Callaway Golf Company · NYSE:CALY
Callaway Golf — Topgolf Callaway Brands — Q4 2024 Earnings Presentation
26 slides from Callaway Golf's earnings presentation, Feb 24, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Conference Call
Fourth Quarter and Full Year 2024 Earnings Conference Call February 24, 2025
Slide 2: Important Notices
IMPORTANT NOTICES Forward-looking Statements. During the presentation, any comments made about future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company’s financial outlook (including, among others, Company, Topgolf and cor
Slide 3: Q4 2024 Highlights
Q4 consolidated Net Revenue growth of 3% and strong Adjusted EBITDA growth both outperformed guidance. Total Company operating cash flow increased 5% to $382 million and Adjusted Free Cash Flow increased 27% to $203 million. Q4 2024 Highlights Topgolf’s same venue sales, Adjusted EBITDA, Adjusted Fr
Slide 4: Fourth Quarter and Full Year 2024 Financial Results
FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS Q4 2024 NON-GAAP RESULTS1 FY 2024 NON-GAAP RESULTS1 ($ millions, except per share data) Q4 2024 Q4 2023 Change (%) ($ millions, except per share data) FY 2024 FY 2023 Change (%) Net Revenues $ 924.4 $ 897.1 3 % Net Revenues $ 4,239.3 $ 4,284.8 (1)%
Slide 5: 2025 Core Business Guidance
2025 CORE BUSINESS GUIDANCE ($ in M) 2025 Revenue Guidance Range: $2,275 - $2,350 -2% Y/Y Organic Growth -5% Y/Y Growth Headwinds: • $60M headwind from FX $2,430 (Midpoint) ($60) $2,313 Organic Considerations: ($57) • Golf Equipment down slightly FX neutral (crowded golf OEM launch year in woods and
Slide 6: 2025 Topgolf Guidance
2025 TOPGOLF GUIDANCE ($ in M)1 2025 Revenue Guidance Range: $1,725 - $1,835 +1% Y/Y Organic Growth -2% Y/Y Growth Headwinds: • $25M headwind from sale of WGT and FX (Midpoint) • $20M headwind from Topgolf, causing them to lose four days vs. last year, $1,809 $16 $1,780 including three reporting day
Slide 7: 2025 Total Company Guidance
2025 TOTAL COMPANY GUIDANCE ($ in M) 2025 Revenue Guidance Range: $4,000 - $4,185 -1% Y/Y Organic Growth -3% Y/Y Growth Headwinds: • $45M from Topgolf $4,239 (Midpoint) • $60M from Core Business $4,093 ($105) ($41) Organic considerations: • Topgolf SVS down mid-single-digits • 5 new Topgolf venues,
Slide 8: Callaway Golf Ball Market Share
CALLAWAY GOLF BALL MARKET SHARE1 1. Golf Datatech. 8
Slide 9: Segment Highlights
SEGMENT HIGHLIGHTS TOPGOLF Player experience PIEimproved nowU.S. metrics in quarter-over- all golfvenues Q4 and 2024 Adjusted consumerexceptU.S. rounds played EBITDA marginsin12023 Seven new venues in 2024 for a total of 100 remains strong and +4% year-over-year increased approx. owned and operated
Slide 10: Recent Brand Highlights
RECENT BRAND HIGHLIGHTS TOPGOLF GOLF EQUIPMENT ACTIVE LIFESTYLE Announced new Captain America: Launched New Elyte Family Dylan Gossett and Akshay Bhatia are Brave New World Topgolf experience of Woods and Irons newest TravisMathew Ambassadors 10
Slide 11: Same Venue Sales
SAME VENUE SALES1 Q1 Q2 Q3 Q4 FY Total ’24 vs ’23 -7% -8% -11% -8% -9% ’23 vs ’22 11% 1% -3% -3% 1% Total Stacked 4% -7% -14% -12% -8% ’24 vs ’19 6% 0% -4% -2% 0% 1-2 Bay2 ’24 vs ’23 -5% -8% -9% -10% -8% ’23 vs ’22 9% 7% 0% 0% 4% Total Stacked 5% -1% -9% -10% -4% ’24 vs ’19 9% 2% -2% 2% 3% 3+ Bay3 ’
Slide 12: 2025 Total Company Outlook
2025 TOTAL COMPANY OUTLOOK FULL YEAR 20251 Q1 20251 Current FY 2025 FY 2024 Q1 2025 Q1 2024 ($ in millions, except per share data) Guidance Results ($ in millions) Guidance Results Consolidated Net Revenue $4.0 - $4.185B $4.24B Net Revenue $1.045 - $1.085B $1.14B Core Business Revenue $2.275 - $2.35
Slide 13: 2025 Full Year Key Metrics & Outlook
2025 FULL YEAR KEY METRICS & OUTLOOK ($ in millions)1 Topgolf Non-Topgolf3 Total Adjusted EBITDA $270 $190 $460 Non-GAAP Depreciation & Amortization $275 Non-GAAP Topgolf D&A $213 $213 Non-GAAP Non-Topgolf D&A $62 $62 Non-GAAP Interest Expense2 $238 Non-GAAP Venue Financing Interest (Venue Financing
Slide 14: Q4 Key Metrics
Q4 KEY METRICS ($ in millions)1 Topgolf Non-Topgolf Total Non-GAAP Operating Income $27 -$8 $19 Non-GAAP Depreciation and Amortization $51 $15 $66 Non-Cash Lease Amortization Expense2 $3 $0 $3 Non-Cash Stock Comp Expense $2 $7 $9 Other Income $0 $4 $4 Adjusted Segment EBITDA $83 $18 $101 Less: Venue
Slide 15: Continue to Drive Significant Cash Flow Generation
CONTINUE TO DRIVE SIGNIFICANT CASH FLOW GENERATION 2024 ($ in millions)1 Results Outlook Considerations Adjusted EBITDA $588 2025: Less: Venue Financing Cash Interest2 $99 • Topgolf Capex of $90 - $100M Adj. EBITDA less Venue Financing Cash Interest $489 • Core Capex of ~$60M Less: Gross Capital Exp
Slide 16: Key Balance Sheet and Liquidity Metrics
KEY BALANCE SHEET AND LIQUIDITY METRICS Twelve Months Twelve Months Metric1 As of December As of December Metric1 Ended December Ended December ($ in millions) 31, 2024 31, 2023 ($ in millions) 31, 2024 31, 2023 Cash and Cash Equivalents $445 $394 Gross Capital Expenditures2 $295 $482 Inventory $757
Slide 17: Appendix
APPENDIX
Slide 18: Net Debt Leverage, Adjusted for REIT Financing
NET DEBT LEVERAGE, ADJUSTED FOR REIT FINANCING ($ in millions) December 31, 2024 December 31, 2023 Total Principal – Long term debt & ABL credit facilities $1,520.9 $1,621.5 Topgolf Venue Financing Liabilities $302.7 $287.9 Deemed Landlord Financing Obligations $1,195.8 $980.1 Equipment Financing le
Slide 19: Definitions of Certain Financial Measures
DEFINITIONS OF CERTAIN FINANCIAL MEASURES Adjusted EBITDA Less Venue Financing Cash Interest - a non-GAAP measure calculated as Adjusted EBITDA less Venue Financing Cash Interest obligations. Adjusted EBITDA Margin - a non-GAAP measure calculated as Adjusted EBITDA divided by revenue. Adjusted Free
Slide 20: Segment Operating Income
SEGMENT OPERATING INCOME Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 Change 2024 2023 Change Topgolf $ 26.9 $ 23.1 16.5 % $ 114.2 $ 108.8 5.0 % % of segment revenue 6.1 % 5.3 % 80 bps 6.
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Three Months Ended December 31, 2024 2023 Non-Cash Non-Cash Non-Cash Non-Cash Acquisition Goodwill and Acquisition Goodwill and related Trade Name Non-Recurring Tax Valuation Non- related Trade
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Twelve Months Ended December 31, 2024 2023 Non-Cash Non-Cash Non-Cash Acquisition Non-Cash Goodwill Non- Acquisition Goodwill and Non- related and Trade Name Recurring Tax Valuation Non- relate
Slide 23: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) 2024 Trailing Twelve Month Adjusted EBITDA 2023 Trailing Twelve Month Adjusted EBITDA Quarter Ended Quarter Ended September September March 31, June 30, 30, December 31, March 31, June 3
Slide 24: Topgolf Adjusted EBITDA Reconciliation
TOPGOLF ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Topgolf Segment operating income(1): $ 26.9 $ 23.1 $ 114.2 $ 108.8 Depreciation and amortizat
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Reconciliation of Consolidated Non-GAAP Adjusted Free Cash Flow Twelve Months Ended December 31, 2024 2023 GAAP cash flows provided by operations (1) $ 382.0 $ 364.7 Less: capital expenditures
Slide 26: Thank You!
THANK YOU!
Topgolf Callaway Brands — Q4 2024 Earnings Presentation on 6ix