EVANSVILLE, Ind., April 20, 2017 /PRNewswire/ -- Escalade,
Incorporated (NASDAQ: ESCA) - "With the first quarter of 2017
completed, the retail atmosphere continues to evolve," stated
Dave Fetherman, President and Chief
Executive Officer of Escalade, Inc. "Consumer buying preferences
continue to shift to on-line purchasing. Our focus on this consumer
shift over the last few years puts us in great position to support
our e-commerce and brick-and-mortar retail partners. Revenue was
down in the first quarter, compared to prior year, due to retail
bankruptcy liquidations, as well as going up against portable
basketball pipeline fills from a year ago. Gross margins were
impacted as material prices rose as well as a shift within our
product mix. We will continue to invest in internally developed
product and strategic acquisitions for growth, while remaining
focused on controlling operating expenses to maximize shareholder
value."
Net sales for the first quarter of 2017 were $30.8 million compared to net sales of
$34.6 million for the same quarter in
2016.
Gross margin ratio decreased to 27% for the first three months
of 2017, compared to 32% for the same period in the prior year.
Selling, general and administrative expenses (SG&A) were
$5.9 million for the first three
months in 2017 compared to $7.8
million for the same period in the prior year, a decrease of
$1.8 million or 24%. SG&A
as a percent of sales is 19% for the first three months in 2017
compared with 23% for the same period in the prior year. The
decrease in SG&A is primarily due to one-time costs associated
with bad debt expenses incurred related to The Sports Authority's
bankruptcy filing in 2016 and increased marketing and selling
expenses related to new products introduced in 2016.
Other income for the first quarter of 2017 increased due to the
recognition of a gain on bargain purchase from an acquisition
completed during the quarter. This increase was partially offset
due to an adverse impact from the operating results of the
Company's 50% ownership in STIGA, a Swedish entity.
Net income for the first quarter of 2017 was $1.4 million, or $0.10 diluted earnings per share compared to net
income of $1.7 million or
$0.12 diluted earnings per share for
the same quarter in 2016.
The Company announced a quarterly dividend of $0.115 per share would be paid to all
shareholders of record on June 8,
2017 and disbursed on June 15,
2017.
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
812/467-4449.
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, the ability to successfully
negotiate the shifting retail environment and changes in consumer
buying habits, 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
|
All Amounts in
Thousands Except Per Share Data
|
|
|
|
|
March 25,
2017
|
|
March 19,
2016
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$30,812
|
|
$34,568
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
|
|
|
|
22,528
|
|
23,539
|
Selling,
administrative and general expenses
|
|
|
|
|
5,930
|
|
7,763
|
Amortization
|
|
|
|
|
358
|
|
788
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
1,996
|
|
2,478
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
(167)
|
|
(164)
|
Equity in earnings
(loss) of affiliates
|
|
|
|
|
(52)
|
|
49
|
Gain on bargain
purchase
|
|
|
|
|
256
|
|
--
|
Other
income
|
|
|
|
|
4
|
|
59
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
|
|
|
|
2,037
|
|
2,422
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
|
|
|
|
649
|
|
725
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
|
|
$1,388
|
|
$ 1,697
|
|
|
|
|
|
|
|
|
Earnings Per Share
Data:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
|
|
$
0.10
|
|
$
0.12
|
Diluted earnings per
share
|
|
|
|
|
$
0.10
|
|
$
0.12
|
|
|
|
|
|
|
|
|
Dividends
declared
|
|
|
|
|
$
0.115
|
|
$
0.110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Condensed Balance Sheets
|
(Unaudited, In
Thousands)
|
|
All Amounts in
Thousands Except Share Information
|
March 25,
2017
|
December31,
2016
|
March 19,
2016
|
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
2,536
|
$
1,013
|
$
3,260
|
Receivables, less
allowance of $1,154; $910; and $1,888; respectively
|
29,265
|
35,894
|
32,469
|
Inventories
|
37,194
|
33,802
|
37,377
|
Prepaid
expenses
|
2,885
|
2,798
|
1,969
|
Deferred income tax
benefit
|
--
|
1,283
|
1,598
|
Prepaid income
tax
|
--
|
833
|
1,238
|
TOTAL CURRENT
ASSETS
|
71,880
|
75,623
|
77,911
|
|
|
|
|
Property, plant and
equipment, net
|
13,527
|
13,714
|
14,073
|
Intangible assets,
net
|
20,912
|
20,857
|
22,396
|
Goodwill
|
21,548
|
21,456
|
21,456
|
Investments
|
17,358
|
19,030
|
19,315
|
Other
assets
|
72
|
81
|
113
|
TOTAL
ASSETS
|
$145,297
|
$150,761
|
$155,264
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
1,300
|
$
1,250
|
$
1,910
|
Trade accounts
payable
|
6,562
|
4,376
|
6,470
|
Accrued
liabilities
|
7,103
|
12,792
|
9,796
|
Income tax
payable
|
105
|
--
|
--
|
TOTAL CURRENT
LIABILITIES
|
15,070
|
18,418
|
18,176
|
|
|
|
|
Other
Liabilities:
|
|
|
|
Long‑term
debt
|
23,000
|
24,189
|
32,138
|
Deferred income tax
liability
|
5,026
|
6,441
|
7,200
|
TOTAL LIABILITIES
|
43,096
|
49,048
|
57,514
|
|
|
|
|
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 –
14,345,528; 14,304,959; and 14,254,972; shares
respectively
|
14,346
|
14,305
|
14,255
|
Retained
earnings
|
91,586
|
91,688
|
85,992
|
Accumulated other
comprehensive loss
|
(3,731)
|
(4,280)
|
(2,497)
|
TOTAL STOCKHOLDERS'
EQUITY
|
102,201
|
101,713
|
97,750
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$145,297
|
$150,761
|
$155,264
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/escalade-reports-first-quarter-2017-results-300442329.html
SOURCE Escalade, Inc.