Page 1

Callaway Callaway Golf Company Announces Record Financial Results For Third Quarter 2021 And Increases Full Year 2021 Guidance High - Demand for Golf Equipment and Apparel Continues Topgolf Revenue Driven by Strong Walk - in Traffic and Social Events Business - Q3 2021 consolidated net revenue increased $ 381 million ( + 80 % ) to $ 856 million - Q3 2021 GAAP net loss of $ ( 16 ) million and non - GAAP net income of $ 26 million Q3 2021 Adjusted EBITDA increased $ 51 million ( + 57 % ) to $ 139 million - Increased full year 2021 revenue guidance to $ 3,110 to $ 3,120 million and Adjusted EBITDA guidance to $ 424 to $ 430 million as golf equipment and apparel revenue and Topgolf venue profitability continue to outperform prior expectations CARLSBAD , Calif . , Nov. 9 , 2021 / PRNewswire / -- Callaway Golf Company ( the " Company " or " Callaway " ) ( NYSE : ELY ) announced today its financial results for the third quarter and nine months ended September 30 , 2021 . " Callaway's third quarter performance highlights the significant growth and profitability embedded in our business , as all segments have recovered more quickly than we anticipated and are delivering results ahead of plan , " commented Chip Brewer , President and Chief Executive Officer of Callaway . " Our golf equipment and apparel businesses are benefiting from sustained enthusiasm for the sport of golf and outdoor exploration , while Topgolf's fun , inclusive , social environment is in high demand among customers of all skill levels and ages . This powerful combination of off - course and on - course golf , entertainment , dining and outdoor living is unlike any other company in the market today and is poised for long - term growth as we continue to execute our strategy . We are committed to driving value for our shareholders and believe our brands are well - positioned to deliver sustainable , long - term growth as we look ahead to 2022 and beyond . " GAAP AND NON - GAAP RESULTS In addition to the Company's results prepared in accordance with GAAP , the Company provided information on a non - GAAP basis . The manner in which this non - GAAP information is derived is discussed further toward the end of this release , and the Company has provided in the tables to this release a reconciliation of the non - GAAP information to the most directly comparable GAAP information . SUMMARY OF FINANCIAL RESULTS The Company announced the following GAAP and non - GAAP financial results for the third quarter and nine months ended September 30 , 2021 ( in millions , except EPS ) : GAAP RESULTS Net Revenue Income from Operations Other Income / ( Expense ) , net Q3 2021 Q3 2020 Change YTD 2021 YTD 2020 Change $ 856 $ 476 $ 381 $ 2,422 $ 1,215 $ 1,207 $ 76 $ 64 $ 12 $ 259 $ ( 73 ) $ 332 $ ( 26 ) $ ( 6 ) $ ( 20 ) $ 187 $ ( 7 ) $ 194 Income ( Loss ) before Income Taxes $ 50 $ 58 $ ( 8 ) $ 446 $ ( 80 ) $ 526 Net Income ( Loss ) $ ( 16 ) $ 52 $ ( 68 ) $ 348 $ ( 86 ) $ 434 Earnings ( Loss ) Per Share - diluted $ ( 0.09 ) $ 0.54 $ ( 0.63 ) $ 2.03 $ ( 0.92 ) $ 2.95 NON - GAAP RESULTS Net Revenue Q3 2021 Q3 2020 Change YTD 2021 YTD 2020 Change $ 856 $ 476 $ 381 $ 2,422 $ 1,215 $ 1,207