Financial Highlights - Net revenues increased by 122% from $10402 million in Q1 2022 to $11674 million in Q1 2023[33, 49] - Adjusted EBITDA decreased by 74% from $1698 million in Q1 2022 to $1573 million in Q1 2023[55] - Diluted earnings per share decreased by 528% from $036 in Q1 2022 to $017 in Q1 2023[38] Segment Performance - Topgolf segment net revenue increased from $322 million to $404 million[78] - Topgolf same venue sales (SVS) grew by 11%[43] - Active Lifestyle segment net revenues were up 28% year-over-year[23] 2023 Outlook - Full year 2023 net revenue is projected to be between $4420 million and $4470 million[60] - Full year 2023 Adjusted EBITDA is projected to be between $625 million and $640 million[60] - Topgolf segment revenue is expected to be approximately $19 billion for FY2023[60] Topgolf Venue Economics - Target year-5 venue revenue is projected to be $13 million to $18 million for small to medium venues and $20 million to $28 million for medium to large venues[65] - Target cash-on-cash returns are projected to be ~50%-60%[65] - Target return on gross investment is projected to be ~18%-22%[65] Market Trends - Total golf participation exceeded 40 million for the first time in history[14] - Off-course participation surpassed on-course participation[14] - Off-course participation is expanding the demographics of golf, attracting younger, more female, and non-white participants[28]

Revenue Performance - For the three months ended March 31, 2023, total net revenues increased by $127.2 million (12.2%) to $1,167.4 million compared to the same period in 2022, driven by growth in the Topgolf and Active Lifestyle segments [136]. - Topgolf segment revenues rose by $81.5 million (25.3%) to $403.5 million, attributed to strong performance at newly opened venues and increased same venue sales [136]. - Active Lifestyle segment revenues increased by $70.0 million (28.0%) to $320.2 million, reflecting continued strong brand momentum [136]. - Net revenues in the United States increased by $101.7 million (14.3%) to $811.1 million, driven by Topgolf and TravisMathew business growth [139]. - Net revenues in Europe rose by $18.7 million (13.9%) to $153.6 million, supported by strong performance from the Jack Wolfskin brand [140]. - Net revenues in Asia increased by $1.6 million (1.0%) to $160.2 million, largely offset by a $16.8 million unfavorable impact from foreign currency rates [141]. - The Rest of World segment saw net revenues increase by $5.2 million (13.9%) to $42.5 million, primarily due to strength in the Canada business [142]. Cost and Expense Analysis - Total costs and expenses for the three months ended March 31, 2023, increased by $141.0 million (14.9%) to $1,086.9 million compared to $945.9 million in the same period of 2022 [143]. - Cost of products rose by $30.2 million (7.3%) to $442.0 million, primarily due to increased sales volumes in Active Lifestyle driven by TravisMathew and Jack Wolfskin [144]. - Cost of services, excluding depreciation and amortization, increased by $5.4 million (13.8%) to $44.4 million, mainly due to the opening of 11 new company-operated Topgolf venues [145]. - Other venue expenses surged by $75.1 million (32.6%) to $305.5 million, attributed to the addition of new Topgolf venues and higher wages [146]. - Selling, general and administrative expenses increased by $25.4 million (10.4%) to $268.5 million, driven by higher employee costs and marketing expenses [147]. - Research and development expenses rose by $5.3 million (30.3%) to $22.8 million, primarily due to increased headcount [148]. Profitability and Income - Net income for the three months ended March 31, 2023, decreased to $25.0 million from $86.7 million in the same period of 2022, with diluted earnings per share dropping to $0.13 from $0.44 [154]. - Total operating income decreased by $13.8 million (14.6%) to $80.5 million, impacted by increased interest expenses and other costs [157]. - Golf Equipment segment net revenues decreased by $24.3 million (5.2%) and operating income decreased by $19.2 million (19.0%) due to retail fill-in in Q1 2022 and unfavorable foreign currency impacts [159]. - Active Lifestyle segment net revenues increased by $70.0 million (28.0%) and operating income increased by $10.6 million (39.7%), primarily due to a 27.2% increase in apparel sales [160]. Cash Flow and Financial Position - Cash and cash equivalents increased by $0.4 million to $180.6 million as of March 31, 2023, with cash provided by financing activities of $273.4 million [161]. - Consolidated net accounts receivable increased to $454.8 million from $167.3 million at December 31, 2022, reflecting seasonal increases in golf equipment sales [162]. - Inventory decreased by $29.4 million to $929.8 million as of March 31, 2023, but increased by $377.4 million compared to March 31, 2022, due to longer lead times and planned product launches [163]. - Total estimated capital expenditures for 2023 are expected to be approximately $270.0 million, with $190.0 million allocated for the Topgolf business [174]. - As of March 31, 2023, the company had $626.1 million in cash and availability under credit facilities, an increase of $50.5 million compared to March 31, 2022 [166]. - The company completed a refinancing plan on March 16, 2023, entering into a new $1,250.0 million secured Term Loan B maturing in 2030 [166]. Debt and Financial Risks - Significant cash obligations total $9,413.6 million as of March 31, 2023, with long-term debt obligations of $1,583.0 million [169]. - As of March 31, 2023, the estimated loss from foreign currency forward contracts was $96.4 million, based on a hypothetical unfavorable movement of 10% in foreign currencies [179]. - A sensitivity analysis indicated that a 10% increase in interest rates would result in an incremental expense of $2.4 million over the 12-month period ending March 31, 2023 [182]. - The company is exposed to inflationary pressures, which have contributed to increased product and operating costs, potentially affecting gross margins and cash flows [183].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 1-10962 Topgolf Callaway Brands Corp. (Exact name of registrant as specified in its charter) Delaware 95-3797580 (State or other jurisdiction of i ...

Topgolf Callaway Brands Corp. (NYSE:MODG) Q4 2022 Earnings Conference Call February 9, 2023 5:00 PM ET Company Participants Lauren Scott - Director of Investor Relations Chip Brewer - President and Chief Executive Officer Brian Lynch - Chief Financial Officer Patrick Burke - Senior Vice President of Global Finance Conference Call Participants Randal Konik - Jefferies Alex Perry - Bank of America Merrill Lynch Daniel Imbro - Stephens Inc. Joseph Altobello - Raymond James Michael Swartz - Truist Securities Ca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period to Commission file number 001-10962 Topgolf Callaway Brands Corp. (Exact name of registrant as specified in its charter) Delaware 95-3797580 (State or other jurisdiction o ...

Callaway Golf Company (ELY) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Patrick Burke - SVP, Global Finance Chip Brewer - President and CEO Brian Lynch - CFO Conference Call Participants Alex Perry - Bank of America Joe Altobello - Raymond James Daniel Imbro - Stephens Kevin Heenan - JPMorgan Brett Andress - KeyBanc Susan Anderson - B. Riley Operator Good day and welcome to the Q2 2022 Callaway Golf Company Earnings Call. Today's conference is being recorded. At this time ...

| --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | IMPORTANT NOTICES 2 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 and Topgolf's financial outlook (including revenue, same venue sales, Adjusted EBITDA, Adjusted EBITDA Margin, Segment Adjusted EBITDA, capital expenditures, depreciation & amortization, net leverag ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period to Commission file number 001-10962 Callaway Golf Company (Exact name of registrant as specified in its charter) Delaware 95-3797580 (State or other jurisdiction of incorporati ...

Callaway Golf Company (ELY) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET Company Representatives Chip Brewer - President, Chief Executive Officer Brian Lynch - Chief Financial Officer Patrick Burke - SVP of Global Finance Jennifer Thomas - Chief Accounting Officer Lauren Scott - Director of Investor Relations Conference Call Participants Randy Konik - Jefferies Daniel Imbro - Stephens Kevin Heenan - JP Morgan Michael Swartz - Truist Susan Anderson - B. Riley Rudy Yang - Berenberg Krista Zuber - ...

| --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | IMPORTANT NOTICES 2 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 and Topgolf's financial outlook (including revenue, same venue sales, Adjusted EBITDA and Segment Adjusted EBITDA), new product lines, strength and demand of the Company's products and services, add ...