Callaway Golf Company reported that second quarter consolidated net sales increased 8.4% to $323.1 million from $297.9 million in the year-ago period. Net income increased 34.3% to $18.4 million, or 27 cents per diluted share, compared to net income of $13.7 million, or 20 cents per dilued share, in Q2 last year.
Reported net income and earnings per share for Q2 2005 include after-tax charges associated with the integration of the Top-Flite operations acquired in late 2003 of $2.0 million and three cents, respectively. Excluding these charges, the Company's pro forma net income and fully diluted earnings per share would have been $20.4 million and 30 cents, respectively.
Reported net sales, net income and fully diluted earnings per share for the same quarter in 2004 included after-tax integration charges of $6.7 million or 10 cents per share.>
Callaway Golf Company
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Quarter Ended
June 30,
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2005 2004
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Net sales $323,132 100% $297,908 100%
Cost of sales 176,399 55% 170,072 57%
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Gross profit 146,733 45% 127,836 43%
Operating expenses:
Selling expenses 90,640 28% 74,496 25%
General and administrative expenses 21,239 7% 21,834 7%
Research and development expenses 7,083 2% 7,559 3%
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Total operating expenses 118,962 37% 103,889 35%
Income from operations 27,771 9% 23,947 8%
Other expense, net (1,806) (1,592)
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Income before income taxes 25,965 8% 22,355 8%
Provision for income taxes 7,573 8,640
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Net income $18,392 6% $13,715 5%
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Earnings per common share:
Basic $0.27 $0.20
Diluted $0.27 $0.20
