On May 14, 2013, the board of directors of Callaway Golf Co. appointed Jennifer Thomas as Chief Accounting Officer, replacing Bradley J. Holiday in that capacity, effective May 20, 2013. Bradley J. Holiday continues to serve as the Company’s Chief Financial Officer. In connection with her appointment, Ms. Thomas will enter into an employment agreement with the company effective as of May 20, 2013. Ms. Thomas has served in various accounting roles with the company since 2004, including controller since 2011. Prior to joining the company, Ms. Thomas served as assistant controller for CIBER Inc.

Callaway Golf Co. reported un-audited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported net sales of $287.8 million, as compared to $285.1 million for the same period in 2012. The company reported income from operations of $40.1 million compared to $27.8 million, income before income taxes of $44.1 million compared to $31.5 million, net income allocable to common shareholders of $40.9 million or $0.47 per diluted share compared to $29.2 million or $0.37 per diluted share, net cash used in operating activities of $100.6 million compared to $92.4 million and capital expenditures of $3.1 million compared to $8.7 million for the last year. On non-GAAP basis, the company reported income from operations of $43.6 million compared to $21.2 million, income before income taxes of $47.6 million compared to $24.9 million, net income allocable to common shareholders of $28.5 million or $0.33 per diluted share compared to $12.7 million or $0.18 per diluted share and adjusted EBITDA of $53.2 million compared to $41.1 million for the last year. As compared to 2012, the company's first quarter 2013 net sales were adversely affected by $8 million due to changes in foreign currency exchange rates and by $20 million due to the sold or transitioned brands and products. The company is lowering first half 2013 net sales guidance due to continued foreign currency headwinds and a slower than expected start to the golf season in the United States and Europe as a result of unfavorable weather conditions. The company is currently providing the revised guidance for the first half of 2013: Net sales for the first half of 2013 are currently estimated to be $540 million, compared to previous guidance of $555 million. Excluding sales from the sold or transitioned businesses, the company estimates that net sales from its current business on a constant currency basis will increase by approximately 7% in the first half of 2013 compared to the first half of 2012. Non-GAAP earnings per share are currently estimated at $0.44 for the first half of 2013, compared to previous guidance of $0.33 per share. During the first half of 2012, the company reported non-GAAP earnings per share of $0.25. The company is lowering full year 2013 net sales guidance, primarily due to expectations that the unfavorable foreign currency headwinds experienced during the first quarter of 2013 will continue for the balance of the year. The company is currently providing the following revised guidance for the full year 2013: Net sales for the full year 2013 are currently estimated to be $830 million, compared to previous guidance of $850 million. Excluding sales from the sold or transitioned businesses, the company estimates that net sales from its current business on a constant currency basis will increase by approximately 12% in 2013 compared to 2012. For the full year 2013, the company continues to estimate that non-GAAP net income will be break-even with a non-GAAP loss per share of $0.04 due to the impact of dividends paid on the company's outstanding convertible preferred stock. For the full year 2012, the company's non-GAAP loss was $43 million with a non-GAAP loss per share of $0.77. Results consistent with this guidance would show a pro forma constant currency continuing business revenue increase of 12% for the year and an approximate $70 million improvement in pro forma pre-tax income. Pro forma earnings per share for 2013 would have been $0.33 compared to $0.18 last year. The company estimate full year CapEx of $15 million to $20 million and depreciation of $30 million, unchanged from last estimate.

Callaway Golf Co. declared a regular quarterly cash dividend of $0.01 per share on its Common Stock. The dividend is payable on June 17, 2013 to shareholders of record at the close of business on May 21, 2013. The company also declared a regular quarterly cash dividend of $1.875 per share on its 7.50% Series B Cumulative Perpetual Convertible Preferred Stock. The dividend is payable on June 17, 2013 to shareholders of record as of May 21, 2013.