EVANSVILLE, Ind., July 31, 2017 /PRNewswire/ -- Escalade,
Incorporated (NASDAQ: ESCA) - "Our second quarter overcame new
product pipeline fills from prior year and saw growth in our
fitness and basketball product categories, resulting in revenue
growth of 8%" stated Dave Fetherman,
President and Chief Executive Officer of Escalade. Inc. "Gross
margin for the quarter was negatively impacted by our archery
category, as we transition our crossbow product line to remain
focused on providing a compelling product to the consumer. We are
optimistic about the second half of the year. As retailers continue
to focus on supplier consolidation within the categories in which
we compete, we should be given more opportunities to increase our
business during the remainder of this year and into 2018. We are
well positioned with our e-commerce partners to meet the shift in
consumer buying habits to purchase online."
Net sales for the second quarter of 2017 were $52.4 million compared to net sales of
$48.5 million for the same quarter in
2016, an increase of $3.9 million or
8%.
Gross margin ratio for the second quarter of 2017 decreased to
25%, compared to 26% for the same period in the prior year.
Selling, general and administrative expenses (SG&A) were
$9.3 million for the quarter compared
to $8.9 million for the same period
in the prior year, an increase of $0.4
million or 4%. SG&A, as a percent of sales,
remained flat in the current year compared to the same period prior
year.
Other income for the second quarter of 2017 was adversely
impacted from the operating results of the Company's 50% ownership
in STIGA, a Swedish entity.
Net income for the second quarter of 2017 was flat compared to
the same period in 2016 at $2.1
million, or $0.15 diluted
earnings per share.
The Company announced a quarterly dividend of $0.115 per share would be paid to all
shareholders of record on September 11,
2017 and disbursed on September 18,
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, supplier, licensing and other business 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
|
|
Six Months
Ended
|
All Amounts in
Thousands Except Per Share Data
|
July 15,
2017
|
|
July 9,
2016
|
|
July 15,
2017
|
|
July 9,
2016
|
|
|
|
|
|
|
|
|
Net sales
|
$52,393
|
|
$48,463
|
|
$83,205
|
|
$83,031
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
39,315
|
|
35,749
|
|
61,843
|
|
59,288
|
Selling,
administrative and general expenses
|
9,257
|
|
8,910
|
|
15,187
|
|
16,673
|
Amortization
|
489
|
|
799
|
|
847
|
|
1,587
|
|
|
|
|
|
|
|
|
Operating
Income
|
3,332
|
|
3,005
|
|
5,328
|
|
5,483
|
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
|
Interest
expense
|
(234)
|
|
(256)
|
|
(401)
|
|
(420)
|
Equity in earnings of
affiliates
|
76
|
|
127
|
|
24
|
|
176
|
Gain on bargain
purchase
|
--
|
|
--
|
|
256
|
|
--
|
Other income
(expense)
|
(47)
|
|
74
|
|
(43)
|
|
133
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
3,127
|
|
2,950
|
|
5,164
|
|
5,372
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
1,031
|
|
860
|
|
1,680
|
|
1,585
|
|
|
|
|
|
|
|
|
Net Income
|
$ 2,096
|
|
$ 2,090
|
|
$ 3,484
|
|
$ 3,787
|
|
|
|
|
|
|
|
|
Earnings Per Share
Data:
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
0.15
|
|
$
0.15
|
|
$
0.24
|
|
$
0.27
|
Diluted earnings per
share
|
$
0.15
|
|
$
0.15
|
|
$
0.24
|
|
$
0.26
|
|
|
|
|
|
|
|
|
Dividends
declared
|
$
0.115
|
|
$
0.11
|
|
$
0.23
|
|
$
0.22
|
|
|
|
|
|
|
|
|
Consolidated
Condensed Balance Sheets
(Unaudited, In
Thousands)
|
|
|
All Amounts in
Thousands Except Share Information
|
July 15,
2017
|
December
31,
2016
|
July 9,
2016
|
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
ASSETS
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
2,280
|
$
1,013
|
$
3,263
|
Receivables, less
allowance of $532; $910; and $453; respectively
|
32,236
|
35,894
|
33,385
|
Inventories
|
37,470
|
33,802
|
37,520
|
Prepaid
expenses
|
3,043
|
2,798
|
2,094
|
Deferred income tax
benefit
|
--
|
1,283
|
1,700
|
Prepaid income
tax
|
773
|
833
|
1,139
|
TOTAL CURRENT
ASSETS
|
75,802
|
75,623
|
79,101
|
|
|
|
|
Property, plant and
equipment, net
|
13,910
|
13,714
|
14,256
|
Intangible assets,
net
|
20,423
|
20,857
|
21,597
|
Goodwill
|
21,548
|
21,456
|
21,456
|
Investments
|
18,506
|
19,030
|
18,691
|
Other
assets
|
60
|
81
|
100
|
TOTAL
ASSETS
|
$150,249
|
$150,761
|
$155,201
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Current portion of
long-term debt
|
$
1,300
|
$
1,250
|
$
1,605
|
Trade accounts
payable
|
8,047
|
4,376
|
5,846
|
Accrued
liabilities
|
9,227
|
12,792
|
10,312
|
TOTAL CURRENT
LIABILITIES
|
18,574
|
18,418
|
17,763
|
|
|
|
|
Other
Liabilities:
|
|
|
|
Long‑term
debt
|
22,386
|
24,189
|
32,431
|
Deferred income tax
liability
|
5,216
|
6,441
|
7,200
|
TOTAL LIABILITIES
|
46,176
|
49,048
|
57,394
|
|
|
|
|
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 –
14,364,586; 14,304,959; and
14,271,209; shares respectively
|
14,365
|
14,305
|
14,271
|
Retained
earnings
|
92,368
|
91,688
|
86,783
|
Accumulated other
comprehensive loss
|
(2,660)
|
(4,280)
|
(3,247)
|
TOTAL STOCKHOLDERS'
EQUITY
|
104,073
|
101,713
|
97,807
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$150,249
|
$150,761
|
$155,201
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/escalade-reports-second-quarter-2017-results-300496144.html
SOURCE Escalade, Inc.