Callaway 2007 Annual Report Download - page 74

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CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended December 31,
2007 2006 2005
Net sales ................................ $1,124,591 100% $1,017,907 100% $998,093 100%
Cost of sales ............................. 631,368 56% 619,832 61% 583,679 58%
Gross profit .......................... 493,223 44% 398,075 39% 414,414 42%
Selling expenses .......................... 281,960 25% 254,526 25% 290,074 29%
General and administrative expenses .......... 89,060 8% 79,709 8% 80,145 8%
Research and development expenses .......... 32,020 3% 26,785 3% 26,989 3%
Total operating expenses ............... 403,040 36% 361,020 35% 397,208 40%
Income from operations .................... 90,183 8% 37,055 4% 17,206 2%
Interest and other income (expense), net ....... 3,455 3,364 (390)
Interest expense .......................... (5,363) (5,421) (2,279)
Income before income taxes ................. 88,275 8% 34,998 3% 14,537 1%
Provision for income taxes .................. 33,688 11,708 1,253
Net income .............................. $ 54,587 5% $ 23,290 2% $ 13,284 1%
Earnings per common share:
Basic ............................... $ 0.82 $ 0.34 $ 0.19
Diluted ............................. $ 0.81 $ 0.34 $ 0.19
Common equivalent shares:
Basic ............................... 66,371 67,732 68,646
Diluted ............................. 67,484 68,503 69,239
The accompanying notes are an integral part of these financial statements.
F-4