Callaway 2008 Annual Report Download - page 39

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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,
2008 were derived from the Company’s audited consolidated financial statements. Consolidated balance sheets at
December 31, 2008 and 2007 and the related consolidated statements of operations and cash flows for each of the
three years in the period ended December 31, 2008 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,
2008 2007 2006 2005(2) 2004(1),(2)
(In thousands, except per share data)
Statement of Operations Data:
Net sales ............................... $1,117,204 $1,124,591 $1,017,907 $998,093 $934,564
Cost of sales ............................ 630,371 631,368 619,832 583,679 575,742
Gross profit ............................. 486,833 493,223 398,075 414,414 358,822
Selling, general and administrative expenses . . . 373,275 371,020 334,235 370,219 352,967
Research and development expenses ......... 29,370 32,020 26,785 26,989 30,557
Income (loss) from operations .............. 84,188 90,183 37,055 17,206 (24,702)
Interest and other income (expense), net ....... 1,863 3,455 3,364 (390) 1,934
Interest expense .......................... (4,666) (5,363) (5,421) (2,279) (945)
Change in energy derivative valuation
account .............................. 19,922 — — — —
Income (loss) before income taxes ........... 101,307 88,275 34,998 14,537 (23,713)
Income tax provision (benefit) .............. 35,131 33,688 11,708 1,253 (13,610)
Net income (loss) ........................ $ 66,176 $ 54,587 $ 23,290 $ 13,284 $ (10,103)
Earnings (loss) per common share:
Basic .............................. $ 1.05 $ 0.82 $ 0.34 $ 0.19 $ (0.15)
Diluted ............................. $ 1.04 $ 0.81 $ 0.34 $ 0.19 $ (0.15)
Dividends paid per share ................... $ 0.28 $ 0.28 $ 0.28 $ 0.28 $ 0.28
December 31,
2008(3),(4) 2007(5) 2006(5) 2005 2004
(In thousands)
Balance Sheet Data:
Cash and cash equivalents .................. $ 38,337 $ 49,875 $ 46,362 $ 49,481 $ 31,657
Working capital .......................... $236,592 $273,033 $269,745 $298,385 $272,934
Total assets ............................. $855,338 $838,078 $829,691 $764,498 $735,737
Long-term liabilities ...................... $ 21,559 $ 44,322 $ 27,132 $ 28,245 $ 28,622
Total shareholders’ equity .................. $578,155 $568,230 $577,117 $596,048 $586,317
(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) Prior to January 1, 2006, the Company accounted for share-based employee compensation arrangements in
accordance with the provisions and related interpretations of Accounting Principles Board Opinion No. 25,
“Accounting for Stock Issued to Employees,” which used the intrinsic value of method. Under the intrinsic
value method, no share-based compensation expense related to stock option awards granted to employees or
directors had been recognized in the Company’s Consolidated Statements of Operations, as all stock options
granted had an exercise price equal to the Company’s closing stock price on the date of grant. Had
compensation expense for share-based awards been determined consistent with SFAS No. 123R, net income
and earnings per share for the year ended December 31, 2005 would have been reduced by after-tax charges
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