Callaway 2006 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,
2006 2005 2004
Net sales .................................... $1,017,907 100% $998,093 100% $934,564 100%
Cost of sales ................................. 619,832 61% 583,679 58% 575,742 62%
Gross profit .............................. 398,075 39% 414,414 42% 358,822 38%
Selling expenses .............................. 254,526 25% 290,074 29% 263,089 28%
General and administrative expenses .............. 79,709 8% 80,145 8% 89,878 10%
Research and development expenses .............. 26,785 3% 26,989 3% 30,557 3%
Total operating expenses .................... 361,020 35% 397,208 40% 383,524 41%
Income (loss) from operations ................... 37,055 4% 17,206 2% (24,702) (3)%
Interest and other income (expense), net ............ 3,364 (390) 1,934
Interest expense ............................... (5,421) (2,279) (945)
Income (loss) before income taxes ................ 34,998 3% 14,537 1% (23,713) (3)%
Provision for (benefit from) income taxes .......... 11,708 1,253 (13,610)
Net income (loss) ............................. $ 23,290 2% $ 13,284 1% $ (10,103) (1)%
Earnings (loss) per common share:
Basic ................................... $ 0.34 $ 0.19 $ (0.15)
Diluted .................................. $ 0.34 $ 0.19 $ (0.15)
Common equivalent shares:
Basic ................................... 67,732 68,646 67,721
Diluted .................................. 68,503 69,239 67,721
The accompanying notes are an integral part of these financial statements.
F-4