SBD/Issue 135/Finance

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  • In The Rough: Callaway Lowers Q1 Sales And Earnings Outlook

    Callaway Golf said that Q1 sales and earnings “would fall short of Wall Street’s expectations as the company reworks an aggressive product strategy that led to trouble last year,” according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway now expects revenue of about $300M and earnings of $0.26-0.28 per share, including a $0.03 integration charge “linked to the purchase of Top-Flite” in ’03. Analysts surveyed by Thomson Financial “were looking for higher operating profit of [$0.49] per share on revenue of $339.3[M].” Gilford Securities analyst Casey Alexander: “I think the whole industry is likely to miss in the first quarter because everywhere people play golf there was four inches of rain every day.” Callaway lost $10.1M in ’04 and made a $45.5M profit in ’03 (SAN DIEGO UNION-TRIBUNE, 4/7).

    Print | Tags: Callaway Golf, Finance, Golf
  • Pay To Play? Federal Agencies Looking At PGA Tour Pro-Ams

    SEC, NASD Investigating
    PGA Tour Pro-Am Slots
    The SEC and the National Association of Securities Dealers (NASD) are “cracking down on excessive gift-giving and entertainment” in an “escalating investigation” that includes PGA Tour pro-ams, according to a front-page story by Ann Davis of the WALL STREET JOURNAL. Financial service firms have “doled out spots in [pro-ams] -– often during major tournaments -– where clients can play with pros.” These spots can cost $4,000-10,000 when sold to the public, while security regulations state gifts cannot exceed $100. Before the FBR Open in February, securities regulators began looking at golf outings Bank of America arranged for Fidelity Equity Trading Desk head Scott DeSano, including a spot in the AT&T Pebble Beach National Pro-Am. FBR and several other companies involved with PGA Tour events “sought guidance this year from the NASD and the SEC about how to play host to clients.” Now, some clients pay their own way to such events rather than having their company pay for it. The PGA Tour sent officials “to meet with enforcement attorneys of both agencies to explain the charitable mission of its events.” The Tour pointed out to the agencies “that members of Congress are usually allowed to play in charity tournaments without paying to participate” (WALL STREET JOURNAL, 4/7).

    Print | Tags: ATT, Bank of America, Finance, Golf, PGA Tour
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