Callaway Investment Thesis and Business Transformation Overview
SUMMARY OF HISTORICAL FINANCIAL PERFORMANCE
Commentary
.
2021 was a record year for Callaway, driven by
exceptional results at Topgolf, as increased walk-in
traffic and social events booking led to higher-than-
anticipated sales and productivity and
unprecedented demand for golf equipment and
apparel products
Declines in 2020 revenue and profitability for then-
separate companies Callaway and Topgolf were
mainly attributable to the effect of COVID-19
2021 EBITDA margins improved due to a
combination of better-than-expected venue
profitability at Topgolf, higher gross margins in golf
equipment, and lower OpEx spend
• Able to reduce capital expenditures and growth
expenses in response to the environment, as
demonstrated in 2020 during the pandemic
Revenue ($M)
$3,276
$2,761
$2,306
$1,230
$1,060
$716
$1,701
$2,046
$1,589
2020
2021
■Callaway
■Topgolf
2019
Adjusted EBITDA ($M) 1
9.8%
$269
$59
$98
13.7%
4.3%
$448
$179
$268
$165
($66)
2019
2020
2021
Callaway
■ Topgolf
Consolidated Margin
$210
Capital Expenditures ($M) 2
$293
$246
$239
$55
2019
$108
$185
$68
$39
$61
2020
2021
■Callaway
Topgolf
Note: Graphs assume 12 months of Topgolf included in combined financials for all periods.
1. See Appendix for Adjusted EBITDA reconciliation to GAAP figures. Additionally, as Adjusted EBITDA is a non-GAAP measure, please see the Regulation G disclaimers on page 1 of this presentation.
2. Capital expenditures are net of proceeds from lease financing.
Callaway
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