
|
|
140,947
|
|
|
8,655
|
|
|
6.1
|
%
|
|
1.1
|
%
|
Japan
|
40,332
|
|
|
51,900
|
|
|
(11,568)
|
|
|
(22.3)
|
%
|
|
(22.4)
|
%
|
|
223,707
|
|
|
199,372
|
|
|
24,335
|
|
|
12.2
|
%
|
|
10.0
|
%
|
Rest of
Asia
|
13,314
|
|
|
13,578
|
|
|
(264)
|
|
|
(1.9)
|
%
|
|
—
|
%
|
|
92,026
|
|
|
76,530
|
|
|
15,496
|
|
|
20.2
|
%
|
|
16.9
|
%
|
Other foreign
countries
|
10,479
|
|
|
10,918
|
|
|
(439)
|
|
|
(4.0)
|
%
|
|
1.4
|
%
|
|
71,167
|
|
|
67,239
|
|
|
3,928
|
|
|
5.8
|
%
|
|
5.5
|
%
|
|
$
|
180,678
|
|
|
$
|
191,657
|
|
|
$
|
(10,979)
|
|
|
(5.7)
|
%
|
|
(5.0)
|
%
|
|
$
|
1,242,834
|
|
|
$
|
1,048,736
|
|
|
$
|
194,098
|
|
|
18.5
|
%
|
|
17.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Calculated by applying 2017
exchange rates to 2018 reported sales in regions outside the
U.S
|
|
|
(2) Prior period amounts have been
reclassified to conform to current year presentation of regional
sales related to OGIO-branded products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Segment
Information
|
|
|
|
|
Operating Segment
Information
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Growth/(Decline)
|
|
|
|
|
Year Ended
December 31,
|
|
Growth
|
|
|
|
|
2018
|
|
2017
|
|
Dollars
|
|
Percent
|
|
|
|
|
2018
|
|
2017
|
|
Dollars
|
|
Percent
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golf Club
|
$
|
84,654
|
|
|
$
|
107,101
|
|
|
$
|
(22,447)
|
|
|
(21.0)
|
%
|
|
|
|
|
$
|
717,293
|
|
|
$
|
643,096
|
|
|
$
|
74,197
|
|
|
11.5
|
%
|
|
|
|
Golf Ball
|
30,189
|
|
|
26,484
|
|
|
3,705
|
|
|
14.0
|
%
|
|
|
|
|
195,654
|
|
|
162,546
|
|
|
33,108
|
|
|
20.4
|
%
|
|
|
|
Gear/Accessories/Other
|
65,835
|
|
|
58,072
|
|
|
7,763
|
|
|
13.4
|
%
|
|
|
|
|
329,887
|
|
|
243,094
|
|
|
86,793
|
|
|
35.7
|
%
|
|
|
|
|
$
|
180,678
|
|
|
$
|
191,657
|
|
|
$
|
(10,979)
|
|
|
(5.7)
|
%
|
|
|
|
|
$
|
1,242,834
|
|
|
$
|
1,048,736
|
|
|
$
|
194,098
|
|
|
18.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Golf clubs
|
$
|
(26,748)
|
|
|
$
|
(7,294)
|
|
|
$
|
(19,454)
|
|
|
(266.7)
|
%
|
|
|
|
|
$
|
104,177
|
|
|
$
|
77,018
|
|
|
$
|
27,159
|
|
|
35.3
|
%
|
|
|
|
Golf balls
|
(2,127)
|
|
|
(646)
|
|
|
(1,481)
|
|
|
229.3
|
%
|
|
|
|
|
27,887
|
|
|
26,854
|
|
|
1,033
|
|
|
3.8
|
%
|
|
|
|
Gear/Accessories/Other
|
3,732
|
|
|
3,209
|
|
|
523
|
|
|
16.3
|
%
|
|
|
|
|
56,620
|
|
|
30,631
|
|
|
25,989
|
|
|
84.8
|
%
|
|
|
|
Reconciling
items(1)
|
(12,791)
|
|
|
(18,399)
|
|
|
5,608
|
|
|
30.5
|
%
|
|
|
|
|
(57,412)
|
|
|
(66,448)
|
|
|
9,036
|
|
|
13.6
|
%
|
|
|
|
|
$
|
(37,934)
|
|
|
$
|
(23,130)
|
|
|
$
|
(14,804)
|
|
|
(64.0)
|
%
|
|
|
|
|
$
|
131,272
|
|
|
$
|
68,055
|
|
|
$
|
63,217
|
|
|
92.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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, 2018
|
|
Three Months Ended
December 31, 2017
|
|
Total As
Reported
|
|
Acquisition
Costs(1)
|
|
Non-GAAP
|
|
Total As
Reported
|
|
Acquisition
Costs(2)
|
|
Non-Cash
Tax
Adjustment(3)
|
|
Non-GAAP
|
Net sales
|
$
|
180,678
|
|
|
$
|
—
|
|
|
$
|
180,678
|
|
|
$
|
191,657
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
191,657
|
|
Gross
profit
|
69,971
|
|
|
—
|
|
|
69,971
|
|
|
79,666
|
|
|
(1,641)
|
|
|
—
|
|
|
81,307
|
|
% of sales
|
38.7
|
%
|
|
—
|
|
|
38.7
|
%
|
|
41.6
|
%
|
|
—
|
|
|
—
|
|
|
42.4
|
%
|
Operating
expenses
|
112,532
|
|
|
2,140
|
|
|
110,392
|
|
|
100,118
|
|
|
36
|
|
|
—
|
|
|
100,082
|
|
Loss from
operations
|
(42,561)
|
|
|
(2,140)
|
|
|
(40,421)
|
|
|
(20,452)
|
|
|
(1,677)
|
|
|
—
|
|
|
(18,775)
|
|
Other income
(expense), net
|
4,627
|
|
|
4,409
|
|
|
218
|
|
|
(2,678)
|
|
|
—
|
|
|
—
|
|
|
(2,678)
|
|
(Loss) income before
income taxes
|
(37,934)
|
|
|
2,269
|
|
|
(40,203)
|
|
|
(23,130)
|
|
|
(1,677)
|
|
|
—
|
|
|
(21,453)
|
|
Income tax (benefit)
provision
|
(9,783)
|
|
|
522
|
|
|
(10,305)
|
|
|
(4,354)
|
|
|
(886)
|
|
|
3,394
|
|
|
(6,862)
|
|
Net income
(loss)
|
(28,151)
|
|
|
1,747
|
|
|
(29,898)
|
|
|
(18,776)
|
|
|
(791)
|
|
|
(3,394)
|
|
|
(14,591)
|
|
Less: Net income
attributable to non-controlling interests
|
348
|
|
|
—
|
|
|
348
|
|
|
610
|
|
|
—
|
|
|
—
|
|
|
610
|
|
Net income (loss)
attributable to Callaway Golf Company
|
$
|
(28,499)
|
|
|
$
|
1,747
|
|
|
$
|
(30,246)
|
|
|
$
|
(19,386)
|
|
|
$
|
(791)
|
|
|
$
|
(3,394)
|
|
|
$
|
(15,201)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
($0.30)
|
|
|
$0.02
|
|
|
($0.32)
|
|
|
($0.20)
|
|
|
($0.01)
|
|
|
($0.04)
|
|
|
($0.15)
|
|
Weighted-average
shares outstanding:
|
94,505
|
|
|
94,505
|
|
|
94,505
|
|
|
94,573
|
|
|
94,573
|
|
|
94,573
|
|
|
94,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
non-recurring costs associated with the acquisition of Jack
Wolfskin in January 2019
|
(2) Represents
non-recurring costs associated with the acquisitions of Ogio
International, Inc. in January 2017, and TravisMathew in August
2017
|
(3) 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
|
|
|
|
Year Ended
December 31, 2018
|
|
Year Ended
December 31, 2017
|
|
Total As
Reported
|
|
Acquisition
Costs(1)
|
|
Non-GAAP
|
|
Total As
Reported
|
|
Acquisition
Costs(2)
|
|
Non-Cash
Tax
Adjustment(3)
|
|
Non-GAAP
|
Net sales
|
$
|
1,242,834
|
|
|
$
|
—
|
|
|
$
|
1,242,834
|
|
|
$
|
1,048,736
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,048,736
|
|
Gross
profit
|
578,369
|
|
|
—
|
|
|
578,369
|
|
|
480,448
|
|
|
(2,439)
|
|
|
—
|
|
|
482,887
|
|
% of sales
|
46.5
|
%
|
|
—
|
|
|
46.5
|
%
|
|
45.8
|
%
|
|
—
|
|
|
—
|
|
|
46.0
|
%
|
Operating
expenses
|
449,927
|
|
|
3,661
|
|
|
446,266
|
|
|
401,611
|
|
|
8,825
|
|
|
—
|
|
|
392,786
|
|
Income (loss) from
operations
|
128,442
|
|
|
(3,661)
|
|
|
132,103
|
|
|
78,837
|
|
|
(11,264)
|
|
|
—
|
|
|
90,101
|
|
Other income
(expense), net
|
2,830
|
|
|
4,409
|
|
|
(1,579)
|
|
|
(10,782)
|
|
|
—
|
|
|
—
|
|
|
(10,782)
|
|
Income (loss) before
income taxes
|
131,272
|
|
|
748
|
|
|
130,524
|
|
|
68,055
|
|
|
(11,264)
|
|
|
—
|
|
|
79,319
|
|
Income tax provision
(benefit)
|
26,018
|
|
|
172
|
|
|
25,846
|
|
|
26,388
|
|
|
(4,118)
|
|
|
3,394
|
|
|
27,112
|
|
Net income
(loss)
|
105,254
|
|
|
576
|
|
|
104,678
|
|
|
41,667
|
|
|
(7,146)
|
|
|
(3,394)
|
|
|
52,207
|
|
Less: Net income
attributable to non-controlling interests
|
514
|
|
|
—
|
|
|
514
|
|
|
861
|
|
|
—
|
|
|
—
|
|
|
861
|
|
Net income (loss)
attributable to Callaway Golf Company
|
$
|
104,740
|
|
|
$
|
576
|
|
|
$
|
104,164
|
|
|
$
|
40,806
|
|
|
$
|
(7,146)
|
|
|
$
|
(3,394)
|
|
|
$
|
51,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
$1.08
|
|
|
$0.01
|
|
|
$1.07
|
|
|
$0.42
|
|
|
($0.07)
|
|
|
($0.04)
|
|
|
$0.53
|
|
Weighted-average
shares outstanding:
|
97,153
|
|
|
97,153
|
|
|
97,153
|
|
|
96,577
|
|
|
96,577
|
|
|
96,577
|
|
|
96,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
non-recurring costs associated with the acquisition of Jack
Wolfskin in January 2019
|
(2) Represents
non-recurring costs associated with the acquisitions of Ogio
International, Inc. in January 2017, and TravisMathew in August
2017
|
(3) 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
|
CALLAWAY GOLF
COMPANY
|
Supplemental
Financial Information and Non-GAAP Reconciliation
|
(Unaudited)
|
(In thousands,
except per share data)
|
|
|
2018 Trailing
Twelve Month Adjusted EBITDA
|
|
2017 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,
|
|
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
Total
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
Total
|
Net income
(loss)
|
$
|
62,855
|
|
|
$
|
60,867
|
|
|
$
|
9,517
|
|
|
$
|
(28,499)
|
|
|
$
|
104,740
|
|
|
$
|
25,689
|
|
|
$
|
31,443
|
|
|
$
|
3,060
|
|
|
$
|
(19,386)
|
|
|
$
|
40,806
|
|
Interest expense,
net
|
1,528
|
|
|
1,661
|
|
|
1,056
|
|
|
704
|
|
|
4,949
|
|
|
715
|
|
|
550
|
|
|
642
|
|
|
2,004
|
|
|
3,911
|
|
Income tax provision
(benefit)
|
17,219
|
|
|
17,247
|
|
|
1,335
|
|
|
(9,783)
|
|
|
26,018
|
|
|
13,206
|
|
|
16,050
|
|
|
1,486
|
|
|
(4,354)
|
|
|
26,388
|
|
Depreciation and
amortization expense
|
4,737
|
|
|
5,029
|
|
|
4,996
|
|
|
5,186
|
|
|
19,948
|
|
|
4,319
|
|
|
4,178
|
|
|
4,309
|
|
|
4,799
|
|
|
17,605
|
|
EBITDA
|
$
|
86,339
|
|
|
$
|
84,804
|
|
|
$
|
16,904
|
|
|
$
|
(32,392)
|
|
|
$
|
155,655
|
|
|
$
|
43,929
|
|
|
$
|
52,221
|
|
|
$
|
9,497
|
|
|
$
|
(16,937)
|
|
|
$
|
88,710
|
|
Jack Wolfskin net
acquisition costs/(gains)
|
—
|
|
|
—
|
|
|
1,521
|
|
|
(2,269)
|
|
|
(748)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
OGIO and TravisMathew
acquisition costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,956
|
|
|
2,254
|
|
|
3,377
|
|
|
1,677
|
|
|
11,264
|
|
Adjusted
EBITDA
|
$
|
86,339
|
|
|
$
|
84,804
|
|
|
$
|
18,425
|
|
|
$
|
(34,661)
|
|
|
$
|
154,907
|
|
|
$
|
47,885
|
|
|
$
|
54,475
|
|
|
$
|
12,874
|
|
|
$
|
(15,260)
|
|
|
$
|
99,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock
compensation expense
|
2,999
|
|
|
3,465
|
|
|
3,511
|
|
|
3,555
|
|
|
13,530
|
|
|
3,218
|
|
|
2,184
|
|
|
4,181
|
|
|
3,064
|
|
|
12,647
|
|
Adjusted EBITDA after
non-cash stock compensation
|
$
|
89,338
|
|
|
$
|
88,269
|
|
|
$
|
21,936
|
|
|
$
|
(31,106)
|
|
|
$
|
168,437
|
|
|
$
|
51,103
|
|
|
$
|
56,659
|
|
|
$
|
17,055
|
|
|
$
|
(12,196)
|
|
|
$
|
112,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Callaway Golf Company