Callaway Golf Company (CALY) Earnings Call Transcript & Summary

Hello, and welcome to the Annual Meeting of Shareholders of Topgolf Callaway Brands Corp.. Please note that today's meeting is being recorded. It is now my pleasure to turn today's meeting over to Chip Brewer, President and Chief Executive Officer of Topgolf Callaway Brands. Chip the floor is yours.

Thank you, and welcome to the Topgolf Callaway Brands Corporation 2023 Annual Meeting of Shareholders. I'm Chip Brewer, President and Chief Executive Officer of the company. Today's virtual-only meeting is a live audio webcast. We believe in engaging with our shareholders, and we hope that this virtual meeting will maximize the participation of shareholders regardless of their location. Thank you very much to those who are participating in our virtual meeting online today. At this meeting, we'll first address the matters to be voted upon at the meeting. And afterwards, we will have a question-and-answer session. The meeting is now called to order. Computershare represented today by Tiffany Skiles has been appointed as an inspector of elections and is in attendance. If you have not yet voted, please do so now by clicking on the link provided online. [Voting]

If you need a copy of the annual report or the proxy statement, the links are provided online as well. I would now like to introduce our Board members. More detailed information concerning their backgrounds is included in the proxy statement as well as on our website. John Lundgren. John is the current Chairman of the Board. John is the former Chairman and Chief Executive Officer of Stanley Black & Decker and is currently the lead independent Director for Visa. Erik Anderson. Erik was appointed Vice Chairman of the company's Board of Directors in March 2021 following our merger with TopGolf. Erik served as Topgolf's Chief Executive Officer and then as Executive Chairman until the completion of the merger. He is also the Founder and CEO of West River Group. Laura Flanagan. Laura is the Chief Executive Officer and Director of Ripple Foods and is the former Chief Executive Officer of Foster Farms. She has held various leadership roles at ConAgra Foods, General Mills and PepsiCo. Russ Fleischer. Russ is a general partner at Battery Ventures and previously served as Chief Executive Officer at 3 privately held corporations. Bavan Holloway. Bavan was appointed to our Board in 2021 and was previously Vice President of Corporate Audit for Boeing, among other senior roles and spent 16 years at KPMG. Scott Marimow. Scott was appointed to the company's board in March 2021 following our merger with TopGolf. He is also a Managing Director at Providence Equity Partners. Bayo Ogunlesi, Bayo is the Chairman and Managing Partner of Global Infrastructure Management, and he previously spent 23 years at Credit Suisse. Varsha Rao. Varsha was appointed to our Board in March 2022. Varsha was previously the CEO of Nurx and held senior roles with Clover Health and Airbnb. Linda Segre. Linda is a former professional golfer and a former Executive Vice President, Chief Strategy and People Officer at Diamond Foods. Tony Thornley. Tony served as the Interim President and Chief Executive Officer of the company prior to my arrival and is the former President and Chief Operating Officer at Qualcomm. Matt Turney. Matt is a nominee for Director for the first time at this meeting. Matt is currently the Chief Financial Officer of Dundon Capital Partners and Chief Strategy Officer for the Carolina Hurricanes. Also joining me today are Brian Lynch, the company's Executive Vice President and Chief Financial Officer; Patrick Burke, Senior Vice President, Global Finance; and Heather McAllister, Senior Vice President, General Counsel and Corporate Secretary. At this meeting, shareholders are being asked to vote upon the following 4 proposals: the election of 12 directors; the ratification of the appointment of Deloitte & Touche as our independent registered public accounting firm for 2023; and the approval of the compensation of our named executive officers; and the approval of the frequency of future shareholder votes to approve the compensation of our named executive officers. Details of these 4 matters are included in the company's proxy statement. The online voting will now be closed. Heather, can you report whether we have a quorum and the results of the voting?

Chip, the Inspector of Elections has informed me that a quorum is present with over 84% of shares being represented today. Based on the preliminary review of the votes cast, the Inspector of Elections has informed me that all 11 directors standing for reelection were elected that Matt Turney was elected and that all other proposals were approved in accordance with the recommendation of the Board of Directors. A final report will be available online in the next few days.

Thank you, Heather. That concludes the official business portion of the meeting, and the meeting is now adjourned. Before we proceed, I'm going to ask Heather to provide our required notices.

Any statements that are made today that relate to future plans, events, financial results, performance, prospects or growth opportunities are forward-looking statements subject to the safe harbor protection under the federal securities laws. Such statements reflect our best estimates based on current circumstances and conditions. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risks and uncertainties applicable to the company and its businesses. For details concerning these risks, you should consult the Risk Factors section of the company's annual report on Form 10-K for the year ended December 31, 2022, together with the company's reports on Forms 10-Q and 8-K subsequently filed with the Securities and Exchange Commission and the company's May 9, 2023, earnings release. which is available on the Investor Relations section of the company's website located at www.topgolfcallawaybrands.com.

Thank you, Heather. As mentioned in the proxy statement, there is no business presentation today as the purpose of this meeting is to elect directors and vote upon the other matters. I would like to note, however, that we're off to a good start in 2023 and remain optimistic for the balance of the year and the future. You can find more details about our business in our May 9, 2023, earnings release. With that said, I would now like to open the call for questions. You may submit questions online by clicking on the Q&A icon.

It appears that there are no questions. Thank you for your attendance today. This concludes our Annual Meeting of Shareholders, and thank you for your continued interest in TopGolf Callaway Brands.

This concludes the meeting. You may now disconnect.