Callaway 2005 Annual Report Download - page 4

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At fi rst glance, the cover of this 2005
annual report appears as an artist’s render-
ing – an impressionistic adaptation of the
elegant lines of our Fusion FT-3 and X460
Drivers. Closer inspection reveals the faces
of Callaway Golf embedded in the product
images, photos of many of the more than
3,000 people who work every day at the
making, the marketing and the selling of
every golf club or golf ball bearing the
names of the Callaway brands.
We chose this photo mosaic to symbol-
ize the tradition and spirit powerfully
present within the Company founded
in 1982 by the late Ely Callaway. This
is the essence of Callaway Golf – sound,
vibrant and energized – the visible differ-
ence refl ected in our products and our
people.
The challenges Callaway Golf has faced
in the years since the Founder’s passing
in 2001 have been well documented. The
message I bring you now is that we have
come through those diffi cult times and the
Company is stronger for it.
Our goal is to be best in class. Substan-
tial progress already has been made
positioning the Company for future
growth. We are a leader in the golf
industry and we believe we have a
signifi cant opportunity to strengthen our
position, while improving profi tability and
capitalizing upon opportunities.
Some of our initial progress is refl ected
in our fi nancial results for 2005, which was
a transition year. We recorded net sales
of $998 million in 2005, up 7% from $935
million in the prior year. Fully diluted earn-
ings per share were $0.19 compared to
a loss of $0.15 in fi scal 2004. Although
2005 earnings are not at acceptable
levels for the long term, they are a
signifi cant improvement over 2004 and
are a good start toward achieving our
future goals.
Our portfolio of trusted brands is one
of the fundamental and most important
assets of the Company. The Callaway Golf
brand is recognized globally as the technol-
ogy innovator in golf clubs, with a signifi cant
TO MY FELLOW SHAREHOLDERS:
Our Goal
is to be
Best in Class