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CALLAWAY GOLF REPORTS SALES DOUBLE FOR FOURTH CONSECUTIVE YEAR; EARNINGS INCREASE 201 PERCENT;

Declares First Dividend, Splits Stock 2-for-1, Adds New Director
 CARLSBAD, Calif., Feb. 4 /PRNewswire/ -- Callaway Golf Company (NYSE: ELY) had net income for the year ended Dec. 31, 1992, of $19.3 million, or $2.25 per share, an increase of 201 percent, as compared with the $6.4 million, or $.86 per share, reported for 1991. Sales more than doubled to $132.1 million over the previous year's sales of $54.8 million, it was announced today by Ely Callaway, chairman and chief executive officer, and Donald H. Dye, vice chairman and chief operating officer.
 For the three months ended Dec. 31, 1992, net income was $5.1 million, or $.59 per share, up 217 percent from the $1.6 million, or $.21 per share, of the comparable period a year ago.
 "Even though we will continue to work hard to achieve exceptionally strong performance for the next several years, we believe it is unrealistic for anyone to expect that Callaway Golf will continue to grow at the annual rates we have generated to date," Callaway said.
 Mr. Callaway went on to say: "Our continued increase in volume and profits is attributable to growing customer demand for Callaway's Big Bertha'(R) drivers and Fairway woods and the company's S2H2(R) irons. During 1992, unit volume on Callaway irons alone rose 62 percent resulting in a 76 percent gain in dollar volume. Demand for Big Bertha(R) metal woods in all golf markets of the world to date continues very strong."
 The chairman also announced that the board of directors has approved a 2-for-1 stock split to be effective after the close of trading on the New York Stock Exchange on Feb. 18, 1993, for shareholders of record on that date. Certificates evidencing the new shares resulting from the split will be issued and mailed on March 19, 1993.
 The board of directors has also approved a cash dividend policy for 1993 of $.20 per pre-split share ($.10 per post-split share) on an annual basis, payable quarterly. The first quarterly dividend of $.05 per pre-split share ($.025 per post-split share) will be payable March 19, 1993, to shareholders of record Feb. 18, 1993.
 Mr. Callaway stated, "By taking these actions, the board hopes to make Callaway Golf's common shares available to a broader segment of the investment community." As a result of the split, the outstanding common shares will increase to approximately 14.1 million shares.
 The board also approved Elmer Ward Jr., age 67, as a director. Mr. Ward is the former chairman and chief executive officer of Palm Beach Co., one of the leading brands in the men's apparel field. He was a director of Callaway Golf Company during the formative years.
 Mr. Ward's directorship fills the vacancies left by Messrs. Dale Frey and John Myers, members of senior management of the General Electric Pension Trust. Messrs. Frey's and Myers' resignations are concurrent with GEPT's reduction of its investment in Callaway to less than 10 percent of Callaway's fully diluted equity. "We shall miss the sage counsel and advice they provided our company during the 3 1/2 years they served as board members."
 Callaway Golf designs, manufactures and markets high-quality, relatively high-priced innovative golf clubs under the concept known as "S2H2(R)." One of these unique products is the Big Bertha(R) line of metal woods.
 CALLAWAY GOLF COMPANY
 Summary of Operations
 (In thousands, except per share data)
 Fourth Quarter Ended Dec. 31,
 1992 pct 1991 pct
 (Unaudited)
 Condensed Income Statement
 Net sales $36,727 100 $15,535 100
 Cost of goods sold (17,838) 49 (7,225) 47
 Gross profit 18,889 51 8,310 53
 Operating expenses:
 Selling expense (4,766) 13 (3,250) 21
 General and administrative (5,063) 14 (1,921) 12
 Research and development (427) 1 (318) 2
 Income from operations 8,633 24 2,821 18
 Other income, net 143 --- 55 ---
 Income before income taxes 8,776 24 2,876 19
 Provision for income taxes (3,633) 10 (1,251) 8
 Net income $5,143 14 $1,625 10
 Earnings per common share:
 Primary $.66 $.23
 Fully diluted $.59 $.21
 Common equivalent shares:
 Primary 7,764 6,691
 Fully diluted 8,734 7,670
 Year Ended Dec. 31,
 1992 pct 1991 pct
 Condensed Income Statement
 Net sales $132,058 100 $54,753 100
 Cost of goods sold (62,970) 48 (26,175) 48
 Gross profit 69,088 52 28,578 52
 Operating expenses:
 Selling expense (19,810) 15 (11,342) 21
 General and administrative (14,990) 11 (5,622) 10
 Research and development (1,585) 1 (845) 2
 Income from operations 32,703 25 10,769 20
 Other income, net 472 2
 Income before income taxes 33,175 25 10,771 20
 Provision for income taxes (13,895) 11 (4,355) 8
 Net income $19,280 15 $6,416 12
 Earnings per common share:
 Primary $2.56 $.95
 Fully diluted $2.25 $.86
 Common equivalent shares:
 Primary 7,540 6,722
 Fully diluted 8,628 7,674
 Dec. 31, Dec. 31,
 1992 1991
 Condensed Balance Sheet
 (In thousands except per share data)
 Assets
 Current assets:
 Cash and cash equivalents $20,019 $5,178
 Accounts receivable, net 11,302 6,113
 Inventories, net 15,285 11,188
 Deferred taxes 7,316 2,273
 Other current assets 1,263 627
 Total current assets 55,185 25,379
 Property and other assets 13,753 3,445
 Total $68,938 $28,824
 Liabilities and Shareholders'
 Equity
 Current liabilities:
 Accounts payable and
 accrued expenses $6,805 $5,726
 Accrued employee compensation
 and benefits 2,454 957
 Accrued warranty expense 4,617 1,301
 Income taxes payable 1,946 1,163
 Total current liabilities 15,822 9,147
 Long-term debt 3,366 4,450
 Commitments
 Shareholders' equity:
 Convertible preferred stock --- 23
 Common stock 71 16
 Paid-in capital 31,948 11,738
 Retained earnings 17,731 3,450
 Total shareholders' equity 49,750 15,227
 Total $68,938 $28,824
 -0- 2/4/93
 /CONTACT: Ely Callaway, chairman and CEO, Carol Kerley, or Don Dye, vice chairman and COO, of Callaway Golf, 619-931-1771/
 (ELY)


CO: Callaway Golf Company ST: California IN: LEI SU: ERN

JB-LS -- SD005 -- 2732 02/04/93 08:01 EST
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