EVANSVILLE, Ind., Oct. 27, 2016 /PRNewswire/ -- Escalade,
Incorporated (NASDAQ: ESCA) announced that net sales for the third
quarter of 2016 were $38.8 million,
or 12% higher compared to net sales of $34.6
million for the same quarter in 2015. Acquisitions completed
in 2015 and 2016 as well as new product offerings introduced into
the market during 2016 are the primary drivers for the increase in
sales. Continued softness within the archery category partially
offset these increases.
Gross margin ratio for the third quarter of 2016 remained
relatively flat at 27% compared to the same period in
2015.
Selling, general and administrative expenses (SG&A) were
$4.6 million for the quarter compared
to $6.9 million for the same period
in 2015, a decrease of $2.3 million.
As a percentage of sales, SG&A for the third quarter of 2016
decreased to 12% from 20% reported for the same period in 2015.
SG&A was favorably impacted by the recognition of a gain of
approximately $1.9 million on the
sale of our Wabash, IN land and
building. One-time expenses of $0.4
million unfavorably impacted SG&A during the third
quarter of 2016. SG&A, excluding the gain recognized on the
Wabash, IN sale and one-time
expenses incurred during the quarter, decreased $0.8 million during the third quarter of 2016
compared to the same period in 2015.
Other income for the third quarter of 2016 decreased due to
operating results of the Company's 50% ownership in STIGA, a
Swedish entity.
Net income for the third quarter of 2016 was $4.2 million, or $0.30 diluted earnings per share compared to net
income of $2.0 million or
$0.14 diluted earnings per share for
the same quarter in 2015.
The Company announced a quarterly dividend of $0.11 per share would be paid to all shareholders
of record on December 12, 2016 and
disbursed on December 19, 2016.
"Our growth strategy through acquisitions and internally
developed product continues to work, as we showed revenue growth of
over 12% in the quarter," stated Dave
Fetherman, President and Chief Operating Officer of
Escalade, Inc. "We also did a great job of managing expenses,
resulting in a reduction of over $0.8
million of SG&A within the quarter. Excluding the gain
recognized on the Wabash, IN sale
and one-time expenses incurred during the quarter, income before
taxes would have been $4.2 million
for the quarter, an increase of $1.3
million, or 45% compared to prior year. We are committed to
growing our operating income, despite challenging market
conditions."
Escalade is a leading manufacturer and marketer of sporting
goods products sold worldwide. To obtain more information on the
Company and its products, visit our website at: www.EscaladeInc.com
or contact Patrick Griffin, Vice
President of Corporate Development & Investor Relations at
812/467-1358.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements relating to
present or future trends or factors that are subject to risks and
uncertainties. These risks include, but are not limited to,
the impact of competitive products and pricing, product demand and
market acceptance, new product development, Escalade's ability to
achieve its business objectives, especially with respect to its
Sporting Goods business on which it has chosen to focus, Escalade's
ability to successfully achieve the anticipated results of
strategic transactions, including the integration of the operations
of acquired assets and businesses and of divestitures of non-core
assets and businesses, the continuation and development of key
customer and supplier relationships, disruptions or delays in our
supply chain, Escalade's ability to control costs, general economic
conditions, fluctuation in operating results, changes in foreign
currency exchange rates, changes in the securities market,
Escalade's ability to obtain financing and to maintain compliance
with the terms of such financing and other risks detailed from time
to time in Escalade's filings with the Securities and Exchange
Commission. Escalade's future financial performance could
differ materially from the expectations of management contained
herein. Escalade undertakes no obligation to release
revisions to these forward-looking statements after the date of
this report.
Escalade,
Incorporated and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited, In Thousands Except Per Share Data)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
All Amounts in
Thousands Except Per Share Data
|
October 1,
2016
|
|
October 3,
2015
|
|
October 1,
2016
|
|
October 3,
2015
|
|
|
|
|
|
|
|
|
Net sales
|
$38,793
|
|
$34,584
|
|
$121,824
|
|
$111,798
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
28,505
|
|
25,156
|
|
87,793
|
|
78,336
|
Selling,
administrative and general expenses
|
4,583
|
|
6,905
|
|
21,256
|
|
21,018
|
Amortization
|
376
|
|
650
|
|
1,963
|
|
2,127
|
|
|
|
|
|
|
|
|
Operating
Income
|
5,329
|
|
1,873
|
|
10,812
|
|
10,317
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
Interest
expense
|
(211)
|
|
(108)
|
|
(631)
|
|
(340)
|
Equity in earnings of
affiliates
|
573
|
|
1,069
|
|
749
|
|
2,080
|
Other
income
|
35
|
|
39
|
|
168
|
|
276
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
5,726
|
|
2,873
|
|
11,098
|
|
12,333
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
1,483
|
|
845
|
|
3,068
|
|
3,586
|
|
|
|
|
|
|
|
|
Net Income
|
$ 4,243
|
|
$ 2,028
|
|
$ 8,030
|
|
$ 8,747
|
|
|
|
|
|
|
|
|
Earnings Per Share
Data:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.30
|
|
$
0.14
|
|
$
0.56
|
|
$
0.62
|
Diluted earnings per
share
|
$
0.30
|
|
$
0.14
|
|
$
0.56
|
|
$
0.61
|
|
|
|
|
|
|
|
|
Dividends
declared
|
$
0.11
|
|
$
0.11
|
|
$
0.33
|
|
$
0.32
|
|
|
|
|
|
|
|
|
Consolidated
Condensed Balance Sheets
|
|
All Amounts in
Thousands Except Share Information
|
October 1,
2016
|
December
26,
2015
|
October 3,
2015
|
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
4,306
|
$
1,982
|
$
2,701
|
Receivables, less
allowance of $554; $1,086; and $885; respectively
|
37,034
|
38,984
|
31,407
|
Inventories
|
42,936
|
25,862
|
40,337
|
Prepaid
expenses
|
2,492
|
2,534
|
2,134
|
Deferred income tax
benefit
|
1,553
|
1,543
|
949
|
Prepaid income
tax
|
952
|
1,910
|
1,699
|
Other current
assets
|
395
|
--
|
--
|
TOTAL CURRENT
ASSETS
|
89,668
|
72,815
|
79,227
|
|
|
|
|
Property, plant and
equipment, net
|
13,665
|
14,363
|
13,848
|
Intangible assets,
net
|
21,221
|
16,868
|
17,517
|
Goodwill
|
21,456
|
20,047
|
20,142
|
Investments
|
19,268
|
19,644
|
18,799
|
Other
assets
|
--
|
--
|
5
|
TOTAL
ASSETS
|
$165,278
|
$143,737
|
$149,538
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Notes
payable
|
$ 30,686
|
$ 19,776
|
$ 27,963
|
Current portion of
long-term debt
|
1,405
|
1,810
|
1,810
|
Trade accounts
payable
|
9,726
|
2,547
|
6,630
|
Accrued
liabilities
|
10,342
|
14,174
|
12,430
|
TOTAL CURRENT
LIABILITIES
|
52,159
|
38,307
|
48,833
|
|
|
|
|
Other
Liabilities:
|
|
|
|
Long‑term
debt
|
5,313
|
1,750
|
1,750
|
Deferred income tax
liability
|
7,166
|
7,200
|
5,031
|
TOTAL LIABILITIES
|
64,638
|
47,257
|
55,614
|
Stockholders'
Equity:
|
|
|
|
Preferred
stock:
|
|
|
|
Authorized 1,000,000
shares; no par value, none issued
|
|
|
|
Common
stock:
|
|
|
|
Authorized 30,000,000
shares; no par value, issued and outstanding – 14,301,959;
14,179,844; and 14,125,935; shares respectively
|
14,302
|
14,180
|
14,126
|
Retained
earnings
|
89,582
|
85,478
|
83,064
|
Accumulated other
comprehensive loss
|
(3,244)
|
(3,178)
|
(3,266)
|
TOTAL STOCKHOLDERS'
EQUITY
|
100,640
|
96,480
|
93,924
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$165,278
|
$143,737
|
$149,538
|
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SOURCE Escalade, Incorporated