EVANSVILLE, Ind., Oct. 28, 2021 /PRNewswire/ -- Escalade,
Incorporated (NASDAQ: ESCA) – today announced its third quarter
results for 2021, ended October 2,
2021. The Company posted quarterly revenue of $81.3 million, an increase of 4.1% over prior
year. Quarterly diluted earnings per share were $0.43, a decline of 39.5% vs. Q3 2020, and an
increase of 140% vs. Q3 2019.
Three Year Quarterly Comparison
|
Three Months
Ended
|
All Amounts in
Thousands
|
October 2,
2021
|
|
October 3,
2020
|
|
October 5,
2019
|
|
|
|
|
|
|
Net sales
|
$81,298
|
|
$78,069
|
|
$45,756
|
Cost of products
sold
|
62,992
|
|
54,548
|
|
35,717
|
Gross
Profit
|
18,306
|
|
23,521
|
|
10,039
|
|
22.5%
|
|
30.1%
|
|
21.9%
|
|
|
|
|
|
|
Operating
Income
|
7,672
|
|
12,815
|
|
2,899
|
|
|
|
|
|
|
Net Income
|
5,966
|
|
10,186
|
|
2,540
|
|
|
|
|
|
|
Diluted earnings per
share
|
$0.43
|
|
$0.71
|
|
$0.18
|
|
|
|
|
|
|
"Third quarter results reflect continued demand for our
products, offset by sharply higher transportation expenses, raw
material costs, currency exchange rates, increased wage pressure,
and inventory handling costs. Combined, these expenses negatively
impacted earnings per share by more than 20
cents in the quarter and 40
cents per share for the nine months. Global supply chain
issues have intensified and the costs to keep goods flowing to our
customers have soared. The Company is taking action on several
fronts to address the margin compression and long lead times. In
addition to raising prices where necessary, we are redesigning
products to reduce costs while maintaining quality, moving some
production from Asia to our North
American facilities, and adding warehouse capacity to store
additional buffer inventory. Despite these challenges, we are
continuing to invest in our brands to support long-term growth."
said Walter P. Glazer, Jr., Interim
President and CEO of Escalade, Inc.
"Year to date sales are up 20.8% and net income decreased 6.3%
due to the aforementioned cost pressures and to a lesser extent,
our sales mix," continued Glazer. "With the critical holiday
selling season ahead of us, our teams are well prepared to serve
our retail partners and meet consumer demand. We have invested
heavily to make sure we have ample inventory despite the supply
chain issues."
Net sales for the third quarter of 2021 were $81.3 million compared to net sales of
$78.1 million for the same quarter in
2020, an increase of $3.2 million or
4.1%.
Gross margin ratio for the third quarter of 2021 was 22.5%,
compared to 30.1% for the same period in the prior year. Gross
profit for the third quarter of 2021 was $18.3 million compared to gross profit of
$23.5 million for the same quarter in
2020.
Selling, general and administrative expenses (SG&A) were
$10.2 million for the quarter
compared to $10.4 million for the
same period in the prior year, a decrease of $0.2 million or 1.7%. SG&A, as a percent of
sales, for the third quarter of 2021 decreased to 12.6% from 13.3%
reported for the same period prior year.
Operating income for the third quarter of 2021 was $7.7 million compared to operating income of
$12.8 million for the same period in
the prior year.
Net income for the third quarter of 2021 was $6.0 million, or $0.43 diluted earnings per share compared to net
income of $10.2 million, or
$0.71 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 December 6, 2021 and
disbursed on December 13, 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
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
|
|
Nine Months
Ended
|
All Amounts in
Thousands Except Per Share Data
|
October 2,
2021
|
|
October 3,
2020
|
|
October 2,
2021
|
|
October 3,
2020
|
|
|
|
|
|
|
|
|
Net sales
|
$81,298
|
|
$78,069
|
|
$240,168
|
|
$198,882
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
62,992
|
|
54,548
|
|
179,355
|
|
141,911
|
Selling,
administrative and general expenses
|
10,202
|
|
10,374
|
|
33,888
|
|
29,752
|
Amortization
|
432
|
|
332
|
|
1,438
|
|
1,108
|
|
|
|
|
|
|
|
|
Operating
Income
|
7,672
|
|
12,815
|
|
25,487
|
|
26,111
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
Interest
expense
|
(414)
|
|
(44)
|
|
(1,035)
|
|
(148)
|
Other
income
|
68
|
|
40
|
|
124
|
|
108
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
7,326
|
|
12,811
|
|
24,576
|
|
26,071
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
1,360
|
|
2,625
|
|
5,042
|
|
5,224
|
|
|
|
|
|
|
|
|
Net Income
|
$5,966
|
|
$10,186
|
|
$19,534
|
|
$20,847
|
|
|
|
|
|
|
|
|
Earnings Per Share
Data:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.44
|
|
$
0.72
|
|
$
1.41
|
|
$
1.48
|
Diluted earnings per
share
|
$
0.43
|
|
$
0.71
|
|
$
1.40
|
|
$
1.47
|
|
|
|
|
|
|
|
|
Dividends
declared
|
$
0.14
|
|
$
0.140
|
|
$
0.42
|
|
$
0.390
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheets
(Unaudited, In
Thousands)
|
|
All Amounts in
Thousands Except Share Information
|
October 2,
2021
|
December 26,
2020
|
October 3,
2020
|
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$ 6,492
|
$ 3,505
|
$ 6,811
|
Receivables, less
allowance of $636; $896; and $798; respectively
|
68,849
|
65,280
|
63,750
|
Inventories
|
91,755
|
72,488
|
63,738
|
Prepaid
expenses
|
6,527
|
4,068
|
2,580
|
Prepaid income
tax
|
--
|
57
|
--
|
TOTAL CURRENT
ASSETS
|
173,623
|
145,398
|
136,879
|
|
|
|
|
Property, plant and
equipment, net
|
24,000
|
18,232
|
16,029
|
Operating lease
right-of-use assets
|
2,500
|
1,608
|
1,271
|
Intangible assets,
net
|
21,207
|
22,645
|
17,739
|
Goodwill
|
32,695
|
32,695
|
26,749
|
Other
assets
|
131
|
127
|
49
|
TOTAL
ASSETS
|
$254,156
|
$220,705
|
$198,716
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Current portion of
long-term debt
|
$ 7,143
|
$ --
|
$ --
|
Trade accounts
payable
|
25,071
|
20,947
|
32,102
|
Accrued
liabilities
|
18,100
|
24,271
|
18,702
|
Income tax
payable
|
124
|
--
|
1,675
|
Current operating
lease liabilities
|
990
|
854
|
693
|
TOTAL CURRENT
LIABILITIES
|
51,428
|
46,072
|
53,172
|
|
|
|
|
Other
Liabilities:
|
|
|
|
Long–term
debt
|
51,874
|
30,073
|
--
|
Deferred income tax
liability
|
4,193
|
4,193
|
3,537
|
Operating lease
liabilities
|
1,493
|
763
|
591
|
Other
liabilities
|
448
|
448
|
387
|
TOTAL LIABILITIES
|
109,436
|
81,549
|
57,687
|
|
|
|
|
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 – 13,557,879;
13,919,380; and 14,169,404; shares respectively
|
13,558
|
13,919
|
14,169
|
Retained
earnings
|
131,162
|
125,237
|
126,860
|
TOTAL STOCKHOLDERS'
EQUITY
|
144,720
|
139,156
|
141,029
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$254,156
|
$220,705
|
$198,716
|
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SOURCE Escalade, Incorporated