Callaway Golf Company has announced that it expects consolidated net sales and fully diluted earnings per share for the year ending December 31, 2003 to be approximately $810 million and between $0.65 and $0.67, including a positive effect on earnings of about $0.05 per share attributable to a lower than usual effective tax rate in 2003.
This earnings estimate also includes a negative effect on earnings of approximately $0.23 per share attributable to charges, primarily non-cash, which are expected to be taken in the fourth quarter in connection with the integration of the Callaway Golf and Top-Flite operations. Excluding these integration charges, diluted earnings per share for 2003 are estimated to be between $0.88 and $0.90 per share.
For the full year 2004, the Company's current guidance is that consolidated net sales will be approximately $1.03 billion (plus/minus 3%), a 27% increase compared to 2003 estimates. Fully diluted earnings per share for 2004 are estimated to be between $0.82 and $0.97, including additional charges, primarily non-cash, associated with the further integration of the Callaway Golf and Top-Flite operations. These additional charges are projected to have a negative effect on earnings of approximately $0.33 per share. Excluding these additional integration charges, diluted earnings per share for 2004 are estimated to be between $1.15 and $1.30 per share.
“As our guidance reflects, we are cautiously optimistic about 2004,” said Ron Drapeau, Chairman and CEO. “We plan to capture some of the benefits of the Top-Flite acquisition next year by eliminating the losses in the Callaway Golf golf ball business. Meanwhile, our consolidated revenues are expected to increase both as the result of the acquisition and from organic growth.”
