Empresas y finanzas

Callaway Golf Company Releases Preliminary Full Year 2007 Results



    Callaway Golf Company (NYSE:ELY) today announced that, based on
    current information, the Company estimates net sales for the year
    ended December 31, 2007 to increase approximately 10% to a record
    $1.125 billion with corresponding earnings per diluted share of $0.79
    to $0.81, including non-cash employee equity-based compensation
    charges associated with FAS 123R. These results are based on an
    estimated 67.5 million diluted shares outstanding and also include
    after-tax charges of approximately $0.08 per diluted share related to
    the gross margin improvement initiatives announced in November 2006.
    Excluding charges for these gross margin initiatives, pro forma
    earnings per diluted share are estimated at $0.87 to $0.89.

    For the full year 2006, the Company reported net sales of $1.018
    billion and fully diluted earnings per share of $0.34 (on 68.5 million
    shares), including non-cash FAS 123R charges. Those results also
    included after-tax charges of $0.04 for the Top-Flite integration,
    $0.03 for restructuring initiatives announced in September 2005, and
    $0.02 for gross margin improvement initiatives. Excluding these
    charges, pro forma fully diluted earnings per share was $0.43.

    Business Update

    "We are very pleased with our strong financial performance for the
    year," commented George Fellows, President and CEO of Callaway Golf.
    "We delivered on our stated objectives for the year, including an
    improved product development process, the addition of key management
    talent, increased market share in woods, improved gross margins and
    inventory management, and the successful re-launch of the Top-Flite
    brand."

    "Looking forward," continued Mr. Fellows, "we are optimistic that
    we can build on this momentum. In fact, we have several new and
    exciting products for 2008, and in combination with our focus on
    business processes and cost controls, we believe we´ll be positioned
    to drive shareholder value. We look forward to our upcoming earnings
    call and will provide additional detail on our expectations for 2008
    at that time."

    Details of Full Year Results

    Sales

    The estimated increase in sales for the year of approximately 10%
    is attributable to increases in the woods category driven by the
    success of the FT-5 and FT-i Fusion drivers, increased sales in the
    accessories category, strong irons sales due to the success of the
    X-20 line of irons, as well as increased putter sales.

    Gross Margins

    Gross margins as a percentage of net sales for 2007 are estimated
    to be approximately 44%. Excluding pre-tax charges of $9 million
    related to gross margin initiatives, it is estimated that pro forma
    gross margins for 2007 will be approximately 45%. For the full year
    2006, reported gross margins were 39%. Excluding pre-tax charges of $4
    million related to the Top-Flite integration and $2 million for gross
    margin initiatives, pro-forma gross margins for 2006 were 40%.

    Operating Expenses

    The Company estimates that its operating expenses for 2007 will be
    approximately $402 million compared to $361 million in 2006. Excluding
    pre-tax charges of $3 million related to the September 2005
    restructuring initiatives and Top-Flite integration, 2006 pro forma
    operating expenses were $358 million. The year over year increase is
    in line with the Company´s most recent estimate and includes increases
    related to employee incentive compensation, additional marketing to
    support brand initiatives, the impact of foreign currency, and
    additional legal expense associated with enforcing the Company´s golf
    ball patent rights.

    Conference Call

    The Company will release actual fourth quarter and full year 2007
    financial results on January 31, 2008. A conference call and webcast
    will also take place at that time. During the call, the Company will
    provide guidance for full year 2008 and additional information on
    fourth quarter and full year 2007 financial results.

    Disclaimer: Investors should be aware that the Company has not yet
    finalized its results for the fourth quarter and full year 2007 and
    that the Company´s "preliminary" estimates of net sales, gross
    margins, operating expenses and earnings contained in this press
    release reflect management´s estimates based upon the information
    available at the time made. These estimates could differ materially
    from the Company´s actual results if the information on which the
    estimates were based ultimately proves to be incorrect or incomplete.
    In addition, statements used in this press release that relate to
    future plans, events, financial results, performance or prospects,
    including statements relating to the Company´s future business
    processes, cost controls and positioning to drive shareholder value,
    are forward-looking statements as defined under the Private Securities
    Litigation Reform Act of 1995. These estimates and statements are
    based upon current information and expectations. Accurately estimating
    the Company´s future financial performance is based upon various
    unknowns including consumer acceptance and demand for the Company´s
    current or new products as well as future consumer discretionary
    purchasing behavior, which can be significantly adversely affected by
    unfavorable economic or market conditions. Actual results may differ
    materially from those estimated or anticipated as a result of these
    unknowns or other risks and uncertainties, including delays,
    difficulties or increased costs in the supply of components needed to
    manufacture the Company´s products, in manufacturing the Company´s
    products, or in connection with the implementation of the Company´s
    planned gross margin initiatives or the implementation of future
    initiatives; adverse weather conditions and seasonality; 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 and the Company´s business, see Part I,
    Item 1A of the Company´s Annual Report on Form 10-K for the year ended
    December 31, 2006, 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 from time to time 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.

    Regulation G: The preliminary financial results reported in this
    press release have been prepared in accordance with accounting
    principles generally accepted in the United States ("GAAP"). In
    addition to the GAAP results, the Company has also provided additional
    information concerning its results, which includes certain financial
    measures not prepared in accordance with GAAP. The non-GAAP financial
    measures included in this press release exclude charges associated
    with the integration of the Callaway Golf Company and Top-Flite Golf
    Company operations, charges related to the September 2005
    restructuring initiatives, and charges related to the Company´s gross
    margin initiatives. These non-GAAP financial measures should not be
    considered a substitute for any measure derived in accordance with
    GAAP. These non-GAAP financial measures may also be inconsistent with
    the manner in which similar measures are derived or used by other
    companies. Management believes that the presentation of such non-GAAP
    financial measures, when considered in conjunction with the most
    directly comparable GAAP financial measures, provides additional
    useful information concerning the Company´s operations without these
    charges. The Company has provided reconciling information in the text
    of this press release.

    Through an unwavering commitment to innovation, Callaway Golf
    Company creates products and services 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(R), Top-Flite(R), Odyssey(R) and Ben Hogan(R) brands. For more
    information visit www.callawaygolf.com.