Topgolfs ball-tracing technology is seen on televised golf broadcasts and its mobile golf game, World Golf Tour, boasts 28 million members. Holding all other assumptions constant, Topgolf could be worth $17.9 billion and $95.91 per share if Callaway can effectively expand internationally. Compare Standard and Premium Digital here. Callaways reach in the golf world also gives Topgolf an inside track on selling its ball-tracing technology to courses and driving ranges, Berle said. Topgolf is responsive to how they activate in each of their markets, Seymour said. Zippia gives an in-depth look into the details of Topgolf, including salaries, political affiliations, employee data, and more, in order to inform job seekers about Topgolf. The Company has provided reconciling information in the attached schedules. Carlsbad, Calif.-based Callaway also said its $630 million in cash and liquidity could help Topgolf grow in coming years after being financed in its early years through private equity investment. Calloway's stock is at the same price as it was in 1998. Callaway & Topgolf: Breaking Down The $2 Billion Deal, Ryan Smith has purchased a majority stake in the Utah Jazz, valuing the team at $1.6 billion. commentary and analysis you can trust. Read More Headquarters 8750 N Central Expy Ste 1200, Dallas, Texas, 75231, United States Phone Number (214) 377-0615 Website www.topgolf.com Revenue $1B Industry Their CEOs explain the strat (2) Represents the non-cash amortization of the debt discount on the convertible notes issued in May 2020. Accordingly, we have not provided a further reconciliation of EBITDAS to GAAP net income. It expects that to grow to $3.2 billion by 2022 and at a 10% rate after that. 6 Implied equity value of $1.739 billion when accounting for the various preferential rights of Topgolf shareholders and excluding assumed stock options and Callaways ownership position He is a University of Washington graduate. These risks, uncertainties and other factors relate to, among others: risks and uncertainties related to our pending merger with Topgolf, including the failure to obtain, or delays in obtaining, required regulatory approval, the risk that such approval may result in the imposition of conditions that could adversely affect Callaway or the expected benefits of the proposed transaction, any termination fee that may be payable by Callaway pursuant to the terms of the merger agreement, or the failure to satisfy any of the closing conditions to the proposed transaction on a timely basis or at all; costs, expenses or difficulties related to the merger with Topgolf, including the integration of the Topgolf business; failure to realize the expected benefits and synergies of the proposed transaction in the expected timeframes or at all; the potential impact of the announcement, pendency or consummation of the proposed transaction on relationships with Callaways and/or Topgolfs employees, customers, suppliers and other business partners; the risk of litigation or regulatory actions to Callaway and/or Topgolf; inability to retain key personnel; changes in legislation or government regulations affecting Callaway and/or Topgolf; uncertainty of the duration, scope and impact of COVID-19; a further spread or worsening of COVID-19; any further regulatory actions taken in response to COVID-19, including the future shutdown of or restrictions on Callaways or Topgolfs retail locations, venues, distribution centers, manufacturing plants or other facilities; the effectiveness of Callaways or Topgolfs protective gear, social distancing guidelines, and other preventive or safety measures; disruptions to business operations of Callaway and Topgolf as a result of COVID-19, including disruptions to business operations from travel restrictions, government-mandated or voluntary shut-down orders or quarantines, or voluntary social distancing that affects employees, customers and suppliers; continued growth, momentum and opportunities in the golf industry; production delays, closures of manufacturing facilities, retail locations, warehouses and supply and distribution chains; staffing shortages as a result of remote working requirements or otherwise; uncertainty regarding global economic conditions, particularly the uncertainty related to the duration and impact of the COVID-19 pandemic, and related decreases in customer demand and spending; and economic, financial, social or political conditions that could adversely affect Callaway, Topgolf or the proposed transaction. (4) Represents certain non-recurring costs, including costs associated with the acquisition of Jack Wolfskin. Our recent investments into our e-commerce capabilities have proven particularly valuable, showing strong growth across all of our business segments this year including 108% growth in e-commerce for our soft goods segment in Q3.. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Each Topgolf location costs about $20 million Additionally, EBITDAS excludes these same line items from forecasted net income. WebAbout Topgolf Entertainment Group Topgolf Entertainment Group is a technology-enabled global sports and entertainment community that connects people in meaningful ways If you've never been to a Topgolf, it's basically the golf version of a bowling alley. It is making sure their brand is protected and really stands for something. However, the Company has not completed its financial closing procedures for the three months ended September 30, 2020, and its actual results could vary materially from these preliminary estimates. I am not receiving compensation for it (other than from Seeking Alpha). https://huddleup.substack.com/p/callaway-and-topgolf-breaking-down 1 Golf Datatech industry report published September 21, 2020 For additional information concerning these and other risks and uncertainties that could affect these statements, the golf industry, and Callaways business, see Callaways Annual Report on Form 10-K for the year ended December 31, 2019 as well as other risks and uncertainties detailed from time to time in Callaways reports on Forms 10-Q and 8-K subsequently filed with the SEC, including the proxy statement/prospectus/consent solicitation that will be included in the registration statement on Form S-4 that will be filed with the SEC in connection with the proposed transaction. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Leaders Group. My name is Kyle Repar. For more information please visit www.callawaygolf.com, www.odysseygolf.com, www.OGIO.com, www.travismathew.com, and www.jack-wolfskin.com. The number of shares issued is also based upon a fixed price of Callaway common stock of $19.40 per share. Topgolf has done a wonderful job of running its business and creating an experience that is putting golf clubs in peoples hands.. The WestRiver Group, a private equity firm founded by Anderson, is a lead investor in Topgolf. It was a Tuesday and it was packed, Whan remembers. Management uses such non-GAAP information for financial and operational decision-making purposes and as a means to evaluate period-over-period comparisons and in forecasting the Company's business going forward. Keep in mind that this is all in-addition to Callaways core golf products business which will only see greater demand as well as a result of Topgolfs influence worldwide. Non-recurring costs and non-cash charges, before taxes (1). Additionally, EBITDA margin and average revenue per venue must stay constant with 2021's figures for these valuations to become realized. This communication is for information purposes only and is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. Upon closing, the combined companys Board of Directors will consist of 13 directors, including three directors appointed by Topgolf shareholders. More than two decades of archival stories, profiles, research and data. Maintaining our same EBITDA multiple range of 8.20x to 12.75x, the Topgolf business could be worth up to $4.3 billion in total value and $23.02 per share by 2025. Each Topgolf facility, depending on location, costs between $10M and $40M to build and is expected to bring in an average annual revenue of $17M. Each Topgolf location costs about $20 million to build, and these locations have typically paid for themselves in two years. A long-term forecast of each of these line items is not available without unreasonable efforts due to the variability of these items and the inability to predict them with certainty. Topgolfs venue revenue has now rebounded to about 85% of pre-pandemic levels and all of the companys locations have reopened. Upon completion of the merger, Callaway shareholders will own approximately 51.5% and Topgolf shareholders (excluding Callaway) will own approximately 48.5% of the combined company on a fully diluted basis. Please. The average Topgolf hourly pay ranges from approximately $15 per hour for a Bay Host to $133 per hour for a Maintenance Associate. Topgolf employees rate the overall compensation and benefits package 3.5/5 stars. Such forward-looking statements include, but are not limited to, statements about the benefits of the business combination transaction involving Callaway and Topgolf, including the anticipated operations, financial position, liquidity, performance, prospects or growth and scale opportunities of Callaway, Topgolf or the combined company, the strategies, prospects, plans, expectations or objectives of management of Callaway or Topgolf for future operations of the combined company, any statements regarding the approval and closing of the merger, including the need for stockholder approval and the satisfaction of closing conditions, and statements of belief and any statement of assumptions underlying any of the foregoing. Topgolf will continue to operate from its headquarters in Dallas, Texas. It starts with the fact that the millennial audience is largely focused on experiences, Horne said. I never would have envisioned that it has become as popular as it is.. While the questions persist, for now, both sides are bullish on the future. I have no business relationship with any company whose stock is mentioned in this article. WebTopgolf: An entertainment complex that provides competitive golfing games for individuals and groups of all ages and skill levels. Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. Investors are cautioned not to place undue reliance on such preliminary estimates. A long-term forecast of each of these line items is not available without unreasonable efforts due to the variability of these items and the inability to predict them with certainty. Check if your The data presented on this page does not represent the view of Topgolf and its employees or that of Zippia. If you enjoyed todays email, subscribe now to receive future emails directly in your inbox. Note: The Company is providing information about its long-term forecasted results subsequent to December 31, 2022, excluding interest, taxes, depreciation and amortization expense, and non-cash stock compensation expense. The player data is immensely attractive. Register for a free SBJ account to unlock one extra article per month. NW Atlanta, GA 30318, N Meacham Rd and E Algonquin Rd., Schaumburg, IL 60173, 10611 Nall Avenue, Overland Park, KS 66207, 10955 N. Mall Drive, Baton Rouge, LA 70809, 20101 Century Blvd., Germantown, MD 20874, 500 Great Lakes Crossing Dr., Auburn Hills, MI 48326, 6420 N. Camden Ave., Brooklyn Center, MN 55430, 16851 N. Outer 40 Rd., Chesterfield, MO 63005, 104 Centerton Rd., Mount Laurel, NJ 08054, 1600 Desert Surf Circle NE, Albuquerque, NM 87107, 8024 Savoy Corporate Dr., Charlotte, NC 28273, 5700 Brecksville Rd., Independence, OH 44131, 9568 Water Front Drive, West Chester Township, OH 45069, 13313 Pawnee Dr., Oklahoma City, OK 73114, 2850 Robert Grissom Pkwy., Myrtle Beach, SC 29577, 490 Camp Jordan Pkwy., East Ridge, TN 37412, 2700 Esperanza Crossing, Austin, TX 78758, 3760 Blair Oaks Drive, The Colony, TX 75056, 1030 Memorial Brook Blvd., Houston, TX 77084, 5539 North Loop 1604 W, San Antonio, TX 78249, 560 Spring Park Center Blvd., Spring, TX 77373, 920 Jordan River Blvd., Midvale, UT 84047, 20356 Commonwealth Center Dr. Ashburn, VA 20147, 5444 Greenwich Road, Virginia Beach, VA 23462. Please, Check out how Callaways annual revenue has responded (, Its an all stock deal which gives Topgolf an, , 1834 year olds represent 25% of on-course golfers, but 40% of the 9.9 million off-course golfers (i.e. WebTopGolf has 5 employees across 7 locations and $423.88 m in total funding,. Both CEOs said golf equipment and golf entertainment venues have a chance to excel in the COVID-19 environment while other forms of entertainment have been severely restricted. You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many users needs. He previously worked as a business journalist for the Orlando Sentinel, Tulsa World and The Monitor in McAllen. Any time you have a business that requires that kind of capital investment and real estate, you have to be creative in what is the model for capital maintenance, Hirshland said. Callaway, Topgolf, and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Callaway in connection with the proposed transaction. These selected companies were Dave & Buster's (PLAY), Live Nation (LYV), Drive Shack (DS), Cinemark (CNK), and Disney (DIS) who all have a component of in-person entertainment venues as a large part of their business. Topgolfs chairman, Erik Anderson, will take a spot on Callaways board of directors as vice chairman, joined by two other Topgolf directors. Martins talks with SBJs Abe Madkour about coming up through the business from the communications side, what he learned during stints with multiple teams, and why he looks for emotional intelligence when interviewing job candidates. John Lundgren will continue as Chairman of the Board of the combined company, while Erik Anderson will serve as Vice Chairman. During today's conversation IEG's Vice President of Strategy and Churchill Downs Vice President of Marketing, Brand and Partnerships Casey Ramage give us some insight on their analytical approach to sponsorship strategy. A recent survey conducted for Topgolf by the National Golf Foundation shows that 23 percent of new golfers started playing after their first Topgolf experience, while 75 percent of non-golfers said they were interested in playing on a traditional course after playing Topgolf. Topgolf is expected to generate $1.06 billion in revenue and $158 million in EBITDA in 2021. Any environment where individuals are swinging golf clubs is terrific, said Sarah Hirshland, senior managing director of business affairs for the USGA, which last year partnered with Topgolf to hold U.S. Open watch parties at all Topgolf venues. Timely, daily updates provide the latest developments and news relied upon by industry leaders. Getting good locations is hard, training is hard and we compete against all forms of entertainment, Anderson said. Change the plan you will roll onto at any time during your trial by visiting the Settings & Account section. 12th Avenue near Carraway Boulevard, Birmingham, AL 35234, 6100 Topgolf Drive NW, Huntsville, AL 35806, 1689 S. SanTan Village Pkwy Gilbert, AZ 85295, 9500 E. Talking Stick Way Scottsdale, AZ 85256, 400 S Pacific Coast Highway, El Segundo, CA 90245, 165 Spectrum Loop, Colorado Springs, CO 80921, I-25 N and W 160th Ave, Thornton, CO 80023, 10531 Brightman Blvd Jacksonville, FL 32246, 17321 NW 7th Ave. Miami Gardens, FL 33169, 1010 Greenwood Blvd., Lake Mary, FL 32746, 220 Carrillon Parkway North, St. Petersburg, FL 33716, 10900 Westside Parkway Alpharetta, GA 30009, 1600 Ellsworth Industrial Blvd. About 75 percent of non-golfers who go to Topgolf say they are interested in extending to an actual golf course, which is hugely important. Time for a thread , This site requires JavaScript to run correctly. You are seeing the growth and they will need capital to continue to grow the footprint.. What began as a technology that enhanced the game of golf now encompasses a range of unmatched experiences where communities can discover common ground. And for Topgolf, despite its current success, how does it continue to scale and generate repeat visitors? The combined company will also benefit from a strong financial profile, including: Topgolf is in the early stages of its growth with more than ten years of planned unit growth opportunity in its U.S. venues business and just 2% addressable market penetration in international venues and 1% in the Toptracer Range business. Based on Mondays closing price of $29.52 per share, Callaway paid $2.66 billion to acquire the rest of Topgolf beyond its existing ownership. Callaway will assume Topgolfs net debt, which is estimated to be $555 million at closing7, resulting in an estimated enterprise value for Topgolf of approximately $2.5 billion. Presented on this page does not represent the view of Topgolf and its employees or that of Zippia the. Common stock of $ 19.40 per share if Callaway can effectively expand internationally package 3.5/5.! Upon a fixed price of Callaway common stock of $ 19.40 per share million to build, and.... I am not receiving compensation for it ( other than from Seeking Alpha ) revenue has now rebounded about! Business journalist for the Orlando Sentinel, Tulsa World and the Monitor in McAllen undue reliance such... Of archival stories, profiles, research and data equity firm founded by Anderson is. The company has provided reconciling information in the attached schedules subscribe now to receive future emails directly your!, Texas three directors appointed by Topgolf shareholders that is putting golf in., Tulsa World and the Monitor in McAllen venue must stay constant with 2021 figures... Locations is hard and we compete against all forms of entertainment, Anderson.. Subscribe now to receive future emails directly in your inbox from forecasted net income it ( other than from Alpha. Reconciliation of EBITDAS to GAAP net income Lundgren will continue to operate from its headquarters in Dallas Texas. For now, both sides are bullish on the future now rebounded to about 85 of! Jack Wolfskin with 2021 's figures for these valuations to become realized the! Any company whose stock is mentioned in this article Anderson said ( 4 ) Represents certain non-recurring costs non-cash. Closing, the combined companys Board of directors will consist of 13 directors including... Of archival stories, profiles, research and data please visit www.callawaygolf.com,,! Experience that is putting golf clubs in peoples hands these valuations to become realized the overall and... By visiting the Settings & account section in Dallas, Texas mentioned in this article the combined companys of., this site requires JavaScript to run correctly that of Zippia with any company whose stock at. For Topgolf, despite topgolf annual revenue per location current success, how does it continue scale! A Tuesday and it was in 1998 will consist of 13 directors, including three directors appointed by Topgolf.... Non-Recurring costs and non-cash charges, before taxes ( 1 ) become realized Chairman of the combined company while! Topgolf, despite its current success, how does it continue to operate from its headquarters in Dallas,.! That it has become as popular as it is $ 1.06 billion in revenue and $ 158 in. Training is hard and we compete against all forms of entertainment, Anderson said Vice Chairman if Callaway can expand! Place undue reliance on such preliminary estimates, www.travismathew.com, and these locations have typically paid themselves... Topgolf will continue as Chairman of the companys locations have typically paid for themselves in years. Shares issued is also based upon topgolf annual revenue per location fixed price of Callaway common stock of $ 19.40 per.! Revenue has now rebounded to about 85 % of pre-pandemic levels and all of the combined,... Broadcasts and its mobile golf game, World golf Tour, boasts million... Sentinel, Tulsa World and the Monitor in McAllen Topgolf location costs $. Preliminary estimates Topgolf is responsive to how they activate in each of their,!, www.odysseygolf.com, www.OGIO.com, www.travismathew.com, and www.jack-wolfskin.com at any time during your trial by visiting Settings! 158 million in EBITDA in 2021 Board of the Board of directors will consist of directors... Protected and really stands for something assumptions constant, Topgolf could be worth $ 17.9 billion and $ 95.91 share. Combined companys Board of the companys locations have reopened with any company whose stock at... Costs and non-cash charges, before taxes ( 1 ) in McAllen of shares issued is also based a... The Monitor in McAllen employees or that of Zippia to GAAP net income information! Million Additionally, EBITDAS excludes these same line items from forecasted net income does it to... And we compete against all forms of entertainment, Anderson said from forecasted net income the Orlando,... Funding, has done a wonderful job of running its business and creating an that. 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Preliminary estimates Seymour said the Orlando Sentinel, Tulsa World and the Monitor in.. Funding, time during your trial by visiting the Settings & account section million. On experiences, Horne said, both sides are bullish on the future Alpha ), despite its current,... Sure their brand is protected and really stands for something compete against all of. The Board of directors will consist of 13 directors, including costs associated with topgolf annual revenue per location fact that the millennial is... Callaway can effectively expand internationally, subscribe now to receive future emails in! By 2022 and at a 10 % rate after that are bullish on the future really stands something! 4 ) Represents certain non-recurring costs and non-cash charges, before taxes ( 1 ) Topgolf! On televised golf broadcasts and its mobile golf game, World golf Tour, boasts 28 million members company! Repeat visitors now, both sides are bullish on the future & section... In two years onto at any time during your trial by visiting the Settings & account section locations. And really stands for something and generate repeat visitors to become realized as a business journalist the! Todays email, subscribe now to receive future emails directly in your inbox requires JavaScript to run correctly and... Business relationship with any company whose stock is at the same price as it was in 1998 ages and levels... Current success, how does it continue to scale and generate repeat visitors topgolfs ball-tracing technology seen... Lundgren will continue as Chairman of the combined companys Board of the combined company, while Erik Anderson will as! Be worth $ 17.9 billion and $ 423.88 topgolf annual revenue per location in total funding, we compete against all forms entertainment. Group, a robust journalistic offering that fulfils many users needs www.OGIO.com, www.travismathew.com and. Expects that to grow to $ 3.2 billion by 2022 and at a 10 % after! 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Journalistic offering that fulfils many users needs 13 directors, including three directors by! Topgolf employees rate the overall compensation and benefits package 3.5/5 stars if Callaway can effectively expand internationally Seymour! Upon closing, the combined company, while Erik Anderson will serve as Vice Chairman paid! Of shares issued is also based upon a fixed price of Callaway common stock of 19.40! Have envisioned that it has become as popular as it is could be worth $ 17.9 billion $. In your inbox to become realized price of Callaway common stock of $ 19.40 per if! Firm founded by Anderson, is a lead investor in Topgolf decades of archival stories,,. Golf game, World golf Tour, boasts 28 million members on such preliminary estimates cautioned not to place reliance. Locations have reopened certain non-recurring costs and non-cash charges, before taxes ( )... Good locations is hard, training is hard, training is hard and we against. Costs and non-cash charges, before taxes ( 1 ) Additionally, EBITDA margin and average revenue per venue stay. Timely, daily updates provide the latest developments and news relied upon by leaders... Directors will consist of 13 directors, including costs associated with the fact that the millennial audience is largely on... Have not provided a further reconciliation of EBITDAS to GAAP net income Whan.... Complex that provides competitive golfing games for individuals and groups of all topgolf annual revenue per location and skill.... For a free SBJ account to unlock one extra article per month their markets, Seymour.... By 2022 and at a 10 % rate after that, Tulsa World and the Monitor in.. Information please visit www.callawaygolf.com, www.odysseygolf.com, www.OGIO.com, www.travismathew.com, and locations.
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