First Quarter Revenue Increase Driven by Strong Demand, Improved Supply and Strength Across All Segments
Topgolf Delivers Positive 2.3% Same Venue Sales Growth Compared to 2019
CARLSBAD, Calif., May 10, 2022 /PRNewswire/ -- Callaway Golf Company (the "Company" or "Callaway") (NYSE: ELY) announced today its financial results for the quarter ended March 31, 2022.
"Our first quarter results reflect strong performance across all segments, as demand for our golf equipment and soft goods lines remained very strong, and Topgolf finished the quarter on a high note. After a slow start early in the quarter due to Omicron, Topgolf's March same venue sales surged to approximately 10% growth over 2019, resulting in a pleasing +2% same venue sales growth for the quarter, compared to 2019," commented Chip Brewer, President and Chief Executive Officer of Callaway. "Our strong start this year, together with continued strong demand across all of our business segments, gives us the confidence to raise our full year 2022 outlook expectations. I could not be more pleased with how our business is operating or more confident in our ability to create long-term shareholder value."
GAAP, NON-GAAP AND PRO FORMA RESULTSIn addition to the Company's results prepared in accordance with GAAP, the Company has provided information on a non-GAAP basis. The manner in which this non-GAAP information is derived is discussed further toward the end of this release, and the Company has provided in the tables to this release a reconciliation of the non-GAAP information to the most directly comparable GAAP information. 2021 results presented on a pro forma basis include Topgolf results for January and February prior to the closing of the merger on March 8, 2021.
SUMMARY OF FINANCIAL RESULTS
The Company announced the following GAAP and non-GAAP financial results for the quarter ended March 31, 2022 (in millions, except earnings per share).
Three Months Ended March 31, |
|||||
2022 |
2021(1) |
Change |
|||
Net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
||
Income from operations |
94.3 |
76.1 |
18.2 |
||
Other (expense)/income, net |
(23.3) |
244.1 |
(267.4) |
||
Income before income taxes |
71.0 |
320.2 |
(249.2) |
||
Net income |
$ 86.7 |
$ 272.5 |
$ (185.8) |
||
Earnings per share - diluted |
$ 0.44 |
$ 2.19 |
$ (1.75) |
||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $142.9 million in net revenues and $(27.8) million in loss before income taxes. |
NON-GAAP RESULTS
The non-GAAP results exclude certain Non-Recurring and Non-cash Adjustments as defined below.
Three Months Ended March 31, |
|||||
2022 |
2021(1) |
Change |
|||
Net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
||
Income from operations |
106.0 |
96.5 |
9.5 |
||
Other expense, net |
(22.1) |
(5.5) |
(16.6) |
||
Income before income taxes |
83.9 |
91.0 |
(7.1) |
||
Net income |
$ 70.9 |
$ 76.6 |
$ (5.7) |
||
Earnings per share - diluted |
$ 0.36 |
$ 0.62 |
$ (0.26) |
||
Adjusted EBITDA |
$ 169.8 |
$ 127.8 |
$ 42.0 |
||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $142.9 million in net revenues and $2.3 million in Adjusted EBITDA. |
First Quarter 2022 Financial Highlights(All comparisons to prior periods are calculated on a year-over-year basis.)
SEGMENT RESULTS
The table below provides the breakout of segment net revenues for the quarter ended March 31, 2022 (in millions):
SEGMENT NET REVENUES |
|||||||||||
Reported Results for the |
Pro Forma Results for the |
||||||||||
Three Months Ended March 31, |
Three Months Ended March 31, |
||||||||||
2022 |
2021(1) |
Change |
2022 |
2021(1) |
Change |
||||||
Topgolf |
$ 322.0 |
$ 92.6 |
$ 229.4 |
$ 322.0 |
$ 235.6 |
$ 86.4 |
|||||
Golf Equipment |
468.0 |
376.9 |
91.1 |
468.0 |
376.9 |
91.1 |
|||||
Apparel, Gear and Other |
250.2 |
182.1 |
68.1 |
250.2 |
182.1 |
68.1 |
|||||
Total Segment Net Revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
$ 1,040.2 |
$ 794.6 |
$ 245.6 |
|||||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $142.9 million in net revenues and are included in the pro forma results table above. |
The table below provides the breakout of segment operating income for the quarter ended March 31, 2022 (in millions):
SEGMENT OPERATING INCOME |
|||||||||||
Reported Results for the |
Pro Forma Results for the |
||||||||||
Three Months Ended March 31, |
Three Months Ended March 31, |
||||||||||
2022 |
2021(1) |
Change |
2022 |
2021(1) |
Change |
||||||
Topgolf |
$ 6.5 |
$ 4.0 |
$ 2.5 |
$ 6.5 |
$ (14.1) |
$ 20.6 |
|||||
% of segment revenue |
2.0% |
4.3% |
(230) bps |
2.0% |
(6.0)% |
800 bps |
|||||
Golf Equipment |
100.8 |
84.9 |
15.9 |
100.8 |
84.9 |
15.9 |
|||||
% of segment revenue |
21.5% |
22.5% |
(100) bps |
21.5% |
22.5% |
(100) bps |
|||||
Apparel, Gear and Other |
26.7 |
20.5 |
6.2 |
26.7 |
20.5 |
6.2 |
|||||
% of segment revenue |
10.7% |
11.3% |
(60) bps |
10.7% |
11.3% |
(60) bps |
|||||
Total segment operating income |
$ 134.0 |
$ 109.4 |
$ 24.6 |
$ 134.0 |
$ 91.3 |
$ 42.7 |
|||||
% of segment revenue |
12.9% |
16.8% |
(390) bps |
12.9% |
11.5% |
140 bps |
|||||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $142.9 million in net revenues and $(18.1) million in segment operating loss, which are included in the pro forma results table above. |
First Quarter 2022 Segment Highlights(All comparisons to prior periods are calculated on a year-over-year basis)
The following is a reconciliation of income before income taxes to total segment operating income for the quarter ended March 31, 2022 and 2021 (in millions):
Three Months Ended March 31, |
|||||
2022 |
2021(1) |
Change |
|||
Total segment operating income: |
$ 134.0 |
$ 109.4 |
$ 24.6 |
||
Corporate costs and expenses(2) |
(39.7) |
(33.3) |
(6.4) |
||
Income from operations |
94.3 |
76.1 |
18.2 |
||
Gain on Topgolf investment |
— |
252.5 |
(252.5) |
||
Interest expense |
(31.4) |
(17.4) |
(14.0) |
||
Other income |
8.1 |
9.0 |
(0.9) |
||
Income before income taxes |
$ 71.0 |
$ 320.2 |
$ (249.2) |
||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $(18.1) million in segment operating loss and $(27.8) million in loss before income taxes. |
|||||
(2) Includes corporate overhead and certain non-recurring and non-cash items as described in the schedules to this release. |
2022 BUSINESS OUTLOOK
The 2022 projections set forth below are based on the Company's best estimates at this time. They include the estimated impact of certain factors, including (1) ongoing impact of COVID-19, (2) changes in foreign currency effects, which are estimated to have a negative full year impact on net revenues of $115 million compared to 2021 and $39 million on second quarter net revenues compared to second quarter 2021 and (3) freight costs and other inflationary pressures.
FULL YEAR 2022 OUTLOOK |
|||||||
(in millions) |
2022 Current Estimate |
2022 Previous Estimate |
2021 Reported |
2021 Pro Forma |
|||
Net revenues |
$3,935 - $3,970 |
$3,780 - $3,820 |
$3,133 |
$3,276 |
|||
Adjusted EBITDA |
$535 - $555 |
$490 - $515 |
$445 |
$448 |
|||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported full year financial results for 2021 only include approximately ten |
Net Revenues: Full year 2022 net revenues estimate assumes Topgolf segment revenue of approximately $1.56 billion for the twelve months ended December 31, 2022, Golf Equipment segment revenue increasing approximately 10% year-over-year and Apparel, Gear and Other segment revenue reaching approximately $1 billion. Topgolf full year same venue sales are expected to grow at mid-to-high single digits compared to 2019, up from the previous estimate of low single digits growth, as walk-in business remains strong and the events business continues to recover more quickly than originally anticipated.
Adjusted EBITDA: The Company is increasing its full year 2022 Adjusted EBITDA guidance by $42.5 million at the midpoint of guidance. Excluding any impact of foreign currency changes, this represents a $49.5 million increase for the full year compared to the midpoint of prior Adjusted EBITDA guidance, and a $27.5 million increase for the second through fourth quarters of 2022. Full year 2022 Adjusted EBITDA estimate assumes the Topgolf segment will deliver $225 - $240 million in Adjusted EBITDA for the twelve months ended December 31, 2022.
SECOND QUARTER 2022 OUTLOOK |
|||||||||||||||
(in millions) |
2022 Estimate |
2021 Results |
|||||||||||||
Net Revenues |
$1,085 - $1,105 |
$914 |
|||||||||||||
Adjusted EBITDA |
$185 - $200 |
$164 |
Net Revenues: Second quarter 2022 net revenues estimate assumes all segments continue to outperform 2021.
Adjusted EBITDA: Second quarter 2022 Adjusted EBITDA estimate assumes profit margins continue to largely outrun any input, freight and foreign exchange pressures the Company is experiencing, as volume, price and continuing efficiencies are continuing to offset those pressures.
ADDITIONAL INFORMATION AND DISCLOSURES
Conference Call and Webcast
The Company will be holding a conference call at 2:00 p.m. Pacific time today, May 10, 2022, to discuss the Company's financial results, outlook and business. The call will be broadcast live over the Internet and can be accessed at http://ir.callawaygolf.com/. A replay of the conference call will be available approximately two hours after the call ends, and will remain available through 9:00 p.m. Pacific time on May 17, 2022. The replay may be accessed through the Internet at http://ir.callawaygolf.com/.
Non-GAAP Information
The GAAP results contained in 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 of America ("GAAP"). To supplement the GAAP results, the Company has provided certain non-GAAP financial information as follows:
Constant Currency Basis. The Company provided certain information regarding the Company's financial results or projected financial results on a "constant currency basis." This information estimates the impact of changes in foreign currency rates on the translation of the Company's current or projected future period financial results as compared to the applicable comparable period. This impact is derived by taking the current or projected local currency results and translating them into U.S. dollars based upon the foreign currency exchange rates for the applicable comparable period. It does not include any other effect of changes in foreign currency rates on the Company's results or business.
Non-Recurring and Non-cash Adjustments. The Company provided information excluding certain non-cash amortization and depreciation of intangibles and other assets related to the Company's acquisitions non-cash amortization of the debt discount related to the Company's convertible notes in 2021, acquisition and other non-recurring items (including integration costs and a $252.5 million non-cash gain in 2021 resulting from the Company's pre-merger equity position in Topgolf), and changes in the Company's non-cash valuation allowance recorded against certain of the Company's deferred tax assets as a result of the Topgolf merger.
Adjusted EBITDA. The Company provides information about its results excluding interest, taxes, depreciation and amortization expenses, non-cash stock compensation expense, non-cash lease amortization expense, and the non-recurring and non-cash items referenced above.
In addition, the Company has included in the schedules attached to this release a reconciliation of certain non-GAAP information to the most directly comparable GAAP information. The non-GAAP information presented in this release and related schedules 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 and in forecasting the Company's business going forward. 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 with regard to these items. The Company has provided reconciling information in the attached schedules.
For forward-looking Adjusted EBITDA information provided in this release, reconciliation of such forward-looking Adjusted EBITDA to the most closely comparable GAAP financial measure (net income) is not provided because the Company is unable to provide such reconciliation without unreasonable efforts. The inability to provide a reconciliation is because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact net income in the future but would not impact Adjusted EBITDA. These items may include certain non-cash depreciation, which will fluctuate based on the Company's level of capital expenditures, non-cash amortization of intangibles related to the Company's acquisitions, income taxes, which can fluctuate based on changes in the other items noted and/or future forecasts, and other non-recurring costs and non-cash adjustments. Historically, the Company has excluded these items from Adjusted EBITDA. The Company currently expects to continue to exclude these items in future disclosures of Adjusted EBITDA and may also exclude other items that may arise. The events that typically lead to the recognition of such adjustments are inherently unpredictable as to if or when they may occur, and therefore actual results may differ materially. This unavailable information could have a significant impact on net income.
Same venue sales. Callaway defines same venue sales for its Topgolf business as sales for the comparable venue base, which is defined as the number of Company-operated venues with at least 24 full fiscal months of operations in the year of comparison.
Forward-Looking Statements
Statements used in this press release that relate to future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company's (and its segments') second quarter and full year 2022 guidance (including net revenue, same venue sales, Adjusted EBITDA and Topgolf segment Adjusted EBITDA), continued impact of the COVID-19 pandemic on the Company's business and the Company's ability to improve and recover from such impact, impact of any measures taken to mitigate the effect of the pandemic, strength and demand of the Company's products and services, continued brand momentum, demand for golf and outdoor activities and apparel, continued investments in the business, increases in shareholder value, post-pandemic consumer trends and behavior, future industry and market conditions, pricing of products and services, the benefits of the Topgolf merger, foreign currency effects and their impacts, impacts of inflation and freight and other supply challenges, and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "estimate," "could," "should," "intend," "may," "plan," "seek," "anticipate," "project" and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made and are not guarantees of future performance. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon various risks and unknowns, including disruptions to business operations from additional regulatory restrictions in response to the COVID-19 pandemic (such as travel restrictions, government-mandated shut-down orders or quarantines) or voluntary "social distancing" that affects employees, customers and suppliers; costs, expenses or difficulties related to the merger with Topgolf, including the integration of the Topgolf business; failure to realize the expected benefits and synergies of the Topgolf merger in the expected timeframes or at all; production delays, closures of manufacturing facilities, retail locations, warehouses and supply and distribution chains; staffing shortages as a result of remote working requirements or otherwise; uncertainty regarding global economic conditions, particularly the uncertainty related to the duration and ongoing impact of the COVID-19 pandemic, and related decreases in customer demand/spending and ongoing increases in operating and freight costs; global supply chain constraints and challenges (including, without limitation, as a result of any prolonged shutdown in China); the Company's level of indebtedness; continued availability of credit facilities and liquidity and ability to comply with applicable debt covenants; effectiveness of capital allocation and cost/expense reduction efforts; continued brand momentum and product success; growth in the direct-to-consumer and e-commerce channels; ability to realize the benefits of the continued investments in the Company's business; consumer acceptance of and demand for the Company's and its subsidiaries' products and services; cost of living and inflationary pressures; any changes in U.S. trade, tax or other policies, including restrictions on imports or an increase in import tariffs; future consumer discretionary purchasing activity, which can be significantly adversely affected by unfavorable economic or market conditions; future retailer purchasing activity, which can be significantly negatively affected by adverse industry conditions and overall retail inventory levels; and future changes in foreign currency exchange rates and the degree of effectiveness of the Company's hedging programs. Actual results may differ materially from those estimated or anticipated as a result of these risks and unknowns or other risks and uncertainties, including the effect of terrorist activity, armed conflict, natural disasters or pandemic diseases, including expanded outbreak of COVID-19 and its variants, on the economy generally, on the level of demand for the Company's and its subsidiaries' products and services or on the Company's ability to manage its operations, supply chain and delivery logistics in such an environment; delays, difficulties or increased costs in the supply of components or commodities needed to manufacture the Company's products or in manufacturing the Company's products; and a decrease in participation levels in golf generally, during or as a result of the COVID-19 pandemic. For additional information concerning these and other risks and uncertainties that could affect these statements and the Company's business, see the Company's Annual Report on Form 10-K for the year ended December 31, 2021 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 CompanyCallaway Golf Company (NYSE: ELY) is an unrivaled, tech-enabled modern golf and active lifestyle company delivering leading golf equipment, apparel and entertainment, with a portfolio of global brands including Callaway Golf, Topgolf, Odyssey, OGIO, TravisMathew and Jack Wolfskin. Through an unwavering commitment to innovation, Callaway manufactures and sells premium golf clubs, golf balls, golf and lifestyle bags, golf and lifestyle apparel and other accessories, and provides world-class golf entertainment experiences through Topgolf, its wholly-owned subsidiary. For more information please visit www.callawaygolf.com, www.topgolf.com, www.odysseygolf.com, www.OGIO.com, www.travismathew.com, and www.jack-wolfskin.com.
Investor ContactsBrian LynchLauren Scott(760) 931-1771[email protected]
CALLAWAY GOLF COMPANY |
|||
CONSOLIDATED BALANCE SHEETS |
|||
(In millions) |
|||
(Unaudited) |
|||
March 31, |
December 31, |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 245.0 |
$ 352.2 |
|
Restricted cash |
1.0 |
1.2 |
|
Accounts receivable, net |
413.1 |
105.3 |
|
Inventories |
552.4 |
533.5 |
|
Other current assets |
192.0 |
173.5 |
|
Total current assets |
1,403.5 |
1,165.7 |
|
Property, plant and equipment, net |
1,534.5 |
1,451.4 |
|
Operating lease right-of-use assets, net |
1,359.3 |
1,384.5 |
|
Goodwill and intangible assets, net |
3,492.5 |
3,488.7 |
|
Other assets |
289.6 |
257.5 |
|
Total assets |
$ 8,079.4 |
$ 7,747.8 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable and accrued expenses |
$ 536.8 |
$ 491.2 |
|
Accrued employee compensation and benefits |
107.9 |
128.9 |
|
Asset-based credit facilities |
219.3 |
9.1 |
|
Operating lease liabilities, short-term |
77.8 |
72.3 |
|
Construction advances |
72.3 |
22.9 |
|
Deferred revenue |
99.3 |
93.9 |
|
Other current liabilities |
43.1 |
47.7 |
|
Total current liabilities |
1,156.5 |
866.0 |
|
Long-term debt |
1,070.5 |
1,025.3 |
|
Operating lease liabilities, long-term |
1,356.2 |
1,385.4 |
|
Deemed landlord financing, long-term |
463.5 |
460.6 |
|
Deferred taxes, net |
144.0 |
163.6 |
|
Other long-term liabilities |
188.2 |
164.0 |
|
Total shareholders' equity |
3,700.5 |
3,682.9 |
|
Total liabilities and shareholders' equity |
$ 8,079.4 |
$ 7,747.8 |
CALLAWAY GOLF COMPANY |
|||
CONSOLIDATED BALANCE SHEETS |
|||
(In millions) |
|||
(Unaudited) |
|||
March 31, 2022 |
March 31, 2021 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 245.0 |
$ 397.3 |
|
Restricted cash |
1.0 |
— |
|
Accounts receivable, net |
413.1 |
328.8 |
|
Inventories |
552.4 |
336.3 |
|
Other current assets |
192.0 |
140.8 |
|
Total current assets |
1,403.5 |
1,203.2 |
|
Property, plant and equipment, net |
1,534.5 |
1,192.3 |
|
Operating lease right-of-use assets, net |
1,359.3 |
1,041.4 |
|
Goodwill and intangible assets, net |
3,492.5 |
3,589.9 |
|
Other assets |
289.6 |
81.8 |
|
Total assets |
$ 8,079.4 |
$ 7,108.6 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable and accrued expenses |
$ 536.8 |
$ 379.7 |
|
Accrued employee compensation and benefits |
107.9 |
87.7 |
|
Asset-based credit facilities |
219.3 |
15.3 |
|
Operating lease liabilities, short-term |
77.8 |
51.5 |
|
Construction advances |
72.3 |
54.9 |
|
Deferred revenue |
99.3 |
70.9 |
|
Other current liabilities |
43.1 |
36.3 |
|
Total current liabilities |
1,156.5 |
696.3 |
|
Long-term debt |
1,070.5 |
1,175.0 |
|
Operating lease liabilities, long-term |
1,356.2 |
1,155.6 |
|
Deemed landlord financing, long-term |
463.5 |
221.6 |
|
Deferred taxes, net |
144.0 |
198.9 |
|
Other long-term liabilities |
188.2 |
48.4 |
|
Total shareholders' equity |
3,700.5 |
3,612.8 |
|
Total liabilities and shareholders' equity |
$ 8,079.4 |
$ 7,108.6 |
CALLAWAY GOLF COMPANY |
||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
(In millions, except per share data) |
||||
(Unaudited) |
||||
Three Months Ended March 31, |
||||
2022 |
2021 |
|||
Net revenues: |
||||
Products |
$ 722.4 |
$ 559.9 |
||
Services |
317.8 |
91.7 |
||
Total net revenues |
1,040.2 |
651.6 |
||
Costs and expenses: |
||||
Cost of products |
411.8 |
310.6 |
||
Cost of services, excluding depreciation and amortization |
39.0 |
11.0 |
||
Other venue expenses |
230.4 |
65.4 |
||
Selling, general and administrative expense |
243.1 |
173.9 |
||
Research and development expense |
17.5 |
12.7 |
||
Venue pre-opening costs |
4.1 |
1.9 |
||
Total costs and expenses |
945.9 |
575.5 |
||
Income from operations |
94.3 |
76.1 |
||
Interest expense, net |
(31.4) |
(17.4) |
||
Gain on Topgolf investment |
— |
252.5 |
||
Other income, net |
8.1 |
9.0 |
||
Income before income taxes |
71.0 |
320.2 |
||
Income tax (benefit)/provision |
(15.7) |
47.7 |
||
Net income |
$ 86.7 |
$ 272.5 |
||
Earnings per common share: |
||||
Basic |
$0.47 |
$2.32 |
||
Diluted |
$0.44 |
$2.19 |
||
Weighted-average common shares outstanding: |
||||
Basic |
185.1 |
117.5 |
||
Diluted |
200.8 |
124.6 |
||
On March 8, 2021, the Company completed its merger with Topgolf and has included the results of operations for Topgolf in its consolidated statements of operations from that date forward. |
CALLAWAY GOLF COMPANY |
|||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW |
|||
(In millions) |
|||
(Unaudited) |
|||
Three Months Ended March 31, |
|||
2022 |
2021 |
||
Cash flows from operating activities: |
|||
Net income |
$ 86.7 |
$ 272.5 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
|||
Depreciation and amortization |
42.6 |
20.3 |
|
Lease amortization expense |
20.9 |
10.8 |
|
Amortization of debt discount and issuance costs |
2.5 |
4.1 |
|
Deferred taxes, net |
(12.6) |
46.4 |
|
Non-cash share-based compensation |
13.8 |
4.6 |
|
Gain on Topgolf investment |
— |
(252.5) |
|
Acquisition costs |
— |
(15.8) |
|
Other |
(0.2) |
(6.1) |
|
Changes in assets and liabilities |
(339.0) |
(162.9) |
|
Net cash used in operating activities |
(185.3) |
(78.6) |
|
Cash flows from investing activities: |
|||
Cash acquired in merger |
— |
171.3 |
|
Capital expenditures |
(124.3) |
(28.8) |
|
Net cash (used in) provided by investing activities |
(124.3) |
142.5 |
|
Cash flows from financing activities: |
|||
Repayments of long-term debt |
(77.6) |
(5.3) |
|
Proceeds from borrowings on long-term debt |
60.0 |
— |
|
Proceeds from (repayments of) credit facilities, net |
212.2 |
(6.9) |
|
Debt issuance cost |
— |
(5.4) |
|
Payment on contingent earn-out obligation |
(5.6) |
(3.6) |
|
Repayments of financing leases |
(0.1) |
(0.1) |
|
Proceeds from lease financing |
50.5 |
3.1 |
|
Exercise of stock options |
— |
0.3 |
|
Acquisition of treasury stock |
(34.3) |
(12.5) |
|
Net cash provided by (used in) financing activities |
205.1 |
(30.4) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(3.0) |
(2.3) |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
(107.5) |
31.2 |
|
Cash, cash equivalents and restricted cash at beginning of period |
357.7 |
366.1 |
|
Cash, cash equivalents and restricted cash at end of period |
$ 250.2 |
$ 397.3 |
|
Restricted cash |
5.2 |
— |
|
Cash and cash equivalents at end of period |
$ 245.0 |
$ 397.3 |
CALLAWAY GOLF COMPANY |
||||||||||
Consolidated Net Revenues and Operating Segment Information |
||||||||||
(In millions) (Unaudited) |
||||||||||
Net Revenues by Product Category(1) |
||||||||||
Three Months Ended March 31, |
Growth |
Non-GAAP Constant Currency vs. 2021(1) |
||||||||
2022 |
2021 |
Dollars |
Percent |
Percent |
||||||
Net revenues: |
||||||||||
Venues(2) |
$ 306.5 |
$ 86.1 |
$ 220.4 |
256.0% |
256.3% |
|||||
Other Topgolf business lines(2) |
15.5 |
6.5 |
9.0 |
138.5% |
146.2% |
|||||
Golf Clubs |
370.4 |
316.4 |
54.0 |
17.1% |
20.4% |
|||||
Golf Balls |
97.6 |
60.5 |
37.1 |
61.3% |
63.6% |
|||||
Apparel |
138.4 |
95.3 |
43.1 |
45.2% |
50.4% |
|||||
Gear, Accessories & Other |
111.8 |
86.8 |
25.0 |
28.8% |
32.7% |
|||||
Total net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
59.6% |
62.9% |
|||||
(1) Calculated by applying 2021 exchange rates to 2022 reported sales in regions outside the U.S. |
||||||||||
(2) As of January 1, 2022, net revenue related to corporate advertising sponsorships offered at Topgolf venues will be included in the venues category. Previously, these revenues were included in other Topgolf business lines. As a result of the change, net revenue from venues and other Topgolf business lines in the first quarter of 2021 was recast to conform with the current period presentation. |
||||||||||
Net Revenues by Region |
||||||||||
Three Months Ended March 31, |
Growth |
Non-GAAP Constant Currency vs. 2021(1) |
||||||||
2022 |
2021 |
Dollars |
Percent |
Percent |
||||||
Net revenues: |
||||||||||
United States |
$ 709.4 |
$ 388.2 |
$ 321.2 |
82.7% |
82.7% |
|||||
Europe |
134.9 |
108.3 |
26.6 |
24.6% |
32.6% |
|||||
Asia |
158.6 |
123.9 |
34.7 |
28.0% |
37.4% |
|||||
Rest of world |
37.3 |
31.2 |
6.1 |
19.6% |
22.4% |
|||||
Total net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
59.6% |
62.9% |
|||||
(1) Calculated by applying 2021 exchange rates to 2022 reported sales in regions outside the U.S. |
||||||||||
Operating Segment Information |
||||||||||
Three Months Ended March 31, |
Growth/(Decline) |
Non-GAAP Constant Currency vs. 2021(1) |
||||||||
2022 |
2021 |
Dollars |
Percent |
Percent |
||||||
Net revenues: |
||||||||||
Topgolf |
$ 322.0 |
$ 92.6 |
$ 229.4 |
247.7% |
248.6% |
|||||
Golf Equipment |
468.0 |
376.9 |
91.1 |
24.2% |
27.4% |
|||||
Apparel, Gear & Other |
250.2 |
182.1 |
68.1 |
37.4% |
42.0% |
|||||
Total net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
59.6% |
62.9% |
|||||
Segment operating income: |
||||||||||
Topgolf |
$ 6.5 |
$ 4.0 |
$ 2.5 |
62.5% |
||||||
Golf Equipment |
100.8 |
84.9 |
15.9 |
18.7% |
||||||
Apparel, Gear and Other |
26.7 |
20.5 |
6.2 |
30.2% |
||||||
Total segment operating income |
134.0 |
109.4 |
24.6 |
22.5% |
||||||
Corporate costs and expenses(2) |
(39.7) |
(33.3) |
(6.4) |
19.2% |
||||||
Total operating income |
94.3 |
76.1 |
18.2 |
23.9% |
||||||
Gain on Topgolf investment(3) |
— |
252.5 |
(252.5) |
(100.0%) |
||||||
Interest expense, net |
(31.4) |
(17.4) |
(14.0) |
80.5% |
||||||
Other income, net |
8.1 |
9.0 |
(0.9) |
(10.0%) |
||||||
Total income before income taxes |
$ 71.0 |
$ 320.2 |
$ (249.2) |
(77.8%) |
||||||
(1) Calculated by applying 2021 exchange rates to 2022 reported sales in regions outside the U.S. |
||||||||||
(2) Amount includes corporate general and administrative expenses not utilized by management in determining segment profitability, in addition to amortization expense of acquired intangible assets and depreciation and amortization expense of the fair value adjustments on certain assets acquired and liabilities assumed in connection with the merger with Topgolf. The amount for 2022 also includes $2.7 million of costs associated with the implementation of new IT systems for Topgolf, legal and credit agency fees related to a postponed debt refinancing, in addition to charges of $3.8 million associated with the suspension of the Jack Wolfskin retail operations in Russia due to the Russia-Ukraine war. The amount for 2021 also includes $16.2 million of transaction, transition and other non-recurring costs associated with the merger with Topgolf and costs associated with the implementation of new IT systems for Jack Wolfskin. |
||||||||||
(3) Amount represents a gain recorded to step-up the Company's former investment in Topgolf to its fair value in connection with the merger. |
CALLAWAY GOLF COMPANY |
|||||||||||||||||||||
Supplemental Financial Information and Non-GAAP Reconciliation |
|||||||||||||||||||||
(In millions) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
Three Months Ended March 31, |
|||||||||||||||||||||
2022 |
2021 |
||||||||||||||||||||
GAAP |
Non-Cash Amortization and Depreciation(1) |
Non-Recurring Items and Impairment Charges(2) |
Tax Valuation Allowance(3) |
Non- GAAP |
GAAP |
Non-Cash Amortization, Depreciation (1) |
Non-Cash Amortization of Discount on Convertible Notes(4) |
Acquisition & Other Non-Recurring Items(5) |
Tax Valuation Allowance(3) |
Non- GAAP |
|||||||||||
Net revenues |
$ 1,040.2 |
$ — |
$ — |
$ — |
$ 1,040.2 |
$ 651.6 |
$ — |
$ — |
$ — |
$ — |
651.6 |
||||||||||
Total costs and expenses |
945.9 |
4.8 |
6.9 |
— |
934.2 |
575.5 |
3.5 |
— |
16.9 |
— |
555.1 |
||||||||||
Income/(loss) from operations |
94.3 |
(4.8) |
(6.9) |
— |
106.0 |
76.1 |
(3.5) |
— |
(16.9) |
— |
96.5 |
||||||||||
Other (expense)/income, net |
(23.3) |
(0.9) |
(0.3) |
— |
(22.1) |
244.1 |
(0.3) |
(2.5) |
252.4 |
— |
(5.5) |
||||||||||
Income/(loss) before income taxes |
71.0 |
(5.7) |
(7.2) |
— |
83.9 |
320.2 |
(3.8) |
(2.5) |
235.5 |
— |
91.0 |
||||||||||
Income tax (benefit)/provision |
(15.7) |
(1.4) |
(0.8) |
(26.5) |
13.0 |
47.7 |
(0.9) |
(0.6) |
(4.1) |
38.9 |
14.4 |
||||||||||
Net income/(loss) |
$ 86.7 |
$ (4.3) |
$ (6.4) |
$ 26.5 |
$ 70.9 |
$ 272.5 |
$ (2.9) |
$ (1.9) |
$ 239.6 |
$ (38.9) |
$ 76.6 |
||||||||||
Earnings per share - diluted(6) |
$ 0.44 |
$ (0.02) |
$ (0.03) |
$ 0.13 |
$ 0.36 |
$ 2.19 |
$ (0.02) |
$ (0.02) |
$ 1.92 |
$ (0.31) |
$ 0.62 |
||||||||||
Weighted-average shares |
200.8 |
200.8 |
200.8 |
200.8 |
200.8 |
124.6 |
124.6 |
124.6 |
124.6 |
124.6 |
124.6 |
||||||||||
(1) Includes non-cash amortization expense of acquired intangible assets, in addition to depreciation and amortization expense of the fair value adjustments on certain assets acquired and liabilities assumed in connection with the merger with Topgolf. |
|||||||||||||||||||||
(2) Includes IT integration and implementation costs at Topgolf, legal and credit agency fees related to a postponed debt refinancing, and charges of $3.8 million associated with the suspension of the Jack Wolfskin retail operations in Russia due to the Russia-Ukraine war. |
|||||||||||||||||||||
(3) Includes the recognition of a valuation allowance against certain deferred tax assets in the first quarter of 2021 as the result of the merger with Topgolf, as well as the subsequent release of a portion of the valuation allowance upon the Company's completion of its assessment of these deferred taxes in the first quarter of 2022. |
|||||||||||||||||||||
(4) Includes non-cash interest expense related to the debt discount amortization of the convertible notes issued in May 2020. In connection with the adoption of ASC 2020-06, as of January 1, 2022, the Company derecognized the discount associated with the convertible notes, and as such, will no longer recognize amortization expense in future periods. |
|||||||||||||||||||||
(5) Includes a $252.5 million gain to step-up the Company's pre-acquisition investment in Topgolf to its fair value, and $16.2 million in transaction and transition costs related to the merger with Topgolf. |
|||||||||||||||||||||
(6) In connection with the adoption of ASU 2020-06 in January 2022, the Company excluded $1.6 million of interest expense from net income related to its convertible notes for the purposes of calculating diluted EPS. |
CALLAWAY GOLF COMPANY |
|||||||||||||||||||
Non-GAAP Reconciliation and Supplemental Financial Information |
|||||||||||||||||||
(In millions) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
2022 Trailing Twelve Month Adjusted EBITDA |
2021 Trailing Twelve Month Adjusted EBITDA |
||||||||||||||||||
Quarter Ended |
Quarter Ended |
||||||||||||||||||
June 30, |
September 30, |
December 31, |
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
||||||||||||
2021 |
2021 |
2021 |
2022 |
Total |
2020 |
2020 |
2020 |
2021 |
Total |
||||||||||
Net income/(loss) |
$ 91.7 |
$ (16.0) |
$ (26.2) |
$ 86.7 |
$ 136.2 |
$ (167.7) |
$ 52.4 |
$ (40.6) |
$ 272.5 |
$ 116.6 |
|||||||||
Interest expense, net |
28.9 |
28.7 |
40.5 |
31.4 |
129.5 |
12.2 |
12.7 |
12.9 |
17.5 |
55.3 |
|||||||||
Income tax (benefit)/provision |
(15.8) |
66.2 |
(69.4) |
(15.7) |
(34.7) |
(7.9) |
5.4 |
(7.1) |
47.7 |
38.1 |
|||||||||
Depreciation and amortization expense |
43.3 |
44.4 |
47.9 |
42.5 |
178.1 |
9.4 |
10.3 |
10.8 |
20.3 |
50.8 |
|||||||||
JW goodwill and trade name impairment(1) |
— |
— |
— |
— |
— |
174.3 |
— |
— |
— |
174.3 |
|||||||||
Non-cash stock compensation and stock warrant expense, net |
11.0 |
10.8 |
12.0 |
14.5 |
48.3 |
2.9 |
3.3 |
2.9 |
4.6 |
13.7 |
|||||||||
Non-cash lease amortization expense |
2.1 |
2.8 |
7.7 |
3.5 |
16.1 |
0.2 |
(0.1) |
— |
0.8 |
0.9 |
|||||||||
Acquisitions & other non-recurring costs, |
3.3 |
1.9 |
1.8 |
6.9 |
13.9 |
5.8 |
4.4 |
8.6 |
(235.6) |
(216.8) |
|||||||||
Adjusted EBITDA |
$ 164.5 |
$ 138.8 |
$ 14.3 |
$ 169.8 |
$ 487.4 |
$ 29.2 |
$ 88.4 |
$ (12.5) |
$ 127.8 |
$ 232.9 |
|||||||||
(1) Amounts include an impairment charge related to Jack Wolfskin. |
|||||||||||||||||||
(2) In 2022, amounts include charges of $3.8 million associated with the suspension of the Jack Wolfskin retail operations in Russia due to the Russia-Ukraine war, as well as costs associated with the implementation of new IT systems for Topgolf, and legal costs and credit agency fees related to a postponed debt refinancing. In 2021, amounts include the recognition of a $252.5 million gain on the Company's pre-merger investment in Topgolf, as well as $21.2 million in transaction, transition, and other non-recurring costs associated with the merger with Topgolf, and $2.8 million in expenses related to the implementation of new IT systems for Jack Wolfskin. In 2020, amounts include transaction costs of $8.5 million related to the merger with Topgolf, $2.8 million related to the Company's transition to its new North America Distribution Center, and $1.5 million in IT implementation costs for Jack Wolfskin. |
CALLAWAY GOLF COMPANY |
|||
Topgolf Non-GAAP Reconciliation and Supplemental Financial Information |
|||
(In millions) |
|||
(Unaudited) |
|||
Three Months Ended |
Three Months Ended |
||
March 31, 2022 |
March 31, 2021 |
||
Segment operating income(1): |
$ 6.5 |
$ 4.0 |
|
Depreciation and amortization expense |
28.1 |
8.7 |
|
Non-cash stock compensation expense |
3.7 |
0.9 |
|
Non-cash lease amortization expense |
3.2 |
0.6 |
|
Foreign currency |
— |
0.5 |
|
Adjusted segment EBITDA |
41.5 |
14.7 |
|
Topgolf pre-merger EBITDA contribution for Jan. and Feb. 2021 |
— |
2.3 |
|
Pro forma segment adjusted EBITDA |
$ 41.5 |
$ 17.0 |
|
(1) The Company does not calculate GAAP net income at the operating segment level, but has provided Topgolf's segment income from operations as a relevant measurement of profitability. Segment income from operations does not include interest expense and taxes as well as other non-cash and non-recurring items. Segment operating income is reconciled to the Company's consolidated pre-tax income in the Consolidated Net Revenues and Operating Segment Information included in this release. |
SOURCE Callaway Golf Company
Рост выручки в первом квартале Обусловлен Высоким Спросом, Улучшением Предложения и Укреплением Позиций Во Всех Сегментах
Topgolf Обеспечивает положительный Рост продаж на 2,3% В том же месте По сравнению с 2019 годом
КАРЛСБАД, Калифорния, 10 мая 2022 года /PRNewswire/ -- Компания Callaway Golf ("Компания" или "Callaway") (NYSE: ELY) объявила сегодня о своих финансовых результатах за квартал, закончившийся 31 марта 2022 года.
"Наши результаты за первый квартал отражают высокие показатели во всех сегментах, поскольку спрос на наше оборудование для гольфа и линейки мягких товаров оставался очень высоким, и Topgolf завершила квартал на высокой ноте. После медленного старта в начале квартала из-за Omicron мартовские продажи Topgolf в том же месте выросли примерно на 10% по сравнению с 2019 годом, что привело к приятному росту продаж в том же месте на 2% за квартал по сравнению с 2019 годом", - прокомментировал Чип Брюер, президент и главный исполнительный директор Callaway. "Наш уверенный старт в этом году вместе с сохраняющимся высоким спросом во всех наших бизнес-сегментах дает нам уверенность в повышении наших прогнозных ожиданий на весь 2022 год. Я не мог быть более доволен тем, как работает наш бизнес, или более уверен в нашей способности создавать долгосрочную акционерную стоимость".
GAAP, NON-GAAP И ПРЕДВАРИТЕЛЬНЫЕ результаты В дополнение к результатам Компании, подготовленным в соответствии с GAAP, Компания предоставила информацию на основе, отличной от GAAP. Способ получения этой информации, не относящейся к GAAP, обсуждается далее в конце этого выпуска, и Компания предоставила в таблицах к этому выпуску сверку информации, не относящейся к GAAP, с наиболее непосредственно сопоставимой информацией GAAP. Результаты за 2021 год, представленные на формальной основе, включают результаты Topgolf за январь и февраль до закрытия слияния 8 марта 2021 года.
краткое изложение финансовых результатов
Компания объявила следующие финансовые результаты по GAAP и не по GAAP за квартал, закончившийся 31 марта 2022 года (в миллионах, за исключением прибыли на акцию).
Three Months Ended March 31, |
|||||
2022 |
2021(1) |
Change |
|||
Net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
||
Income from operations |
94.3 |
76.1 |
18.2 |
||
Other (expense)/income, net |
(23.3) |
244.1 |
(267.4) |
||
Income before income taxes |
71.0 |
320.2 |
(249.2) |
||
Net income |
$ 86.7 |
$ 272.5 |
$ (185.8) |
||
Earnings per share - diluted |
$ 0.44 |
$ 2.19 |
$ (1.75) |
||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $142.9 million in net revenues and $(27.8) million in loss before income taxes. |
результаты, не относящиеся к ОПБУ
Результаты, не относящиеся к GAAP, исключают определенные Единовременные и Неденежные корректировки, как определено ниже.
Three Months Ended March 31, |
|||||
2022 |
2021(1) |
Change |
|||
Net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
||
Income from operations |
106.0 |
96.5 |
9.5 |
||
Other expense, net |
(22.1) |
(5.5) |
(16.6) |
||
Income before income taxes |
83.9 |
91.0 |
(7.1) |
||
Net income |
$ 70.9 |
$ 76.6 |
$ (5.7) |
||
Earnings per share - diluted |
$ 0.36 |
$ 0.62 |
$ (0.26) |
||
Adjusted EBITDA |
$ 169.8 |
$ 127.8 |
$ 42.0 |
||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $142.9 million in net revenues and $2.3 million in Adjusted EBITDA. |
Основные финансовые показатели за первый квартал 2022 года (Все сравнения с предыдущими периодами рассчитываются в годовом исчислении).
результаты сегмента
В таблице ниже представлена разбивка чистой выручки сегмента за квартал, закончившийся 31 марта 2022 года (в миллионах):
SEGMENT NET REVENUES |
|||||||||||
Reported Results for the |
Pro Forma Results for the |
||||||||||
Three Months Ended March 31, |
Three Months Ended March 31, |
||||||||||
2022 |
2021(1) |
Change |
2022 |
2021(1) |
Change |
||||||
Topgolf |
$ 322.0 |
$ 92.6 |
$ 229.4 |
$ 322.0 |
$ 235.6 |
$ 86.4 |
|||||
Golf Equipment |
468.0 |
376.9 |
91.1 |
468.0 |
376.9 |
91.1 |
|||||
Apparel, Gear and Other |
250.2 |
182.1 |
68.1 |
250.2 |
182.1 |
68.1 |
|||||
Total Segment Net Revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
$ 1,040.2 |
$ 794.6 |
$ 245.6 |
|||||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $142.9 million in net revenues and are included in the pro forma results table above. |
В таблице ниже представлена разбивка операционных доходов сегмента за квартал, закончившийся 31 марта 2022 года (в миллионах):
SEGMENT OPERATING INCOME |
|||||||||||
Reported Results for the |
Pro Forma Results for the |
||||||||||
Three Months Ended March 31, |
Three Months Ended March 31, |
||||||||||
2022 |
2021(1) |
Change |
2022 |
2021(1) |
Change |
||||||
Topgolf |
$ 6.5 |
$ 4.0 |
$ 2.5 |
$ 6.5 |
$ (14.1) |
$ 20.6 |
|||||
% of segment revenue |
2.0% |
4.3% |
(230) bps |
2.0% |
(6.0)% |
800 bps |
|||||
Golf Equipment |
100.8 |
84.9 |
15.9 |
100.8 |
84.9 |
15.9 |
|||||
% of segment revenue |
21.5% |
22.5% |
(100) bps |
21.5% |
22.5% |
(100) bps |
|||||
Apparel, Gear and Other |
26.7 |
20.5 |
6.2 |
26.7 |
20.5 |
6.2 |
|||||
% of segment revenue |
10.7% |
11.3% |
(60) bps |
10.7% |
11.3% |
(60) bps |
|||||
Total segment operating income |
$ 134.0 |
$ 109.4 |
$ 24.6 |
$ 134.0 |
$ 91.3 |
$ 42.7 |
|||||
% of segment revenue |
12.9% |
16.8% |
(390) bps |
12.9% |
11.5% |
140 bps |
|||||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $142.9 million in net revenues and $(18.1) million in segment operating loss, which are included in the pro forma results table above. |
Основные показатели сегмента за первый квартал 2022 года (все сравнения с предыдущими периодами рассчитываются в годовом исчислении)
Ниже приведена сверка дохода до вычета налогов на прибыль с общим операционным доходом сегмента за квартал, закончившийся 31 марта 2022 и 2021 годов (в миллионах):
Three Months Ended March 31, |
|||||
2022 |
2021(1) |
Change |
|||
Total segment operating income: |
$ 134.0 |
$ 109.4 |
$ 24.6 |
||
Corporate costs and expenses(2) |
(39.7) |
(33.3) |
(6.4) |
||
Income from operations |
94.3 |
76.1 |
18.2 |
||
Gain on Topgolf investment |
— |
252.5 |
(252.5) |
||
Interest expense |
(31.4) |
(17.4) |
(14.0) |
||
Other income |
8.1 |
9.0 |
(0.9) |
||
Income before income taxes |
$ 71.0 |
$ 320.2 |
$ (249.2) |
||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported financial results for the first quarter of 2021 only include approximately one month of Topgolf results and therefore do not include January and February results, which were in the aggregate $(18.1) million in segment operating loss and $(27.8) million in loss before income taxes. |
|||||
(2) Includes corporate overhead and certain non-recurring and non-cash items as described in the schedules to this release. |
перспективы бизнеса на 2022 год
Приведенные ниже прогнозы на 2022 год основаны на наилучших оценках Компании на данный момент. Они включают оценочное влияние определенных факторов, в том числе (1) продолжающееся воздействие COVID-19, (2) изменения в иностранной валюте, которые, по оценкам, окажут негативное влияние на чистую выручку за весь год в размере 115 миллионов долларов по сравнению с 2021 годом и 39 миллионов долларов на чистую выручку за второй квартал по сравнению с второй квартал 2021 года и (3) транспортные расходы и другие инфляционные факторы.
FULL YEAR 2022 OUTLOOK |
|||||||
(in millions) |
2022 Current Estimate |
2022 Previous Estimate |
2021 Reported |
2021 Pro Forma |
|||
Net revenues |
$3,935 - $3,970 |
$3,780 - $3,820 |
$3,133 |
$3,276 |
|||
Adjusted EBITDA |
$535 - $555 |
$490 - $515 |
$445 |
$448 |
|||
(1) Due to the timing of the Topgolf merger on March 8, 2021, Callaway's reported full year financial results for 2021 only include approximately ten |
Чистая Выручка: Оценка чистой выручки за весь 2022 год предполагает, что выручка сегмента Topgolf за двенадцать месяцев, закончившихся 31 декабря 2022 года, составит примерно 1,56 миллиарда долларов, выручка сегмента оборудования для гольфа увеличится примерно на 10% в годовом исчислении, а выручка сегмента одежды, снаряжения и прочего оборудования достигнет примерно 1 миллиарда долларов. Ожидается, что продажи на тех же площадках Topgolf за весь год вырастут на уровне однозначных цифр от среднего до высокого по сравнению с 2019 годом, по сравнению с предыдущей оценкой роста с низкими однозначными цифрами, поскольку бизнес с посещениями остается сильным, а бизнес мероприятий продолжает восстанавливаться быстрее, чем первоначально ожидалось.
Скорректированный показатель EBITDA: Компания увеличивает свой прогноз по скорректированной EBITDA на весь 2022 год на 42,5 миллиона долларов в середине прогноза. Без учета какого-либо влияния изменений в иностранной валюте это представляет собой увеличение на 49,5 млн долларов за весь год по сравнению со средним значением предыдущего скорректированного показателя EBITDA и увеличение на 27,5 млн долларов за второй-четвертый кварталы 2022 года. Скорректированная оценка EBITDA за весь 2022 год предполагает, что сегмент Topgolf принесет скорректированную EBITDA в размере 225-240 миллионов долларов США за двенадцать месяцев, закончившихся 31 декабря 2022 года.
SECOND QUARTER 2022 OUTLOOK |
|||||||||||||||
(in millions) |
2022 Estimate |
2021 Results |
|||||||||||||
Net Revenues |
$1,085 - $1,105 |
$914 |
|||||||||||||
Adjusted EBITDA |
$185 - $200 |
$164 |
Чистая Выручка: Оценка чистой выручки во втором квартале 2022 года предполагает, что все сегменты продолжат превосходить показатели 2021 года.
Скорректированная EBITDA: Скорректированная оценка EBITDA за второй квартал 2022 года предполагает, что рентабельность по-прежнему в значительной степени превышает любые затраты, фрахт и валютное давление, с которыми сталкивается Компания, поскольку объем, цена и сохраняющаяся эффективность продолжают компенсировать это давление.
дополнительная информация и раскрытие информации
Конференц-связь и веб-трансляция
Компания проведет телефонную конференцию в 14:00 по тихоокеанскому времени сегодня, 10 мая 2022 года, для обсуждения финансовых результатов, перспектив и бизнеса Компании. Звонок будет транслироваться в прямом эфире через Интернет, и доступ к нему можно получить по адресу http://ir.callawaygolf.com /. Воспроизведение конференц-звонка будет доступно примерно через два часа после его окончания и будет доступно до 9:00 вечера по тихоокеанскому времени 17 мая 2022 года. К воспроизведению можно получить доступ через Интернет по адресу http://ir.callawaygolf.com /.
Информация, не относящаяся к ОПБУ
Результаты GAAP, содержащиеся в настоящем пресс-релизе, и таблицы финансовой отчетности, прилагаемые к настоящему пресс-релизу, были подготовлены в соответствии с принципами бухгалтерского учета, общепринятыми в Соединенных Штатах Америки ("GAAP"). В дополнение к результатам GAAP Компания предоставила определенную финансовую информацию, не относящуюся к GAAP, следующим образом:
Постоянная Валютная База. Компания предоставила определенную информацию о финансовых результатах Компании или прогнозируемых финансовых результатах на "постоянной валютной основе". Эта информация оценивает влияние изменений курсов иностранных валют на пересчет финансовых результатов Компании за текущий или прогнозируемый будущий период по сравнению с соответствующим сопоставимым периодом. Это влияние определяется путем учета текущих или прогнозируемых результатов в местной валюте и перевода их в доллары США на основе обменных курсов иностранных валют за соответствующий сопоставимый период. Он не включает в себя какое-либо другое влияние изменений курсов иностранных валют на результаты или бизнес Компании.
Единовременные и неденежные корректировки. Компания предоставила информацию, исключающую определенную неденежную амортизацию и амортизацию нематериальных активов и других активов, связанных с приобретениями Компании, неденежную амортизацию дисконта по долгу, связанного с конвертируемыми облигациями Компании в 2021 году, приобретением и другими единовременными статьями (включая затраты на интеграцию и неденежный доход в размере 252,5 млн. прибыль в 2021 году в результате позиции Компании в капитале Topgolf до слияния), а также изменения в неденежном оценочном резерве Компании, отраженном в отношении определенных отложенных налоговых активов Компании в результате слияния Topgolf.
Скорректированная EBITDA. Компания предоставляет информацию о своих результатах, исключая проценты, налоги, расходы на износ и амортизацию, неденежные расходы на компенсацию запасов, неденежные расходы на амортизацию аренды, а также единовременные и неденежные статьи, упомянутые выше.
Кроме того, Компания включила в графики, прилагаемые к этому выпуску, сверку определенной информации, не относящейся к GAAP, с наиболее непосредственно сопоставимой информацией GAAP. Информация, не относящаяся к GAAP, представленная в этом выпуске и связанных с ним таблицах, не должна рассматриваться изолированно или в качестве замены какой-либо меры, полученной в соответствии с GAAP. Информация, не относящаяся к GAAP, также может быть несовместима с тем, каким образом аналогичные показатели выводятся или используются другими компаниями. Руководство использует такую информацию, не относящуюся к GAAP, для целей принятия финансовых и операционных решений, а также в качестве средства оценки сравнений между периодами и прогнозирования бизнеса Компании в будущем. Руководство считает, что представление такой информации, не относящейся к GAAP, при рассмотрении в сочетании с наиболее непосредственно сопоставимой информацией по GAAP, предоставляет инвесторам дополнительную полезную сравнительную информацию при оценке основных показателей деятельности Компании в отношении этих статей. Компания предоставила сверяющую информацию в прилагаемых графиках.
Для прогнозной скорректированной информации по EBITDA, представленной в этом выпуске, сверка такой прогнозной скорректированной EBITDA с наиболее близким к сопоставимому финансовому показателю GAAP (чистая прибыль) не предоставляется, поскольку Компания не в состоянии обеспечить такую сверку без необоснованных усилий. Невозможность предоставить сверку объясняется тем, что в настоящее время Компания не в состоянии с достаточной степенью уверенности предсказать тип и объем определенных статей, которые, как ожидается, повлияют на чистую прибыль в будущем, но не повлияют на скорректированную EBITDA. Эти статьи могут включать определенную неденежную амортизацию, которая будет колебаться в зависимости от уровня капитальных затрат Компании, неденежную амортизацию нематериальных активов, связанных с приобретениями Компании, налоги на прибыль, которые могут колебаться в зависимости от изменений в других отмеченных статьях и / или будущих прогнозах, и другие неденежныетекущие расходы и неденежные корректировки. Исторически сложилось так, что Компания исключала эти статьи из скорректированной EBITDA. В настоящее время Компания планирует продолжать исключать эти статьи в будущих раскрытиях скорректированной EBITDA, а также может исключить другие статьи, которые могут возникнуть. События, которые обычно приводят к признанию таких корректировок, по своей сути непредсказуемы в отношении того, могут ли они произойти или когда они могут произойти, и поэтому фактические результаты могут существенно отличаться. Эта недоступная информация может оказать существенное влияние на чистую прибыль.
Продажи в том же месте. Callaway определяет продажи на тех же площадках для своего бизнеса Topgolf как продажи для сопоставимой базы площадок, которая определяется как количество площадок, управляемых Компанией, с не менее чем 24 полными финансовыми месяцами работы в год сравнения.
Прогнозные заявления
Заявления, используемые в этом пресс-релизе, которые касаются будущих планов, событий, финансовых результатов, результатов деятельности, перспектив или возможностей роста, включая заявления, касающиеся Компании (и ее сегментов) во втором квартале и за весь 2022 год (включая чистую выручку, продажи в том же месте, скорректированный показатель EBITDA и скорректированный сегмент Topgolf EBITDA), продолжающееся влияние пандемии COVID-19 на бизнес Компании и способность Компании улучшаться и восстанавливаться после такого воздействия, влияние любых мер, принятых для смягчения последствий пандемии, сила и востребованность продуктов и услуг Компании, сохраняющаяся динамика бренда, спрос на гольф а также мероприятия на свежем воздухе и одежду, продолжающиеся инвестиции в бизнес, увеличение акционерной стоимости, тенденции и поведение потребителей после пандемии, будущие отраслевые и рыночные условия, ценообразование на товары и услуги, выгоды от слияния Topgolf, влияние иностранной валюты и их последствия, последствия инфляции и грузоперевозок и другие проблемы с поставками, а также заявления о убеждениях и любые заявления о предположениях, лежащие в основе любого из вышеизложенных, являются прогнозными заявлениями, как это определено в соответствии с Законом о реформе судебных разбирательств по частным ценным бумагам 1995 года. Слова "полагать", "ожидать", "оценивать", "мог бы", "должен", "намереваться", "может", "планировать", "стремиться", "предвидеть", "проектировать" и подобные выражения, среди прочего, обычно обозначают прогнозные заявления, которые говорят только на дату, когда были сделаны заявления, и не являются гарантией будущих результатов. Эти заявления основаны на текущей информации и ожиданиях. Точно определить прогнозные заявления основаны на различного рода риски, и неизвестных, в том числе сбои в бизнес-операции из дополнительных регуляторных ограничений в ответ на COVID-19 пандемией (например, ограничения на поездки, утвержденные органами государственного управления, закрытие заказов и помещает в карантин) или добровольный "социальное дистанцирование", что влияет на сотрудников, клиентов и поставщиков; затраты, расходы и трудности, связанные с объединением с гольф-клуб topgolf, включая интеграцию гольф-клуб topgolf бизнеса; неспособность реализовать ожидаемые выгоды и взаимодополняемости в гольф-клуб topgolf, слияние в ожидаемые сроки или на всех; производство задержки, закрытие производств, торговых точек, складов и цепочек снабжения и распределения; кадрового дефицита в результате удаленной работы требования или иным образом; неопределенность в отношении мировой экономической конъюнктуры, в частности, неопределенность в отношении продолжительности и продолжительное влияние COVID-19 пандемией, и связанных с уменьшением покупательского спроса/расходов и постоянным увеличением эксплуатационных и транспортных расходов; глобальные цепочки поставок, трудности и проблемы (в том числе, без ограничений, как результат каких либо длительных перерывов в Китай); в компании уровня задолженности; постоянное наличие кредитования и ликвидности, а также возможность для соблюдения действующего долгового обязательства; эффективность размещения капитала и затрат и счет уменьшения усилия; продолжение бренда обороты и успеха продукта; рост непосредственно на потребителя и каналов электронной коммерции; умение реализовать преимущества инвестиций в бизнес компании; потребителя и спроса для компании и ее дочерних компаний продуктов и услуг; стоимости жизни и инфляции; изменения в США, налоговую или иную политику, в том числе ограничения на ввоз или повышение импортных пошлин; будущего потребителя покупательской активности, что может существенно отрицательно повлиять неблагоприятные экономические или рыночные условия; будущему продавцу покупательской активности, который может быть существенно негативно влияет неблагоприятных производственных условиях и в целом в розницу уровня запасов; и будущих изменений валютных курсов и от степени эффективности хеджирования компании. Фактические результаты могут существенно отличаться от оцененных или ожидаемых в результате этих рисков и неизвестных или других рисков и неопределенностей, включая влияние террористической деятельности, вооруженных конфликтов, стихийных бедствий или пандемических заболеваний, включая расширенную вспышку COVID-19 и его разновидностей, на экономику в целом, на уровень спрос на продукты и услуги Компании и ее дочерних компаний или на способность Компании управлять своей деятельностью, цепочкой поставок и логистикой доставки в таких условиях; задержки, трудности или увеличение затрат при поставке компонентов или товаров, необходимых для производства продукции Компании или при производстве продукции Компании; и снижение уровня участия в гольфе в целом во время или в результате пандемии COVID-19. Для получения дополнительной информации об этих и других рисках и неопределенностях, которые могут повлиять на эти заявления и бизнес Компании, см. Годовой отчет Компании по форме 10-K за год, закончившийся 31 декабря 2021 года, а также другие риски и неопределенности, время от времени подробно описываемые в отчетах Компании по Формам 10-Q и 8-K впоследствии были поданы в Комиссию по ценным бумагам и биржам. Читателей предостерегают от чрезмерного доверия к этим прогнозным заявлениям, которые относятся только к дате настоящего документа. Компания не берет на себя никаких обязательств по повторной публикации пересмотренных прогнозных заявлений для отражения событий или обстоятельств после даты настоящего Соглашения или для отражения наступления непредвиденных событий.
О компании Callaway Golf Callaway Golf Company (NYSE: ELY) - это непревзойденная, технологичная современная компания по гольфу и активному образу жизни, предоставляющая ведущее оборудование для гольфа, одежду и развлечения, с портфелем мировых брендов, включая Callaway Golf, Topgolf, Odyssey, OGIO, TravisMathew и Jack Wolfskin. Благодаря непоколебимой приверженности инновациям Callaway производит и продает клюшки для гольфа премиум-класса, мячи для гольфа, сумки для гольфа и стиля жизни, одежду для гольфа и стиля жизни и другие аксессуары, а также предоставляет развлечения для гольфа мирового класса через Topgolf, свою дочернюю компанию, полностью принадлежащую ей. Для получения дополнительной информации, пожалуйста, посетите www.callawaygolf.com , www.topgolf.com , www.odysseygolf.com , www.OGIO.com , www.travismathew.com , и www.jack-wolfskin.com .
Контакты для инвесторов Брайан Линчлорен Скотт(760) 931-1771[email protected]
CALLAWAY GOLF COMPANY |
|||
CONSOLIDATED BALANCE SHEETS |
|||
(In millions) |
|||
(Unaudited) |
|||
March 31, |
December 31, |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 245.0 |
$ 352.2 |
|
Restricted cash |
1.0 |
1.2 |
|
Accounts receivable, net |
413.1 |
105.3 |
|
Inventories |
552.4 |
533.5 |
|
Other current assets |
192.0 |
173.5 |
|
Total current assets |
1,403.5 |
1,165.7 |
|
Property, plant and equipment, net |
1,534.5 |
1,451.4 |
|
Operating lease right-of-use assets, net |
1,359.3 |
1,384.5 |
|
Goodwill and intangible assets, net |
3,492.5 |
3,488.7 |
|
Other assets |
289.6 |
257.5 |
|
Total assets |
$ 8,079.4 |
$ 7,747.8 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable and accrued expenses |
$ 536.8 |
$ 491.2 |
|
Accrued employee compensation and benefits |
107.9 |
128.9 |
|
Asset-based credit facilities |
219.3 |
9.1 |
|
Operating lease liabilities, short-term |
77.8 |
72.3 |
|
Construction advances |
72.3 |
22.9 |
|
Deferred revenue |
99.3 |
93.9 |
|
Other current liabilities |
43.1 |
47.7 |
|
Total current liabilities |
1,156.5 |
866.0 |
|
Long-term debt |
1,070.5 |
1,025.3 |
|
Operating lease liabilities, long-term |
1,356.2 |
1,385.4 |
|
Deemed landlord financing, long-term |
463.5 |
460.6 |
|
Deferred taxes, net |
144.0 |
163.6 |
|
Other long-term liabilities |
188.2 |
164.0 |
|
Total shareholders' equity |
3,700.5 |
3,682.9 |
|
Total liabilities and shareholders' equity |
$ 8,079.4 |
$ 7,747.8 |
CALLAWAY GOLF COMPANY |
|||
CONSOLIDATED BALANCE SHEETS |
|||
(In millions) |
|||
(Unaudited) |
|||
March 31, 2022 |
March 31, 2021 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 245.0 |
$ 397.3 |
|
Restricted cash |
1.0 |
— |
|
Accounts receivable, net |
413.1 |
328.8 |
|
Inventories |
552.4 |
336.3 |
|
Other current assets |
192.0 |
140.8 |
|
Total current assets |
1,403.5 |
1,203.2 |
|
Property, plant and equipment, net |
1,534.5 |
1,192.3 |
|
Operating lease right-of-use assets, net |
1,359.3 |
1,041.4 |
|
Goodwill and intangible assets, net |
3,492.5 |
3,589.9 |
|
Other assets |
289.6 |
81.8 |
|
Total assets |
$ 8,079.4 |
$ 7,108.6 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable and accrued expenses |
$ 536.8 |
$ 379.7 |
|
Accrued employee compensation and benefits |
107.9 |
87.7 |
|
Asset-based credit facilities |
219.3 |
15.3 |
|
Operating lease liabilities, short-term |
77.8 |
51.5 |
|
Construction advances |
72.3 |
54.9 |
|
Deferred revenue |
99.3 |
70.9 |
|
Other current liabilities |
43.1 |
36.3 |
|
Total current liabilities |
1,156.5 |
696.3 |
|
Long-term debt |
1,070.5 |
1,175.0 |
|
Operating lease liabilities, long-term |
1,356.2 |
1,155.6 |
|
Deemed landlord financing, long-term |
463.5 |
221.6 |
|
Deferred taxes, net |
144.0 |
198.9 |
|
Other long-term liabilities |
188.2 |
48.4 |
|
Total shareholders' equity |
3,700.5 |
3,612.8 |
|
Total liabilities and shareholders' equity |
$ 8,079.4 |
$ 7,108.6 |
CALLAWAY GOLF COMPANY |
||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
(In millions, except per share data) |
||||
(Unaudited) |
||||
Three Months Ended March 31, |
||||
2022 |
2021 |
|||
Net revenues: |
||||
Products |
$ 722.4 |
$ 559.9 |
||
Services |
317.8 |
91.7 |
||
Total net revenues |
1,040.2 |
651.6 |
||
Costs and expenses: |
||||
Cost of products |
411.8 |
310.6 |
||
Cost of services, excluding depreciation and amortization |
39.0 |
11.0 |
||
Other venue expenses |
230.4 |
65.4 |
||
Selling, general and administrative expense |
243.1 |
173.9 |
||
Research and development expense |
17.5 |
12.7 |
||
Venue pre-opening costs |
4.1 |
1.9 |
||
Total costs and expenses |
945.9 |
575.5 |
||
Income from operations |
94.3 |
76.1 |
||
Interest expense, net |
(31.4) |
(17.4) |
||
Gain on Topgolf investment |
— |
252.5 |
||
Other income, net |
8.1 |
9.0 |
||
Income before income taxes |
71.0 |
320.2 |
||
Income tax (benefit)/provision |
(15.7) |
47.7 |
||
Net income |
$ 86.7 |
$ 272.5 |
||
Earnings per common share: |
||||
Basic |
$0.47 |
$2.32 |
||
Diluted |
$0.44 |
$2.19 |
||
Weighted-average common shares outstanding: |
||||
Basic |
185.1 |
117.5 |
||
Diluted |
200.8 |
124.6 |
||
On March 8, 2021, the Company completed its merger with Topgolf and has included the results of operations for Topgolf in its consolidated statements of operations from that date forward. |
CALLAWAY GOLF COMPANY |
|||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW |
|||
(In millions) |
|||
(Unaudited) |
|||
Three Months Ended March 31, |
|||
2022 |
2021 |
||
Cash flows from operating activities: |
|||
Net income |
$ 86.7 |
$ 272.5 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
|||
Depreciation and amortization |
42.6 |
20.3 |
|
Lease amortization expense |
20.9 |
10.8 |
|
Amortization of debt discount and issuance costs |
2.5 |
4.1 |
|
Deferred taxes, net |
(12.6) |
46.4 |
|
Non-cash share-based compensation |
13.8 |
4.6 |
|
Gain on Topgolf investment |
— |
(252.5) |
|
Acquisition costs |
— |
(15.8) |
|
Other |
(0.2) |
(6.1) |
|
Changes in assets and liabilities |
(339.0) |
(162.9) |
|
Net cash used in operating activities |
(185.3) |
(78.6) |
|
Cash flows from investing activities: |
|||
Cash acquired in merger |
— |
171.3 |
|
Capital expenditures |
(124.3) |
(28.8) |
|
Net cash (used in) provided by investing activities |
(124.3) |
142.5 |
|
Cash flows from financing activities: |
|||
Repayments of long-term debt |
(77.6) |
(5.3) |
|
Proceeds from borrowings on long-term debt |
60.0 |
— |
|
Proceeds from (repayments of) credit facilities, net |
212.2 |
(6.9) |
|
Debt issuance cost |
— |
(5.4) |
|
Payment on contingent earn-out obligation |
(5.6) |
(3.6) |
|
Repayments of financing leases |
(0.1) |
(0.1) |
|
Proceeds from lease financing |
50.5 |
3.1 |
|
Exercise of stock options |
— |
0.3 |
|
Acquisition of treasury stock |
(34.3) |
(12.5) |
|
Net cash provided by (used in) financing activities |
205.1 |
(30.4) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(3.0) |
(2.3) |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
(107.5) |
31.2 |
|
Cash, cash equivalents and restricted cash at beginning of period |
357.7 |
366.1 |
|
Cash, cash equivalents and restricted cash at end of period |
$ 250.2 |
$ 397.3 |
|
Restricted cash |
5.2 |
— |
|
Cash and cash equivalents at end of period |
$ 245.0 |
$ 397.3 |
CALLAWAY GOLF COMPANY |
||||||||||
Consolidated Net Revenues and Operating Segment Information |
||||||||||
(In millions) (Unaudited) |
||||||||||
Net Revenues by Product Category(1) |
||||||||||
Three Months Ended March 31, |
Growth |
Non-GAAP Constant Currency vs. 2021(1) |
||||||||
2022 |
2021 |
Dollars |
Percent |
Percent |
||||||
Net revenues: |
||||||||||
Venues(2) |
$ 306.5 |
$ 86.1 |
$ 220.4 |
256.0% |
256.3% |
|||||
Other Topgolf business lines(2) |
15.5 |
6.5 |
9.0 |
138.5% |
146.2% |
|||||
Golf Clubs |
370.4 |
316.4 |
54.0 |
17.1% |
20.4% |
|||||
Golf Balls |
97.6 |
60.5 |
37.1 |
61.3% |
63.6% |
|||||
Apparel |
138.4 |
95.3 |
43.1 |
45.2% |
50.4% |
|||||
Gear, Accessories & Other |
111.8 |
86.8 |
25.0 |
28.8% |
32.7% |
|||||
Total net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
59.6% |
62.9% |
|||||
(1) Calculated by applying 2021 exchange rates to 2022 reported sales in regions outside the U.S. |
||||||||||
(2) As of January 1, 2022, net revenue related to corporate advertising sponsorships offered at Topgolf venues will be included in the venues category. Previously, these revenues were included in other Topgolf business lines. As a result of the change, net revenue from venues and other Topgolf business lines in the first quarter of 2021 was recast to conform with the current period presentation. |
||||||||||
Net Revenues by Region |
||||||||||
Three Months Ended March 31, |
Growth |
Non-GAAP Constant Currency vs. 2021(1) |
||||||||
2022 |
2021 |
Dollars |
Percent |
Percent |
||||||
Net revenues: |
||||||||||
United States |
$ 709.4 |
$ 388.2 |
$ 321.2 |
82.7% |
82.7% |
|||||
Europe |
134.9 |
108.3 |
26.6 |
24.6% |
32.6% |
|||||
Asia |
158.6 |
123.9 |
34.7 |
28.0% |
37.4% |
|||||
Rest of world |
37.3 |
31.2 |
6.1 |
19.6% |
22.4% |
|||||
Total net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
59.6% |
62.9% |
|||||
(1) Calculated by applying 2021 exchange rates to 2022 reported sales in regions outside the U.S. |
||||||||||
Operating Segment Information |
||||||||||
Three Months Ended March 31, |
Growth/(Decline) |
Non-GAAP Constant Currency vs. 2021(1) |
||||||||
2022 |
2021 |
Dollars |
Percent |
Percent |
||||||
Net revenues: |
||||||||||
Topgolf |
$ 322.0 |
$ 92.6 |
$ 229.4 |
247.7% |
248.6% |
|||||
Golf Equipment |
468.0 |
376.9 |
91.1 |
24.2% |
27.4% |
|||||
Apparel, Gear & Other |
250.2 |
182.1 |
68.1 |
37.4% |
42.0% |
|||||
Total net revenues |
$ 1,040.2 |
$ 651.6 |
$ 388.6 |
59.6% |
62.9% |
|||||
Segment operating income: |
||||||||||
Topgolf |
$ 6.5 |
$ 4.0 |
$ 2.5 |
62.5% |
||||||
Golf Equipment |
100.8 |
84.9 |
15.9 |
18.7% |
||||||
Apparel, Gear and Other |
26.7 |
20.5 |
6.2 |
30.2% |
||||||
Total segment operating income |
134.0 |
109.4 |
24.6 |
22.5% |
||||||
Corporate costs and expenses(2) |
(39.7) |
(33.3) |
(6.4) |
19.2% |
||||||
Total operating income |
94.3 |
76.1 |
18.2 |
23.9% |
||||||
Gain on Topgolf investment(3) |
— |
252.5 |
(252.5) |
(100.0%) |
||||||
Interest expense, net |
(31.4) |
(17.4) |
(14.0) |
80.5% |
||||||
Other income, net |
8.1 |
9.0 |
(0.9) |
(10.0%) |
||||||
Total income before income taxes |
$ 71.0 |
$ 320.2 |
$ (249.2) |
(77.8%) |
||||||
(1) Calculated by applying 2021 exchange rates to 2022 reported sales in regions outside the U.S. |
||||||||||
(2) Amount includes corporate general and administrative expenses not utilized by management in determining segment profitability, in addition to amortization expense of acquired intangible assets and depreciation and amortization expense of the fair value adjustments on certain assets acquired and liabilities assumed in connection with the merger with Topgolf. The amount for 2022 also includes $2.7 million of costs associated with the implementation of new IT systems for Topgolf, legal and credit agency fees related to a postponed debt refinancing, in addition to charges of $3.8 million associated with the suspension of the Jack Wolfskin retail operations in Russia due to the Russia-Ukraine war. The amount for 2021 also includes $16.2 million of transaction, transition and other non-recurring costs associated with the merger with Topgolf and costs associated with the implementation of new IT systems for Jack Wolfskin. |
||||||||||
(3) Amount represents a gain recorded to step-up the Company's former investment in Topgolf to its fair value in connection with the merger. |
CALLAWAY GOLF COMPANY |
|||||||||||||||||||||
Supplemental Financial Information and Non-GAAP Reconciliation |
|||||||||||||||||||||
(In millions) |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
Three Months Ended March 31, |
|||||||||||||||||||||
2022 |
2021 |
||||||||||||||||||||
GAAP |
Non-Cash Amortization and Depreciation(1) |
Non-Recurring Items and Impairment Charges(2) |
Tax Valuation Allowance(3) |
Non- GAAP |
GAAP |
Non-Cash Amortization, Depreciation (1) |
Non-Cash Amortization of Discount on Convertible Notes(4) |
Acquisition & Other Non-Recurring Items(5) |
Tax Valuation Allowance(3) |
Non- GAAP |
|||||||||||
Net revenues |
$ 1,040.2 |
$ — |
$ — |
$ — |
$ 1,040.2 |
$ 651.6 |
$ — |
$ — |
$ — |
$ — |
651.6 |
||||||||||
Total costs and expenses |
945.9 |
4.8 |
6.9 |
— |
934.2 |
575.5 |
3.5 |
— |
16.9 |
— |
555.1 |
||||||||||
Income/(loss) from operations |
94.3 |
(4.8) |
(6.9) |
— |
106.0 |
76.1 |
(3.5) |
— |
(16.9) |
— |
96.5 |
||||||||||
Other (expense)/income, net |
(23.3) |
(0.9) |
(0.3) |
— |
(22.1) |
244.1 |
(0.3) |
(2.5) |
252.4 |
— |
(5.5) |
||||||||||
Income/(loss) before income taxes |
71.0 |
(5.7) |
(7.2) |
— |
83.9 |
320.2 |
(3.8) |
(2.5) |
235.5 |
— |
91.0 |
||||||||||
Income tax (benefit)/provision |
(15.7) |
(1.4) |
(0.8) |
(26.5) |
13.0 |
47.7 |
(0.9) |
(0.6) |
(4.1) |
38.9 |
14.4 |
||||||||||
Net income/(loss) |
$ 86.7 |
$ (4.3) |
$ (6.4) |
$ 26.5 |
$ 70.9 |
$ 272.5 |
$ (2.9) |
$ (1.9) |
$ 239.6 |
$ (38.9) |
$ 76.6 |
||||||||||
Earnings per share - diluted(6) |
$ 0.44 |
$ (0.02) |
$ (0.03) |
$ 0.13 |
$ 0.36 |
$ 2.19 |
$ (0.02) |
$ (0.02) |
$ 1.92 |
$ (0.31) |
$ 0.62 |
||||||||||
Weighted-average shares |
200.8 |
200.8 |
200.8 |
200.8 |
200.8 |
124.6 |
124.6 |
124.6 |
124.6 |
124.6 |
124.6 |
||||||||||
(1) Includes non-cash amortization expense of acquired intangible assets, in addition to depreciation and amortization expense of the fair value adjustments on certain assets acquired and liabilities assumed in connection with the merger with Topgolf. |
|||||||||||||||||||||
(2) Includes IT integration and implementation costs at Topgolf, legal and credit agency fees related to a postponed debt refinancing, and charges of $3.8 million associated with the suspension of the Jack Wolfskin retail operations in Russia due to the Russia-Ukraine war. |
|||||||||||||||||||||
(3) Includes the recognition of a valuation allowance against certain deferred tax assets in the first quarter of 2021 as the result of the merger with Topgolf, as well as the subsequent release of a portion of the valuation allowance upon the Company's completion of its assessment of these deferred taxes in the first quarter of 2022. |
|||||||||||||||||||||
(4) Includes non-cash interest expense related to the debt discount amortization of the convertible notes issued in May 2020. In connection with the adoption of ASC 2020-06, as of January 1, 2022, the Company derecognized the discount associated with the convertible notes, and as such, will no longer recognize amortization expense in future periods. |
|||||||||||||||||||||
(5) Includes a $252.5 million gain to step-up the Company's pre-acquisition investment in Topgolf to its fair value, and $16.2 million in transaction and transition costs related to the merger with Topgolf. |
|||||||||||||||||||||
(6) In connection with the adoption of ASU 2020-06 in January 2022, the Company excluded $1.6 million of interest expense from net income related to its convertible notes for the purposes of calculating diluted EPS. |
CALLAWAY GOLF COMPANY |
|||||||||||||||||||
Non-GAAP Reconciliation and Supplemental Financial Information |
|||||||||||||||||||
(In millions) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
2022 Trailing Twelve Month Adjusted EBITDA |
2021 Trailing Twelve Month Adjusted EBITDA |
||||||||||||||||||
Quarter Ended |
Quarter Ended |
||||||||||||||||||
June 30, |
September 30, |
December 31, |
March 31, |
June 30, |
September 30, |
December 31, |
March 31, |
||||||||||||
2021 |
2021 |
2021 |
2022 |
Total |
2020 |
2020 |
2020 |
2021 |
Total |
||||||||||
Net income/(loss) |
$ 91.7 |
$ (16.0) |
$ (26.2) |
$ 86.7 |
$ 136.2 |
$ (167.7) |
$ 52.4 |
$ (40.6) |
$ 272.5 |
$ 116.6 |
|||||||||
Interest expense, net |
28.9 |
28.7 |
40.5 |
31.4 |
129.5 |
12.2 |
12.7 |
12.9 |
17.5 |
55.3 |
|||||||||
Income tax (benefit)/provision |
(15.8) |
66.2 |
(69.4) |
(15.7) |
(34.7) |
(7.9) |
5.4 |
(7.1) |
47.7 |
38.1 |
|||||||||
Depreciation and amortization expense |
43.3 |
44.4 |
47.9 |
42.5 |
178.1 |
9.4 |
10.3 |
10.8 |
20.3 |
50.8 |
|||||||||
JW goodwill and trade name impairment(1) |
— |
— |
— |
— |
— |
174.3 |
— |
— |
— |
174.3 |
|||||||||
Non-cash stock compensation and stock warrant expense, net |
11.0 |
10.8 |
12.0 |
14.5 |
48.3 |
2.9 |
3.3 |
2.9 |
4.6 |
13.7 |
|||||||||
Non-cash lease amortization expense |
2.1 |
2.8 |
7.7 |
3.5 |
16.1 |
0.2 |
(0.1) |
— |
0.8 |
0.9 |
|||||||||
Acquisitions & other non-recurring costs, |
3.3 |
1.9 |
1.8 |
6.9 |
13.9 |
5.8 |
4.4 |
8.6 |
(235.6) |
(216.8) |
|||||||||
Adjusted EBITDA |
$ 164.5 |
$ 138.8 |
$ 14.3 |
$ 169.8 |
$ 487.4 |
$ 29.2 |
$ 88.4 |
$ (12.5) |
$ 127.8 |
$ 232.9 |
|||||||||
(1) Amounts include an impairment charge related to Jack Wolfskin. |
|||||||||||||||||||
(2) In 2022, amounts include charges of $3.8 million associated with the suspension of the Jack Wolfskin retail operations in Russia due to the Russia-Ukraine war, as well as costs associated with the implementation of new IT systems for Topgolf, and legal costs and credit agency fees related to a postponed debt refinancing. In 2021, amounts include the recognition of a $252.5 million gain on the Company's pre-merger investment in Topgolf, as well as $21.2 million in transaction, transition, and other non-recurring costs associated with the merger with Topgolf, and $2.8 million in expenses related to the implementation of new IT systems for Jack Wolfskin. In 2020, amounts include transaction costs of $8.5 million related to the merger with Topgolf, $2.8 million related to the Company's transition to its new North America Distribution Center, and $1.5 million in IT implementation costs for Jack Wolfskin. |
CALLAWAY GOLF COMPANY |
|||
Topgolf Non-GAAP Reconciliation and Supplemental Financial Information |
|||
(In millions) |
|||
(Unaudited) |
|||
Three Months Ended |
Three Months Ended |
||
March 31, 2022 |
March 31, 2021 |
||
Segment operating income(1): |
$ 6.5 |
$ 4.0 |
|
Depreciation and amortization expense |
28.1 |
8.7 |
|
Non-cash stock compensation expense |
3.7 |
0.9 |
|
Non-cash lease amortization expense |
3.2 |
0.6 |
|
Foreign currency |
— |
0.5 |
|
Adjusted segment EBITDA |
41.5 |
14.7 |
|
Topgolf pre-merger EBITDA contribution for Jan. and Feb. 2021 |
— |
2.3 |
|
Pro forma segment adjusted EBITDA |
$ 41.5 |
$ 17.0 |
|
(1) The Company does not calculate GAAP net income at the operating segment level, but has provided Topgolf's segment income from operations as a relevant measurement of profitability. Segment income from operations does not include interest expense and taxes as well as other non-cash and non-recurring items. Segment operating income is reconciled to the Company's consolidated pre-tax income in the Consolidated Net Revenues and Operating Segment Information included in this release. |
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