It is making sure their brand is protected and really stands for something. Dr Pepper flavored Peeps arrive in Texas soon. As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information regarding financial or operating data not provided. According to Axios, 1834 year olds represent 25% of on-course golfers, but 40% of the 9.9 million off-course golfers (i.e. It is those unseasoned golfers who Hirshland and other industry executives are particularly interested in bringing to traditional golf. Topgolfs chairman, Erik Anderson, will take a spot on Callaways board of directors as vice chairman, joined by two other Topgolf directors. Kyle Arnold. Non-recurring costs and non-cash charges, before taxes (1). Disclosure: I/we have a beneficial long position in the shares of ELY either through stock ownership, options, or other derivatives. Topgolf peak revenue was $220.0M in 2021. This means that Topgolf had 61 venues that were operating the entire year for an estimated revenue per venue around $21 million. We use the Golf News Net byline sometimes just to change things up. Callaway's transition to a golf entertainment company provides opportunity for a higher valuation range. The GAAP results contained in this press release have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). More private investment is possible and Topgolf also could go public as one way to meet additional capital demands. Its an outdoor venue that actually has barriers up between bays and a group of people can be completely socially distanced in an outdoor environment.. A live webcast of the conference call and downloadable slides will be available online at: https://ir.callawaygolf.com. On Tuesday, Callaway announced a definitive merger agreement which would see the Golf giant digest the remaining 86% of Topgolf they didnt already own at a ~$2 billion valuation. The connective PGA of America efforts include Topgolf holding sponsorship and media events, and other fan engagement efforts tied to PGA of America events along with Topgolf promoting the PGA Junior League Golf program. Sometimes we post sponsored content from this account, and it is labeled as such. Already a subscriber? Callaway Golf Company (NYSE: ELY) is a premium golf equipment and active lifestyle company with a portfolio of global brands, including Callaway Golf, Odyssey, OGIO, TravisMathew and Jack Wolfskin. 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. We see a lot of ways with golf to have a meaningful business, said Erik Anderson, executive chairman of Topgolf Entertainment. These preliminary estimates should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. I never would have envisioned that it has become as popular as it is.. Accordingly, we have not provided a further reconciliation for long-term forecasted Adjusted EBITDAS to GAAP net income. The deal is expected to close in early 2021. Information regarding the persons who are, under the rules of the SEC, participants in the solicitation of the stockholders of Callaway and Topgolf, respectively, in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, will be set forth in the proxy statement/prospectus/consent solicitation when it is filed with the SEC. Investors and stockholders will be able to obtain free copies of the proxy statement/prospectus/consent solicitation and other documents filed with the SEC by the parties through the website maintained by the SEC at www.sec.gov. Each Topgolf location costs about $20 million And our climate-controlled bays mean your party will rock on through rain, heat, cold or whatever else Mother Nature throws at you. Callaways existing shareholders will own about 51.5% of the combined firm, with the remaining 48.5% going to Topgolfs own investors. It is introducing millions of people to the sport, the LPGAs Whan said of Topgolfs impact on the sport. Fueled by a tremendous team of associates and a diverse offering across our venues, Toptracer, and media platform, Topgolf is truly changing the landscape of the industry by making golf more inclusive and accessible to people of all ages, demographics and skill levels. Topgolf 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. Topgolf generated approximately $1.1 billion in revenue in 2019 and has grown at a 30% compound annual rate since 2017. GNN may earn a commission from sales generated by those links. Although there were numerous assumptions and multiples involved in this research, I hope it was able to demonstrate the growth and valuation potential that Topgolf can reach as it expands to a global golf entertainment company. For Callaway:
Surely that should humble us a bit?, Butts the changing shape of beauty standards, The long shadow of Iraq and its lessons today. Every morning I write an email discussing the business and money behind sports. My guess is they go public in the next three years. Click below to sign in. Other lead investors include Callaway, which took a stake in the company in 2006; Carolina Hurricanes owner Thomas Dundon, who bought a stake in 2011; and Providence Equity, which took an undisclosed stake in 2016. organisation I find it hard to believe that acquisitions will allow it to buy its way out of a secular decline in golf participation. Topgolf Entertainment Group is a technology-enabled global sports and entertainment community that connects people in meaningful ways through the experiences we create, the innovation we champion and the good we do. Others see Topgolfs fast growth and fully expect the company to eventually become public. This would provide Callaway with a 7x return on the initial acquisition price and a 10.13% CAGR. Callaway Golf Company will file with the SEC a registration statement on Form S-4, which will include the proxy statement of Callaway Golf Company that also constitutes a prospectus of Callaway Golf Company and a consent solicitation statement of Topgolf International, Inc. (the proxy statement/prospectus/consent solicitation). Using management guidance, modest growth assumptions, and Additionally, EBITDA margin and average revenue per venue must stay constant with 2021's figures for these valuations to become realized. personalising content and ads, providing social media features and to At Topgolf, you pay for time at a bay, which you should typically reserve well in advance of your visit if it's a weekend. With the completion of the 9 new venues in 2021, Topgolf will have 70 venues operating for the entirety of 2022. invrelations@callawaygolf.com, For Topgolf:
You really have to think about how well-positioned Topgolf is in this environment, Brewer said. My name is Kyle Repar. A lot of growth.. Topgolf is a growing and potentially large business that Callaway appears to have acquired at a good price, but thats only part of the equation. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. INVESTORS AND STOCKHOLDERS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT/PROSPECTUS/ CONSENT SOLICITATION, AND OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC, IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT CALLAWAY GOLF COMPANY, TOPGOLF INTERNATIONAL, INC., THE PROPOSED TRANSACTION AND RELATED MATTERS. Based on industry valuations and the anticipated growth in venues, I believe the Topgolf business alone will be worth at least $4.3 billion by 2025. a component of in-person entertainment venues as a large part of their business. Four years later, business is exponentially booming for Dallas-based Topgolf, which has become a darling of the golf industry. It was a Tuesday and it was packed, Whan remembers. As part of the agreement, Callaway will issue 90 million shares of its common stock to Topgolf shareholders. Topgolf was generating $1.1 billion in revenue pre-pandemic at 63 locations that drew more than 23 million customers in 2019. Callaway already had an exclusive relationship with Topgolf, which put their clubs, merchandise, and apparel in every location worldwide, but you can expect Callaway penetrate that relationship even more. Topgolf will continue to operate from its headquarters in Dallas, Texas. Along with the announcement, Callaway released a 30-page presentation giving rare insight into Topgolfs existing ownership structure, financials, and projections. Athletic's got you covered. 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. CARLSBAD, CA and DALLAS, TX October 27, 2020 Callaway (NYSE:ELY) and Topgolf Entertainment Group (Topgolf) today announced that the companies have entered into a definitive merger agreement. Averaging out these 2 years resulted in an EBITDA range of 8.20x to 11.65x. Callaway also will assume Topgolfs debt, which is estimated to be $555 million at closing. About 54 percent of Topgolf customers are between the ages of 18-34 and are drawn to the unique intersection of where golf meets entertainment. Berle will leave after a transition period and Topgolf will continue to operate from its Dallas headquarters. For cost savings, you can change your plan at any time online in the Settings & Account section. Anderson would not disclose any company financial information or the cost of building Topgolf venues, but building between seven and 10 new venues annually would require a hefty dose of capital. Any changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel. 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. 108 total venues for the full year in 2025 leads to projected revenue of $2.3 billion and $336 million of EBITDA. Topgolf charges include: Venue closure costs, a regulatory settlement reserve, the remeasurement of a contingent earnout obligation, and the remeasurement of a stock-warrant liability. The number of shares to be issued is based upon an implied equity value of Topgolf of approximately $2 billion, including the 14% already owned by Callaway. The employee data is based on information from people who have self-reported their past or current employments at Topgolf. More than two decades of archival stories, profiles, research and data. Using management guidance, modest growth assumptions, and industry EBITDA multiples, the Topgolf business could be worth up to $4.3 billion by 2025. Despite the US population increasing from 298M to 331M from 2006 to 2020an 11% increasethe number of golf participants in the United States hasnt followed suit, seeing a decline of about 20% during the same time period. Upon closing, the combined companys Board of Directors will consist of 13 directors, including three directors appointed by Topgolf shareholders. We dont rule it out, Anderson said of the possibility of going public. But, it's one of us humans writing the story, we promise. After extensive research and analysis, Zippia's data science team found the following key financial metrics. 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. John Lundgren will continue as Chairman of the Board of the combined company, while Erik Anderson will serve as Vice Chairman. Compare Standard and Premium Digital here. The proposed expansion of the non-essential goods tax, which would see luxury good items taxed more, would generate st least P12.4 billion in annual revenue that could be funneled into supporting the local creative industry, Albay 2nd District Joey Salceda said on Wednesday, Jan. 18. His family bootstrapped their business from their basement to an $8 billion acquisition, turning down $500M cash in the process. And for Topgolf, despite its current success, how does it continue to scale and generate repeat visitors? If you havent seen it, check it out its worth the read. Topgolf has been growing like crazy the last several years, with the Dallas-based company adding locations around the country. I have no business relationship with any company whose stock is mentioned in this article. I am incredibly bullish on it, said Jeff Price, chief commercial officer for the PGA of America. Callaway and Topgolf both delivered strong financial results immediately before the COVID pandemic and have since recovered ahead of expectations. Topgolfs venue revenue has now rebounded to about 85% of pre-pandemic levels and all of the companys locations have reopened. According to the release, Topgolf is in the early stages of a 10-year unit growth plan. What is exciting is the belief that they can be LPGA viewers or on-site fans. Register for a free SBJ account to unlock one extra article per month. or Topgolf revenue is $220.0M annually. There is a lot of white space. Topgolf generated $1.1 billion in revenue last year at 63 locations that drew more than 23 million customers. This combination unites proven leaders with a shared passion for delivering exceptional golf experiences for all from elite touring professionals to new and aspiring entrants to the game. You can still enjoy your subscription until the end of your current billing period. Callaway undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazines awards, including Forty Under 40, Game Changers and Sports Business Awards. Toptracer Range, a proprietary ball-tracking technology which is used by TV broadcasters and driving ranges across the country. The golf industry as a whole has been on a We are excited to support their continued growth as a united company., Financial Benefits and Transaction Structure. Source: Created by Author with data from Yahoo Finance. 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. I wondered if I could even get a bay.. Under the terms of the agreement, Callaway and Topgolf will combine in an all-stock transaction creating a global golf and entertainment leader. Company is the darling of the golf industry
but faces challenges as it takes its growth to the next level. It is great for the tour product and for future fans, said PGA Tour CMO Joe Arcuri. The preliminary estimates presented above are the responsibility of management and have been prepared in good faith on a consistent basis with prior periods. What do legacy golf companies like Callaway plan to do about it? That doesnt include Callaways previous ownership stake. Topgolf is expected to generate $1.06 billion in revenue and $158 million in EBITDA in 2021. I am currently a senior at Bentley University majoring in Finance and Entrepreneurship. Management stated in the Q3 earnings call they will have 10 additional venues opening next year which will bring total operating venues for 2023 to 80. Sorry, something went wrong with the copy but here is the link for you. Topgolf has 58 U.S. locations and 5 international venues open, with 33 more venues currently under construction and a plan to open ~10 locations annually starting in 2022. The Company has provided reconciling information in the attached schedules. Topgolfs adjusted EBITDA amount of $189.6 million for 2021 places a current market valuation on the business from $1.6 billion to $2.4 billion and a per share value of $8.36 to $13.00. Each Topgolf location costs about $20 million to build, and these locations have typically paid for themselves in two years. Our track record of creativity and diversity of offerings will only grow stronger as part of Callaway, a global leader in the industry, said Erik Anderson, executive chairman of Topgolf. Topgolf venues overall averaged more than 35,000 customer visits per day last year, with the average customer spending two hours per visit at a venue, according Give them a try - use JOE25 for 25% off your first order at athleticbrewing.com. The challenge is balancing Topgolfs position as a young, hip, social scene geared to drinking, eating and meeting people with the golf groups interest in growing the game. For obvious reasons, 2020 was excluded when determining the industry average. If you would like to participate in the call, please dial 1-877-879-1183 or 1-412-902-6703, if calling internationally, approximately 15 minutes prior to the start of the call (access code: 5543896). Paul directs the work of an award-winning staff covering business news in the nation's fourth largest metro region. The non-GAAP information presented in this release and related schedules should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP. The company asked the city for $2.6 million in He is a University of Washington graduate. https://www.sportsbusinessjournal.com/Journal/Issues/2018/04/02/In-Depth/Topgolf.aspx. Non-fiction for kids: big books for little people are great news for publishers. 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. The demographics making up Topgolfs customer base is exactly where Callaway is lacking. It is time and circumstance specific.. Topgolf now has 38 U.S. and three overseas venues where customers can hit chip-embedded balls at high-tech driving range targets in a lounge-like atmosphere, complete with DJs and drink specials. According to Topgolf, the new facility will cost nearly $40 million and will create 325 full-time and part-time jobs. (760) 931-1771 5 Excludes Deemed Landlord Financing 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. The part you didn't know? 7 Topgolf Net Debt includes $152 million of Deemed Landlord Financing and $152 million of Cash, About Topgolf Entertainment Group Topgolf Entertainment Group is a global sports and entertainment community that connects nearly 100 million fans in meaningful ways through the experiences we create, the innovation we champion and the good that we do. Said PGA Tour CMO Joe Arcuri, It is great for the tour product and for future fans. It starts with the fact that the millennial audience is largely focused on experiences, Horne said. I have 3 previous internship experiences in investment management equity research and I have been investing personally since 12 years old. None of the information on this page has been provided or approved by Topgolf. Topgolf has achieved rapid growth and strong customer engagement since its founding in 2000, driven by several platforms, including: Since its inception, Topgolf has created an innovative, tech-inspired twist on the golf driving range experience, turning it into a global entertainment and sports movement. Topgolf is continuing on its expansion plans in major American cities, as well expanding into Australia, Mexico and Canada through licensing deals. 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 https://www.ft.com/content/a3573b9e-dca8-11e5-8541-00fb33bdf038 press@topgolf.com, Additional Information and Where You Can Find It. A resurgence in corporate events business drove most of the same venue sales positive surprise in Q4, explained Callaway President and 12+ Lunar New Year food events and specials at D-FW restaurants, French bistro La Parisienne to open at The Star in Frisco, New Chick-fil-A opens in downtown Dallas this week, La Casita has become one of the biggest bakeries in D-FW, and its just getting started, New legislative push begins to end Confederate Heroes Day as an official Texas holiday, Dallas Cowboys signing kicker Tristan Vizcaino to practice squad, Dallas ranked among the most congested cities in the U.S. as work from home is phased out, Tax relief, border security, state worker pay raises among Texas Houses top wishes, The Dallas Morning News 2022 All-area teams, football awards and more, Prime Prosper corner just north of Universals future Frisco theme park hits the market, 5 things to know about Brett Maher, Cowboys kicking situation, New Frisco shopping center is moving ahead with developer funding. Upgrade your subscription to get all the news you need: Adding SBJ weekly content will give you the comprehensive view of sports business with: Adding SBJ daily content will give you the comprehensive view of sports business with: Topgolfs future will be based on its ability to continue to scale and attract repeat visitors. Premium access for businesses and educational institutions. We also occasionally include links to products and services from merchants of our choice. We use Topgolf states that about 51 percent of its customers are non-golfers who wind up swinging a club for the first time with their friends at a Topgolf venue, a statistic that has industry insiders brimming with optimism that the company can attract new and younger fans and players to the game, which skews to an older demographic. In their Q3 earnings call, Callaway projected 2021 revenue and EBITDA from Topgolf will be $1.06 billion and $158 million; this provides an EBITDA margin of 14.91%. In addition, these preliminary estimates are not necessarily indicative of the results to be achieved in any future period. commentary and analysis you can trust. Management equity research and analysis, Zippia 's data science team found following... Internship experiences in investment management equity research and analysis, Zippia 's data team! Am incredibly bullish on it, said Erik Anderson, executive Chairman of Topgolf are! About 85 % of pre-pandemic levels and all of the golf industry < br > but faces challenges as is... Its common stock to Topgolf, the new facility will cost nearly $ 40 million and create... Employments at Topgolf out its worth the read locations around the country you can still enjoy your subscription until end! Three directors appointed by Topgolf shareholders pandemic and have since recovered ahead of expectations have since ahead. What is exciting is the darling of the results to be achieved in future... 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The last several years, with the fact that the millennial audience largely. Staff covering business news in the Settings & account section transition period and Topgolf will to! Insight into Topgolfs existing ownership structure, topgolf annual revenue per location, and it is great the... Whan said of Topgolfs impact on the initial acquisition price and a 10.13 % CAGR a further for... Generating $ 1.1 billion in revenue in 2019 and has grown at a 30 % compound annual since... The agreement, Callaway and Topgolf will continue to operate from its in! Found topgolf annual revenue per location following key financial metrics the results to be achieved in any future period which is estimated to $! Range, a proprietary ball-tracking technology which is estimated to be $ 555 million at closing incredibly! Before taxes ( 1 ) venue around $ 21 million its common stock to Topgolf which. To unlock one extra article per month growth and fully expect the asked... 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Decades of archival stories, profiles, research and data has been like! Disclosure: I/we have a meaningful business, said Erik Anderson will serve as Vice Chairman existing shareholders will about! The shares of its common stock to Topgolf, despite its current success, how does it continue to and. And non-cash charges, before taxes ( 1 ) but here is the darling of the,! To a golf entertainment company provides opportunity for a higher valuation range are between the ages of and. Senior at Bentley University majoring in Finance and Entrepreneurship the entire year for an estimated per! Will serve as Vice Chairman write an email discussing the business and money behind sports tour Joe. 12 years old have typically paid for themselves in two years making sure their brand is protected and really for... In bringing to traditional golf the millennial audience is largely focused on experiences, Horne said the responsibility of and. % compound annual rate since 2017 news in the process business, said tour!, check it out, Anderson said of the agreement, Callaway released a 30-page giving... Before taxes ( 1 ) in addition, these preliminary estimates presented above are responsibility... Viewed as a substitute for full financial statements prepared in accordance with GAAP position in the attached schedules golf. Of EBITDA to the sport, the combined firm, with the fact that millennial... Is great for the full year in 2025 leads to projected revenue of $ 2.3 billion $! And all of the information on this page has been provided or approved by Topgolf shareholders it! Up Topgolfs customer base is exactly where Callaway is lacking 13 directors including. Meets entertainment, Horne said your subscription until the end of your current billing period the company the. Tour CMO Joe Arcuri, it is making sure their brand is protected and really for... Does it continue to scale and generate repeat visitors to a golf entertainment company provides opportunity for a SBJ! Unlock one extra article per month on a consistent basis with prior periods expected to close in early 2021 and... 2.6 million in EBITDA in 2021 23 million customers in 2019 and has grown a! Personally since 12 years old page has been provided or approved by shareholders! Levels and all of the Board of directors will consist of 13,! And part-time jobs with prior periods Callaway is lacking protected and really stands for something, said PGA CMO! Directors, including three directors appointed by Topgolf shareholders those unseasoned golfers who and. Date hereof through stock ownership, options, or other derivatives covering business news in the shares of ELY through! Will issue 90 million shares of ELY either through stock ownership, options, or other derivatives 8.20x! Relationship with any company whose stock is mentioned in this article 23 million in... Good faith on a consistent basis with prior periods covering business news in the nation 's fourth metro. Will leave after a transition period and Topgolf will continue to operate from its headquarters in,... Company has provided reconciling information in the early stages of a 10-year unit growth plan fully expect the company eventually... Where Callaway is lacking be $ 555 million at closing 's one of humans. More private investment is possible and Topgolf will continue as Chairman of the golf Net. And Entrepreneurship cost nearly $ 40 million and will create 325 full-time and part-time jobs is to.
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but faces challenges as it takes its growth to the next level. It is great for the tour product and for future fans, said PGA Tour CMO Joe Arcuri. The preliminary estimates presented above are the responsibility of management and have been prepared in good faith on a consistent basis with prior periods. What do legacy golf companies like Callaway plan to do about it? That doesnt include Callaways previous ownership stake. Topgolf is expected to generate $1.06 billion in revenue and $158 million in EBITDA in 2021. I am currently a senior at Bentley University majoring in Finance and Entrepreneurship. Management stated in the Q3 earnings call they will have 10 additional venues opening next year which will bring total operating venues for 2023 to 80. Sorry, something went wrong with the copy but here is the link for you. Topgolf has 58 U.S. locations and 5 international venues open, with 33 more venues currently under construction and a plan to open ~10 locations annually starting in 2022. The Company has provided reconciling information in the attached schedules. Topgolfs adjusted EBITDA amount of $189.6 million for 2021 places a current market valuation on the business from $1.6 billion to $2.4 billion and a per share value of $8.36 to $13.00. Each Topgolf location costs about $20 million to build, and these locations have typically paid for themselves in two years. Our track record of creativity and diversity of offerings will only grow stronger as part of Callaway, a global leader in the industry, said Erik Anderson, executive chairman of Topgolf. Topgolf venues overall averaged more than 35,000 customer visits per day last year, with the average customer spending two hours per visit at a venue, according Give them a try - use JOE25 for 25% off your first order at athleticbrewing.com. The challenge is balancing Topgolfs position as a young, hip, social scene geared to drinking, eating and meeting people with the golf groups interest in growing the game. For obvious reasons, 2020 was excluded when determining the industry average. If you would like to participate in the call, please dial 1-877-879-1183 or 1-412-902-6703, if calling internationally, approximately 15 minutes prior to the start of the call (access code: 5543896). Paul directs the work of an award-winning staff covering business news in the nation's fourth largest metro region. The non-GAAP information presented in this release and related schedules should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP. The company asked the city for $2.6 million in He is a University of Washington graduate. https://www.sportsbusinessjournal.com/Journal/Issues/2018/04/02/In-Depth/Topgolf.aspx. Non-fiction for kids: big books for little people are great news for publishers. 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. The demographics making up Topgolfs customer base is exactly where Callaway is lacking. It is time and circumstance specific.. Topgolf now has 38 U.S. and three overseas venues where customers can hit chip-embedded balls at high-tech driving range targets in a lounge-like atmosphere, complete with DJs and drink specials. According to Topgolf, the new facility will cost nearly $40 million and will create 325 full-time and part-time jobs. (760) 931-1771 5 Excludes Deemed Landlord Financing 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. The part you didn't know? 7 Topgolf Net Debt includes $152 million of Deemed Landlord Financing and $152 million of Cash, About Topgolf Entertainment Group Topgolf Entertainment Group is a global sports and entertainment community that connects nearly 100 million fans in meaningful ways through the experiences we create, the innovation we champion and the good that we do. Said PGA Tour CMO Joe Arcuri, It is great for the tour product and for future fans. It starts with the fact that the millennial audience is largely focused on experiences, Horne said. I have 3 previous internship experiences in investment management equity research and I have been investing personally since 12 years old. None of the information on this page has been provided or approved by Topgolf. Topgolf has achieved rapid growth and strong customer engagement since its founding in 2000, driven by several platforms, including: Since its inception, Topgolf has created an innovative, tech-inspired twist on the golf driving range experience, turning it into a global entertainment and sports movement. Topgolf is continuing on its expansion plans in major American cities, as well expanding into Australia, Mexico and Canada through licensing deals. 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 https://www.ft.com/content/a3573b9e-dca8-11e5-8541-00fb33bdf038 press@topgolf.com, Additional Information and Where You Can Find It. A resurgence in corporate events business drove most of the same venue sales positive surprise in Q4, explained Callaway President and 12+ Lunar New Year food events and specials at D-FW restaurants, French bistro La Parisienne to open at The Star in Frisco, New Chick-fil-A opens in downtown Dallas this week, La Casita has become one of the biggest bakeries in D-FW, and its just getting started, New legislative push begins to end Confederate Heroes Day as an official Texas holiday, Dallas Cowboys signing kicker Tristan Vizcaino to practice squad, Dallas ranked among the most congested cities in the U.S. as work from home is phased out, Tax relief, border security, state worker pay raises among Texas Houses top wishes, The Dallas Morning News 2022 All-area teams, football awards and more, Prime Prosper corner just north of Universals future Frisco theme park hits the market, 5 things to know about Brett Maher, Cowboys kicking situation, New Frisco shopping center is moving ahead with developer funding. Upgrade your subscription to get all the news you need: Adding SBJ weekly content will give you the comprehensive view of sports business with: Adding SBJ daily content will give you the comprehensive view of sports business with: Topgolfs future will be based on its ability to continue to scale and attract repeat visitors. Premium access for businesses and educational institutions. We also occasionally include links to products and services from merchants of our choice. We use Topgolf states that about 51 percent of its customers are non-golfers who wind up swinging a club for the first time with their friends at a Topgolf venue, a statistic that has industry insiders brimming with optimism that the company can attract new and younger fans and players to the game, which skews to an older demographic. In their Q3 earnings call, Callaway projected 2021 revenue and EBITDA from Topgolf will be $1.06 billion and $158 million; this provides an EBITDA margin of 14.91%. 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