Callaway Golf Company announced unaudited earnings results for the fourth quarter and year ended December 31, 2013. For the quarter, the company reported net loss allocable to common shareholders of $49.5 million or $0.65 basic and diluted loss per share on net sales of $127.2 million compared to net loss allocable to common shareholders of $71.5 million or $1.01 basic and diluted loss per share on net sales of $120 million for the corresponding period last year. Loss from operations was $45.3 million against $70.9 million of prior year period. Loss before income taxes was $48.8 million against $68.5 million of prior year period. Non-GAAP net loss was $26 million or $0.34 diluted per share against Non-GAAP net loss of $33 million or $0.48 diluted per share for the same period last year. Non-GAAP operating loss was $40 million against $57 million of prior year period.

For the year ended, the company reported net loss allocable to common shareholders of $22.3 million on net sales of $842.8 million compared to net loss allocable to common shareholders of $131.4 million on net sales of $834.1 million for the last year. 2013 full year net sales of the company's current business, on a constant currency basis, increased 14%. On a GAAP basis, net sales increased 1% for the full year. On a GAAP basis, 2013 full year loss per share was $0.31, compared to a loss per share of $1.96 in 2012. Non-GAAP net income was $2 million against Non-GAAP loss of $43 million of prior year. 2013 full year non-GAAP loss per share was $0.02 compared to a non-GAAP loss per share of $0.77 in 2012. Non-GAAP net sales were $843 million against $834 million of prior year. 2013 non-GAAP operating income improved by $74 million to $5 million of income in 2013, compared to a non-GAAP operating loss of $69 million in 2012. On a GAAP basis, 2013 operating loss improved by $105 million to a loss of $11 million compared to a loss of $116 million in 2012. Loss before income taxes was $13.3 million against $118 million of prior year. Net cash used in operating activities was $8.9 million against $28.8 million of prior year. Capital expenditures were $13 million against $18.4 million of prior year.

Based upon foreign currency rates at the beginning of the year, net sales for the full year 2014 are currently estimated to range from $880 to $900 million, compared to $843 million in 2013. Any changes during the year to the foreign currency rates would affect net sales and the company's estimates. Gross margins are estimated to improve to approximately 41.7%, compared to 37.3% in 2013. These improvements are expected to result from the positive full year impact of the many supply chain initiatives implemented as part of the turnaround strategy as well as anticipated improved pricing and mix of full price product sales. Pre-tax income is estimated to range from $15.0 to $19.0 million. Fully diluted earnings per share is estimated to range from $0.12 to $0.16 per share on a base of 78.0 million shares, compared to a 2013 GAAP loss per share of $0.31 on a base of 72.8 million shares.