Callaway 2007 Annual Report Download - page 38

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Item 6. Selected Financial Data
The following statements of operations data and balance sheet data for the five years ended December 31,
2007 were derived from the Company’s audited consolidated financial statements. Consolidated balance sheets at
December 31, 2007 and 2006 and the related consolidated statements of operations and statements of cash flows
for each of the three years in the period ended December 31, 2007 and notes thereto appear elsewhere in this
report. The following data should be read in conjunction with the annual consolidated financial statements,
related notes and other financial information appearing elsewhere in this report.
Year Ended December 31,
2007 2006 2005 2004(1) 2003(2)
(In thousands, except per share data)
Statement of Operations Data:
Net sales ................................. $1,124,591 $1,017,907 $998,093 $934,564 $814,032
Cost of sales .............................. 631,368 619,832 583,679 575,742 445,417
Gross profit ............................... 493,223 398,075 414,414 358,822 368,615
Selling, general and administrative expenses ..... 371,020 334,235 370,219 352,967 273,231
Research and development expenses ........... 32,020 26,785 26,989 30,557 29,529
Income (loss) from operations ................ 90,183 37,055 17,206 (24,702) 65,855
Interest and other income (expense), net ........ 3,455 3,364 (390) 1,934 3,550
Interest expense ........................... (5,363) (5,421) (2,279) (945) (1,522)
Income (loss) before income taxes ............. 88,275 34,998 14,537 (23,713) 67,883
Income tax provision (benefit) ................ 33,688 11,708 1,253 (13,610) 22,360
Net income (loss) .......................... $ 54,587 $ 23,290 $ 13,284 $ (10,103) $ 45,523
Earnings (loss) per common share:
Basic ................................ $ 0.82 $ 0.34 $ 0.19 $ (0.15) $ 0.69
Diluted .............................. $ 0.81 $ 0.34 $ 0.19 $ (0.15) $ 0.68
Dividends paid per share .................... $ 0.28 $ 0.28 $ 0.28 $ 0.28 $ 0.28
December 31,
2007 2006 2005 2004 2003
(In thousands)
Balance Sheet Data:
Cash and cash equivalents ...................... $ 49,875 $ 46,362 $ 49,481 $ 31,657 $ 47,340
Working capital .............................. $273,033 $269,745 $298,385 $272,934 $253,302
Total assets .................................. $856,963 $845,947 $764,498 $735,737 $748,566
Long-term liabilities ........................... $ 63,207 $ 43,388 $ 28,245 $ 28,622 $ 29,023
Total shareholders’ equity ...................... $568,230 $577,117 $596,048 $586,317 $589,383
(1) On May 28, 2004, the Company acquired all of the issued and outstanding shares of stock of FrogTrader,
Inc. Thus, the Company’s financial data includes the FrogTrader, Inc. results of operation commencing
May 28, 2004.
(2) On September 15, 2003 the Company completed the domestic portion of the Top-Flite Acquisition. The
settlement of the international assets was effective October 1, 2003. Thus, the Company’s financial data
includes The Top-Flite Golf Company results of operations in the United States commencing September 15,
2003, and the international operations commencing October 1, 2003.
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