NYSE$CALY

Callaway Golf Company · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced record fourth quarter and full year 2021 results, driven by Topgolf and apparel.

Callaway Golf Company reported a strong fourth quarter, driven by Topgolf's performance and momentum in apparel and golf equipment. Consolidated net revenue increased by 90% compared to Q4 2020, reaching $712 million. However, the company experienced a GAAP net loss of $26 million and a non-GAAP net loss of $35 million for the quarter.

  • Net revenue increased 90%, driven by Topgolf and Apparel, Gear and Other segment.
  • Non-GAAP loss per share was ($0.19) in the fourth quarter of 2021, compared to a loss of ($0.33) per share in 2020.
  • Fourth quarter 2021 Adjusted EBITDA increased $27 million, driven by a $46 million contribution from the Topgolf business, partially offset by lower adjusted EBITDA in the golf equipment and apparel businesses.
  • Same venue sales surpassed expectations in the quarter, increasing 6% compared to the 2019 level and generating strong flow-through to Adjusted EBITDA.

Headline financials

Total Revenue

$712M

Previous: $375M+90.0%
EPS (adj)

-$0.19

Previous: -$0.33+42.4%
Capital Expenditures

$123M

Previous: $8.35M+1377.4%
Free Cash Flow

-$91.9M

Previous: $97.3M-194.4%
Net Income

-$26M

Previous: -$40.6M+35.9%
Operating Income

-$55M

Previous: -$32.3M-70.5%
Gross Profit

$449M

Previous: $139M+223.0%
Cash & Equivalents

$352M

Previous: $366M-3.8%
Total Assets

$7.75B

Previous: $1.98B+291.2%
Stock-Based Comp

$11.6M

Previous: $2.86M+304.5%

Revenue & EPS history

Topgolf Callaway · Revenue · Quarterly

$712M

Q4 2021+90%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Topgolf Callaway · $1.04B total across 3 segments · Q3 2023

  • Topgolf
    $448M+8.2%
  • Active Lifestyle
    $300M+7.7%
  • Golf Equipment
    $293M-1.1%

Forward guidance

The company provided full year 2022 revenue outlook of $3,780 million to $3,820 million and Adjusted EBITDA guidance of $490 million to $515 million.

Tailwinds

  • Full year 2022 net revenue estimate assumes Topgolf segment revenue of approximately $1.5 billion for the twelve months ended December 31, 2022
  • Continued positive demand fundamentals for Callaway's Golf Equipment
  • Continued positive demand fundamentals for Apparel, Gear and Other segments.
  • Full year 2022 Adjusted EBITDA estimate assumes the Topgolf segment will deliver $210 - $220 million in Adjusted EBITDA for the twelve months ended December 31, 2022.
  • Net Revenue: Full year 2022 net revenue estimate assumes Topgolf segment revenue of approximately $1.5 billion for the twelve months ended December 31, 2022, as well as continued positive demand fundamentals for Callaway's Golf Equipment and Apparel, Gear and Other segments.

Headwinds

  • Ongoing impact of COVID-19 on the supply chain
  • Ongoing impact of COVID-19 on staffing levels at our Topgolf venues
  • Changes in foreign currency effects, which are estimated to have a negative full year impact of $54 million on net sales
  • Changes in foreign currency effects, which are estimated to have a negative full year impact of $38 million on pretax income
  • Increased freight costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

-0.1%

Avg return

Earnings day

-1.6%

Avg return

5 days after

+1.5%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+18.7%

Q3 2013

Best reaction

-20.8%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+6.3%+0.1%
Q3 2025+14.4%+14.3%+24.2%
Q1 2025-17.2%-11.4%+0.0%
Q4 2024-0.3%-2.5%+3.0%
Q3 2024-11.3%-11.6%-17.1%
Q2 2024-14.5%-18.4%-27.1%
Q1 2024-8.2%-8.0%-7.6%
Q4 2023+5.6%+3.6%-6.3%
Q3 2023-20.8%-22.9%-1.6%
Q2 2023-9.8%-10.6%-12.6%
Q1 2023-13.9%-20.9%-11.4%
Q4 2022-4.0%-1.1%-6.6%
Q3 2022+5.5%+6.2%+23.6%
Q2 2022-2.0%-5.9%-5.8%
Q1 2022+8.1%+18.2%+22.2%
Q4 2021-9.6%-1.7%-10.9%
Q3 2021+2.0%+0.7%-2.9%
Q2 2021-4.2%-11.4%-16.7%
Q1 2021+8.9%+8.6%+14.9%
Q4 2020-2.3%-4.7%-1.6%
Q3 2020+5.5%-2.3%+34.6%
Q2 2020-6.9%-5.7%+2.9%
Q1 2020+2.8%-9.2%+28.4%
Q4 2019-6.7%-3.7%-38.3%
Q3 2019-1.5%-3.5%+1.2%
Q2 2019+10.6%+8.3%+5.3%
Q1 2019-5.2%-5.2%-6.9%
Q4 2018-4.2%-6.6%+3.6%
Q3 2018-2.5%-4.4%-12.3%
Q2 2018+13.1%+13.3%+18.7%
Q1 2018+7.5%+3.2%+13.8%
Q4 2017+3.6%+4.4%+8.8%
Q3 2017+3.4%+1.0%+0.1%
Q2 2017+7.1%+3.5%+9.2%
Q1 2017+7.7%+6.6%+7.8%
Q4 2016-8.4%-7.7%-7.5%
Q3 2016+11.5%+16.0%+18.1%
Q2 2016+0.1%+2.5%+9.3%
Q1 2016-0.6%
Q4 2015+4.6%
Q3 2015+7.5%
Q2 2015+8.0%
Q1 2015+0.6%
Q4 2014+4.9%
Q3 2014+12.1%
Q2 2014-8.5%
Q1 2014-7.7%
Q4 2013-6.4%
Q3 2013+18.7%
Q2 2013+6.1%
Q1 2013+3.7%
Q4 2012+0.2%
Q3 2012-7.6%
Q2 2012+3.7%
Q1 2011-12.2%
Q1 2012+5.5%
Q4 2009-0.3%
Q4 2011-0.3%
Q3 2011+2.0%
Q3 2010+2.0%
Q4 2010-1.4%
Q2 2011-1.4%
Q2 2010-1.4%
Q1 2010+0.6%

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