Callaway 2005 Annual Report Download - page 72

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CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended December 31,
2005 2004 2003
Net sales ...................................... $998,093 100% $934,564 100% $814,032 100%
Cost of sales ................................... 583,679 58% 575,742 62% 445,417 55%
Gross profit ................................ 414,414 42% 358,822 38% 368,615 45%
Selling expenses ................................ 290,074 29% 263,089 28% 207,783 26%
General and administrative expenses ................ 80,145 8% 89,878 10% 65,448 8%
Research and development expenses ................ 26,989 3% 30,557 3% 29,529 4%
Total operating expenses ..................... 397,208 40% 383,524 41% 302,760 37%
Income (loss) from operations ..................... 17,206 2% (24,702) (3)% 65,855 8%
Interest and other income (expense), net ............. (390) 1,934 3,550
Interest expense ................................ (2,279) (945) (1,522)
Income (loss) before income taxes .................. 14,537 1% (23,713) (3)% 67,883 8%
Provision for (benefit from) income taxes ............ 1,253 (13,610) 22,360
Net income (loss) ............................... $ 13,284 1% $ (10,103) (1)% $ 45,523 6%
Earnings (loss) per common share:
Basic ..................................... $ 0.19 $ (0.15) $ 0.69
Diluted ................................... $ 0.19 $ (0.15) $ 0.68
Common equivalent shares:
Basic ..................................... 68,646 67,721 66,027
Diluted ................................... 69,239 67,721 66,471
The accompanying notes are an integral part of these financial statements.
F-4