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    Download PDF Q2 2014 Earnings Release and Financial Tables
    Callaway Golf Company Reiterates Full Year Financial Guidance; Announces A 9% Increase In Sales, A 40% Increase In Operating Income, And A 12% Increase In Earnings Per Share For The First Half Of 2014
    - 2014 first half sales increased 9% to $584 million, compared to $537 million in 2013; income from operations increased 40% to $72 million, compared to $52 million in 2013; earnings per share increased 12% to $0.66, compared to $0.59 in 2013.
    - 2014 second quarter sales decreased 7% to $232 million, compared to $250 million in 2013; income from operations decreased 6% to $10.8 million compared to $11.5 million in 2013; earnings per share decreased 67% to $0.04 compared to $0.12 in 2013.
    - Callaway reiterates full year 2014 earnings guidance, estimating net sales of $880 million to $900 million and fully diluted earnings per share of $0.12 to $0.16.

    CARLSBAD, Calif., July 24, 2014 /PRNewswire/ -- Callaway Golf Company (NYSE:ELY) today announced its first half and second quarter 2014 financial results, demonstrating its turnaround is well underway and positioning it for a return to profitability for the full year.  Despite softer than expected market conditions, Callaway reported for the first half of 2014 a 9% increase in sales driven by growth in all product categories:  woods (+8%), irons (+14%), putters (+9%), golf balls (+7%) and accessories and other (+5%).  Additionally, income from operations increased 40% to $72 million and fully diluted earnings per share increased 12% to $0.66. These increases were driven by the increased sales and improvements in gross margins of 170 basis points, which more than offset a planned increase of $9 million in operating expenses and a $14 million decrease in other income due to adverse changes in foreign currency contract values. The 2014 results also benefitted from a $9 million decrease in pre-tax charges related to the cost reduction initiatives that were completed in 2013. 

    For the second quarter, the Company had previously provided guidance that its sales and earnings would show a decrease versus the second quarter of 2013 as a result of a late start to the 2014 golf season, high retail inventory industrywide, and anticipated promotional activity during the second quarter. The Company's second quarter results reflect those market conditions with sales being down 7%, slightly more than the Company's prior guidance of flat to down 5%, and with earnings declining to $0.04 per diluted share compared to $0.12 per diluted share in 2013, which was slightly better than the Company's prior guidance of breakeven to slightly profitable.

    These second quarter results were consistent with the Company's prior full year guidance and the Company today has confirmed its full year guidance, estimating full year net sales of $880 to $900 million and diluted earnings per share of $0.12 to $0.16.

    GAAP RESULTS

    For the second quarter of 2014, the Company reported the following results, as compared to the same period in 2013:

    Dollars in millions except per share amounts

     Second Quarter

     2014

    % of Sales

    Second Quarter 

    2013

    % of Sales

    Improvement/ (Decline)

    Net Sales

    $232

    -

    $250

    -

    ($18)

    Gross Profit

    $91

    39%

    $96

    38%

    ($5)

    Operating Expenses

    $80

    35%

    $84

    34%

    $4

    Operating Income

    $11

    5%

    $12

    5%

    ($1)

    Other Income/(Expense)

    ($6)

    (2%)

    -

    -

    ($6)

    Net Income

    $3

    2%

    $10

    4%

    ($7)

    Earnings per share (Diluted)

    $0.04

    -

    $0.12

    -

    ($0.08)

    For the first half of 2014, the Company reported the following results, as compared to the same period in 2013:

    Dollars in millions except per share amounts

      First Half    2014

    % of Sales

    First Half      2013

    % of Sales

    Improvement/ (Decline)

    Net Sales

    $584

    -

    $537

    -

    $47

    Gross Profit

    $256

    44%

    $226

    42%

    $30

    Operating Expenses

    $183

    31%

    $174

    33%

    ($9)

    Operating Income

    $72

    12%

    $52

    10%

    $20

    Other Income/(Expense)

    ($10)

    (2%)

    $4

    1%

    ($14)

    Net Income

    $59

    10%

    $52

    10%

    $7

    Earnings per share (Diluted)

    $0.66

    -

    $0.59

    -

    $0.07

    "We are pleased with our results for the second quarter in that we were generally able to achieve our financial guidance while continuing to build brand momentum and improving field inventory levels in key markets such as the U.S. and Europe," commented Chip Brewer, President and Chief Executive Officer. "We achieved these results despite more challenging market conditions worldwide than we had anticipated. We are also pleased with our results for the first half of the year.  Our continued brand momentum and the strength of our 2014 product line enabled us to grow sales for the first half in each of our product categories despite a decline in industry sales due to a late start to the 2014 golf season, high industrywide retail inventory levels, and an increase in promotional activity. As a result, we gained market share in each of our key markets around the world, positioning us well for the balance of the year.

    "Looking forward, we expect market conditions will remain challenging for the second half of the year," continued Mr. Brewer. "However, we believe our brand momentum and product strength will enable us to overcome these market headwinds and achieve the full year financial goals we set at the beginning of the year.  We remain pleased with the state of our turnaround and the direction of our business."

    Business Outlook for 2014

    Given the Company's increased sales, earnings and market share during the first half of 2014, the Company is maintaining its full year guidance despite an anticipated decline in the golf industry in 2014.  The full year guidance the Company provided at the beginning of the year is as follows:

    Full Year

    • Net sales for the full year 2014 are estimated to range from $880 to $900 million, compared to $843 million in 2013. The Company believes this growth rate will exceed the overall market and be driven by brand momentum and market share gains.
    • Gross margins are estimated to improve to approximately 41.7%, compared to 37.3% in 2013. This improvement is expected to result from the positive full year impact of the many supply chain initiatives implemented as part of the turnaround strategy as well as an estimated improved mix of full price product sales.
    • Operating expenses are estimated to be approximately $345 million, compared to $326 million in 2013. The increase in operating expenses is due to a planned increase in investments in tour and marketing, higher variable sales related expenses, and modest cost of living increases.    
    • Pre-tax income is estimated to range from $15 to $19 million, with a corresponding tax provision of approximately $6.5 million. Pre-tax income in 2013 was a loss of $13.3 million with a corresponding tax provision of $5.6 million.   
    • Fully diluted earnings per share is estimated to range from $0.12 to $0.16 per share on a base of 78.0 million shares, compared to a 2013 loss per share of $0.31 on 72.8 million shares.  If the Company is successful in achieving these results, it would be the Company's first net profit since 2008 and would represent a significant milestone in the Company's turnaround.

    Conference Call and Webcast

    The Company will be holding a conference call at 2:00 p.m. PDT today to discuss the Company's financial results, outlook and business.  The call will be broadcast live over the Internet and can be accessed at www.callawaygolf.com.  To listen to the call, please go to the website at least 15 minutes before the call to register and for instructions on how to access the broadcast.  A replay of the conference call will be available approximately three hours after the call ends, and will remain available through 9:00 p.m. PDT on Thursday, July 31, 2014.  The replay may be accessed through the Internet at www.callawaygolf.com

    Non-GAAP Information

    The GAAP results contained in this press release and the financial statement schedules attached to this press release have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP").  To supplement the GAAP results, the Company has provided certain non-GAAP financial information as follows:

    Constant Currency Basis. The Company provided certain information regarding the Company's net sales or projected net sales on a "constant currency basis."  This information estimates the impact of changes in foreign currency rates on the translation of the Company's current or projected future period net sales as compared to the applicable comparable prior period.  This impact is derived by taking the current or projected local currency results and translating them into U.S. Dollars based upon the foreign currency exchange rates for the applicable comparable prior period. It does not include any other effect of changes in foreign currency rates on the Company's results or business.  

    Excluded Items.  The Company presented certain of the Company's financial results excluding sales related to the 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").

    In addition, because the Company previously reported its 2013 results on a GAAP and Non-GAAP basis, the Company has included in the schedules to this release a reconciliation of such information for 2013. The non-GAAP information presented in this release and related schedules should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP. The non-GAAP information may also be inconsistent with the manner in which similar measures are derived or used by other companies.  Management uses such non-GAAP information for financial and operational decision-making purposes and as a means to evaluate period over period comparisons and in forecasting the Company's business going forward.  Management believes that the presentation of such non-GAAP information, when considered in conjunction with the most directly comparable GAAP information, provides additional useful comparative information for investors in their assessment of the underlying performance of the Company's business without regard to these items. The Company has provided reconciling information in the attached schedules.

    Forward-Looking Statements:  Statements used in this press release that relate to future plans, events, financial results, performance or prospects, including statements relating to the estimated 2014 full year sales, sales growth, gross margins, operating expenses, pre-tax income, and earnings per share, as well as the Company's recovery and return to profitability, the creation of shareholder value, future market share gains, market conditions, brand momentum, improved financial performance and the level of promotional activity in the marketplace, 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

     

    Callaway Golf Company

    Consolidated Condensed Balance Sheets

    (In thousands)

    (Unaudited)



























    June 30,


    December 31,








    2014


    2013












    ASSETS









    Current assets:









    Cash and cash equivalents



    $          28,985


    $              36,793



    Accounts receivable, net



    196,660


    92,203



    Inventories




    208,796


    263,492



    Other current assets




    26,728


    29,115



        Total current assets




    461,169


    421,603












    Property, plant and equipment, net



    65,839


    71,341


    Intangible assets, net




    118,233


    118,113


    Other assets





    57,083


    52,806



        Total assets




    $        702,324


    $            663,863












    LIABILITIES AND SHAREHOLDERS' EQUITY






    Current liabilities:









    Accounts payable and accrued expenses


    $        101,004


    $            157,120



    Accrued employee compensation and benefits


    28,956


    31,585



    Asset-based credit facility



    60,206


    25,660



    Accrued warranty expense



    7,396


    6,406



    Income tax liability




    2,713


    5,425



        Total current liabilities



    200,275


    226,196












    Long-term liabilities




    151,086


    153,048


    Shareholders' equity




    350,963


    284,619



        Total liabilities and shareholders' equity


    $        702,324


    $            663,863












    Callaway Golf Company

    Statements of Operations

    (In thousands, except per share data)

    (Unaudited)












    Quarter Ended





    June 30,





    2014


    2013








    Net sales

    $           231,893


    $           249,646

    Cost of sales

    141,087


    153,994

    Gross profit

    90,806


    95,652

    Operating expenses:





    Selling 

    60,604


    61,672


    General and administrative 

    12,545


    15,169


    Research and development 

    6,846


    7,333



    Total operating expenses

    79,995


    84,174

    Income from operations

    10,811


    11,478

    Other (expense) income, net

    (5,569)


    28

    Income before income taxes 

    5,242


    11,506

    Income tax provision 

    1,873


    1,435

    Net income 

    3,369


    10,071

    Dividends on convertible preferred stock

    -


    783

    Net income allocable to common shareholders

    $               3,369


    $               9,288








    Earnings per common share:





    Basic


    $0.04


    $0.13


    Diluted

    $0.04


    $0.12

    Weighted-average common shares outstanding:





    Basic


    77,633


    71,111


    Diluted

    78,560


    86,349












    Six Months Ended





    June 30,





    2014


    2013








    Net sales


    $           583,767


    $           537,402

    Cost of sales

    328,064


    311,314

    Gross profit

    255,703


    226,088

    Operating expenses:





    Selling

    137,915


    129,980


    General and administrative

    30,541


    29,756


    Research and development

    14,759


    14,746



    Total operating expenses

    183,215


    174,482

    Income from operations

    72,488


    51,606

    Other (expense) income, net

    (10,460)


    4,029

    Income before income taxes 

    62,028


    55,635

    Income tax provision 

    3,347


    3,904

    Net income 

    58,681


    51,731

    Dividends on convertible preferred stock

    -


    1,566

    Net income allocable to common shareholders

    $             58,681


    $             50,165








    Earnings per common share:





    Basic


    $0.76


    $0.71


    Diluted

    $0.66


    $0.59

    Weighted-average common shares outstanding:





    Basic


    77,502


    71,086


    Diluted

    93,367


    92,235

     

    Callaway Golf Company

    Consolidated Condensed Statements of Cash Flows

    (In thousands)

    (Unaudited)



























    Six Months Ended








    June 30,








    2014


    2013


    Cash flows from operating activities:







    Net income




    $       58,681


    $         51,731



    Adjustments to reconcile net income to net cash used in operating activities:







    Depreciation and amortization


    11,157


    13,428




    Deferred taxes, net



    172


    200




    Non-cash share-based compensation


    2,539


    1,670




    (Gain) loss on disposal of long-lived assets




    (644)


    2,644




    Discount amortization on convertible notes




    365


    344




    Changes in assets and liabilities


    (103,605)


    (137,057)



    Net cash used in operating activities


    (31,335)


    (67,040)












    Cash flows from investing activities:







    Capital expenditures



    (6,238)


    (6,004)



    Proceeds from sale of property, plant and equipment

    177


    3,935



    Investment in golf-related ventures


    (4,522)


    (1,480)



    Net cash used in investing activities


    (10,583)


    (3,549)












    Cash flows from financing activities:







    Proceeds from credit facilities, net


    34,536


    38,500



    Exercise of stock options



    2,005


    -



    Credit facility amendment costs


    (584)


    -



    Equity issuance costs



    (10)


    -



    Dividends paid



    (1,551)


    (2,989)



    Net cash provided by financing activities


    34,396


    35,511












    Effect of exchange rate changes on cash 


    (286)


    13,034


    Net decrease in cash and cash equivalents


    (7,808)


    (22,044)


    Cash and cash equivalents at beginning of period

    36,793


    52,003


    Cash and cash equivalents at end of period


    $       28,985


    $         29,959


     






    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








    Six Months Ended















    June 30,


    Growth/(Decline)




    June 30,


    Growth











    2014


    2013 (1)


    Dollars


    Percent




    2014


    2013 (1)


    Dollars


    Percent







    Net sales:

























    Woods

    $          52,363


    $          71,638


    $       (19,275)


    -27%




    $                       182,202


    $          168,153


    $           14,049


    8%








    Irons 


    52,471


    54,508


    (2,037)


    -4%




    125,799


    110,510


    15,289


    14%








    Putters

    26,731


    22,255


    4,476


    20%




    58,592


    53,772


    4,820


    9%








    Accessories and other

    61,594


    58,456


    3,138


    5%




    125,730


    119,792


    5,938


    5%








    Golf balls

    38,734


    42,789


    (4,055)


    -9%




    91,444


    85,175


    6,269


    7%











    $        231,893


    $        249,646


    $       (17,753)


    -7%




    $                       583,767


    $          537,402


    $           46,365


    9%





































    (1) The prior year amounts have been restated to reflect the company's current year allocation methodology related to freight revenue and costs, certain discounts and other reserves not specific to a product type.










































































    Net Sales by Region




    Net Sales by Region
















    Constant Currency














    Constant Currency
















    Excluding Businesses










    Excluding Businesses






    Quarter Ended


    Constant Currency


    Sold or Transitioned 




    Six Months Ended


    Constant Currency


    Sold or Transitioned 






    June 30,


    Growth (Decline)


    Growth vs. 2013(1)


    Growth  vs. 2013 (2)




    June 30,


    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

    $        112,527


    $        124,368


    $       (11,841)


    -10%


    -10%


    -9%




    $         297,218


    $        284,147


    $       13,071


    5%


    5%


    5%



    Europe

    39,309


    40,152


    (843)


    -2%


    -11%


    -6%




    90,482


    78,448


    12,034


    15%


    7%


    12%



    Japan


    32,517


    36,718


    (4,201)


    -11%


    -8%


    -8%




    92,518


    80,844


    11,674


    14%


    24%


    24%



    Rest of Asia

    25,120


    22,863


    2,257


    10%


    6%


    7%




    52,116


    42,963


    9,153


    21%


    19%


    20%



    Other foreign countries

    22,420


    25,545


    (3,125)


    -12%


    -7%


    -7%




    51,433


    51,000


    433


    1%


    9%


    10%






    $        231,893


    $        249,646


    $       (17,753)


    -7%


    -8%


    -7%




    $         583,767


    $        537,402


    $       46,365


    9%


    10%


    11%
































    (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








    Six Months Ended


















    June 30,


    Growth/(Decline)




    June 30,


    Growth (Decline)














    2014


    2013 (1)


    Dollars


    Percent




    2014


    2013 (1)


    Dollars


    Percent










    Net sales:




























    Golf clubs 

    $        193,159


    $        206,857


    $       (13,698)


    -7%




    $                       492,323


    $          452,226


    $           40,097


    9%











    Golf balls 

    38,734


    42,789


    (4,055)


    -9%




    91,444


    85,176


    6,268


    7%














    $        231,893


    $        249,646


    $       (17,753)


    -7%




    $                       583,767


    $          537,402


    $           46,365


    9%








































    Income before income taxes:




























    Golf clubs (2)

    $          11,280


    $          24,272


    $       (12,992)


    -54%




    $                         74,017


    $            69,030


    $             4,987


    7%





    `






    Golf balls (2)

    5,223


    (2,731)


    7,954


    291%




    16,952


    2,687


    14,265


    531%











    Reconciling items (3)



    (11,261)


    (10,035)


    (1,226)


    12%




    (28,941)


    (16,082)


    (12,859)


    80%














    $            5,242


    $          11,506


    $         (6,264)


    -54%




    $                         62,028


    $            55,635


    $             6,393


    11%








































    (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 $0.6 million and $4.1 million, respectively during the three months ended June 30, 2013, and $3.3 million and $4.2 million, respectively, during the six months ended June 30, 2013.  There were no costs associated with the 2012 Cost Reduction Initiatives recorded in the three and six months ended June 30, 2014.








    (3) Represents corporate general and administrative expenses and other income (expense) not utilized by management in determining segment profitability.







































     

    Callaway Golf Company

    Supplemental Financial Information - Non-GAAP Information and Reconciliation

    (In thousands, except per share data)

    (Unaudited)























    Non-GAAP Reconciliation to GAAP Reported Results:
























    Quarter Ended June 30,










    2013
































    Non-GAAP Callaway Golf (1)


    Cost Reduction Initiatives(1) (3)


    Non-Cash Tax Adjustment(2)


    Total as Reported













    Net sales



    $               249,646


    $                        -


    $                     -


    $         249,646













    Gross profit



    99,739


    (4,087)


    -


    95,652













    % of sales



    40%


    -2%


     n/a 


    38%













    Operating expenses



    83,263


    911


    -


    84,174













    Income from operations



    16,476


    (4,998)


    -


    11,478













    Other income, net



    28


    -


    -


    28













    Income before income taxes



    16,504


    (4,998)


    -


    11,506













    Income tax provision (benefit)



    6,354


    (1,924)


    (2,995)


    1,435













    Net income



    10,150


    (3,074)


    2,995


    10,071













    Dividends on convertible preferred stock



    783


    -


    -


    783













    Net income allocable to common shareholders



    $                   9,367


    $              (3,074)


    $             2,995


    $             9,288



































    Diluted earnings per share:



    $                     0.12


    $                (0.04)


    $               0.04


    $               0.12













    Weighted-average shares outstanding:                           



    86,349


    86,349


    86,349


    86,349



































    (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 to a third party model for the U.S. apparel, footwear and worldwide uPro GPS businesses. 
















































    Six Months Ended June 30,










    2013










    Non-GAAP Callaway Golf (1)


    Cost Reduction Initiatives(1) (3)


    Non-Cash Tax Adjustment (2)


    Total as Reported













    Net sales



    $               537,402


    $                        -


    $                     -


    $         537,402













    Gross profit



    232,457


    (6,369)


    -


    226,088













    % of sales



    43%


    -1%


     n/a 


    42%













    Operating expenses



    172,344


    2,138


    -


    174,482













    Income from operations



    60,113


    (8,507)


    -


    51,606













    Other income, net



    4,029


    -


    -


    4,029













    Income before income taxes



    64,142


    (8,507)


    -


    55,635













    Income tax provision (benefit)



    24,695


    (3,275)


    (17,516)


    3,904













    Net income 



    39,447


    (5,232)


    17,516


    51,731













    Dividends on convertible preferred stock



    1,566


    -


    -


    1,566













    Net income allocable to common shareholders



    $                 37,881


    $              (5,232)


    $           17,516


    $           50,165



































    Diluted earnings per share:



    $                     0.45


    $                (0.05)


    $               0.19


    $               0.59













    Weighted-average shares outstanding:                           



    92,235


    92,235


    92,235


    92,235



































    (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 to a third party model for the U.S. apparel, footwear and worldwide uPro GPS businesses. 


























































































    2014 Trailing Twelve Month Adjusted EBITDA




    2013 Trailing Twelve Month Adjusted EBITDA

    Adjusted EBITDA:

    Quarter Ended




    Quarter Ended


    September 30,


    December 31,


    March 31,


    June 30,






    September 30,


    December 31,


    March 31,


    June 30,




    2013


    2013


    2014


    2014


    Total




    2012


    2012


    2013


    2013


    Total

    Net income (loss)

    $                  (21,153)


    $               (49,499)


    $              55,312


    $             3,369


    $          (11,971)




    $                 (86,798)


    $            (70,749)


    $               41,660


    $              10,071


    $           (105,816)

    Interest expense, net

    1,975


    1,963


    2,648


    2,612


    9,198




    1,343


    1,919


    2,157


    2,470


    7,889

    Income tax provision

    1,037


    658


    1,474


    1,873


    5,042




    750


    2,246


    2,469


    1,435


    6,900

    Depreciation and amortization expense

    6,265


    5,850


    5,697


    5,460


    23,272




    8,342


    7,835


    6,956


    6,472


    29,605

    Impairment charges

    -


    -


    -


    -


    -




    17,056


    4,877


    -


    -


    21,933

    Adjusted EBITDA

    $                  (11,876)


    $               (41,028)


    $              65,131


    $           13,314


    $           25,541




    $                 (59,307)


    $            (53,872)


    $               53,242


    $              20,448


    $             (39,489)























     

    CGLOGO

     

    SOURCE Callaway Golf Company