Callaway 2004 Annual Report Download - page 24

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Year Ended December 31,
2004(2,3) 2003(4) 2002(5) 2001(6) 2000(7)
(In thousands, except per share data)
Earnings per common share:
Basic
Income (loss) before cumulative eÅect of accounting
change ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.15) $ 0.69 $ 1.04 $ 0.84 $ 1.17
Cumulative eÅect of accounting changeÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì (0.01)
Net income (loss)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.15) $ 0.69 $ 1.04 $ 0.84 $ 1.16
Diluted
Income (loss) before cumulative eÅect of accounting
change ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.15) $ 0.68 $ 1.03 $ 0.82 $ 1.14
Cumulative eÅect of accounting changeÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì (0.01)
Net income (loss)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (0.15) $ 0.68 $ 1.03 $ 0.82 $ 1.13
Dividends paid per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.28 $ 0.28 $ 0.28 $ 0.28 $ 0.28
December 31,
2004 2003 2002 2001 2000
(In thousands)
Balance Sheet Data:
Cash and cash equivalents ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 31,657 $ 47,340 $108,452 $ 84,263 $102,596
Marketable securities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $ Ì $ Ì $ 6,422 $ Ì
Working capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $272,934 $253,302 $259,866 $252,817 $233,163
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $735,737 $748,566 $679,845 $647,602 $630,934
Long-term liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 28,622 $ 29,023 $ 27,297 $ 31,379 $ 9,884
Total shareholders' equityÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $586,317 $589,383 $543,387 $514,349 $511,744
(1) Beginning with the Ñrst quarter of 2003, the Company records royalty revenue in net sales and royalty
related expenses as selling expenses. Previously, royalty revenue and the related expenses were recorded as
components of other income. Prior periods have been reclassiÑed to conform with the current period
presentation.
(2) On May 28, 2004, the Company acquired all of the issued and outstanding shares of stock of FrogTrader,
Inc. Thus, the Company's Ñnancial data includes the FrogTrader, Inc. results of operation from May 28,
2004 forward.
(3) During 2004, the Company's gross proÑt, net income and earnings per common share include the
recognition of certain integration charges related to the consolidation of its Callaway Golf and Top-Flite
golf ball and golf club manufacturing and research and development operations. These charges reduced the
Company's gross proÑt, net income and earnings per common share by approximately $15.7 million,
$17.5 million and $0.26, respectively. (see Note 3).
(4) On September 15, 2003 the Company completed the domestic portion of the Top-Flite Acquisition. The
settlement of the international assets was eÅective October 1, 2003. Thus, the Company's Ñnancial data
includes The Top-Flite Golf Company results of operations in the United States from September 15, 2003,
and the international operations from October 1, 2003 forward. Additionally, the Company's 2003 gross
proÑt, net income and earnings per common share include the recognition of certain integration charges
related to the consolidation of its Callaway Golf and Top-Flite golf ball and golf club manufacturing and
research and development operations. These charges reduced the Company's gross proÑt, net income and
earnings per common share by approximately $24.1 million, $16.1 million and $0.24, respectively (see
Note 3 to the Consolidated Financial Statements).
(5) For 2002, the Company's gross proÑt, net income and earnings per common share include the eÅect of the
change in accounting estimate for the Company's warranty reserve. During the third quarter of 2002, the
Company reduced its warranty reserve by approximately $17.0 million, pre-tax (see Note 4 to the
Consolidated Financial Statements).
15