Callaway 2004 Annual Report Download - page 103

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CALLAWAY GOLF COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Company purchased his residence in California at a cost of $2,000,000. The purchase price was determined
based upon two independent appraisals. As of December 31, 2003, the Company was marketing the home and
accounted for the home as a long-lived asset held for sale classiÑed as other assets. In 2004, this residence was
sold and the Company recorded a net loss of $27,000.
Note 17. Summarized Quarterly Data (Unaudited)
Fiscal Year 2004 Quarters
1st 2nd(2) 3rd 4th Total(3)
(In thousands, except per share data)
Net sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $363,786 $297,908 $128,457 $144,413 $934,564
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $166,191 $127,836 $ 26,071 $ 38,724 $358,822
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 40,545 $ 13,715 $(35,895) $(28,468) $(10,103)
Earnings (loss) per common share(1)
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.60 $ 0.20 $ (0.53) $ (0.42) $ (0.15)
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.59 $ 0.20 $ (0.53) $ (0.42) $ (0.15)
Fiscal Year 2003 Quarters
1st 2nd 3rd 4th Total(4)
Net sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $271,719 $242,077 $153,634 $146,602 $814,032
Gross proÑt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $137,837 $126,494 $ 70,220 $ 34,064 $368,615
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 42,477 $ 34,143 $ 2,334 $(33,431) $ 45,523
Earnings (loss) per common share(1)
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.65 $ 0.52 $ 0.04 $ (0.50) $ 0.69
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.64 $ 0.52 $ 0.03 $ (0.50) $ 0.68
(1) Earnings per share is computed individually for each of the quarters presented; therefore, the sum of the
quarterly earnings per share may not necessarily equal the total for the year.
(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 operations from May 28,
2004.
(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 $15,689,000,
$17,470,000 and $0.26, respectively, for the year ended December 31, 2004 (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 consolidated
statement of operations include The Top-Flite Golf Company results of operations in the United States
beginning September 15, 2003 forward and the international operations beginning October 1, 2003
forward. Additionally, the Company's 2003 gross proÑt, net income and earnings per common share
include the recognition of integration charges related to the consolidation of its Callaway Golf and Top-
Flite golf ball and golf club operations. These charges reduced the Company's gross proÑt, net income and
earnings per common share by approximately $24,080,000, $16,147,000 and $0.24, respectively, for the
year ended December 31, 2003 (Note 3).
F-38