Callaway Golf Company (ELY) has reported 33.08 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $25.69 million, or $0.27 a share in the quarter, compared with $38.39 million, or $0.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $28.31 million, or $0.30 a share compared with $24.47 million or $0.26 a share, a year ago. Revenue during the quarter grew 12.73 percent to $308.93 million from $274.05 million in the previous year period. Gross margin for the quarter contracted 49 basis points over the previous year period to 47.82 percent. Total expenses were 85.69 percent of quarterly revenues, up from 83.46 percent for the same period last year. That has resulted in a contraction of 223 basis points in operating margin to 14.31 percent.
Operating income for the quarter was $44.21 million, compared with $45.33 million in the previous year period.
However, the adjusted operating income for the quarter stood at $48.16 million compared to $45.33 million in the prior year period. At the same time, adjusted operating margin contracted 95 basis points in the quarter to 15.59 percent from 16.54 percent in the last year period.
"It has been a very strong start to 2017," commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. "Sales of our new products, including the EPIC driver and new Chrome Soft X golf ball, have exceeded our expectations. Business around the globe remains very strong with all major regions reporting sales growth and market share gains. And our new business ventures, namely the apparel joint venture in Japan and the recently acquired OGIO business, are performing ahead of plan. Furthermore, our liquidity and financial flexibility remain strong even with the cash outlay earlier this year for the purchase of OGIO. Overall, I am very pleased with how our business is performing and am cautiously optimistic for the balance of the year."
For the second-quarter 2017, Callaway Golf Company expects revenue to be in the range of $290 million to $300 million and its adjusted revenue to be in the range of $290 million to $300 million. The company forecasts diluted earnings per share to be in the range of $0.27 to $0.30 and its adjusted diluted earnings per share to be in the range of $0.28 to $0.31.
fiscal year 2017, Callaway Golf Company projects revenue to be in the range of $960 million to $980 million and its adjusted revenue to be in the range of $960 million to $980 million. the company forecasts diluted earnings per share to be in the range of $0.27 to $0.33 and its adjusted diluted earnings per share to be in the range of $0.31 to $0.37.
Operating cash flow remains negative
Callaway Golf Company has spent $62.80 million cash to meet operating activities during the quarter as against cash outgo of $71.46 million in the last year period. The company has spent $64.89 million cash to meet investing activities during the quarter as against cash outgo of $3.11 million in the last year period. It has incurred capital expenditure of $6.26 million on net basis during the quarter, up 26.35 percent or $1.31 million from year ago period.
Cash flow from financing activities was $49.16 million for the quarter, down 18.82 percent or $11.40 million, when compared with the last year period.
Cash and cash equivalents stood at $47.99 million as on Mar. 31, 2017, up 36.58 percent or $12.85 million from $35.14 million on Mar. 31, 2016.
Working capital decreases marginally
Callaway Golf Company has witnessed a decline in the working capital over the last year. It stood at $242.61 million as at Mar. 31, 2017, down 3.09 percent or $7.73 million from $250.34 million on Mar. 31, 2016. Current ratio was at 1.97 as on Mar. 31, 2017, down from 2.14 on Mar. 31, 2016.
Days sales outstanding went down to 53 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 50 days for the quarter compared with 127 days for the previous year period.
Debt comes down marginally
Callaway Golf Company has recorded a decline in total debt over the last one year. It stood at $76.95 million as on Mar. 31, 2017, down 2.55 percent or $2.02 million from $78.97 million on Mar. 31, 2016. Callaway Golf Co has recorded a decline in short-term debt over the last one year. It stood at $76.95 million as on Mar. 31, 2017, down 2.55 percent or $2.02 million from $78.97 million on Mar. 31, 2016. Total debt was 8.75 percent of total assets as on Mar. 31, 2017, compared with 11.09 percent on Mar. 31, 2016. Debt to equity ratio was at 0.12 as on Mar. 31, 2017, down from 0.17 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
