Callaway Golf Co. (NYSE:ELY) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 05:00 pm ET


Callaway Golf Co. (NYSE:ELY) Q2 2020 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter 2020 Callaway Golf Earnings Conference Call.

[Operator Instructions]

I would now like to hand the conference over to Mr. Patrick Burke, Head of Investor Relations. Thank you. Please go ahead, sir.

Patrick Burke

Thank you, Erica, and good afternoon, everyone. Welcome to Callaway's second quarter 2020 earnings conference call.

I am Patrick Burke, the company's Head of Investor Relations. Joining me on today's call are Chip Brewer, our President and Chief Executive Officer, Brian Lynch, our Chief Financial Officer, and Jennifer Thomas, our Chief Accounting Officer.

Today, the company issued a press release announcing its second quarter 2020 financial results. A copy of the press release and associated presentation are available on the Investor Relations section of the company's website at Most of the financial numbers reported and discussed on today's call are based on US Generally Accepted Accounting Principles.

In the few instances where we report non-GAAP measures, we reconcile the non-GAAP measures to the corresponding GAAP measures at the back of the presentation in accordance with Regulation G. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause the actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in the presentation and the press release for a more complete description. Please note that in connection with our prepared remarks, there is an accompanying PowerPoint presentation that may make it easier for you to follow the call today.

This earnings presentation is available for download on the company Investor Relations website under the webcasts and presentations tab. Also on the same tab, you can choose to join the webcast to listen to the call and view the slides. As a webcast participant, you are able to flip through the slides.

I would now like to turn the call over to Chip.

Oliver G. Brewer

Thank you, Patrick. Good afternoon, and thank you, everybody, for joining us for today's call.

Starting on Page 4 of the presentation. We're pleased to be with you today to discuss our Q2 results, the results that have exceeded our expectations over the last few months and strengthened our confidence in the future.

As covered in our press release, although Q2 results were heavily impacted by the various global shutdowns and stay-at-home orders, by late May, nearly all of our principal markets, manufacturing facilities and distribution centers were open to some degree or another. As the quarter progressed, it became clear, our businesses were recovering faster than we initially projected. Our e-commerce business has been and continues to be a particularly strong performer, in many cases, delivering year-over-year growth of 50% or higher since reopening. Looking at our principal segments, the golf equipment business has significantly exceeded expectations over the last few months.

This business is benefiting from both pent-up demand as well as increases in participation. The National Golf Foundation is now projecting a 20% increase in participation