Callaway started heading down after hours, now going back up. Below are a couple of articles on the results and then the actual results.
biz.yahoo.com
Callaway Golf Expects 2008 Profit Growth
Thursday January 31, 4:34 pm ET
Callaway Golf Expects 2008 Profit to Grow Between 21 Percent and 33 Percent
CARLSBAD, Calif. (AP) -- High-end golf club maker Callaway Golf Co. said Thursday its profit will likely grow between 21 percent and 33 percent this year.
The company said it expects earnings per share, excluding charges or gains, between $1.08 and $1.18.
Analysts polled by Thomson Financial expect earnings of $1.15 per share for the year.
Callaway predicted its sales will be between about $1.15 billion and $1.17 billion. Analysts expects revenue of about $1.15 billion.
Shares rose $1.24, or 7.4 percent, to close at $17.99.
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biz.yahoo.com
Sales Dip Leads to Wider Callaway Loss
Thursday January 31, 4:27 pm ET
Callaway Golf Reports Wider 4th-Quarter Loss on Sales Decline in U.S., Fewer Product Launches
CARLSBAD, Calif. (AP) -- High-end golf club maker Callaway Golf Co. said Thursday its fourth-quarter loss widened because of fewer new product launches and a drop in sales in the U.S.
For the quarter ended Dec. 31, the company reported a loss of $16.2 million, or 25 cents per share, compared with a loss of $10.2 million, or 15 cents per share, in the same quarter a year earlier.
Excluding a charge related to gross margin improvement initiatives, the company had a loss of 24 cents per share.
Analysts polled by Thomson Financial expected a loss of 19 cents per share.
Revenue fell 3 percent to $174.4 million from $179.9 million in the fourth quarter of 2006. Analysts predicted revenue of $162.5 million.
Callaway said sales of woods and golf balls dropped by double digits, while sales of accessories and putters were strong. Sales fell 11 percent in the U.S. and 1 percent in Europe. In all other overseas markets, sales rose.
The company said its sales in the 2006 fourth quarter included more new product launches.
For the year, profit more than doubled to $54.6 million, or 81 cents per share, from $23.3 million, or 34 cents per share, in the prior year.
Revenue climbed nearly 11 percent to $1.12 billion from $1.02 billion in 2006.
Shares rose $1.12, or 6.7 percent, to close at $17.87.
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Actual results PR...
biz.yahoo.com
Callaway Golf Announces Record Sales and More Than a 100% Increase in Earnings for 2007
Thursday January 31, 4:05 pm ET
CARLSBAD, Calif.--(BUSINESS WIRE)--Callaway Golf Company (NYSE:ELY - News) today announced its financial results for the fourth quarter and full year ended December 31, 2007. Highlights for the full year of 2007 included:
Net sales increased 10% to a record $1.125 billion, compared to $1.018 billion for the same period in 2006.
Fully diluted earnings per share of $0.81 on 67.5 million shares, an increase of 138% compared to fully diluted earnings per share of $0.34 on 68.5 million shares in 2006.
Fully diluted earnings per share for 2007 included after-tax charges of $0.08 for gross margin improvement initiatives. Similarly, full year 2006 included after-tax charges of $0.04 for the integration of Top-Flite, $0.03 for restructuring, and $0.02 for gross margin improvement initiatives. Excluding these charges, the Company’s pro forma fully diluted earnings per share for 2007 would have been $0.89, an increase of 107% compared to $0.43 for 2006.
Gross profit for 2007 was $493.2 million or 44% of net sales compared to $398.1 million or 39% of net sales a year ago. The increase was primarily the result of gross margin improvement initiatives announced in 2006 as well as an increased mix of higher margin drivers and X-20 irons.
Operating expenses for 2007 were $403.0 million or 36% of net sales compared to $361.0 million or 35% of net sales in 2006. The increase was due primarily to higher employee annual incentive compensation expense related to the Company’s significantly improved financial performance as well as an increase in marketing expense to support the Top-Flite re-launch.
Highlights for the fourth quarter included:
Net sales were $174.4 million, a 3% decrease compared to $179.9 million for the same period in 2006, which included significantly more sales from new product launches.
Loss per share of $0.25 on 63.8 million shares, compared to a loss per share of $0.15 on 67.0 million shares in the fourth quarter of 2006.
The 2007 fourth quarter loss per share included an after-tax charge of $0.01 related to gross margin improvement initiatives announced in November 2006. The fourth quarter of 2006 also included after-tax charges of $0.01 for gross margin improvement initiatives and $0.01 for the restructuring charges announced in 2005. Excluding these charges, the Company’s pro forma loss per share for the fourth quarter of 2007 would have been $0.24, as compared to pro forma loss per share of $0.13 in the prior period.
Gross profit for the fourth quarter of 2007 was $63.4 million or 36% of net sales compared to $58.8 million or 33% of net sales for the fourth quarter of 2006.
Operating expenses for the fourth quarter of 2007 were $92.0 million compared to $79.9 million for the same period in 2006.
“We have made significant progress improving operations and profitability in 2007,” announced George Fellows, President and CEO. “Specifically, we were able to re-gain woods market share, re-launch the Top-Flite Brand with the successful introduction of the D2 golf ball, and grow our accessories business. In addition, we made significant progress in improving profitability, increasing our gross margins by five percentage points, which contributed to a $135 million increase in cash from operations.”
“While pleased with our progress so far, we continue to focus on improvement,” continued Mr. Fellows. “We have a strong line-up of 2008 products including our recently announced I-Mix driver with its state of the art technology aimed at providing the best and most flexible performance possible for our consumers. Another area we are targeting is supply chain management, where we’ve made tremendous progress in 2007 but believe there is still room to drive efficiencies. With this strong portfolio of products along with improved operations, we feel well positioned to sustain the momentum we enjoyed in 2007.”
Business Outlook
The Company estimates that its full year 2008 net sales will be in the range of $1.145 to $1.165 billion. The Company also estimates that its 2008 full year pro forma fully diluted earnings per share will be in the range of $1.08 to $1.18, which represents an estimated increase of 21% to 33% as compared to the Company’s pro forma fully diluted earnings per share in 2007 of $0.89 as discussed above. Estimated pro forma earnings for 2008 exclude estimated charges of approximately $0.08 per share related to the Company’s gross margin initiatives.
The Company’s earnings per share estimates for 2008 assume a base of 67.0 million shares.
The Company will be holding a conference call at 2:00 p.m. PST today. The call will be broadcast live over the Internet and can be accessed at www.callawaygolf.com. To listen to the call, please go to the website at least 15 minutes before the call to register and for instructions on how to access the broadcast. A replay of the conference call will be available approximately three hours after the call ends, and will remain available through 9:00 p.m. PST on Thursday, February 7, 2008. The replay may be accessed through the Internet at www.callawaygolf.com or by telephone by calling 1-800-475-6701 toll free for calls originating within the United States or 320-365-3844 for International calls. The replay pass code is 908304.
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