by The Editors on December 17, 2008
Now that TaylorMade-Adidas has completed the Ashworth purchase it’s obviously time for eliminating employee redundancies. Looks like that total comes to about 170 or 8 percent of the workforce, according to a story on Forbes.com.
The combined company has just over 2,000 employees. Both companies had been based in Carlsbad, Calif. . . . TaylorMade spokesman Scott Leightman said the job reductions would occur over the next 12 months through cuts and attrition.
Happy Holidays!
[Link: Forbes.com]
by The Editors on December 17, 2008
It’s nice to know that no matter what projects the City of Carlsbad considers in future years (Swim complex, skateboard parks) they will always be trumped by sinking more money into the Lossings-At-Carlsbad.
Last night the Carlsbad City Council agreed unanimously to spend $1.6 million on the course next year, in addition to the losses already budgeted for, according to a story in the San Diego Union-Tribune.
Councilman Mark Packard said the council expected the course to break even after five to seven years, and then turn a profit. He said that may take longer with the recession. “I think it would be way premature to walk away from it at this point,” Packard said.
Mark Tanner, the former CFO for the 2002 Winter Olympics and Pepsico International spoke some sense at the meeting. “Sometimes when you make a wrong decision . . . you have to go back and change the decision,” Tanner said.
Exactly.
[Link: San Diego Union-Tribune]
by The Editors on December 13, 2008
Carlsbadistan’s $74 million golf course continues to miss it’s budeting marks losing ground in nearly every metric, according to a story in the San Diego Union-Tribune.
The course, The Crossings at Carlsbad, was projected to lose $893,428 in 2008, an amount the council approved last year. That loss ballooned to $1.6 million, however, and the budget projects a similar loss in 2009. . . . The course made less money than projected – $6.4 million as opposed to $6.6 million – and cost more to operate – $5.9 million as opposed to $5.6 million.
Next year tax payers may be asked to kick in another $1.6 million. Then again with the economy going south and unemployment growing, people may have a lot more time to golf in the coming year.
[Link: San Diego Union-Tribune]
by The Editors on November 20, 2008
There is now officially one less golf company in Carlsbadistan as TaylorMade-adidas Golf has finished its purchase of golf clothing manufacturer Ashworth for $1.90 a share.
As a result of the acquisition, Ashworth will become a wholly-owned subsidiary of TaylorMade-adidas Golf and any shares of Ashworth common stock not tendered will be cancelled and converted into the right to receive the $1.90 in cash per share to be paid in the tender offer, without interest and less any required withholding taxes.
TaylorMade’s parent company, the adidas Group, has 37,000 employees and generated $10.3 billion in sales in 2007. Seems like a nice family to belong to in these times of economic distress.
[Link: Trading Markets]
by The Editors on November 6, 2008
Carlsbadistan golfer Aaron Goldberg, 22, has been “playing the right game,” according to a story in the Press-Enterprise.
In September, he won the Golden State Tour event played on La Quinta’s PGA Tour West Norman Course. A week later, he played himself into the top five at PGA Tour pre-qualifying on the same course — only to be disqualified after he signed and walked away from an incorrect scorecard.
The scorecard was an accident and he’s the one who reported the problem. Now he is tied for the lead in the California State Open.
[Link: Press-Enterprise]
by The Editors on November 4, 2008
Wedbush Morgan Securities recently lowered their opinion of Callaway Golf from “hold” to “sell” with a target of $8.
We believe 2009 results could fall meaningfully below current Street consensus forecasts.
And that’s why Barron’s said, “Callaway Swinging The Blues.”
[Link: Barron’s]
by The Editors on October 30, 2008
Carlsbadistan’s big bertha of golf may want to spin their numbers all kinds of ways, but in the end Callaway Golf lost $7.4 million in the third quarter on $213.5 million in net sales. The loss, however, was a penny ahead of the street so it’s not all bad news. Plus. . .
The initial feedback on our new 2009 products has been very positive, and we feel the whole product line is stronger than our record 2007 line,” George Fellows, Callaway’s president and chief executive, said in a statement.
Well, at least they’ve got that going for them.
[Link: Reuters]
by The Editors on October 30, 2008
It’s a celebrity driven world and Carlsbadistan’s leading golf company is buying in: JT style.
Callaway Golf Company today announced it has reached an agreement with Justin Timberlake to endorse and play Callaway equipment. The terms of the contract are not being disclosed. . . . “We’re thrilled to have Justin as part of the Callaway staff,” said George Fellows, president and CEO, Callaway Golf. “He has everything we look for when signing new talent – natural ability, a solid work ethic and passion for the game.”
In these trying business times it probably can’t hurt, right? Especially if you’re going after the pop music crowd.
[Link: BusinessWire image via Popsugar]
by The Editors on October 15, 2008
With the entire financial market falling down around us, it’s no wonder that Carlsbadistan’s golf industry is getting hard hit this fall. Now, the Big Bertha, Callaway Golf, has announced that there losses in the third quarter are going to be larger than expected.
“The significant deterioration in global economies over the last several weeks of third quarter have finally impacted what had been a record year for Callaway Golf,” Chief Executive George Fellows said in a statement. . . Callaway now expects revenue for the third quarter of $213 million, down from $236 million last year. The net loss for the quarter is expected to be 12 cents to 14 cents a share.
That doesn’t sound good.
[Link: San Diego Union-Tribune]
by The Editors on October 13, 2008
Today Taylor-Made Adidas Golf announced that they will acquire the struggling Carlsbad-based golf apparel maker Ashworth for $72.8 million.
The two parties announced Oct. 13 reaching a definitive agreement that calls for TMAG to acquire all of the outstanding shares of Ashworth for $1.90 per share in cash, a 9.8 percent premium from its Oct. 10 close of $1.73. . . . “This acquisition underscores our commitment to continued growth in the golf category,” said Herbert Haier, chairman and CEO of Adidas AG, TMAG’s parent company.
The purchase price includes $46.3 million in Ashworth debt. The company lost $9.6 million in the third quarter. Sounds like a winner, huh?
[Link: Golfweek]
Now that TaylorMade-Adidas has completed the Ashworth purchase it’s obviously time for eliminating employee redundancies. Looks like that total comes to about 170 or 8 percent of the workforce, according to a story on Forbes.com.
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