Callaway 2014 Annual Report Download - page 37

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21
Item 6. Selected Financial Data
The following statements of operations data and balance sheet data for the five years ended December 31, 2014 were
derived from the Company’s audited consolidated financial statements. Consolidated balance sheets at December 31, 2014
and 2013 and the related consolidated statements of operations and cash flows for each of the three years in the period ended
December 31, 2014 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.
Years Ended December 31,
2014(1) 2013(1)(2) 2012(1)(2)(3)(4) 2011(4)(5)(6)(7)(8) 2010(4)(6)(7)
(In thousands, except per share data)
Statement of Operations Data:
Net sales....................................................... $ 886,945 $ 842,801 $ 834,065 $ 886,528 $ 967,656
Cost of sales ................................................. 529,019 528,043 585,897 575,226 602,160
Gross profit .................................................. 357,926 314,758 248,168 311,302 365,496
Selling, general and administrative
expenses.................................................. 295,893 294,583 334,861 358,081 355,716
Research and development expenses........... 31,285 30,937 29,542 34,309 36,383
Income (loss) from operations ..................... 30,748 (10,762)(116,235)(81,088)(26,603)
Interest income............................................. 438 558 550 546 2,886
Interest expense............................................ (9,499) (9,123)(5,513)(1,618)(848)
Other income (expense), net ........................ (48) 6,005 3,152 (8,101)(10,997)
Income (loss) before income taxes .............. 21,639 (13,322)(118,046)(90,261)(35,562)
Income tax provision (benefit)..................... 5,631 5,599 4,900 81,559 (16,758)
Net income (loss) ......................................... 16,008 (18,921)(122,946)(171,820)(18,804)
Dividends on convertible preferred stock.... — 3,332 8,447 10,500 10,500
Net income (loss) allocable to common
shareholders............................................ $ 16,008 $ (22,253)$
(131,393)$ (182,320)$ (29,304)
Income (loss) per common share:
Basic ..................................................... $ 0.21 $ (0.31)$ (1.96)$ (2.82)$ (0.46)
Diluted .................................................. $ 0.20 $ (0.31)$ (1.96)$ (2.82)$ (0.46)
Dividends paid per common share............... $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04
December 31,
2014(1) 2013(1)(2) 2012(1)(2)(3) 2011(5)(7)(8) 2010(7)
(In thousands)
Balance Sheet Data:
Cash and cash equivalents ............................... $ 37,635 $ 36,793 $ 52,003 $ 43,023 $ 55,043
Working capital................................................ $ 199,905 $ 195,407 $ 225,430 $ 251,545 $ 368,563
Total assets....................................................... $ 624,811 $ 663,863 $ 637,636 $ 727,112 $ 876,012
Long-term liabilities ........................................ $ 149,149 $ 153,048 $ 154,362 $ 46,514 $ 13,967
Total Callaway Golf Company shareholders’
equity............................................................ $ 291,534 $ 284,619 $ 318,990 $ 509,956 $ 684,267
(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 issued in exchange for 632,270 shares
of the Company’s then-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” in the Notes to Consolidated Financial Statements
in this Form 10-K). In connection with the convertible notes, the Company recognized interest expense of $5.0 million,
$4.9 million and $1.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.