Callaway 2008 Annual Report Download - page 78

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CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended December 31,
2008 2007 2006
Net sales ................................ $1,117,204 100% $1,124,591 100% $1,017,907 100%
Cost of sales ............................. 630,371 56% 631,368 56% 619,832 61%
Gross profit .......................... 486,833 44% 493,223 44% 398,075 39%
Selling expenses .......................... 287,802 26% 281,960 25% 254,526 25%
General and administrative expenses .......... 85,473 8% 89,060 8% 79,709 8%
Research and development expenses .......... 29,370 3% 32,020 3% 26,785 3%
Total operating expenses ................ 402,645 36% 403,040 36% 361,020 35%
Income from operations .................... 84,188 8% 90,183 8% 37,055 4%
Interest and other income, net ................ 1,863 3,455 3,364
Interest expense ........................... (4,666) (5,363) (5,421)
Change in energy derivative valuation account
(Note 15) .............................. 19,922 — —
Income before income taxes ................. 101,307 9% 88,275 8% 34,998 3%
Provision for income taxes .................. 35,131 33,688 11,708
Net income .............................. $ 66,176 6% $ 54,587 5% $ 23,290 2%
Earnings per common share:
Basic ............................... $ 1.05 $ 0.82 $ 0.34
Diluted .............................. $ 1.04 $ 0.81 $ 0.34
Common equivalent shares:
Basic ............................... 63,055 66,371 67,732
Diluted .............................. 63,798 67,484 68,503
The accompanying notes are an integral part of these consolidated financial statements.
F-4