by The Editors on February 1, 2008
In reporting the quarter ended December 31, 2007, Callaway Golf Company has lost $6 million more than it lost for the same quarter last year. But apparently, this is no problem for the Carlsbad company.
Despite the larger loss in the year-over-year quarter, Callaway reported improved earnings for 2007 compared to 2006. In 2007, Callaway earned $54.6 million, or 81 cents per share. In 2006, Callaway earned $23.3 million, or 34 cents per share.
Great, revenues are up. Now they just have to figure out that profit thing.
[Link: North County Times]
by The Editors on January 22, 2008
It appears that golfers will buy almost anything to trick themselves into thinking they’re improving their game. Carlsbad golf company TaylorMade’s new r7 CGB MAX Limited is a prime example.
. . . an advanced new driver engineered to flawlessly deliver the next level of driver adjustability by incorporating, into one club, TaylorMade® Movable Weight Technology™ (MWT™) and TaylorMade SelectFit Technology. With nine changeable weights and three changeable shafts included, the r7 CGB MAX Limited offers an astounding range of launch conditions.
TaylorMade is getting right in there with Callaway in confusing golfers into having way, way too many options when it comes to whacking a ball through a park. But then, as we’ve said many times before: we don’t golf.
[Link: World Golf]
by The Editors on January 18, 2008
Stock of the Carlsbad-based golf manufacturer Callaway Golf “jumped 11.8” on Thursday January 17, 2008 when it was announced that announced a 10 percent gain in net sales to “$1.25 billion” for 2007, according to a story in BusinessWeek.
But that gain isn’t as impressive as it first appears when you consider that the stock’s value had dropped 20% over the past two weeks after a couple of golf retailers said that the momentum of sales in the category had slowed substantially, said James Hardiman, an analyst at FTN Midwest Research in Cleveland, Ohio.
Sadly, some of the gains the company has made have come from “shifting its manufacturing operations” away from Carlsbad to Massachusetts and other locations overseas.
[Link: BusinessWeek]
by The Editors on January 16, 2008
When the golf clothing market is tanking what does Carlsbad-based golf clothing company Ashworth, Inc do? They acquire another golf clothing company (Sunice) and set it up a wholly-owned subsidary.
Sunice Holdings, Inc., which will own the Sun Ice and Sunice trademarks and be entirely focused on the new technical outerwear line. The product line will be concurrently marketed by the Company’s existing sales and marketing team dedicated to Ashworth®-branded apparel. FLG will provide design services for Sunice Holdings, Inc. and facilitate sourcing relationships for the new outerwear line.
To Ashworth’s credit they got Sunice for pretty much nothing. Rolling forward they’ll just have to share the EBITDA with the former owners and it also gets them into the booming ski outerwear market (please note sarcasm on the world “booming”).
[Link: Businesswire]
by The Editors on January 16, 2008
This sounds like the silliest thing ever, but we don’t have to remind anyone that we don’t golf. Thanks to some adjustment to the US Golf Association’s rules Carlsbadistan’s Callaway Golf has created the I-Mix Technology which allows golfers to change up their shaft and/or head for every occasion.
“Our new I-MIX Technology gives golfers the same access and ability to experiment and optimize their equipment that tour professionals have,” said Jeff Colton, Senior Vice President of Research and Development for Callaway Golf. “No one’s swing is the same from day-to-day – neither are the weather or course conditions. Our I-MIX Technology gives everyone the ability to quickly and easily customize their equipment, every time they play.”
Now, instead of buying one club, golfers can buy one club head and four or five different shafts for that head. This allows hacks to honestly blame their clubs every single time out.
[Link: Businesswire]
by The Editors on January 8, 2008
One of the best golf teachers in the world, Jim Flick, 77, is now offering up his knowledge five-and-a-half days a week at TaylorMade Golf’s Carlsbad headquarters.
In 1990, a struggling and frustrated Jack Nicklaus solicited some advice from Flick on the driving range before the Golden Bear’s Champions Tour debut. Something clicked with Flick. Nicklaus won the tournament, and he and Flick have worked together ever since.
In 2002 Flick was named as the ninth member of the Golf Teachers Hall of Fame. If only we’d played golf. At $300 an hour we’re sure we could tune up our swings, no doubt. Click the link for the rest of the Jim Flick profile.
[Link: San Diego Union-Tribune]
by The Editors on December 29, 2007
In a report released late Friday, Carlsbad golf clothing designer Ashworth Inc. announced that it only lost $3.9 million in the last quarter. And they are apparently happy about this. Ashworth said:
. . . its new management team is working on a turnaround plan to return the company to profitability. The plan will ‘take hard work and time and may result in short-term peaks and valleys,’ said Ashworth.
Darn, those pesky short term peaks and valleys. . .
[Link: CNNMoney.com]
by The Editors on November 30, 2007
Callaway Golf Company announced yesterday that they are planning to buy back $100 million more of their own shares.
The buyback replaces a previous $100 million stock repurchase program announced in June. To date, the company has bought about 5.3 million shares under that program at an average cost of $16.87 per share for $88.9 million. . . As of Oct. 31, Callaway had about 66.3 million shares outstanding, according to a regulatory filing.
[Link: Money.com]
by The Editors on November 8, 2007
Rachel Morris, the sophomore golf champ from Carlsbad High School, rounded up her second San Diego Sectional girls individual title with a one under par 71 November 7, 2007 at Warner Springs Ranch.
“I had already won, so I knew I could do it again,” Morris said. “That gave me confidence. There was also a little bit of pressure, but I just focused on playing my own game.” . . . Morris opened with two of her four birdies on the first three holes in the shotgun start. . . . “I’m really excited,” Morris said. “I played well and shot a good score.”
All the details in this story from the San Diego Union Tribune.
[Link: San Diego Union Tribune]
by The Editors on November 7, 2007
We don’t golf, but it’s a huge part of the local economy. And that sector isn’t doing so well as of late. A prime example is the Carlsbad-based golf apparel company Ashworth (website coming fall 2007). The company has had “its second executive chair shuffling within five months Oct .25,” according to the San Diego Business Journal.
The struggling manufacturer of Callaway Golf Co. and other top branded shirts and caps said Chief Executive Officer Peter Weil resigned to spend more time with his family on the East Coast. Weil was appointed only about a year ago, and took over after then-CEO Randal Herrel suddenly resigned. . . Replacing Weil is Alan Fletcher, founder and chairman of Fletcher Leisure Group, an Ashworth partner and Canada’s top supplier of branded golf apparel. . . Ashworth also said former Chief Financial Officer Eric Hohl is no longer there, and was replaced by Greg Slack, a former Ashworth corporate controller and principal accounting officer until July.
Note to Ashworth employees: when the music stops, be sure to grab the first open chair you see.
[Link: San Diego Business Journal]
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