Callaway Golf Company (NYSE:ELY) has released its consolidated financial results for the quarter ended 31st March 2005, announcing consolidated net sales for the quarter of $299.9 million, net income of $18.4 million, and diluted earnings per share of $0.27 on 68.6 million shares.
Reported net income and earnings per share include after tax charges of $2.3 million and $0.03, respectively, associated with the integration of the Top-Flite operations acquired in late 2003. On a pro forma basis, which excludes these charges, the Company would have had net income of $20.7 million and diluted earnings per share of $0.30. Reported net sales, net income and diluted earnings per share for the same quarter in 2004 (which included after tax integration charges of $3.2 million or $0.05 per share) were $363.8 million, $40.5 million and $0.59, respectively.
“Our first quarter results are in line with the preliminary estimates we provided in early April,” said William C. Baker, chairman and CEO. “Staggered product launches and closely monitoring retail inventory have allowed us to achieve our reported sales and profit levels without overloading the retail channel.”
In accordance with the Company’s dividend practice, the next dividend will be determined by the Board of Directors at its May meeting.
“Sales in the first quarter were solid and retail inventories are at the appropriate levels,” said Bradley J. Holiday, senior executive vice president and chief financial officer. “We will continue to ship our current products into the market based upon demand generated by the opening of the true golf season in most of our markets, and have additional new product launches planned for later in the year, including the launch of the Callaway Golf X-Tour Irons and increased shipments of the Ben Hogan drivers and fairway woods during the second quarter.”
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Callaway Golf’s First Quarter Results
