Callaway Golf Company (NYSE:ELY) today announced its financial results for the second quarter and first half ended June 30, 2008, including record sales and earnings for the first half of 2008.
Highlights for the second quarter include:
- Net sales of $366 million, a decrease of 4% versus 2007’s record second quarter sales of $380 million.
- Fully diluted earnings per share of $0.58 (on 63.9 million shares outstanding), an increase of approximately 9% compared to $0.53 (on 69.3 million shares outstanding) in 2007. Fully diluted earnings per share for the second quarter include after-tax charges for gross margin improvement initiatives of $0.05 per share in 2008 and $0.02 per share in 2007.
- Gross profit as a percentage of net sales for the second quarter of 2008 increased to 46.7% from 46.1% in the second quarter of 2007. Excluding the impact of the gross margin initiatives charges, gross profit percentages for the second quarter of 2008 increased 140 basis points to 48.0% versus 46.6% in the second quarter of 2007.
- Operating expenses for the second quarter of 2008 were $110.8 million (or 30% of net sales) compared to $113.0 million (or 30% of net sales) in 2007.
- The Company repurchased 1.5 million shares of stock for $20 million for the quarter at an average price of $13.59 per share.
Highlights for the first six months include:
- Record net sales of $732.5 million, an increase of 2% versus last year’s record of $714.6 million.
- Record fully diluted earnings per share of $1.19 (on 64.4 million shares outstanding), an increase of 18% as compared to $1.01 (on 68.8 million shares outstanding) in 2007. Fully diluted earnings per share for the period include after-tax charges for gross margin improvement initiatives of $0.06 per share in 2008 and $0.03 per share in 2007.
- Gross profit for 2008 was $346.6 million (or 47.3% of net sales) compared to $335.8 million (or 47.0% of net sales) for 2007. Excluding the impact of the gross margin initiatives charges, pro forma gross profit percentages for 2008 would have been 48.1% compared to 47.5% in 2007.
- Operating expenses for 2008 were $221.4 million (or 30% of net sales), compared to $217.9 million (or 30% of net sales) for 2007.
“We’ve reached the halfway point of 2008 and despite the challenging economic conditions in the United States we have delivered record sales and earnings over a strong 2007,” commented George Fellows, President and CEO. “These results speak to the strength of our brands and our international business, which has delivered ahead of expectations and more than offset the softness we have experienced in our U.S. business.”
“We continue to make excellent progress on our gross margin improvement initiatives and are on track to achieve our original two year commitment of $50 to $60 million in savings,” continued Mr. Fellows. “While product mix and to a lesser extent commodity costs will work against us this year, we currently estimate our full year gross margins will still improve at least 100 basis points compared to 2007. In addition, we are on track to achieve our inventory reduction initiatives announced earlier this year.”
Business Outlook
The Company reiterates its full year guidance of $1.145 to $1.165 billion in net sales and pro forma fully diluted earnings per share of $1.08 to $1.18 per share. The Company estimates that its full year net sales will be toward the higher end of the guidance range as it anticipates that it will continue to benefit from foreign currency exchange rates and intends to release some new products on a limited basis during the fourth quarter. Pro forma full year diluted earnings per share are estimated to increase by more than 20% compared to 2007 and to be at the lower end of the guidance range, due to the adverse effect of product mix and commodity costs on 2008 gross margins, as well as additional marketing investment for the new product introductions. The pro forma earnings guidance for 2008 excludes charges of approximately $0.11 per share for the Company’s gross margin initiatives. The Company had previously estimated that the charges for the gross margin initiatives would be approximately $0.08 per share for 2008 but the Company has accelerated the commencement of some of the gross margin initiatives that previously had been planned to start in 2009. As a result of the second quarter share repurchases, the pro forma earnings per share estimates are now based upon an estimated 64.5 million shares.
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 two hours after the call ends, and will remain available through 9:00 p.m. PDT on Wednesday, August 6, 2008. 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 954802.
Disclaimer: Statements used in this press release that relate to future plans, events, financial results, performance or prospects, including statements relating to estimated sales and earnings for 2008, estimated gross margin improvement for 2008, the estimated charges for the Company’s gross margin initiatives, the timing or amount of new product introductions, and anticipated benefits from foreign currency rates, 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. Accurately estimating the Company’s reported future financial performance is based upon various unknowns including, future changes in foreign currency rates and consumer acceptance and demand for the Company’s products as well as future consumer discretionary purchasing activity, which can be significantly adversely affected by unfavorable economic or market conditions. 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 or the implementation of future initiatives; 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, 2007, as well as other risks and uncertainties detailed from time to time in the Company’s reports on Forms 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 Company’s 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 accompanying schedules.
About Callaway Golf
Through an unwavering commitment to innovation, Callaway Golf Company (NYSE: ELY) 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®, Odyssey®, Top-Flite®, and Ben Hogan® brands in more than 110 countries worldwide. For more information please visit www.callawaygolf.com or Shop.CallawayGolf.com.
| Callaway Golf Company | |||||||||||
| Consolidated Condensed Balance Sheets | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| June 30, | December 31, | ||||||||||
| 2008 | 2007 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 54,974 | $ | 49,875 | |||||||
| Accounts receivable, net | 286,990 | 112,064 | |||||||||
| Inventories, net | 235,790 | 253,001 | |||||||||
| Deferred taxes | 41,642 | 42,219 | |||||||||
| Income taxes receivable | - | 9,232 | |||||||||
| Other current assets | 33,308 | 30,190 | |||||||||
| Total current assets | 652,704 | 496,581 | |||||||||
| Property, plant and equipment, net | 134,604 | 128,036 | |||||||||
| Intangible assets, net | 171,944 | 173,045 | |||||||||
| Deferred taxes | 25,490 | 18,885 | |||||||||
| Other assets | 42,950 | 40,416 | |||||||||
| $ | 1,027,692 | $ | 856,963 | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 138,224 | $ | 130,410 | |||||||
| Accrued employee compensation and benefits | 34,882 | 44,245 | |||||||||
| Accrued warranty expense | 13,342 | 12,386 | |||||||||
| Income taxes payable | 16,879 | - | |||||||||
| Credit facilities | 135,000 | 36,507 | |||||||||
| Total current liabilities | 338,327 | 223,548 | |||||||||
| Long-term liabilities | 64,366 | 63,207 | |||||||||
| Minority interest | 2,546 | 1,978 | |||||||||
| Shareholders' equity | 622,453 | 568,230 | |||||||||
| $ | 1,027,692 | $ | 856,963 | ||||||||
| Callaway Golf Company | |||||||||||||||||
| Statements of Operations | |||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Quarter Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2008 | 2007 | ||||||||||||||||
| Net sales | $ | 366,029 | 100 | % | $ | 380,017 | 100 | % | |||||||||
| Cost of sales | 194,949 | 53 | % | 204,892 | 54 | % | |||||||||||
| Gross profit | 171,080 | 47 | % | 175,125 | 46 | % | |||||||||||
| Operating expenses: | |||||||||||||||||
| Selling | 80,461 | 22 | % | 80,910 | 21 | % | |||||||||||
| General and administrative | 22,791 | 6 | % | 24,187 | 6 | % | |||||||||||
| Research and development | 7,538 | 2 | % | 7,907 | 2 | % | |||||||||||
| Total operating expenses | 110,790 | 30 | % | 113,004 | 30 | % | |||||||||||
| Income from operations | 60,290 | 16 | % | 62,121 | 16 | % | |||||||||||
| Other expense, net | (2,600 | ) | (1,891 | ) | |||||||||||||
| Income before income taxes | 57,690 | 16 | % | 60,230 | 16 | % | |||||||||||
| Income tax provision | 20,583 | 23,591 | |||||||||||||||
| Net income | $ | 37,107 | 10 | % | $ | 36,639 | 10 | % | |||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 0.59 | $ | 0.54 | |||||||||||||
| Diluted | $ | 0.58 | $ | 0.53 | |||||||||||||
| Weighted-average shares outstanding: | |||||||||||||||||
| Basic | 63,180 | 67,970 | |||||||||||||||
| Diluted | 63,941 | 69,274 | |||||||||||||||
| Six Months Ended | |||||||||||||||||
| June 30, | |||||||||||||||||
| 2008 | 2007 | ||||||||||||||||
| Net sales | $ | 732,481 | 100 | % | $ | 714,624 | 100 | % | |||||||||
| Cost of sales | 385,867 | 53 | % | 378,778 | 53 | % | |||||||||||
| Gross profit | 346,614 | 47 | % | 335,846 | 47 | % | |||||||||||
| Operating expenses: | |||||||||||||||||
| Selling | 160,622 | 22 | % | 156,201 | 22 | % | |||||||||||
| General and administrative | 45,279 | 6 | % | 45,745 | 6 | % | |||||||||||
| Research and development | 15,462 | 2 | % | 15,923 | 2 | % | |||||||||||
| Total operating expenses | 221,363 | 30 | % | 217,869 | 30 | % | |||||||||||
| Income from operations | 125,251 | 17 | % | 117,977 | 17 | % | |||||||||||
| Other expense, net | (1,905 | ) | (3,229 | ) | |||||||||||||
| Income before income taxes | 123,346 | 17 | % | 114,748 | 16 | % | |||||||||||
| Income tax provision | 46,573 | 45,273 | |||||||||||||||
| Net income | $ | 76,773 | 10 | % | $ | 69,475 | 10 | % | |||||||||
| Earnings per common share: | |||||||||||||||||
| Basic | $ | 1.21 | $ | 1.03 | |||||||||||||
| Diluted | $ | 1.19 | $ | 1.01 | |||||||||||||
| Weighted-average shares outstanding: | |||||||||||||||||
| Basic | 63,538 | 67,623 | |||||||||||||||
| Diluted | 64,392 | 68,798 | |||||||||||||||
| Callaway Golf Company | |||||||||||||
| Consolidated Condensed Statements of Cash Flows | |||||||||||||
| (In thousands) | |||||||||||||
| (Unaudited) | |||||||||||||
| Six Months | |||||||||||||
| June 30, | |||||||||||||
| 2008 | 2007 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||
| Net income | $ | 76,773 | $ | 69,475 | |||||||||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||
| Depreciation and amortization | 19,284 | 17,600 | |||||||||||
| Deferred taxes | 4,130 | 5,348 | |||||||||||
| Non-cash compensation | 2,960 | 6,527 | |||||||||||
| (Gain) loss on disposal of assets | (438 | ) | 61 | ||||||||||
| Changes in assets and liabilities | (150,755 | ) | (66,208 | ) | |||||||||
| Net cash (used in) provided by operating activities | (48,046 | ) | 32,803 | ||||||||||
| Cash flows from investing activities: | |||||||||||||
| Capital expenditures | (24,213 | ) | (18,439 | ) | |||||||||
| Proceeds from sale of capital assets | 15 | 9 | |||||||||||
| Net cash used in investing activities | (24,198 | ) | (18,430 | ) | |||||||||
| Cash flows from financing activities: | |||||||||||||
| Issuance of Common Stock | 2,767 | 42,108 | |||||||||||
| Dividends paid, net | (4,526 | ) | (4,757 | ) | |||||||||
| Acquisition of Treasury Stock | (20,076 | ) | (28,735 | ) | |||||||||
| Net proceeds from (payments on) line of credit | 98,441 | (24,606 | ) | ||||||||||
| Other financing activities | (34 | ) | 2,963 | ||||||||||
| Net cash provided by (used in) financing activities | 76,572 | (13,027 | ) | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 771 | 689 | |||||||||||
| Net increase in cash and cash equivalents | 5,099 | 2,035 | |||||||||||
| Cash and cash equivalents at beginning of period | 49,875 | 46,362 | |||||||||||
| Cash and cash equivalents at end of period | $ | 54,974 | $ | 48,397 | |||||||||
| Callaway Golf Company | ||||||||||||||||||||||||||||||||||||||||
| Consolidated Net Sales and Operating Segment Information | ||||||||||||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||
| Net Sales by Product Category | ||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
| June 30, | Growth/(Decline) | June 30, | Growth/(Decline) | |||||||||||||||||||||||||||||||||||||
| 2008 | 2007(1) | Dollars | Percent | 2008 | 2007(1) | Dollars | Percent | |||||||||||||||||||||||||||||||||
| Net sales: | Net sales: | |||||||||||||||||||||||||||||||||||||||
| Woods | $ | 85,992 | $ | 113,196 | $ | (27,204 | ) | -24 | % | Woods | $ | 202,544 | $ | 216,261 | $ | (13,717 | ) | -6 | % | |||||||||||||||||||||
| Irons | 100,047 | 97,036 | 3,011 | 3 | % | Irons | 196,543 | 197,136 | (593 | ) | 0 | % | ||||||||||||||||||||||||||||
| Putters | 32,934 | 37,660 | (4,726 | ) | -13 | % | Putters | 67,488 | 66,743 | 745 | 1 | % | ||||||||||||||||||||||||||||
| Golf balls | 74,235 | 72,415 | 1,820 | 3 | % | Golf balls | 132,668 | 125,963 | 6,705 | 5 | % | |||||||||||||||||||||||||||||
| Accessories and other | 72,821 | 59,710 | 13,111 | 22 | % | Accessories and other | 133,238 | 108,521 | 24,717 | 23 | % | |||||||||||||||||||||||||||||
| $ | 366,029 | $ | 380,017 | $ | (13,988 | ) | -4 | % | $ | 732,481 | $ | 714,624 | $ | 17,857 | 2 | % | ||||||||||||||||||||||||
| (1) Prior periods have been restated to reflect current period classification. | ||||||||||||||||||||||||||||||||||||||||
| Net Sales by Region | ||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
| June 30, | Growth/(Decline) | June 30, | Growth/(Decline) | |||||||||||||||||||||||||||||||||||||
| 2008 | 2007 | Dollars | Percent | 2008 | 2007 | Dollars | Percent | |||||||||||||||||||||||||||||||||
| Net sales: | Net sales: | |||||||||||||||||||||||||||||||||||||||
| United States | $ | 176,077 | $ | 204,391 | $ | (28,314 | ) | -14 | % | United States | $ | 360,456 | $ | 388,195 | $ | (27,739 | ) | -7 | % | |||||||||||||||||||||
| Europe | 71,824 | 70,284 | 1,540 | 2 | % | Europe | 137,914 | 126,307 | 11,607 | 9 | % | |||||||||||||||||||||||||||||
| Japan | 46,559 | 33,847 | 12,712 | 38 | % | Japan | 99,899 | 71,787 | 28,112 | 39 | % | |||||||||||||||||||||||||||||
| Rest of Asia | 22,072 | 25,645 | (3,573 | ) | -14 | % | Rest of Asia | 48,533 | 48,466 | 67 | 0 | % | ||||||||||||||||||||||||||||
| Other foreign countries | 49,497 | 45,850 | 3,647 | 8 | % | Other foreign countries | 85,679 | 79,869 | 5,810 | 7 | % | |||||||||||||||||||||||||||||
| $ | 366,029 | $ | 380,017 | $ | (13,988 | ) | -4 | % | $ | 732,481 | $ | 714,624 | $ | 17,857 | 2 | % | ||||||||||||||||||||||||
| Operating Segment Information | |||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||
| June 30, | Growth/(Decline) | June 30, | Growth/(Decline) | ||||||||||||||||||||||||||||||||||||
| 2008 | 2007(1) | Dollars | Percent | 2008 | 2007(1) | Dollars | Percent | ||||||||||||||||||||||||||||||||
| Net sales: | Net sales: | ||||||||||||||||||||||||||||||||||||||
| Golf clubs | $ | 291,794 | $ | 307,602 | $ | (15,808 | ) | -5 | % | Golf clubs | $ | 599,813 | $ | 588,661 | $ | 11,152 | 2 | % | |||||||||||||||||||||
| Golf balls | 74,235 | 72,415 | 1,820 | 3 | % | Golf balls | 132,668 | 125,963 | 6,705 | 5 | % | ||||||||||||||||||||||||||||
| $ | 366,029 | $ | 380,017 | $ | (13,988 | ) | -4 | % | $ | 732,481 | $ | 714,624 | $ | 17,857 | 2 | % | |||||||||||||||||||||||
| Income before provision for income taxes: | |||||||||||||||||||||||||||||||||||||||
| Golf clubs | $ | 67,167 | $ | 73,702 | $ | (6,535 | ) | -9 | % | Golf clubs | $ | 143,366 | $ | 139,045 | $ | 4,321 | 3 | % | |||||||||||||||||||||
| Golf balls | 8,257 | 5,751 | 2,506 | 44 | % | Golf balls | 12,702 | 11,479 | 1,223 | 11 | % | ||||||||||||||||||||||||||||
| Reconciling items (2) | (17,734 | ) | (19,223 | ) | 1,489 | 8 | % | Reconciling items (2) | (32,722 | ) | (35,776 | ) | 3,054 | 9 | % | ||||||||||||||||||||||||
| $ | 57,690 | $ | 60,230 | $ | (2,540 | ) | -4 | % | $ | 123,346 | $ | 114,748 | $ | 8,598 | 7 | % | |||||||||||||||||||||||
(1) Prior periods have been reclassified to reflect current period classification. | |||||||||||||||||||||||||||||||||||||||
| (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, | |||||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||||||
| Pro Forma Callaway Golf | Gross Margin Improvement Initiatives | Total as Reported | Pro Forma Callaway Golf | Gross Margin Improvement Initiatives | Total as Reported | |||||||||||||||||||
| Net sales | $ | 366,029 | $ | - | $ | 366,029 | $ | 380,017 | $ | - | $ | 380,017 | ||||||||||||
| Gross profit | 175,773 | (4,693 | ) | 171,080 | 177,076 | (1,951 | ) | 175,125 | ||||||||||||||||
| % of sales | 48 | % | n/a | 47 | % | 47 | % | n/a | 46 | % | ||||||||||||||
| Operating expenses | 110,670 | 120 | 110,790 | 113,004 | - | 113,004 | ||||||||||||||||||
| Income (loss) from operations | 65,103 | (4,813 | ) | 60,290 | 64,072 | (1,951 | ) | 62,121 | ||||||||||||||||
| Other expense, net | (2,600 | ) | - | (2,600 | ) | (1,891 | ) | - | (1,891 | ) | ||||||||||||||
| Income (loss) before income taxes | 62,503 | (4,813 | ) | 57,690 | 62,181 | (1,951 | ) | 60,230 | ||||||||||||||||
| Income tax provision (benefit) | 22,436 | (1,853 | ) | 20,583 | 24,350 | (759 | ) | 23,591 | ||||||||||||||||
| Net income (loss) | $ | 40,067 | $ | (2,960 | ) | $ | 37,107 | $ | 37,831 | $ | (1,192 | ) | $ | 36,639 | ||||||||||
| Diluted earnings (loss) per share: | $ | 0.63 | $ | (0.05 | ) | $ | 0.58 | $ | 0.55 | $ | (0.02 | ) | $ | 0.53 | ||||||||||
| Weighted-average shares outstanding: | ||||||||||||||||||||||||
| 63,941 | 63,941 | 63,941 | 69,274 | 69,274 | 69,274 | |||||||||||||||||||
| Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||||||
| Pro Forma Callaway Golf | Gross Margin Improvement Initiatives | Total as Reported | Pro Forma Callaway Golf | Gross Margin Improvement Initiatives | Total as Reported | |||||||||||||||||||
| Net sales | $ | 732,481 | $ | - | $ | 732,481 | $ | 714,624 | $ | - | $ | 714,624 | ||||||||||||
| Gross profit | 352,402 | (5,788 | ) | 346,614 | 339,202 | (3,356 | ) | 335,846 | ||||||||||||||||
| % of sales | 48 | % | n/a | 47 | % | 47 | % | n/a | 47 | % | ||||||||||||||
| Operating expenses | 221,243 | 120 | 221,363 | 217,869 | - | 217,869 | ||||||||||||||||||
| Income (loss) from operations | 131,159 | (5,908 | ) | 125,251 | 121,333 | (3,356 | ) | 117,977 | ||||||||||||||||
| Other expense, net | (1,905 | ) | - | (1,905 | ) | (3,229 | ) | - | (3,229 | ) | ||||||||||||||
| Income (loss) before income taxes | 129,254 | (5,908 | ) | 123,346 | 118,104 | (3,356 | ) | 114,748 | ||||||||||||||||
| Income tax provision (benefit) | 48,848 | (2,275 | ) | 46,573 | 46,586 | (1,313 | ) | 45,273 | ||||||||||||||||
| Net income (loss) | $ | 80,406 | $ | (3,633 | ) | $ | 76,773 | $ | 71,518 | $ | (2,043 | ) | $ | 69,475 | ||||||||||
| Diluted earnings (loss) per share: | $ | 1.25 | $ | (0.06 | ) | $ | 1.19 | $ | 1.04 | $ | (0.03 | ) | $ | 1.01 | ||||||||||
| Weighted-average shares outstanding: | ||||||||||||||||||||||||
| 64,392 | 64,392 | 64,392 | 68,798 | 68,798 | 68,798 | |||||||||||||||||||
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): | ||||||||||||||||||||||||||||||||||||
| 2008 Trailing Twelve Months EBITDA | 2007 Trailing Twelve Months EBITDA | |||||||||||||||||||||||||||||||||||
| Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||||||
| September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | |||||||||||||||||||||||||||||
| 2007 | 2007 | 2008 | 2008 | Total | 2006 | 2006 | 2007 | 2007 | Total | |||||||||||||||||||||||||||
| Net income (loss) | $ | 1,269 | $ | (16,157 | ) | $ | 39,666 | $ | 37,107 | $ | 61,885 | $ | (11,916 | ) | $ | (10,194 | ) | $ | 32,836 | $ | 36,639 | $ | 47,365 | |||||||||||||
| Interest expense (income), net | 29 | (216 | ) | 591 | 994 | 1,398 | 1,132 | 905 | 1,677 | 1,672 | 5,386 | |||||||||||||||||||||||||
| Income tax provision (benefit) | 830 | (12,415 | ) | 25,990 | 20,583 | 34,988 | (6,075 | ) | (10,948 | ) | 21,682 | 23,591 | 28,250 | |||||||||||||||||||||||
| Depreciation and amortization expense | 9,864 | 7,862 | 8,794 | 10,490 | 37,010 | 8,736 | 8,313 | 9,009 | 8,591 | 34,649 | ||||||||||||||||||||||||||
| EBITDA | $ | 11,992 | $ | (20,926 | ) | $ | 75,041 | $ | 69,174 | $ | 135,281 | $ | (8,123 | ) | $ | (11,924 | ) | $ | 65,204 | $ | 70,493 | $ | 115,650 | |||||||||||||
Contacts:
Brad Holiday
Eric Struik
Michele
Szynal
(760) 931-1771
