PepsiCo and Topgolf Launch Eight-Year Partnership Offering the Chance to Win Eight Years of Free Topgolf and PepsiCo Beverages DALLAS, May 15, 2024 /PRNewswire/ -- Modern golf entertainment leader Topgolf announced today an eight- year beverage agreement with global food and beverage leader, PepsiCo. Beverages will be supplied to Topgolf's U.S. venues beginning May 15, 2024, with the rollout expected to be completed by June 2024. PepsiCo beverages will be rolled out to Topgolf's U.S. venues beginning May 15 ...

Financial Data and Key Metrics Changes - Consolidated revenues decreased 2% year-over-year to $1.144 billion, in line with Q1 guidance [14] - Adjusted EBITDA increased 2% year-over-year to $161 million, exceeding the high end of guidance due to strong venue margins and timing of operating expenses [27][28] - Non-GAAP first quarter net income decreased approximately $17 million compared to last year, largely due to increased depreciation and amortization and interest expense [27] - Inventory decreased by $227 million, or 24%, from $930 million in Q1 2023 to $703 million in Q1 2024 [121] Business Segment Performance Changes - Topgolf's same venue sales decreased 7% in Q1, stabilizing after January weather normalized [5][7] - Active lifestyle segment revenue decreased 15% year-over-year, primarily due to lapping a significant corporate channel sell-in from the previous year [11][14] - Golf equipment operating income increased 1% year-over-year to $82 million, driven by increased revenue [15][16] Market Data and Key Metrics Changes - Callaway held the number one US market share in drivers, fairway woods, and hybrids, with a record 16% share in golf gloves [10][22] - The Japan market was down in real terms due to currency trends and lower sell-in volumes [23] - Jack Wolfskin faced challenges in Europe, leading to lowered full-year revenue expectations for the brand [24][51] Company Strategy and Development Direction - The company remains on track for organic revenue growth targets and is confident in achieving a 35% EBITDA margin for the full year [8][12] - Plans to open approximately 10 new venues per year remain intact, with a total addressable market of 250 venues in the US [9] - The company is focusing on enhancing digital experiences and value offerings to drive sales at Topgolf [129] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to transition back to positive same venue sales in the second half of the year [112][132] - The company is optimistic about the strength of its core brands and market conditions despite challenges in certain segments [108][138] - Management highlighted the importance of upcoming marketing and consumer programs to drive sales growth [112][132] Other Important Information - The company successfully repriced its term loan B, reducing the interest rate by 60 basis points, resulting in annualized savings of approximately $7 million [13][120] - Free cash flow is expected to improve by approximately $60 million due to working capital improvements and lower cash interest [32] - The company repurchased one million shares of stock since the last earnings call [120] Q&A Session Summary Question: What are the drivers of the April softness in Topgolf's performance? - Management noted that the softness was due to less spring break time available prior to Easter, impacting same venue sales significantly [58] Question: Can you elaborate on the changes in revenue guidance? - Management explained that the revenue guidance was lowered by $80 million due to $45 million from Jack Wolfskin and $35 million from currency headwinds [104] Question: How is the Jack Wolfskin business expected to perform? - Management indicated that Jack Wolfskin is facing challenging market conditions in Europe, but they expect positive EBITDA growth for the brand in 2024 [24][51] Question: What is the impact of the new labor model on margins? - Management confirmed that the new labor model has positively impacted margins, contributing to improved operating efficiencies [94] Question: How is the company managing costs in light of revenue challenges? - Management stated that they are managing costs across all businesses and driving operational efficiencies to offset revenue challenges [44][49]

▪ Net CapEx of $240M ($180M forTopgolf), is $20M lower than prior guide due to venue timing ▪ Anticipate ~$50 million pay down in Term Loan debt | --- | --- | --- | --- | --- | |------------------------------------------|---------|---------------|----------|-------------| | ($ in millions, except for EPS) 1 | Topgolf | Non-Topgolf 5 | Total | Prev. Total | | Adjusted EBITDA | ~$350 | ~$280 | ~$630 4 | $630 4 | | Non-GAAP Depreciation & Amortization | | | ~$260 | ~$265 | | Non-GAAP Topgolf D&A | ~$205 | | ~$ ...

For the quarter ended March 2024, Topgolf Callaway Brands (MODG) reported revenue of $1.14 billion, down 2% over the same period last year. EPS came in at $0.09, compared to $0.17 in the year-ago quarter.The reported revenue represents a surprise of -0.80% over the Zacks Consensus Estimate of $1.15 billion. With the consensus EPS estimate being $0.01, the EPS surprise was +800.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Topgolf Callaway Brands (MODG) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 800%. A quarter ago, it was expected that this maker of golf equipment and accessories would post a loss of $0.34 per share when it actually produced a loss of $0.30, delivering a surprise of 11.76%.Over th ...

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 March 31, 2024 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 of in ...

Exhibit 99.1 TOPGOLF CALLAWAY BRANDS ANNOUNCES STRONG FIRST QUARTER 2024 RESULTS HIGHLIGHTS CARLSBAD, CA /May 8, 2024/ Topgolf Callaway Brands Corp. (the "Company" or "Topgolf Callaway Brands", "we", "our", "us") (NYSE: MODG) announced its financial results for the first quarter ended March 31, 2024. "We are pleased with our overall first quarter results with consolidated revenue and Topgolf same venue sales being in line with our guidance and our achieving better than expected net income, Adjusted EBITDA, ...

CARLSBAD, Calif., May 1, 2024 /PRNewswire/ -- Topgolf Callaway Brands Corp. (the "Company" or "Topgolf Callaway Brands") (NYSE: MODG) announced today that it intends to release its first quarter 2024 financial results on Wednesday, May 8, 2024, after the market closes. Following the release, the Company's management team will hold a conference call to review the results and discuss the Company's business and outlook beginning at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live webcast and presentatio ...

The three-level venue sits adjacent to the fully redesigned Montebello Golf CourseDALLAS, April 18, 2024 /PRNewswire/ -- Modern golf entertainment leader Topgolf announced today it will open in Montebello, California, on May 3, marking the company's 100th global outdoor Topgolf venue. The company’s 100th global outdoor Topgolf venue opens May 3 in Montebello, California. Topgolf’s new game, Block Party, makes it easier than ever for Players to score points. Located about 10 minutes east of downtown LA, ...

Deal chatter has investors hoping an ill-fated acquisition might be undone.Rumors are swirling about a potential deal involving Topgolf Callaway Brands (MODG 1.23%), leaving investors dreaming about above-par returns. Shares of the golf and entertainment company climbed 13.6% in March, according to data provided by S&P Global Market Intelligence, as the market digested buyout talk from overseas.Will Topgolf get a merger mulligan?Topgolf Callaway was formed by a 2021 merger that, although seemingly logical a ...