San Diego Business Journal

Callaway Golf Reports 2013 Loss, Expects to be Profitable in 2014

By Brad Graves Thursday, January 30, 2014

Callaway Golf Co. reported net losses for the fourth quarter and 2013 as a whole, but forecast a return to profitability in 2014.

The Carlsbad-based company reported a net loss of $49 million on net sales of $127 million during the fourth quarter. It was an improvement on the same quarter of 2012, where the company turned in a net loss of $71 million on net sales of $120 million.

For 2013 as a whole, Callaway (NYSE: ELY) reported a net loss of $19 million on net sales of $843 million. For all of 2012, Callaway had a net loss of $123 million on net sales of $834 million.

The company reported its financial reports on Jan. 29. One day earlier, Callaway declared a 1 cent per share dividend.

Callaway produces and sells golf clubs and balls under the Callaway Golf and Odyssey brands. It also sells golf accessories under those brands.

Looking ahead, Callaway forecast net sales of $880 million to $900 million by the time 2014 draws to a close — though changes to currency exchange rates could affect those numbers. The company said it expected to turn in earnings between 12 cents and 16 cents per share on a base of 78 million shares. For 2013, Callaway lost 31 cents per share on a base of 72.8 million shares.

The company reported having $36.8 million in cash on Dec. 31, down from $52 million a year earlier.