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SECURITY: ELY EXCHANGE:
New York Stock Exchange CURRENCY: US Dollar
Callaway Golf Company makes
and sells Big Bertha(R) Metal Woods and Irons, including ERC(R) Fusion(R)
Drivers, Great Big Bertha(R) II Titanium Drivers and Fairway Woods, Big
Bertha Steelhead(R) III Stainless Steel Drivers and Fairway Woods, Hawk
Eye(R) VFT(R) Tungsten Injected(TM) Titanium Irons, Big Bertha Stainless
Steel Irons, Steelhead X-16(R) and Steelhead X-16 Pro Series Stainless
Steel Irons, and Callaway Golf Forged Wedges. Callaway Golf Company also
makes and sells Odyssey(R) Putters, including White Hot(R), TriHot(R),
DFX(TM) and Dual Force(R) Putters. Callaway Golf Company makes and sells
the Callaway Golf(R) HX(R) Tour balls, HX Blue and HX Red balls, the CTU
30(R) Blue and CTU 30 Red balls, the HX 2-Piece Blue and HX 2-Piece Red
balls, the CB1(R) Blue and CB1 Red balls, and the Warbird(TM) golf balls.
Callaway Golf also owns and operates The Top-Flite Golf Company, a wholly
owned subsidiary that includes the Top-Flite(R), Strata(R) and Ben Hogan(R)
brands.
Callaway
Golf Company Releases Preliminary First Quarter 2006 Net Sales and Earnings
CARLSBAD,
Calif., Apr 11, 2006 (BUSINESS WIRE) -- Callaway Golf Company (NYSE:ELY)
today announced that, based on current information, the Company estimates
net sales for the first quarter ended March 31, 2006 of approximately $300
million, with corresponding earnings per diluted share ranging from $0.31
to $0.33. Excluding after-tax charges for employee equity-based compensation
of approximately $0.02 per diluted share associated with FAS 123R, and
$0.01 per diluted share associated with the consolidation of the Top-Flite
and Callaway Golf operations, pro forma earnings per diluted share are
estimated to range from $0.34 to $0.36. For 2005, the Company reported
net sales of $300 million, fully diluted earnings per share of $0.27 and
pro forma fully diluted earnings per share of $0.30, which excludes after-tax
Top-Flite integration charges of $0.03 for that period.
"We
are pleased with our preliminary results for the first quarter, which exceeded
our internal targets and achieved the second highest level of revenues
for any first quarter in the Company's history. In terms of profitability,
our pro forma earnings for the first quarter are estimated to be 13% -
20% higher than pro forma earnings last year," commented George Fellows,
President and CEO. "We are particularly pleased with these results given
the later timing of our 2006 new product introductions compared to last
year, which along with previously announced additional new product introductions
should positively impact second quarter growth," continued Mr. Fellows.
"Despite these timing differences, we were able to achieve significant
pro forma earnings growth in the first quarter, primarily due to lower
operating expenses that resulted from our third quarter 2005 expense reduction
initiatives. Finally, although early in the season, we're seeing strong
initial consumer acceptance and sell-through at retail, and combined with
improved supply chain management, we are optimistic about significant improvements
in 2006 earnings compared to last year and believe these preliminary results
are a good start in achieving our longer-term targets."
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