Callaway 2012 Annual Report Download - page 39

Item 6. Selected Financial Data
The following statements of operations data and balance sheet data for the five years ended December 31,
2012 were derived from the Company’s audited consolidated financial statements. Consolidated balance sheets at
December 31, 2012 and 2011 and the related consolidated statements of operations and cash flows for each of the
three years in the period ended December 31, 2012 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,
2012(1)(2)(3)(6) 2011(4)(5)(6)(7)(8) 2010(5)(6)(7) 2009(5)(6) 2008(5)(10)
(In thousands, except per share data)
Statement of Operations Data:
Net sales .................................... $834,065 $ 886,528 $967,656 $950,799 $1,117,204
Cost of sales ................................. 585,897 575,226 602,160 607,036 630,371
Gross profit .................................. 248,168 311,302 365,496 343,763 486,833
Selling, general and administrative expenses ........ 334,861 358,081 355,716 342,084 373,275
Research and development expenses .............. 29,542 34,309 36,383 32,213 29,370
(Loss) income from operations .................. (116,235) (81,088) (26,603) (30,534) 84,188
Interest income ............................... 550 546 2,886 1,807 2,312
Interest expense .............................. (5,513) (1,618) (848) (1,754) (4,666)
Other income (expense), net ..................... 3,152 (8,101) (10,997) 878 (449)
Change in energy derivative valuation account ...... — — — — 19,922
(Loss) income before income taxes ............... (118,046) (90,261) (35,562) (29,603) 101,307
Income tax provision (benefit) ................... 4,900 81,559 (16,758) (14,343) 35,131
Net (loss) income ............................. (122,946) (171,820) (18,804) (15,260) 66,176
Dividends on convertible preferred stock .......... 8,447 10,500 10,500 5,688 —
Net (loss) income allocable to common
shareholders ............................... $(131,393) $(182,320) $ (29,304) $ (20,948) $ 66,176
(Loss) earnings per common share:
Basic ................................... $ (1.96) $ (2.82) $ (0.46) $ (0.33) $ 1.05
Diluted ................................. $ (1.96) $ (2.82) $ (0.46) $ (0.33) $ 1.04
Dividends paid per common share ................ $ 0.04 $ 0.04 $ 0.04 $ 0.10 $ 0.28
December 31,
2012(1)(2)(3) 2011(4)(7)(8) 2010(7) 2009(9) 2008(10)
(In thousands)
Balance Sheet Data:
Cash and cash equivalents ...................... $ 52,003 $ 43,023 $ 55,043 $ 78,314 $ 38,337
Working capital .............................. $225,430 $251,545 $368,563 $360,654 $235,713
Total assets .................................. $637,636 $727,112 $876,012 $866,963 $846,371
Long-term liabilities ........................... $154,362 $ 46,514 $ 13,967 $ 14,594 $ 21,559
Total Callaway Golf Company shareholders’
equity .................................... $318,990 $509,956 $684,267 $698,291 $569,188
(1) On August 29, 2012, the Company issued $112.5 million of 3.75% Convertible Senior Notes (the “convertible
notes”) due August 15, 2019, of which $63.2 million in aggregate principal amount was exchanged for 632,270
shares of the Company’s outstanding 7.50% Series B Cumulative Perpetual Convertible Preferred Stock in
separate, privately negotiated exchange transactions, and $49.3 million in aggregate principal amount was issued
in private placement transactions for cash (see Note 4 “Financing Arrangements” to the Notes to Consolidated
Financial Statements in this Form 10-K). In connection with the convertible notes, the Company recognized $1.7
million in interest expense in 2012.
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