EVANSVILLE, Ind., April 15, 2021 /PRNewswire/ -- Escalade,
Incorporated (NASDAQ: ESCA) – today announced its first quarter for
2021, ended March 20, 2021. The
Company posted quarterly revenue of $59.2
million, an increase of 58.7% over prior year, and a record
for its first fiscal quarter. This represents the fifth consecutive
quarter of record sales. Quarterly diluted earnings per share were
$0.39, an increase of 178.6% from
prior year.
"First quarter results were quite good, reflecting continued
strong demand for our categories, market share gains, margin
improvement due to increased factory utilization, and SG&A
leverage. Through extraordinary efforts by our teams, we were able
to mitigate some of the negative impact from supply chain and
logistics issues, sharply higher raw material costs, and negative
currency exchange rates. While these cost headwinds are continuing,
they are not unique to Escalade and we are taking every measure to
protect the profit margins which allow us to reinvest in the
business, to support our retail partners, and serve our consumers
with innovative products that bring families and friends together,"
said Walter P. Glazer, Jr., Interim
President and CEO of Escalade, Inc.
"Late last year, we made a significant inventory commitment to
ensure supply for our retail partners," continued Glazer. "While we
are carrying much higher than normal inventory, current supply
chain issues and delays may work in our favor over the coming
months."
Net sales for the first quarter of 2021 were $59.2 million compared to net sales of
$37.3 million for the same quarter in
2020, an increase of $21.9 million or
58.7%. The increase in sales was driven by growth in nearly all our
product lines, led by our archery and outdoor categories.
Gross margin ratio for the first quarter of 2021 was 29.5%,
compared to 27.4% for the same period in the prior year. The
improvement in gross margin was primarily due to product mix and
operating efficiencies. Gross profit for the first quarter of 2021
was $17.4 million compared to gross
profit of $10.2 million for the same
quarter in 2020.
Selling, general and administrative expenses (SG&A) were
$9.9 million for the quarter compared
to $7.5 million for the same period
in the prior year, an increase of $2.4
million or 32.4%. SG&A, as a percent of sales, for the
first quarter of 2021 decreased to 16.7% from 20.0% reported for
the same period prior year.
Operating income for the first quarter of 2021 was $7.1 million compared to operating income of
$2.4 million for the same period in
the prior year.
Net income for the first quarter of 2021 was $5.4 million, or $0.39 diluted earnings per share compared to net
income of $2.0 million, or
$0.14 diluted earnings per share for
the same quarter in 2020.
The Company announced a quarterly dividend of $0.14 per share to be paid to all shareholders of
record on June 1, 2021 and disbursed
on June 8, 2021.
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.
ABOUT ESCALADE SPORTS
Headquartered in Evansville,
IN, Escalade Sports is a global manufacturer and distributor
of sports and outdoor recreational equipment. Leaders in
their respective categories, Escalade Sports' brands include Bear®
Archery, Bear X™, Trophy Ridge®, Rocket®, SIK® and Cajun
Bowfishing™ archery equipment; STIGA® and Ping-Pong® table
tennis; Accudart® and Unicorn® darting; RAVE Sports® water
recreation products; Atomic®, Victory
Tailgate®, Triumph™ Sports, Viva Sol®, Zume Games®
recreational games; DURA® and Onix® pickleball equipment;
Goalrilla™, Goalsetter® residential in-ground basketball systems,
Goaliath® and Silverback® residential in-ground and portable
basketball goals; Lifeline® and the STEP® fitness products;
Woodplay® premium playsets; American Heritage Billiards® - premium
billiards and game room assortment; and Cue&Case® - a
leader in specialty billiard accessories. Escalade Sports' products
are available at sporting goods dealers and independent retailers
nationwide. For more information on Escalade Sports, its
brands, instruction manuals, retailers, warranty, replacement parts
or customer service, please call 1-888-784-4288 or visit
www.escaladesports.com
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:
specific and overall impacts of the COVID-19 global pandemic on
Escalade's financial condition and results of operations;
Escalade's plans and expectations surrounding the transition to its
new Interim Chief Executive Officer and all potential related
effects and consequences; 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 or discontinuances of certain operations, assets,
brands, and products; the continuation and development of key
customer, supplier, licensing and other business relationships;
Escalade's ability to develop and implement our own direct to
consumer e-commerce distribution channel; Escalade's ability to
successfully negotiate the shifting retail environment and changes
in consumer buying habits; the financial health of our customers;
disruptions or delays in our business operations, including without
limitation disruptions or delays in our supply chain, arising from
political unrest, war, labor strikes, natural disasters, public
health crises such as the coronavirus pandemic, and other events
and circumstances beyond our control; Escalade's ability to control
costs; Escalade's ability to successfully implement actions to
lessen the potential impacts of tariffs and other trade
restrictions applicable to our products and raw materials,
including impacts on the costs of producing our goods, importing
products and materials into our markets for sale, and on the
pricing of our products; general economic conditions; fluctuation
in operating results; changes in foreign currency exchange rates;
changes in the securities markets; Escalade's ability to obtain
financing and to maintain compliance with the terms of such
financing; the availability, integration and effective operation of
information systems and other technology, and the potential
interruption of such systems or technology; risks related to data
security of privacy breaches; 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
Statements of Operations
|
(Unaudited, In
Thousands Except Per Share Data)
|
|
|
|
Three Months
Ended
|
All Amounts in
Thousands Except Per Share Data
|
|
March 20,
2021
|
|
March 21,
2020
|
|
|
|
|
|
Net sales
|
|
$59,191
|
|
$37,289
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
Cost of products
sold
|
|
41,757
|
|
27,074
|
Selling,
administrative and general expenses
|
|
9,876
|
|
7,457
|
Amortization
|
|
429
|
|
334
|
|
|
|
|
|
Operating
Income
|
|
7,129
|
|
2,424
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
Interest
expense
|
|
(234)
|
|
(44)
|
Other
income
|
|
35
|
|
46
|
|
|
|
|
|
Income Before Income
Taxes
|
|
6,930
|
|
2,426
|
|
|
|
|
|
Provision for Income
Taxes
|
|
1,488
|
|
475
|
|
|
|
|
|
Net Income
|
|
$5,442
|
|
$ 1,951
|
|
|
|
|
|
Earnings Per Share
Data:
|
|
|
|
|
Basic earnings per
share
|
|
$
0.39
|
|
$
0.14
|
Diluted earnings per
share
|
|
$
0.39
|
|
$
0.14
|
|
|
|
|
|
Dividends
declared
|
|
$
0.14
|
|
$
0.125
|
Consolidated
Balance Sheets
|
(Unaudited, In
Thousands)
|
|
All Amounts in
Thousands Except Share Information
|
March 20,
2021
|
December 26,
2020
|
March 21,
2020
|
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$ 5,879
|
$
3,505
|
$ 6,167
|
Receivables, less
allowance of $954; $896; and $565; respectively
|
54,475
|
65,280
|
32,594
|
Inventories
|
91,425
|
72,488
|
42,235
|
Prepaid
expenses
|
4,044
|
4,068
|
2,646
|
Prepaid income
tax
|
--
|
57
|
--
|
TOTAL CURRENT
ASSETS
|
155,823
|
145,398
|
83,642
|
|
|
|
|
Property, plant and
equipment, net
|
18,962
|
18,232
|
14,867
|
Operating lease
right-of-use assets
|
2,147
|
1,608
|
1,581
|
Intangible assets,
net
|
22,216
|
22,645
|
18,513
|
Goodwill
|
32,695
|
32,695
|
26,749
|
Other
assets
|
117
|
127
|
69
|
TOTAL
ASSETS
|
$231,960
|
$220,705
|
$145,421
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade accounts
payable
|
$ 22,708
|
$ 20,947
|
$
6,387
|
Accrued
liabilities
|
12,194
|
24,271
|
8,029
|
Income tax
payable
|
1,456
|
--
|
315
|
Current operating
lease liabilities
|
1,310
|
854
|
730
|
TOTAL CURRENT
LIABILITIES
|
37,668
|
46,072
|
15,461
|
|
|
|
|
Other
Liabilities:
|
|
|
|
Long–term
debt
|
46,907
|
30,073
|
--
|
Deferred income tax
liability
|
4,193
|
4,193
|
3,537
|
Operating lease
liabilities
|
844
|
763
|
867
|
Other
liabilities
|
448
|
448
|
387
|
TOTAL LIABILITIES
|
90,060
|
81,549
|
20,252
|
|
|
|
|
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 – 13,924,754;
13,919,380; and 14,096,874; shares respectively
|
13,925
|
13,919
|
14,097
|
Retained
earnings
|
127,975
|
125,237
|
111,072
|
TOTAL STOCKHOLDERS'
EQUITY
|
141,900
|
139,156
|
125,169
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$231,960
|
$220,705
|
$145,421
|
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SOURCE Escalade, Incorporated