Callaway Investment Thesis and Business Transformation Overview
TOPGOLF ADJUSTED EBITDA RECONCILIATION (2021)
Callaway
1.
2.
CALLAWAY GOLF COMPANY
2021 Topgolf Non-GAAP Reconciliation and Supplemental Financial Information
(Unaudited)
(In millions)
Segment Operating Income (1)
Depreciation and amortization expense
Non-cash stock compensation expense
$
ՄՌ
Twelve Months Ended
December 31, 2021
58.2
93.1
13.8
Non-cash lease amortization expense
12.0
Segment Adjusted EBITDA
$
177.1
Topgolf pre-merger EBITDA contribution for Jan. and Feb. 2021 (2)
2.3
Pro Forma Segment Adjusted EBITDA
St
179.4
The Company does not calculate GAAP net income at the operating segment level, but has provided Topgolf's segment income from operations as a relevant measurement of profitability. Segment income from operations does not include interest expense and
taxes as well as other non-cash and non-recurring items. Segment operating income is reconciled to the Company's consolidated pre-tax income in the Consolidated Net Revenues and Operating Segment Information included in this presentation.
Due to the timing of the Topgolf acquisition on March 8, 2021, Callaway's reported full year financial results included only 10 months of Topgolf results in 2021. This $2.3 million reflects the Topgolf Adjusted EBITDA contribution for January and February 2021.
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