Callaway Golf Announces Results for Fourth Quarter and Full Year 2005

Callaway Golf Announces Results for Fourth Quarter and Full Year 2005

January 25, 2006 16:05:09 (ET)

CARLSBAD, Calif., Jan 25, 2006 (BUSINESS WIRE) -- Callaway Golf Company (ELY, Trade) today announced its financial results for the quarter and full year ended December 31, 2005, reporting significant improvements in both sales and earnings over the same periods in the prior year. Some of the details for the twelve months ended December 31, 2005 include:

-- Net sales of $998.1 million, as compared to $934.6 million for the same period in 2004.

-- Fully diluted earnings per share of $0.19 on 69.2 million shares, as compared to a net loss per share of $0.15 on 67.7 million shares in 2004.

-- Fully diluted earnings per share for the full year include after-tax charges of $0.19 per share associated with the integration of the Top-Flite operations and the September restructuring initiatives. The full year loss per share for 2004 includes after-tax charges of $0.26 per share associated with the integration of the Top-Flite operations. Excluding these charges, the Company's pro forma fully diluted earnings per share for 2005 would have been $0.38, as compared to pro forma fully diluted earnings per share of $0.11 for the full year 2004.

Details for the fourth quarter include:

-- Net sales of $154.5 million, as compared to $144.4 million in the fourth quarter of 2004.

-- Net loss per share of $0.27 on 69.3 million shares, as compared to a net loss of $0.42 per share on 68.0 million shares in the fourth quarter of 2004.

-- The net loss per share for the fourth quarter of 2005 includes after-tax charges of $0.05 per share associated with the integration of the Top-Flite operations acquired in late 2003 and the restructuring initiatives announced on September 29th. The net loss per share for the fourth quarter of 2004 includes after-tax charges of $0.05 per share associated with the integration of the Top-Flite operations. Excluding these charges, the Company's pro forma net loss per share for the fourth quarter of 2005 would have been $0.22, as compared to a pro forma net loss per share of $0.37 per share in the fourth quarter of 2004.

"We are pleased with the increase in sales for the year, which reflects the strength of our product line and favorable consumer acceptance of our new products, commented George Fellows, President and CEO. "While earnings also improved significantly, they are still not at desired levels. As we announced at the end of the third quarter, however, we have already implemented several company-wide initiatives designed to reduce expenses and improve profitability. We have already started to see the benefits of such initiatives as operating expenses in the fourth quarter decreased as compared to the fourth quarter of 2004."

Mr. Fellows continued, "We believe we are in a good position entering 2006. We have several new products being introduced, and the initial response from our customers has been very positive. We also expect to continue to realize the benefits of the cost reduction initiatives we implemented in September and we believe we have resolved the supply constraint issues we experienced last year with some products. Our focus in 2006 is to strengthen our marketing programs and enhance customer service, particularly