Q1 sales decline slightly at Callaway Golf
Callaway Golf Company announced its first quarter 2012 financial results.
• 2012 first quarter earnings per share of $0.37, compared to $0.15 in 2011
• 2012 first quarter pro forma earnings per share of $0.18, compared to $0.15 in 2011
• 2012 first quarter net sales of $285 million, compared to $286 million in 2011
• Completed several strategic initiatives
• Completed sale of Top-Flite and Ben Hogan brands
• Re-structured North America's apparel license with Perry Ellis Int'l
• Announced settlement of Acushnet litigation
"I am very pleased to be a part of the Callaway Golf team and am excited about the long-term potential of Callaway," commented Chip Brewer, President and Chief Executive Officer.
"There were many initiatives underway when I arrived at Callaway targeted at reducing costs and simplifying the business and thus providing greater focus on the Company's core business. I would like to thank Tony Thornley for his time and efforts in initiating these actions over the past several months.
“I believe there are tremendous growth opportunities with our core Callaway Golf and Odyssey brands and believe that the Company's renewed focus on these brands, together with the other actions we have taken, will enable us to capture this growth and drive profitability."
"We are pleased with the progress we have made against these key strategic initiatives and the year over year improvement in the Company's financial performance," continued Mr. Brewer. "Sales of woods, premium golf balls, and accessories are up, total sales in the United States and Japan have increased, and our operating expenses have improved despite planned incremental investment in brand and demand creation initiatives.
“We also completed the sale of our Top-Flite and Ben Hogan brands, settled much of our outstanding litigation, and expanded our apparel license agreement in North America, which allows us to increase our focus on the Company's core business. With that said, we are unsatisfied with the pace at which our financial performance and market positions are improving and we will be taking actions to accelerate this pace of recovery."
"While the actions we have taken recently to reduce costs and provide renewed focus on the Company's core brands were important initiatives, there is more work to be done to maximize the Company's full potential," continued Mr. Brewer.
"During my brief time here, we have already made changes aimed at strengthening our business and increasing our long-term competitiveness and we will continue to do so. With a renewed focus on our core business, strong Callaway Golf and Odyssey brands, industry leading research and development capabilities, and an outstanding group of employees, we believe we have all the components necessary to drive sustainable long term growth and increase shareholder value."
"Our business is recovering compared to last year, albeit at a slower pace than we estimated in our guidance provided in January," commented Brad Holiday, Chief Financial Officer. "Given the current pace of recovery, the impact of the sale of Top-Flite and Ben Hogan assets, and the expansion of the North America apparel license, we are revising our first half financial guidance. Additionally, while we expect a significant improvement in our full year financials compared to 2011, both on a GAAP and pro forma basis, we are suspending full year guidance at this time."