Callaway Investment Thesis and Business Transformation Overview slide image

Callaway Investment Thesis and Business Transformation Overview

ADJUSTED EBITDA RECONCILIATION (2019) 1. CALLAWAY GOLF COMPANY Non-GAAP Reconciliation and Supplemental Financial Information (Unaudited) (In thousands) 2019 Trailing Twelve Month Adjusted EBITDA March 31, June 30, 2019 2019 Quarter Ended September 30, 2019 December 31, Total 2019 Net income (loss) Interest expense, net Income tax provision (benefit) Depreciation and amortization expense St $ 48,647 $ 28,931 $ 31,048 $ (29,218) $ 79,408 9,639 10,260 9,545 9,049 38,493 9,556 7,208 2,128 (2,352) 16,540 7,977 9,022 8,472 9,480 34,951 Non-cash stock compensation expense 3,435 3,530 2,513 3,418 12,896 Non-cash lease amortization expense (140) (9) (36) (120) (305) Acquisitions & other non-recurring costs, before taxes (1) Adjusted EBITDA 13,986 6,939 3,009 4,090 28,024 $ 93,100 $ 65,881 $ 56,679 $ (5,653) St $ 210,007 In 2019, amounts represent certain non-recurring transaction costs, including banker's fees, legal fees, consulting and travel expenses, and transition costs, including consulting, audit fees and valuations services associated with the acquisition of Jack Wolfskin, in addition to other non-recurring advisory fees. Callaway 22
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