Callaway 2013 Annual Report Download - page 46

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32
Net loss for the year ended December 31, 2013 decreased to $18.9 million compared to $122.9 million in the
comparable period of 2012. Diluted loss per share improved to $0.31 in 2013 compared to $1.96 in 2012. The Company’s
net loss for the years ended December 31, 2013 and 2012 include the following charges (in millions):
2013 2012
Pre-tax charges related to the Cost Reduction Initiatives ................................................................ $(16.6)$
(32.2)
Pre-tax impairment charges ............................................................................................................. — (21.9)
Pre-tax charges related to the Reorganization and Reinvestment Initiatives................................... — (1.0)
Pre-tax gain on the sale of Top-Flite and Ben Hogan brands.......................................................... — 6.6
Total ................................................................................................................................................. $(16.6)$
(48.5)
Golf Clubs Segment
Net sales information for the golf clubs segment by product category is summarized as follows (dollars in
millions):
Years Ended
December 31, Growth/(Decline)
2013 2012 Dollars Percent
Net sales:
Woods............................................................................................... $ 256.5 $ 200.6 $ 55.9 28 %
Irons.................................................................................................. 181.8 170.8 11.0 6 %
Putters............................................................................................... 89.6 93.3 (3.7)(4)%
Accessories and other....................................................................... 182.8 229.8 (47.0) (20)%
$ 710.7 $ 694.5 $ 16.2 2 %
The $55.9 million (28%) increase in net sales of woods to $256.5 million for the year ended December 31, 2013
resulted from an increase in both sales volume and average selling prices. The increase in sales volume was primarily
due to the successful launch of the X Hot family of woods, which performed better at retail than the prior year Razr X
family of woods. The increase in average selling prices was due to the introduction of the X Hot and Razr Fit Xtreme
woods at higher average selling prices than their predecessors, the Razr X and Razr Fit woods sold in the prior year.
The $11.0 million (6%) increase in net sales of irons to $181.8 million for the year ended December 31, 2013 was
primarily attributable to the strong performance of the current year X Hot irons and Mack Daddy 2 wedges combined
with an increase in average selling prices resulting from less promotional activity in the current year as a result of more
optimal inventory levels at retail.
The $3.7 million (4%) decrease in net sales of putters to $89.6 million for the year December 31, 2013 was primarily
attributable to a decline in both sales volume and average selling prices due to an overall decline in the putter category
this year. Despite this decline in sales, the Company's Odyssey brand of putters increased its year to date U.S. market
share by approximately 200 basis points.
The $47.0 million (20%) decrease in net sales of accessories and other products to $182.8 million for the year ended
December 31, 2013 was primarily due to a decline in net sales of approximately $22.4 million due to the transition of the
Company’s apparel and footwear businesses in the U.S. to a licensing arrangement during the second half of 2012,
combined with a decline in sales of packaged sets, GPS devices, gloves and other accessories.
Golf Balls Segment
Net sales information for the golf balls segment is summarized as follows (dollars in millions):
Years Ended
December 31, Decline
2013 2012 Dollars Percent
Net sales:
Golf balls .......................................................................................... $ 132.1 $ 139.6 $ (7.5)(5)%