Callaway Investment Thesis and Business Transformation Overview
2022 FULL COMPANY OUTLOOK AND GUIDANCE
FULL YEAR 2022
($ in millions)
2021
Net Revenue
Adjusted EBITDA
2022
Outlook
$3,780 - $3,820
$490 - $515
Pro Forma
Results¹
$3,276
$448
2021
Reported
Results¹
$3,133
$445
Callaway
Full Year Net Revenue Guidance Assumptions
Approximately $1.5 billion in net revenue from Topgolf for the full year
Continued positive demand for our Golf Equipment and Soft Goods segments
No significant supply chain or retail shutdowns due to COVID resurgence
Negative foreign currency impact of approximately $54 million on revenue
due to a strengthening U.S. dollar
Full Year 2022 Adjusted EBITDA Guidance Assumptions
●
Topgolf segment to deliver between $210 - $220 million in Adjusted EBITDA
for the 12 months beginning January 1, 2021
• Increased operating expenses at Topgolf as we build the team and
infrastructure to support a larger business
Continued cost pressure across all business segments amid increased freight
costs and inflationary pressures being offset by selective pricing opportunities
Negative foreign currency impact of approximately $38 million on pretax
income due to a strengthening U.S. dollar
Additional Full Year 2022 Guidance Assumptions
●
Shares outstanding of approximately 204.2 million shares
Non-GAAP Depreciation and Amortization expense of approximately $170
million
Capital Expenditures of $310 million, net of REIT reimbursements (includes
approximately $230 million from Topgolf)
1.
Due to the timing of the Topgolf acquisition on March 8, 2021, Callaway's reported full year financial results will only include 10 months of Topgolf results. The pro forma financial results shown above include Topgolf contribution for January and February 2021.
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