by The Editors on June 20, 2009
In a recent column Reuters’ “blogging money and politics” writer James Pethokoukis asked the question: Is Callaway Golf a good play in the recession?”
James goes on to say that the golf business is getting hammered right now and that sales could be down 17 to 20 percent rather than the 5 to 10 percent that Callaway reported.
However, most analysts agree Callaway boasts a strong balance sheet and one of the best golf brands. . . And the new drivers are doing better than expected as the company is using them to clear out unwanted fairway wood inventory, Gilford Securities analyst Casey Alexander said. . . In fact, the stock is likely to rebound as things improve, said Alexander, who has a “buy” rating on the stock and also runs a small hedge fund that holds Callaway shares.
Guess that’s a “yes.”
[Link: Reuters]
by The Editors on June 11, 2009
One of the wonderful things about being a public company is that when you need more money you can just sell another little piece off. Callaway did that on Monday when they announced a “preferred stock offering” according to a story on Forbes.com.
Callaway anticipates proceeds of about $119 million, excluding any exercise of the overallotment option. The company plans to use the proceeds to pay off some of its revolving credit line, which it expects will help keep the facility’s current terms and avoid amendments to the agreement.
Presto. . . now why can’t we figure out at way to make $119 million magically appear?
[Link: Forbes.com]
by The Editors on April 16, 2009
Yesterday afternoon, April 15, 2009 Carlsbadistan based golf giant Callaway announced that it had cut six percent of its workforce on tax day.
A spokeswoman said the company had to “make some changes because of economic conditions.” . . . The company is still in the process of notifying affected employees.
If you found out about it here, we’re sorry.
[Link: 10news.com]
by The Editors on March 25, 2009
Someone in the Yahoo Finance message boards has been sharing opinions about Carlsbad’s own golf giant Callaway Golf that Callaway doesn’t seem to like. So, the company filed a lawsuit in San Diego Superior Court to subpoena Yahoo Finance and require them to hand over information regarding the identity of the poster, according to a story in the San Diego Union-Tribune.
The lawsuit claims that, as a vendor or employee, the poster would have agreed not to disclose confidential information. It contends that around March of this year, the poster revealed information about the company’s operations. . . .Most posts on the Yahoo chat board for Callaway in the past two months don’t appear to reveal inside information. Several discuss the recent performance and attire of Phil Mickelson, a Callaway-sponsored player. . . One post is titled “Could golf get any more boring?”
It appears that the person they are hunting down is posting under the name “billclauson”. (Click here for a collection of his posts). And we have to agree, the posts seem pretty benign. Even this one from February 12, 2009:
I have been in and out of Callaway for many years. I just think the economy and the state of golf make any “golf” company a sell at this time. Callaway stock and golf related investments are going nowhere for the forseeable future. We may have seen the hayday for golf sometime back.”
Nothing that most people wouldn’t agree with there. Thankfully, Judge William Nevitt Jr. denied Callaway’s subpoena request, but it’s still nice to know that Callaway’s corporate lawyers have time to troll the Internet looking for fights.
[Link: San Diego Union-Tribune]
by The Editors on March 19, 2009
Carlsbadistan’s golf company Callaway just signed a deal with Perry Ellis International to “design, manufacture and distribute Callaway-branded golf and sportswear,” according to a story in the Los Angeles Business Journal.
The partnership will get Callaway apparel in both deaprtment stores and sporting good stores. . . . “This relationship allows both companies to complement each other’s strengths and concentrate on their individual core capabilities. We see this as an incredible opportunity for us to help expand Callaway’s presence in the apparel market,” Oscar Feldenkreis, president and chief operating officer of Perry Ellis International, said in a statement.
For companies that don’t care all that much about how the clothing turns out, licensing is like free money. And right now, free money is good. Right?
[Link: Los Angeles Business Journal]
by The Editors on March 11, 2009
KemperSports that golf management firm that runs The Crossings At Carlsbad has announced that they’ve hired a new sales and marketing director. His name is Rory Taylor and his job will be “steering all sales and marketing initiatives for the golf course.”
Taylor, a native of Encinitas, Calif., brings several years of industry experience to his new position. He is a 2007 graduate of Utah Valley University and most recently oversaw sales and marketing operations at The Links at Sleepy Ridge in Orem, Utah, where he was responsible for increasing tournament and outings rounds by more than 40 percent and implementing innovative marketing strategies including redesigned collateral and signage.
If he can do the same at The Crossings he’ll be a hero.
[Link: World Golf]
by The Editors on March 5, 2009
In the latest round of the great Carlsbadistan ball battle Callaway Golf and Titleist’s parent company Acushnet Co. are suing each other over patents related to golf ball design, according to a tory in the San Diego Union-Tribune.
Callaway alleges that Acushnet’s latest version of the popular Pro V1 ball infringes on its patents, which Callaway acquired as part of its purchase of Top Flite in 2003. . . .Acushnet filed a separate lawsuit against Callaway claiming the Carlsbad company’s Tour i and Tour ix premium golf balls infringe on nine Acushnet patents. . . .The dueling lawsuits are part of an lingering battle between the two companies, which are fierce rivals in the golf ball business. Titleist’s Pro V1 is the market leading premium golf ball.
It’s hard for us to care too much about the lawsuits because to us they’re just little balls with dimples that grown men spend way too much time playing with.
[Link: San Diego Union-Tribune]
by The Editors on January 15, 2009
Encinitas-based environmental and engineering consultant Frank Dudek has been named the honorary chairman of the Carlsbad Boys & Girls Club’s 57th Annual Golf Classic Sponsored by TaylorMade-adidas Golf Company to be held at the El Camino Country Club in Oceanside on March 23, 2009.
Frank Dudek, president of Encinitas-based environmental and engineering firm Dudek, has been named as the event’s honorary chairman. He recently served on the executive board of the Greater San Diego After-School All-Stars and is involved in several other community organizations. Dudek has been involved in the Carlsbad community from a business and charitable perspective for the past 25 years. Dudek joins several local business leaders in assisting with the tournament.
For all the details follow the jump.
[click to continue…]
by The Editors on January 5, 2009
There is nothing worse that getting lost on the golf course. And now, Callaway has the solution for when it happens. According to a story in San Diego Business Journal Callaway has just purchased Carlsbadistan-based UPlay for an undisclosed sum.
UPlay makes a consumer electronic device that uses GPS technology as well as aerial and satellite photography to give golfers a bird’s-eye view of the course they are playing. The device also provides distance information. The deal closed Dec. 31. Callaway said it would not materially affect 2009 financial results.
We’d like to say we invented this technology 12 years ago over drinks in Newport Beach, but obviously, we did nothing with the idea.
[Link: San Diego Business Journal]
by The Editors on December 31, 2008
Former Carlsbad City Council candidate Thomas K. Arnold weighs in on The Lossings-At-Carlsbad in today’s North County TImes.
Most sensible minds now agree that the golf course never should have been built. While it is true that taxpayers initially voted in favor of building a new municipal golf course in 1990, in light of all the delays and cost overruns, the matter really should have been brought back up to a public vote before construction actually commenced. . . . But that’s all water under the proverbial bridge, and the question now is what to do with this white elephant as it continues to bleed red ink.
Click the link for the rest of Thomas’ ideas.
[Link: North County Times]
In a recent column Reuters’ “blogging money and politics” writer James Pethokoukis asked the question: Is Callaway Golf a good play in the recession?” 
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