TOPGOLF CALLAWAY BRANDS CORP. 
By CARLSBAD, Calif., Jan. 25, 2012 /PRNewswire/ -- Callaway Golf Company (NYSE:ELY) today announced its fourth quarter and full year 2011 financial results, which were in-line with the guidance the Company provided during its last earnings call.
GAAP FINANCIAL RESULTS.
For the fourth quarter of 2011, the Company reported the
following results:
Dollars in millions
except per share % of % of Increase /
amounts 2011 Sales 2010 Sales (Decrease)
Net Sales $154 - $186 - ($32)
Gross Profit $38 24% $56 30% ($18)
Operating Expenses $87 57% $98 53% ($11)
Operating Income/
(Loss) ($50) (32%) ($42) (23%) (8)
Income Tax
Provision/
(Benefit) $12 8% ($13) (7%) $25
Net Income (Loss) ($63) (41%) ($32) (17%) ($31)
Earnings/(Loss)
per share ($1.01) - ($0.54) - ($0.47)
--------------- ------ --- ------ --- ------
Year to date, the Company reported the following results:
Dollars in millions
except per share % of % of Increase /
amounts 2011 Sales 2010 Sales (Decrease)
Net Sales $887 - $968 - ($81)
Gross Profit $311 35% $365 38% ($54)
Operating Expenses $392 44% $392 41% -
Operating Income/
(Loss) ($81) (9%) ($27) (3%) ($54)
Income Tax
Provision/
(Benefit) $82 9% ($17) (2%) $99
Net Income (Loss) ($172) (19%) ($19) (2%) ($153)
Earnings/(Loss) per
share ($2.82) - ($0.46) - ($2.36)
------------------- ------ --- ------ --- ------
NON-GAAP FINANCIAL RESULTS.
In addition to the Company's results prepared in accordance with GAAP, the Company also provided additional information concerning its results on a non-GAAP basis. The manner in which this non-GAAP information is derived is discussed in more detail toward the end of this release and the Company has provided in the tables to this release a reconciliation of this non-GAAP information to the most directly comparable GAAP information.
For the fourth quarter of 2011, the Company reported the
following non-GAAP results:
Dollars in millions
except per share % of % of Increase /
amounts 2011 Sales 2010 Sales (Decrease)
Net Sales $154 - $186 - ($32)
Gross Profit $41 27% $61 33% ($20)
Operating Expenses $79 51% $88 48% ($9)
Operating Income/
(Loss) ($38) (25%) ($27) (15%) ($11)
Income Tax
Provision/
(Benefit) ($15) (10%) ($8) (4%) $7
Net Income (Loss) ($24) (15%) ($23) (12%) ($1)
Earnings/(Loss) per
share ($0.41) - ($0.40) - ($0.01)
------------------- ------ --- ------ --- ------
Year to date, the Company reported the following non-GAAP
results:
Dollars in millions
except per share % of % of Increase /
amounts 2011 Sales 2010 Sales (Decrease)
Net Sales $887 - $968 - ($81)
Gross Profit $333 38% $378 39% ($45)
Operating Expenses $373 42% $382 40% ($9)
Operating Income/
(Loss) ($40) (5%) ($4) - ($36)
Income Tax
Provision/
(Benefit) ($19) (2%) ($8) (1%) $11
Net Income (Loss) ($30) (3%) ($5) - ($25)
Earnings/(Loss) per
share ($0.63) - ($0.24) - ($0.39)
------------------- ------ --- ------ --- ------
"While 2011 was a very challenging year for Callaway, I am pleased with the significant progress we have made over the last six months with our restructuring and reinvestment initiatives," commented Tony Thornley, President and Chief Executive Officer. "We have achieved our $50 million annual savings target we began last June, implemented a flatter/more streamlined organization structure, and have begun investing a significant portion of those savings in our newly developed 2012 globally integrated brand and marketing initiatives. Critical to improving results in 2012 is a product offering that appeals to golf consumers, and we are very happy with the results of the Golf Digest's equipment review in which we netted the most medals for new products of any manufacturer and received the Editor's Choice for our new Razr Fit driver. We expect to be profitable in 2012 as the first step towards returning to industry leading returns in the coming years."
Business Outlook*
Overall for 2012, as compared to 2011, the Company expects to generate higher sales, improved gross profit margins, flat to improved operating expenses after incremental demand creation investment, and a return to overall profitability. The Company also provided more detailed guidance for the first half of 2012 as follows:
-- Net sales are projected at $610 - $630 million compared to $559 million
in 2011. Second quarter sales are estimated to be higher than the first
depending on the timing of shipments of products.
-- Gross margins are projected to be approximately 44%, an increase of 140
bps compared to non-GAAP gross margins of 42.6% in 2011 and should also
be higher in the second quarter compared to the first quarter.
-- Operating expenses are projected to be $214 million compared to non-GAAP
operating expenses of $210 million in 2011. The slight increase is due
to a higher investment in marketing, which is skewed more to the first
half of the year, and higher variable costs associated with increased
sales, partially offset by savings from the cost reduction initiatives
taken in 2011. Operating expense is estimated to be evenly split
between the first and second quarter.
-- Non-GAAP earnings per share is estimated at $0.40 to $0.45 compared to
$0.15 in 2011 and assumes shares outstanding at 84.6 million including
the dilutive impact of the Company's outstanding preferred equity.
*Note: For comparability purposes, the non-GAAP results for 2012 and 2011 are derived based upon an annualized statutory tax rate of 38.5%. The Company's actual tax rates for those periods are significantly affected by the Company's deferred tax asset valuations and therefore are not directly correlated to the Company's pre-tax results. The 2011 results also exclude certain restructuring and other charges as explained toward the end of this release. No such restructuring or other charges are excluded from the 2012 estimates.
Conference Call and Webcast
The Company will be holding a conference call from the PGA Show in Orlando, Florida at 8:00 a.m. EST (5:00 am PST) today to discuss the Company's financial results 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. PST on Wednesday, February 1, 2012. The replay may be accessed through the Internet at www.callawaygolf.com or by telephone by calling 1-855-859-2056 toll free for calls originating within the United States or 404-537-3406 for International calls. The replay pass code is 43428749.
Non-GAAP Information: 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. The non-GAAP financial information included in the press release and attached schedules present certain of the Company's financial results excluding charges for (i) the Company's global operations strategy, (ii) non-cash intangible asset charges, (iii) non-cash tax adjustments relating to or as a result of the establishment of a deferred tax valuation allowance, (iv) restructuring charges, and (v) the gain on the sale of three buildings. The non-GAAP financial information also includes the Company's results excluding interest, taxes, depreciation and amortization expenses, and the non-cash intangible asset charges ("Adjusted EBITDA"). For comparative purposes, the Company applied an annualized statutory tax rate of 38.5% to derive the non-GAAP income tax provision/benefit, net loss, and loss per share. The non-GAAP information 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. 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 within the press release and 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 estimated sales, gross margins, operating expenses, and earnings in 2012, and the timing thereof between first and second quarters, as well as the return to profitability in 2012 and the return to industry leading returns in coming years, 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 unknowns, including future changes in foreign currency exchange rates, consumer acceptance and demand for the Company's products, the level of promotional activity in the marketplace, as well as future consumer discretionary purchasing activity, 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 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; 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, the golf industry, and the Company's business, see the Company's Annual Report on Form 10-K for the year ended December 31, 2010 as well as other risks and uncertainties detailed from time to time in the Company's reports on Forms 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 and services designed to make every golfer a better golfer. Callaway Golf Company manufactures and sells golf clubs and golf balls, and sells golf apparel, footwear and accessories, under the Callaway Golf®, Odyssey®, Top-Flite®, and Ben Hogan® brands in more than 110 countries worldwide. For more information please visit www.callawaygolf.com or shop.callawaygolf.com.
Brad
Contacts: Holiday
Patrick
Burke
Tim Buckman
(760)
931-1771
(Logo: http://photos.prnewswire.com/prnh/20091203/CGLOGO)
Callaway Golf Company
Consolidated Condensed Balance Sheets
(In thousands)
(Unaudited)
December December
31, 31,
2011 2010(1)
---- ------
ASSETS
Current assets:
Cash and cash equivalents $43,023 $55,043
Accounts receivable, net 115,673 144,643
Inventories 233,070 268,591
Deferred taxes, net 4,029 23,514
Income taxes receivable 3,654 10,235
Other current assets 19,880 41,703
------ ------
Total current assets 419,329 543,729
Property, plant and equipment, net 117,147 129,601
Intangible assets, net 151,138 161,957
Other assets 39,498 40,725
------ ------
Total assets $727,112 $876,012
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $129,193 $139,312
Accrued employee compensation and
benefits 23,785 26,456
Accrued warranty expense 8,140 8,427
Income tax liabilities 6,666 971
----- ---
Total current liabilities 167,784 175,166
Long-term liabilities 46,514 13,967
Shareholders' equity 512,814 686,879
------- -------
Total liabilities and shareholders'
equity $727,112 $876,012
======== ========
The deferred taxes, other
assets and shareholders'
equity line items on the
accompanying consolidated
condensed balance sheet as
of December 31, 2010, have
been adjusted from amounts
previously reported to
reflect a decrease in
deferred taxes relating to
periods previously reported.
This adjustment resulted in
a $0.9 million decrease to
short-term deferred taxes,
an $8.1 million decrease to
long-term deferred taxes as
well as a corresponding
decrease to retained
(1) earnings of $9.0 million.
Callaway Golf Company
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Quarter Ended
December 31,
------------
2011 2010
---- ----
Net sales $153,872 $185,528
Cost of sales 116,299 130,004
------- -------
Gross profit 37,573 55,524
Operating expenses:
Selling 53,637 55,620
General and administrative 25,570 32,861
Research and development 8,113 9,152
----- -----
Total operating expenses 87,320 97,633
Loss from operations (49,747) (42,109)
Other expense, net (796) (3,377)
---- ------
Loss before income taxes (50,543) (45,486)
Income tax provision (benefit) 12,442 (13,231)
------ -------
Net loss (62,985) (32,255)
Dividends on convertible
preferred stock 2,625 2,625
Net loss allocable to common
shareholders $(65,610) $(34,880)
======== ========
Loss per common share:
Basic ($1.01) ($0.54)
Diluted ($1.01) ($0.54)
Weighted-average common shares
outstanding:
Basic 64,887 64,113
Diluted 64,887 64,113
Year Ended
December 31,
------------
2011 2010
---- ----
Net sales $886,528 $967,656
Cost of sales 575,226 602,160
------- -------
Gross profit 311,302 365,496
Operating expenses:
Selling 265,325 257,285
General and administrative 92,756 98,431
Research and development 34,309 36,383
------ ------
Total operating expenses 392,390 392,099
Loss from operations (81,088) (26,603)
Other expense, net (9,173) (8,959)
------ ------
Loss before income taxes (90,261) (35,562)
Income tax provision (benefit) 81,559 (16,758)
------ -------
Net loss (171,820) (18,804)
Dividends on convertible
preferred stock 10,500 10,500
Net loss allocable to common
shareholders $(182,320) $(29,304)
========= ========
Loss per common share:
Basic ($2.82) ($0.46)
Diluted ($2.82) ($0.46)
Weighted-average common shares
outstanding:
Basic 64,601 63,902
Diluted 64,601 63,902
Callaway Golf Company
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Year Ended
December 31,
------------
2011 2010
---- ----
Cash flows from operating
activities:
Net loss $(171,820) $(18,804)
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation and amortization 38,636 40,949
Impairment charges 6,533 7,547
Deferred taxes, net 55,930 (3,788)
Non-cash share-based
compensation 9,570 9,588
(Gain) loss on disposal of
long-lived assets (7,491) 177
Changes in assets and
liabilities 78,740 (26,037)
------ -------
Net cash provided by
operating activities 10,098 9,632
------ -----
Cash flows from investing
activities:
Capital expenditures (28,931) (22,216)
Proceeds from sales of
property, plant and
equipment 19,371 -
Other investing activities - (2,581)
Net cash used in investing
activities (9,560) (24,797)
------ -------
Cash flows from financing
activities:
Issuance of common stock 2,195 2,954
Dividends paid, net (13,093) (13,067)
Credit facility origination
fees (2,467) -
Other financing activities 80 (704)
Net cash used in financing
activities (13,285) (10,817)
------- -------
Effect of exchange rate
changes on cash and cash
equivalents 727 2,711
--- -----
Net decrease in cash and cash
equivalents (12,020) (23,271)
Cash and cash equivalents at
beginning of period 55,043 78,314
Cash and cash equivalents at
end of period $43,023 $55,043
======= =======
Callaway Golf Company
Consolidated Net Sales and Operating Segment Information
(In thousands)
(Unaudited)
Net Sales by Product Category Net Sales by Product Category
----------------------------- -----------------------------
Quarter Ended Year Ended
December 31, Growth/(Decline) December 31, Growth/(Decline)
------------ ---------------- ------------ ----------------
2011 2010(1) Dollars Percent 2011 2010(1) Dollars Percent
---- ------ ------- ------- ---- ------ ------- -------
Net
sales:
Woods $25,383 $40,687 $(15,304) -38% $212,901 $229,531 $(16,630) -7%
Irons 38,129 46,833 (8,704) -19% 207,790 227,794 (20,004) -9%
Putters 21,131 18,768 2,363 13% 88,831 107,587 (18,756) -17%
Golf
balls 28,273 32,173 (3,900) -12% 160,359 179,903 (19,544) -11%
Accessories
and
other 40,956 47,067 (6,111) -13% 216,647 222,841 (6,194) -3%
$153,872 $185,528 $(31,656) -17% $886,528 $967,656 $(81,128) -8%
======== ======== ======== ======== ======== ========
Net Sales by Region Net Sales by Region
------------------- -------------------
Quarter Ended Year Ended
December 31, Growth/(Decline) December 31, Growth/(Decline)
------------ ---------------- ------------ ----------------
2011 2010 Dollars Percent 2011 2010 Dollars Percent
---- ---- ------- ------- ---- ---- ------- -------
Net
sales:
United
States $61,682 $78,587 $(16,905) -22% $419,448 $468,214 $(48,766) -10%
Europe 19,129 22,976 (3,847) -17% 133,572 130,106 3,466 3%
Japan 41,644 44,558 (2,914) -7% 149,768 164,810 (15,042) -9%
Rest of
Asia 14,152 18,669 (4,517) -24% 82,746 89,455 (6,709) -7%
Other
foreign
countries 17,265 20,738 (3,473) -17% 100,994 115,071 (14,077) -12%
$153,872 $185,528 $(31,656) -17% $886,528 $967,656 $(81,128) -8%
======== ======== ======== ======== ======== ========
Operating Segment Information Operating Segment Information
----------------------------- -----------------------------
Quarter Ended Year Ended
December 31, Growth/(Decline) December 31, Growth/(Decline)
------------ ---------------- ------------ ----------------
2011 2010(1) Dollars Percent 2011 2010(1) Dollars Percent
---- ------ ------- ------- ---- ------ ------- -------
Net
sales:
Golf
clubs $125,599 $153,355 $(27,756) -18% $726,169 $787,753 $(61,584) -8%
Golf
balls 28,273 32,173 (3,900) -12% 160,359 179,903 (19,544) -11%
------ ------ ------ ------- ------- -------
$153,872 $185,528 $(31,656) -17% $886,528 $967,656 $(81,128) -8%
======== ======== ======== ======== ======== ========
Income
(loss)
before
income
taxes:
Golf
clubs
(2) $(20,876) $(12,835) $(8,041) -63% $(4,184) $35,863 $(40,047) -112%
Golf
balls
(3) (10,097) (4,462) (5,635) -126% (12,370) 5,872 (18,242) -311%
Reconciling
items
(4) (19,570) (28,189) 8,619 31% (73,707) (77,297) 3,590 5%
$(50,543) $(45,486) $(5,057) -11% $(90,261) $(35,562) $(54,699) 154%
======== ======== ======= ======== ======== ========
Certain prior period amounts have been reclassified between product categories to conform with the current
(1) period presentation.
In connection with the GOS Initiatives, the Company's golf clubs segment absorbed an incremental $1.6 million
in pre-tax charges during the quarter ended December 31, 2011 compared to the same period in the prior year.
During the year ended December 31, 2011, the Company's golf clubs segment absorbed an incremental $8.4 million
(2) in pretax charges compared to the same period in the prior year.
In connection with the GOS Initiatives, the Company's golf balls segment absorbed $1.6 million less pre-tax
charges during the quarter ended December 31, 2011 compared to the same period of the prior year. During the
year ended December 31, 2011, the Company's golf ball segment absorbed $1.4 million of incremental charges
(3) compared to the year ended December 31, 2010.
Represents corporate general and administrative expenses and other income (expense) not utilized by management
(4) in determining segment profitability.
Callaway Golf Company
Supplemental Financial Information
(In thousands, except per share data)
(Unaudited)
Quarter Ended December 31, Quarter Ended December 31,
2011 2010
---- ----
Global Non-Cash Non-Cash
Pro Forma Operations Impairment Tax Pro Forma Global Non-Cash
Callaway Strategy Charges Adjustment Restructuring Total as Callaway Operations Impairment Total as
Golf (1) (1) (1) (2) (1) Reported Golf Strategy Charge Reported
---------- ----------- ----------- ----------- -------------- --------- ---------- ----------- ----------- ---------
Net sales $153,872 $- $- $- $- $153,872 $185,528 $- $- $185,528
Gross profit 41,025 (3,250) - - (202) 37,573 61,049 (5,525) - 55,524
% of sales 27% n/a n/a n/a n/a 24% 33% n/a n/a 30%
Operating expenses 78,771 3,859 1,120 - 3,570 87,320 88,497 1,589 7,547 97,633
------ ----- ----- --- ----- ------ ------ ----- ----- ------
Loss from operations (37,746) (7,109) (1,120) - (3,772) (49,747) (27,448) (7,114) (7,547) (42,109)
Other expense, net (796) - - - - (796) (3,377) - - (3,377)
---- --- --- --- --- ---- ------ --- --- ------
Loss before income taxes (38,542) (7,109) (1,120) - (3,772) (50,543) (30,825) (7,114) (7,547) (45,486)
Income tax provision
(benefit) (14,839) (2,737) (431) 31,902 (1,453) 12,442 (7,771) (2,706) (2,754) (13,231)
------- ------ ---- ------ ------ ------ ------ ------ ------ -------
Net loss (23,703) (4,372) (689) (31,902) (2,319) (62,985) (23,054) (4,408) (4,793) (32,255)
Dividends on convertible
preferred stock 2,625 - - - - 2,625 2,625 - - 2,625
--- -----
Net loss allocable to
common shareholders $(26,328) $(4,372) $(689) $(31,902) $(2,319) $(65,610) $(25,679) $(4,408) $(4,793) $(34,880)
======== ======= ===== ======== ======= ======== ======== ======= ======= ========
Diluted loss per share: $(0.41) $(0.07) $(0.01) $(0.49) $(0.03) $(1.01) $(0.40) $(0.07) $(0.07) $(0.54)
Weighted-average shares
outstanding: 64,887 64,887 64,887 64,887 64,887 64,887 64,113 64,113 64,113 64,113
(1) For comparative purposes, the Company applied an annualized statutory tax rate of 38.5% to derive pro forma results.
(2) Current period impact of the valuation allowance established against the Company's U.S. deferred tax assets and the impact of applying a statutory tax rate of 38.5%
to pro forma results.
Year Ended December 31, Year Ended December 31,
2011 2010
---- ----
Global Non-Cash Non-Cash Gain on
Operations Impairment Tax Sale of Pro Forma Global Non-Cash
Pro Forma Callaway Strategy Charges Adjustment Restructuring Buildings Total as Callaway Operations Impairment Total as
Golf (1) (1) (1) (2) (1) (1) Reported Golf Strategy Charge Reported
------------------- ----------- ----------- ----------- -------------- ---------- --------- ---------- ----------- ----------- ---------
Net
sales $886,528 $- $- $- $- $- $886,528 $967,656 $- $- $967,656
Gross
profit 333,143 (20,590) - - (1,251) - 311,302 378,323 (12,827) - 365,496
% of
sales 38% n/a n/a n/a n/a n/a 35% 39% n/a n/a 38%
Operating
expenses 373,369 4,090 6,533 - 15,078 (6,680) 392,390 382,563 1,989 7,547 392,099
------- ----- ----- --- ------ ------ ------- ------- ----- ----- -------
Income
(loss)
from
operations (40,226) (24,680) (6,533) - (16,329) 6,680 (81,088) (4,240) (14,816) (7,547) (26,603)
Other
income
(expense),
net (9,173) - - - - - (9,173) (8,959) - - (8,959)
------ --- --- --- --- --- ------ ------ --- --- ------
Income
(loss)
before
income
taxes (49,399) (24,680) (6,533) - (16,329) 6,680 (90,261) (13,199) (14,816) (7,547) (35,562)
Income
tax
provision
(benefit) (19,019) (9,502) (2,515) 116,310 (6,287) 2,572 81,559 (8,369) (5,635) (2,754) (16,758)
------- ------ ------ ------- ------ ----- ------ ------ ------ ------ -------
Net
income
(loss) (30,380) (15,178) (4,018) (116,310) (10,042) 4,108 (171,820) (4,830) (9,181) (4,793) (18,804)
Dividends
on
convertible
preferred
stock 10,500 - - - - - 10,500 10,500 - - 10,500
Net
income
(loss)
allocable
to
common
shareholders $(40,880) $(15,178) $(4,018) $(116,310) $(10,042) $4,108 $(182,320) $(15,330) $(9,181) $(4,793) $(29,304)
======== ======== ======= ========= ======== ====== ========= ======== ======= ======= ========
Diluted
earnings
(loss)
per
share: $(0.63) $(0.23) $(0.06) $(1.80) $(0.16) $0.06 $(2.82) $(0.24) $(0.14) $(0.08) $(0.46)
Weighted-
average
shares
outstanding: 64,601 64,601 64,601 64,601 64,601 64,601 64,601 63,902 63,902 63,902 63,902
(1) For comparative purposes, the Company applied an annualized statutory tax rate of 38.5% to derive the year-to-date pro forma results.
(2) Current period impact of the valuation allowance established against the Company's U.S. deferred tax assets and the impact of applying a statutory tax rate of 38.5%
to pro forma results.
2011 Trailing Twelve Months Adjusted EBITDA 2010 Trailing Twelve Months Adjusted EBITDA
Adjusted
EBITDA: Quarter Ended Quarter Ended
------------- -------------
September December September December
March 31, June 30, 30, 31, March 31, June 30, 30, 31,
2011 2011 2011 2011 Total 2010 2010 2010 2010 Total
---- ---- ---- ---- ----- ---- ---- ---- ---- -----
Net
income
(loss) $12,818 $(59,066) $(62,587) $(62,985) $(171,820) $20,303 $11,465 $(18,317) $(32,255) $(18,804)
Interest
expense
(income),
net 142 207 399 324 1,072 (118) (242) (1,234) (444) (2,038)
Income
tax
provision
(benefit) 8,780 45,483 14,854 12,442 81,559 9,641 8,932 (22,100) (13,231) (16,758)
Depreciation
and
amortization
expense 9,880 9,311 9,247 10,198 38,636 9,949 9,606 10,687 10,707 40,949
Impairment
charge - 5,413 - 1,120 6,533 - - - 7,547 7,547
Adjusted
EBITDA $31,620 $1,348 # $(38,087) $(38,901) $(44,020) $39,775 $29,761 $(30,964) $(27,676) $10,896
======= ====== ======== ======== ======== ======= ======= ======== ======== =======
SOURCE Callaway Golf Company
