Callaway Golf Company (NYSE:ELY) today announced its financial results for the second quarter ended June 30, 2007. Highlights for the second quarter include:
• Net sales of $380.0 million, an increase of 11% compared to $341.8 million for the same period in 2006. These record sales are primarily the result of strong sales of the Fusion FT-5 and FT-i drivers and X-20 irons, as well as increases in sales of accessories and golf balls.
• Fully diluted earnings per share of $0.53 on 69.3 million shares outstanding, an increase of 61% compared to $0.33 on 68.6 million shares outstanding in 2006.
• Fully diluted earnings per share include $0.02 of after-tax charges for gross margin improvement initiatives. The second quarter of 2006 includes after-tax charges of $0.01 for the integration of Top-Flite and $0.01 for the restructuring initiatives announced in September 2005. Excluding these charges, the Company’s pro forma fully diluted earnings per share for the second quarter of 2007 would have been $0.55, an increase of 57% compared to $0.35 for the second quarter of 2006.
• Gross profit for the second quarter of 2007 increased 25% to $175.1 million (or 46% of net sales) compared to $140.1 million (or 41% of net sales) for the second quarter of 2006. The increase in gross profit as a percent of sales is primarily the result of an increased mix of higher margin woods and irons products and positive results from the Company’s gross margin improvement initiatives announced in November, 2006.
• Operating expenses for the second quarter of 2007 were $113.0 million (or 30% of net sales) compared to $101.3 million (or 30% of net sales) in 2006. The dollar increase is primarily due to higher selling expenses associated with increased sales, the negative impact of the weaker dollar on international operating expenses, higher legal expense associated with protecting the Company’s intellectual property, and increased annual incentive compensation associated with the improved financial results compared to 2006.
Highlights for the first six months include:
• Net sales increased 11% to $714.6 million, a new record for the Company. Net Sales were $644.3 million for the same period in 2006.
• Fully diluted earnings per share increased 55% to $1.01 on 68.8 million shares outstanding, as compared to $0.65 on 69.4 million shares outstanding in 2006.
• Fully diluted earnings per share include after-tax charges of $0.03 associated with the Company’s gross margin improvement initiatives. Results for the first half of 2006 include after-tax charges of $0.02 for the integration of Top-Flite and $0.01 for restructuring. Excluding these charges, the Company’s pro forma fully diluted earnings per share for 2007 and 2006 would have been $1.04 and $0.68 respectively, an increase of 53%.
• Gross profit for 2007 was $335.8 million (or 47% of net sales) compared to $271.6 million (or 42% of net sales) for 2006. The increase in gross profit is primarily the result of an increase in mix of higher margin products as well as positive results from the Company’s gross margin improvement initiatives.
• Operating expenses for 2007 were $217.9 million (or 30% of net sales), compared to $196.5 million (or 30% of net sales) for 2006. The increase is primarily due to higher selling and marketing expenses associated with the increase in sales, the negative impact of a weaker dollar on international operating expenses, increased legal expense associated with protecting the Company’s intellectual property, and increased annual incentive compensation associated with the improved financial results.
“With the first half of 2007 behind us, we are pleased with our progress on many fronts,” commented George Fellows, President and CEO. “Sales have increased 11% for the quarter and first half of the year, the result of strong consumer acceptance of our new products. Great technology in our Fusion line, particularly our driver products, an improved product development process, and improved ability to ship our products to market efficiently and on time are all contributing to these strong results. We have also seen U.S. revenue market share increase for the Top-Flite brand since December, 2006 driven by the successful introduction of the new D2 golf ball and a cleaner retail channel, resulting in improved profitability of this important brand.”
“We are also making great progress on our gross margin initiatives,” continued Mr. Fellows. “In fact, we are ahead of our internal targets, and are on track with the inventory reduction initiatives we announced earlier this year. Because of these results, we are increasing our full year outlook for the second time this year.”
Business Outlook
The Company estimates that its full year 2007 net sales will be in the range of $1.070 to $1.080 billion compared to the previous estimate of $1.035 to $1.055 billion. It is also estimated that the 2007 full year pro forma fully diluted earnings per share will be in the range of $0.78 to $0.84 compared to the previous estimate of $0.72 to $0.82, both on 70 million shares. Pro forma earnings exclude charges related to the Company’s gross margin improvement initiatives, currently estimated at $0.08 per share for 2007, but include charges related to employee equity-based compensation under FAS 123R.
The Company will be holding a conference call at 2:00 p.m. PDT today. The call will be broadcast live over the Internet and can be accessed at www.callawaygolf.com. To listen to the call, please go to the website at least 15 minutes before the call to register and for instructions on how to access the broadcast. A replay of the conference call will be available approximately three hours after the call ends, and will remain available through 9:00 p.m. PDT on Wednesday, August 8, 2007. The replay may be accessed through the Internet at www.callawaygolf.com or by telephone by calling 1-800-475-6701 toll free for calls originating within the United States or 320-365-3844 for International calls. The replay pass code is 881407.
Disclaimer: Statements used in this press release that relate to future plans, events, financial results, performance or prospects, including statements relating to progress on the gross margin or inventory reduction initiatives or estimated sales and earnings for 2007, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These estimates and statements are based upon current information and expectations. Investors should understand that it is very difficult to forecast sales of the Company’s products as a majority of the Company’s sales each year is derived from the sale of new products. Accurately estimating the Company’s sales (and therefore earnings) each year is therefore based upon various unknowns including consumer acceptance and demand for the Company’s new products as well as future consumer discretionary purchasing behavior. Actual results may differ materially from those estimated or anticipated as a result of these unknowns or other risks and uncertainties, including delays, difficulties or increased costs in the supply of components needed to manufacture the Company’s products, in manufacturing the Company’s products, or in connection with the implementation of the Company’s planned gross margin initiatives, the re-launch of the Top-Flite brand or the implementation of future initiatives; market acceptance of current and future products; adverse market and economic conditions; adverse weather conditions and seasonality; any rule changes or other actions taken by the USGA or other golf association that could have an adverse impact upon demand or supply of the Company’s products; a decrease in participation levels in golf; and the effect of terrorist activity, armed conflict, natural disasters or pandemic diseases on the economy generally, on the level of demand for the Company's products or on the Company's ability to manage its supply and delivery logistics in such an environment. For additional information concerning these and other risks and uncertainties that could affect these statements and the Company’s business, see Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, as well as other risks and uncertainties detailed from time to time in the Company’s reports on Forms 10-K, 10-Q and 8-K subsequently filed from time to time with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Regulation G: The financial results reported in this press release have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In addition to the GAAP results, the Company has also provided additional information concerning its results, which includes certain financial measures not prepared in accordance with GAAP. The non-GAAP financial measures included in this press release exclude charges associated with the integration of the Callaway Golf Company and Top-Flite Golf Company operations and charges related to the gross margin initiatives. These non-GAAP financial measures should not be considered a substitute for any measure derived in accordance with GAAP. These non-GAAP financial measures may also be inconsistent with the manner in which similar measures are derived or used by other companies. Management believes that the presentation of such non-GAAP financial measures, when considered in conjunction with the most directly comparable GAAP financial measures, provides additional useful information concerning the Company’s operations without these charges. The Company has provided reconciling information in the text of this press release and in the supplemental financial information attached to this release.
Through an unwavering commitment to innovation, Callaway Golf creates products and services designed to make every golfer a better golfer. Callaway Golf Company manufactures and sells golf clubs and golf balls, and sells golf accessories, under the Callaway Golf®, Top-Flite®, Odyssey® and Ben Hogan® brands. For more information visit www.callawaygolf.com.
| Callaway Golf Company | ||||||||||
| Consolidated Condensed Balance Sheets | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| June 30, | December 31, | |||||||||
| 2007 | 2006 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 48,397 | $ | 46,362 | ||||||
| Accounts receivable, net | 281,538 | 118,133 | ||||||||
| Inventories, net | 225,835 | 265,110 | ||||||||
| Deferred taxes | 37,047 | 32,813 | ||||||||
| Income taxes receivable | - | 9,094 | ||||||||
| Other current assets | 21,429 | 21,688 | ||||||||
| Total current assets | 614,246 | 493,200 | ||||||||
| Property, plant and equipment, net | 133,052 | 131,224 | ||||||||
| Intangible assets, net | 174,089 | 175,159 | ||||||||
| Deferred taxes | 25,866 | 18,821 | ||||||||
| Other assets | 27,866 | 27,543 | ||||||||
| $ | 975,119 | $ | 845,947 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued expenses | $ | 141,358 | $ | 111,360 | ||||||
| Accrued employee compensation and benefits | 31,960 | 18,731 | ||||||||
| Accrued warranty expense | 14,365 | 13,364 | ||||||||
| Bank line of credit | 55,394 | 80,000 | ||||||||
| Other current liabilities | 8,033 | - | ||||||||
| Total current liabilities | 251,110 | 223,455 | ||||||||
| Long-term liabilities | 59,117 | 43,388 | ||||||||
| Minority interest | 1,937 | 1,987 | ||||||||
| Shareholders' equity | 662,955 | 577,117 | ||||||||
| $ | 975,119 | $ | 845,947 | |||||||
| Callaway Golf Company | ||||||||||||||
| Statements of Operations | ||||||||||||||
| (In thousands, except per share data) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Quarter Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2007 | 2006 | |||||||||||||
| Net sales | $ | 380,017 | 100 | % | $ | 341,815 | 100 | % | ||||||
| Cost of sales | 204,892 | 54 | % | 201,729 | 59 | % | ||||||||
| Gross profit | 175,125 | 46 | % | 140,086 | 41 | % | ||||||||
| Operating expenses: | ||||||||||||||
| Selling | 80,910 | 21 | % | 77,045 | 23 | % | ||||||||
| General and administrative | 24,187 | 6 | % | 18,101 | 5 | % | ||||||||
| Research and development | 7,907 | 2 | % | 6,194 | 2 | % | ||||||||
| Total operating expenses | 113,004 | 30 | % | 101,340 | 30 | % | ||||||||
| Income from operations | 62,121 | 16 | % | 38,746 | 11 | % | ||||||||
| Other expense, net | (1,891 | ) | (1,273 | ) | ||||||||||
| Income before income taxes | 60,230 | 16 | % | 37,473 | 11 | % | ||||||||
| Income tax provision | 23,591 | 14,934 | ||||||||||||
| Net income | $ | 36,639 | 10 | % | $ | 22,539 | 7 | % | ||||||
| Earnings per common share: | ||||||||||||||
| Basic | $ | 0.54 | $ | 0.33 | ||||||||||
| Diluted | $ | 0.53 | $ | 0.33 | ||||||||||
| Weighted-average shares outstanding: | ||||||||||||||
| Basic | 67,970 | 67,799 | ||||||||||||
| Diluted | 69,274 | 68,577 | ||||||||||||
| Six Months Ended | ||||||||||||||
| June 30, | ||||||||||||||
| 2007 | 2006 | |||||||||||||
| Net sales | $ | 714,624 | 100 | % | $ | 644,260 | 100 | % | ||||||
| Cost of sales | 378,778 | 53 | % | 372,662 | 58 | % | ||||||||
| Gross profit | 335,846 | 47 | % | 271,598 | 42 | % | ||||||||
| Operating expenses: | ||||||||||||||
| Selling | 156,201 | 22 | % | 145,173 | 23 | % | ||||||||
| General and administrative | 45,745 | 6 | % | 38,325 | 6 | % | ||||||||
| Research and development | 15,923 | 2 | % | 12,998 | 2 | % | ||||||||
| Total operating expenses | 217,869 | 30 | % | 196,496 | 30 | % | ||||||||
| Income from operations | 117,977 | 17 | % | 75,102 | 12 | % | ||||||||
| Other expense, net | (3,229 | ) | (971 | ) | ||||||||||
| Income before income taxes | 114,748 | 16 | % | 74,131 | 12 | % | ||||||||
| Income tax provision | 45,273 | 28,731 | ||||||||||||
| Net income | $ | 69,475 | 10 | % | $ | 45,400 | 7 | % | ||||||
| Earnings per common share: | ||||||||||||||
| Basic | $ | 1.03 | $ | 0.66 | ||||||||||
| Diluted | $ | 1.01 | $ | 0.65 | ||||||||||
| Weighted-average shares outstanding: | ||||||||||||||
| Basic | 67,623 | 68,479 | ||||||||||||
| Diluted | 68,798 | 69,356 | ||||||||||||
| Callaway Golf Company | ||||||||||||
| Consolidated Condensed Statements of Cash Flows | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Six Months Ended | ||||||||||||
| June 30, | ||||||||||||
| 2007 | 2006 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 69,475 | $ | 45,400 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 17,600 | 15,225 | ||||||||||
| Non-cash compensation | 6,527 | 6,331 | ||||||||||
| Loss on disposal of assets | 61 | 324 | ||||||||||
| Deferred taxes | 5,348 | 1,165 | ||||||||||
| Changes in assets and liabilities, net of effects from acquisition | (66,208 | ) | (114,383 | ) | ||||||||
| Net cash provided by (used in) operating activities | 32,803 | (45,938 | ) | |||||||||
| Cash flows from investing activities: | ||||||||||||
| Capital expenditures | (18,439 | ) | (20,463 | ) | ||||||||
| Business acquisition, net of cash acquired | - | (5,911 | ) | |||||||||
| Proceeds from sale of capital assets | 9 | 120 | ||||||||||
| Net cash used in investing activities | (18,430 | ) | (26,254 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Issuance of Common Stock | 42,108 | 6,519 | ||||||||||
| Dividends paid, net | (4,757 | ) | (4,901 | ) | ||||||||
| Acquisition of Treasury Stock | (28,735 | ) | (42,894 | ) | ||||||||
| Tax benefit from exercise of stock option | 3,013 | 481 | ||||||||||
| (Payments on) proceeds from line of credit net | (24,606 | ) | 110,300 | |||||||||
| Other financing activities | (50 | ) | (20 | ) | ||||||||
| Net cash (used in) provided by financing activities | (13,027 | ) | 69,485 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 689 | 1,339 | ||||||||||
| Net increase (decrease) in cash and cash equivalents | 2,035 | (1,368 | ) | |||||||||
| Cash and cash equivalents at beginning of period | 46,362 | 49,481 | ||||||||||
| Cash and cash equivalents at end of period | $ | 48,397 | $ | 48,113 | ||||||||
| Callaway Golf Company | ||||||||||||||||||||||||||||||||
| Consolidated Net Sales and Operating Segment Information | ||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
Net Sales by Product Category | Net Sales by Product Category | |||||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||
| June 30, | Growth/(Decline) | June 30, | Growth/(Decline) | |||||||||||||||||||||||||||||
| 2007 | 2006 | Dollars | Percent | 2007 | 2006 | Dollars | Percent | |||||||||||||||||||||||||
| Net sales: | Net sales: | |||||||||||||||||||||||||||||||
| Woods | $ | 111,971 | $ | 86,319 | $ | 25,652 | 30 | % | Woods | $ | 214,994 | $ | 183,439 | $ | 31,555 | 17 | % | |||||||||||||||
| Irons (1) | 95,381 | 103,148 | (7,767 | ) | -8 | % | Irons (1) | 195,418 | 189,708 | 5,710 | 3 | % | ||||||||||||||||||||
| Putters | 37,458 | 37,313 | 145 | 0 | % | Putters | 66,532 | 62,191 | 4,341 | 7 | % | |||||||||||||||||||||
| Golf balls | 72,114 | 69,103 | 3,011 | 4 | % | Golf balls | 125,660 | 124,833 | 827 | 1 | % | |||||||||||||||||||||
| Accessories and other (1) | 63,093 | 45,932 | 17,161 | 37 | % | Accessories and other (1) | 112,020 | 84,089 | 27,931 | 33 | % | |||||||||||||||||||||
| $ | 380,017 | $ | 341,815 | $ | 38,202 | 11 | % | $ | 714,624 | $ | 644,260 | $ | 70,364 | 11 | % | |||||||||||||||||
| (1) Prior periods have been restated to reflect current period classification. | ||||||||||||||||||||||||||||||||
Net Sales by Region | Net Sales by Region | |||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||
| June 30, | Growth/(Decline) | June 30, | Growth/(Decline) | |||||||||||||||||||||
| 2007 | 2006 | Dollars | Percent | 2007 | 2006 | Dollars | Percent | |||||||||||||||||
| Net sales: | Net sales: | |||||||||||||||||||||||
| United States | $ 204,391 | $ 186,349 | $ 18,042 | 10% | United States | $ 388,195 | $ 367,632 | $ 20,563 | 6% | |||||||||||||||
| Europe | 70,284 | 54,336 | 15,948 | 29% | Europe | 126,307 | 104,421 | 21,886 | 21% | |||||||||||||||
| Japan | 33,847 | 34,042 | (195) | -1% | Japan | 71,787 | 60,156 | 11,631 | 19% | |||||||||||||||
| Rest of Asia | 25,645 | 25,561 | 84 | 0% | Rest of Asia | 48,466 | 42,549 | 5,917 | 14% | |||||||||||||||
| Other foreign countries | 45,850 | 41,527 | 4,323 | 10% | Other foreign countries | 79,869 | 69,502 | 10,367 | 15% | |||||||||||||||
| $ 380,017 | $ 341,815 | $ 38,202 | 11% | $ 714,624 | $ 644,260 | $ 70,364 | 11% | |||||||||||||||||
Operating Segment Information | Operating Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, | Growth/(Decline) | June 30, | Growth/(Decline) | |||||||||||||||||||||||||||||||||||||||||||||||
| 2007 | 2006 | Dollars | Percent | 2007 | 2006 | Dollars | Percent | |||||||||||||||||||||||||||||||||||||||||||
| Net sales: | Net sales: | |||||||||||||||||||||||||||||||||||||||||||||||||
| Golf clubs | $ | 307,903 | $ | 272,713 | $ | 35,190 | 13 | % | Golf clubs | $ | 588,964 | $ | 519,427 | $ | 69,537 | 13 | % | |||||||||||||||||||||||||||||||||
| Golf balls | 72,114 | 69,102 | 3,012 | 4 | % | Golf balls | 125,660 | 124,833 | 827 | 1 | % | |||||||||||||||||||||||||||||||||||||||
| $ | 380,017 | $ | 341,815 | $ | 38,202 | 11 | % | $ | 714,624 | $ | 644,260 | $ | 70,364 | 11 | % | |||||||||||||||||||||||||||||||||||
| Income before provision for income taxes: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Golf clubs | $ | 73,869 | $ | 50,328 | $ | 23,541 | 47 | % | Golf clubs | $ | 139,524 | $ | 95,395 | $ | 44,129 | 46 | % | |||||||||||||||||||||||||||||||||
| Golf balls | 5,584 | 544 | 5,040 | 926 | % | Golf balls | 11,001 | 6,902 | 4,099 | 59 | % | |||||||||||||||||||||||||||||||||||||||
| Reconciling items (2) | (19,223 | ) | (13,399 | ) | (5,824 | ) | -43 | % | Reconciling items (2) | (35,777 | ) | (28,166 | ) | (7,611) | -27 | % | ||||||||||||||||||||||||||||||||||
| $ | 60,230 | $ | 37,473 | $ | 22,757 | 61 | % | $ | 114,748 | $ | 74,131 | $ | 40,617 | 55 | % | |||||||||||||||||||||||||||||||||||
| (2) Represents corporate general and administrative expenses and other income (expense) not utilized by management in determining segment profitability. | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Callaway Golf Company | |||||||||||||||||||||||||||||
| Supplemental Financial Information | |||||||||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| Quarter Ended June 30, | Quarter Ended June 30, | ||||||||||||||||||||||||||||
2007 | 2006 | ||||||||||||||||||||||||||||
| Pro Forma Callaway Golf | Gross Margin Improvement Initiatives | Total as Reported | Pro Forma Callaway Golf | Integration Charges | Restructuring Charges | Total as Reported | |||||||||||||||||||||||
| Net sales | $ | 380,017 | $ | - | $ | 380,017 | $ | 341,815 | $ | - | $ | - | $ | 341,815 | |||||||||||||||
| Gross profit | 177,076 | (1,951 | ) | 175,125 | 141,698 | (1,516 | ) | (96 | ) | 140,086 | |||||||||||||||||||
| % of sales | 47 | % | n/a | 46 | % | 41 | % | n/a | n/a | 41 | % | ||||||||||||||||||
| Operating expenses | 113,004 | - | 113,004 | 100,648 | 218 | 474 | 101,340 | ||||||||||||||||||||||
| Income (loss) from operations | 64,072 | (1,951 | ) | 62,121 | 41,050 | (1,734 | ) | (570 | ) | 38,746 | |||||||||||||||||||
| Other expense, net | (1,891 | ) | - | (1,891 | ) | (1,273 | ) | - | - | (1,273 | ) | ||||||||||||||||||
| Income (loss) before income taxes | 62,181 | (1,951 | ) | 60,230 | 39,777 | (1,734 | ) | (570 | ) | 37,473 | |||||||||||||||||||
| Income tax provision | 24,350 | (759 | ) | 23,591 | 15,809 | (662 | ) | (213 | ) | 14,934 | |||||||||||||||||||
| Net income (loss) | $ | 37,831 | $ | (1,192 | ) | $ | 36,639 | $ | 23,968 | $ | (1,072 | ) | $ | (357 | ) | $ | 22,539 | ||||||||||||
| Diluted earnings (loss) per share: | $ | 0.55 | $ | (0.02 | ) | $ | 0.53 | $ | 0.35 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.33 | ||||||||||||
| Weighted-average shares | |||||||||||||||||||||||||||||
| outstanding: | 69,274 | 69,274 | 69,274 | 68,577 | 68,577 | 68,577 | 68,577 | ||||||||||||||||||||||
| Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2007 | 2006 | |||||||||||||||||||||||||||||
| Pro Forma Callaway Golf | Gross Margin Improvement Initiatives | Total as Reported | Pro Forma Callaway Golf | Integration Charges | Restructuring Charges | Total as Reported | ||||||||||||||||||||||||
| Net sales | $ | 714,624 | $ | - | $ | 714,624 | $ | 644,260 | $ | - | $ | - | $ | 644,260 | ||||||||||||||||
| Gross profit | 339,202 | (3,356 | ) | 335,846 | 273,879 | (2,171 | ) | (110 | ) | 271,598 | ||||||||||||||||||||
| % of sales | 47 | % | n/a | 47 | % | 43 | % | n/a | n/a | 42 | % | |||||||||||||||||||
| Operating expenses | 217,869 | - | 217,869 | 195,453 | 593 | 450 | 196,496 | |||||||||||||||||||||||
| Income (loss) from operations | 121,333 | (3,356 | ) | 117,977 | 78,426 | (2,764 | ) | (560 | ) | 75,102 | ||||||||||||||||||||
| Other expense, net | (3,229 | ) | - | (3,229 | ) | (971 | ) | - | - | (971 | ) | |||||||||||||||||||
| Income (loss) before income taxes | 118,104 | (3,356 | ) | 114,748 | 77,455 | (2,764 | ) | (560 | ) | 74,131 | ||||||||||||||||||||
| Income tax provision | 46,586 | (1,313 | ) | 45,273 | 30,001 | (1,061 | ) | (209 | ) | 28,731 | ||||||||||||||||||||
| Net income (loss) | $ | 71,518 | $ | (2,043 | ) | $ | 69,475 | $ | 47,454 | $ | (1,703 | ) | $ | (351 | ) | $ | 45,400 | |||||||||||||
| Diluted earnings (loss) per share: | $ | 1.04 | $ | (0.03 | ) | $ | 1.01 | $ | 0.68 | $ | (0.02 | ) | $ | (0.01 | ) | $ | 0.65 | |||||||||||||
| Weighted-average shares | ||||||||||||||||||||||||||||||
| outstanding: | 68,798 | 68,798 | 68,798 | 69,356 | 69,356 | 69,356 | 69,356 | |||||||||||||||||||||||
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): | ||||||||||||||||||||
| 2007 Trailing Twelve Months EBITDA | 2006 Trailing Twelve Months EBITDA | |||||||||||||||||||
| Quarter Ended | Quarter Ended | |||||||||||||||||||
| September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | |||||||||||||
| 2006 | 2006 | 2007 | 2007 | Total | 2005 | 2005 | 2006 | 2006 | Total | |||||||||||
| Net income (loss) | $ (11,916) | $ (10,194) | $ 32,836 | $ 36,639 | $ 47,365 | $ (4,804) | $ (18,664) | $ 22,861 | $ 22,539 | $ 21,932 | ||||||||||
| Interest expense (income), net | 1,132 | 905 | 1,677 | 1,672 | 5,386 | 332 | (165) | 533 | 1,522 | 2,222 | ||||||||||
| Income tax provision (benefit) | (6,075) | (10,948) | 21,682 | 23,591 | 28,250 | (3,954) | (14,361) | 13,797 | 14,934 | 10,416 | ||||||||||
| Depreciation and amortization expense | 8,736 | 8,313 | 9,009 | 8,591 | 34,649 | 8,283 | 7,318 | 7,290 | 7,935 | 30,826 | ||||||||||
| EBITDA | $ (8,123) | $ (11,924) | $ 65,204 | $ 70,493 | $ 115,650 | $ (143) | $ (25,872) | $ 44,481 | $ 46,930 | $ 65,396 | ||||||||||
Contacts:
Brad Holiday
Patrick Burke
Michele
Szynal
(760) 931-1771
