ESCA Escalade Inc

PART I - FINANCIAL INFORMATION

 

Item 1. FINANCIAL STATEMENTS

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

 

See notes to Consolidated Condensed Financial Statements.

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

 

 

See notes to Consolidated Condensed Financial Statements.

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)

 

 

 

 

 

 

See notes to Consolidated Condensed Financial Statements.

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

See notes to Consolidated Condensed Financial Statements.

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

Note A – Summary of Significant Accounting Policies

 

Presentation of Consolidated Condensed Financial Statements – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 31, 2022 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2022 filed with the Securities and Exchange Commission.

 

On August 10, 2022, Escalade’s Board of Directors approved a change in its fiscal year end from the last Saturday in December of each year to December 31 of each year. Escalade’s fiscal quarters will end on March 31, June 30, and September 30. The second quarter of 2023 is a traditional calendar quarter with 91 days, whereas the 2022 quarter was four four-week periods constituting a total of 112 days. The fiscal year change is effective beginning with Escalade’s 2023 fiscal calendar, which began on January 1, 2023. Consistent with SEC guidance, no transition report is required in connection with the change in Escalade’s fiscal year end.

 

Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings.

 

 

Note B ‑ Seasonal Aspects

 

The results of operations for the second quarter and two quarter periods ended June 30, 2023 and July 9, 2022 are not necessarily indicative of the results to be expected for the full year.

 

 

Note C ‑ Inventories

 

In thousands		June 30, 2023				December 31, 2022				July 9, 2022
Raw materials		$	6,537			$	7,789			$	9,821
Work in progress			2,910				3,478				4,653
Finished goods			102,229				110,603				115,772
		$	111,676			$	121,870			$	130,246

 

 

Note D – Fair Values of Financial Instruments

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The following methods were used to estimate the fair value of all financial instruments recognized in the accompanying balance sheets at amounts other than fair values.

 

Cash and Cash Equivalents

 

Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity.

 

Long-term Debt

 

Fair values of long-term debt is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model.

 

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The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at June 30, 2023, December 31, 2022 and July 9, 2022.

 

						Fair Value Measurements Using
June 30, 2023 In thousands		Carrying Amount				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents		$	577			$	577			$	--			$	--
Financial liabilities
Current portion of long-term debt		$	7,143			$	--			$	7,143			$	--
Long-term debt		$	76,809			$	--			$	76,809			$	--

 

						Fair Value Measurements Using
December 31, 2022 In thousands		Carrying Amount				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents		$	3,967			$	3,967			$	--			$	--
Financial liabilities
Current portion of long-term debt		$	7,143			$	--			$	7,143			$	--
Long-term debt		$	87,738			$	--			$	87,738			$	--

 

						Fair Value Measurements Using
July 9, 2022 In thousands		Carrying Amount				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents		$	6,195			$	6,195			$	--			$	--
Financial liabilities
Current portion of long-term debt		$	7,143			$	--			$	7,143			$	--
Long-term debt		$	94,040			$	--			$	94,040			$	--

 

 

Note E – Stock Compensation

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The fair value of stock-based compensation is recognized in accordance with the provisions of FASB ASC 718, Stock Compensation.

 

During the two quarters ended June 30, 2023, and pursuant to the 2017 Incentive Plan, the Company issued 30,921 shares of common stock with a fair market value of $395 thousand in lieu of accrued and unpaid annual cash incentives for fiscal year 2022 to certain officers. During the two quarters ended June 30, 2023 and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 4,441 shares of common stock.

 

During the two quarters ended June 30, 2023, the Company awarded 21,200 restricted stock units to directors and 145,563 restricted stock units to employees. The restricted stock units awarded to directors time vest over two years (one-half one year from grant date and one-half two years from grant date) provided that the director is still a director of the Company at the vest date. Director restricted stock units are subject to forfeiture, except for termination of services as a result of retirement, death or disability, if on the vesting date the director no longer holds a position with the Company. The 2023 restricted stock units awarded to employees time vest over three years (one-third one year from grant, one-third two years from grant and one-third three years from grant) provided that the employee is still employed by the Company on the vesting date.

 

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For the second quarter and two quarters ended June 30, 2022, the Company recognized stock based compensation expense of $458 thousand and $917 thousand, respectively compared to stock based compensation expense of $688 thousand and $1,076 thousand for the same periods in the prior year. At June 30, 2023 and July 9, 2022, respectively, there was $2.5 million and $2.6 million in unrecognized stock-based compensation expense related to non-vested stock awards.

 

 

Note F ‑ Segment Information

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		For the Second Quarter Ended June 30, 2023
In thousands		Sporting Goods				Corp.				Total
Revenues from external customers		$	67,771			$	--			$	67,771
Operating income (loss)			6,837				(579	)			6,258
Net income (loss)			3,817				(175	)			3,642

 

		As of and for the Two Quarters Ended June 30, 2023
In thousands		Sporting Goods				Corp.				Total
Revenues from external customers		$	124,702			$	--			$	124,702
Operating income (loss)			7,527				(1,120	)			6,407
Net income (loss)			3,333				(643	)			2,690
Total assets		$	278,734			$	2,351			$	281,085

 

 

		For the Second Quarter Ended July 9, 2022
In thousands		Sporting Goods				Corp.				Total
Revenues from external customers		$	94,337			$	--			$	94,337
Operating income (loss)			8,830				(641	)			8,189
Net income (loss)			5,737				(64	)			5,673

 

		As of and for the Two Quarters Ended July 9, 2022
In thousands		Sporting Goods				Corp.				Total
Revenues from external customers		$	166,717			$	--			$	166,717
Operating income (loss)			18,365				(1,153	)			17,212
Net income			12,278				49				12,327
Total assets		$	307,941			$	8,911			$	316,852

 

 

Note G – Dividend Payment

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On June 19, 2023, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on June 12, 2023. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

 

On March 20, 2023, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on March 13, 2023. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

 

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Note H ‑ Earnings Per Share

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The shares used in computation of the Company’s basic and diluted earnings per common share are as follows:

 

		Second Quarter Ended								Two Quarters Ended
In thousands		June 30, 2023				July 9, 2022				June 30, 2023				July 9, 2022
Weighted average common shares outstanding			13,733				13,588				13,691				13,554
Dilutive effect of stock options and restricted stock units			109				55				102				62
Weighted average common shares outstanding, assuming dilution			13,842				13,643				13,793				13,616

 

 

Note I – New Accounting Standards and Changes in Accounting Principles

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With the exception of that discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the second quarter and two quarters ended June 30, 2023, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, that are of significance, or potential significance to the Company.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This amendment requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses.

 

The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a material impact on the financial statements of the Company.

 

 

Note J – Revenue from Contracts with Customers

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Revenue Recognition – Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue.

 

Gross-to-net sales adjustments – We recognize revenue net of various sales adjustments to arrive at net sales as reported on the statement of operations. These adjustments are referred to as gross-to-net sales adjustments and primarily fall into one of three categories: returns, warranties and customer allowances.

 

Returns – The Company records an accrued liability and reduction in sales for estimated product returns based upon historical experience. An accrued liability and reduction in sales is also recorded for approved return authorizations that have been communicated by the customer.

 

Warranties – Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year.

 

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Customer Allowances – Customer allowances are common practice in the industries in which the Company operates. These agreements are typically in the form of advertising subsidies, volume rebates and catalog allowances and are accounted for as a reduction to gross sales. The Company reviews such allowances on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available.

 

Disaggregation of Revenue – We generate revenue from the sale of widely recognized sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products. These products are sold through multiple sales channels that include: mass merchants, specialty dealers, key on-line retailers (“E-commerce”) and international. The following table depicts the disaggregation of revenue according to sales channel:

 

		Second Quarter Ended								Two Quarters Ended
All Amounts in Thousands		June 30, 2023				July 9, 2022				June 30, 2023				July 9, 2022
Gross Sales by Channel:
Mass Merchants		$	19,480			$	28,925			$	36,170			$	55,955
Specialty Dealers			23,850				28,990				45,465				54,333
E-commerce			27,135				38,495				47,727				61,351
International			3,187				4,531				6,228				8,611
Other			1,279				1,492				2,314				2,266
Total Gross Sales			74,931				102,433				137,904				182,516
Less: Gross-to-Net Sales Adjustments
Returns			2,034				678				3,546				2,848
Warranties			190				697				630				1,322
Customer Allowances			4,936				6,721				9,026				11,629
Total Gross-to-Net Sales Adjustments			7,160				8,096				13,202				15,799
Total Net Sales		$	67,771			$	94,337			$	124,702			$	166,717

 

 

Note K – Leases

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We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our leases have remaining lease terms of 1 year to 9 years. As of June 30, 2023, the Company has not entered into any lease arrangements classified as a finance lease.

 

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and operating lease liabilities on our consolidated balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. The Company also elected the package of practical expedients which applies to leases that commenced before the adoption date.

 

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ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information is as follows:

 

		Second Quarter Ended								Two Quarters Ended
All Amounts in Thousands		June 30, 2023				July 9, 2022				June 30, 2023				July 9, 2022
Lease Expense
Operating Lease Cost		$	375			$	342			$	749			$	680
Short-term Lease Cost			611				723				1,223				1,224
Variable Lease Cost			169				130				298				312
Total Operating Lease Cost		$	1,155			$	1,195			$	2,270			$	2,216
Operating Lease – Operating Cash Flows		$	248			$	309			$	493			$	612
New ROU Assets – Operating Leases		$	83			$	7,743			$	83			$	7,743

 

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:

 

		Two Quarters Ended
All Amounts in Thousands		June 30, 2023				July 9, 2022
Weighted Average Remaining Lease Term – Operating Leases (in years)		8.57				9.47
Weighted Average Discount Rate – Operating Leases			5.09	%			5.00	%

 

Future minimum lease payments under non-cancellable leases as of June 30, 2023 were as follows:

 

All Amounts in Thousands
Year 1		$	738
Year 2			1,422
Year 3			1,387
Year 4			1,343
Year 5			1,257
Thereafter			5,283
Total future minimum lease payments			11,430
Less imputed interest			(2,206	)
Total		$	9,224
Reported as of June 30, 2023
Current operating lease liabilities			1,002
Long-term operating lease liabilities			8,222
Total		$	9,224

 

 

Note L – Commitments and Contingencies

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The Company is involved in litigation arising in the normal course of business. The Company does not believe that the disposition or ultimate resolution of existing claims or lawsuits will have a material adverse effect on the business or financial condition of the Company.

 

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Note M – Debt

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On January 21, 2022, the Company entered into an Amended and Restated Credit Agreement (“Restated Credit Agreement”) with its issuing bank, JP Morgan Chase Bank, N.A. (“Chase”), and the other lenders identified in the Restated Credit Agreement (collectively, the “Lender”). Under the terms of the Restated Credit Agreement, Old National Bank has been added as a Lender. The Lenders made available to the Company a senior revolving credit facility with increased maximum availability of $65.0 million (the “Revolving Facility”), up from $50.0 million, plus an accordion feature that would allow borrowings up to $90.0 million under the Revolving Facility subject to certain terms and conditions. The maturity date of the revolving credit facility was extended to January 21, 2027. The Company may prepay the Revolving Facility, in whole or in part, and reborrow prior to the revolving loan maturity date. The Restated Credit Agreement further extended the maturity date for the term loan facility to January 21, 2027.

 

On July 18, 2022, the Company entered into the First Amendment to the Restated Credit Agreement. Under the terms of the First Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $65.0 million to $75.0 million pursuant to the accordion feature in the Restated Credit Agreement. The First Amendment also adjusted the funded debt to EBITDA ratio financial covenant to 3:00 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022.

 

On October 26, 2022, the Company entered into the Second Amendment ("Second Amendment”) to the Restated Credit Agreement. Under the terms of the Second Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $75.0 million to $90.0 million pursuant to the accordion feature in the Restated Credit Agreement. The Second Amendment adjusted the funded debt to EBITDA ratio financial covenant to 3:25 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022 and 3:00 to 1:00 as of the end of the Company’s first fiscal quarter of 2023. The Second Amendment also modified the EBITDA definition to permit add-backs of a) up to $2.0 million for disposition related expenses; and b) up to $2.0 million for unusual or non-recurring expenses which are incurred prior to the end of fiscal year 2023 and which are subject to the approval of the Administrative Agent.

 

On May 8, 2023, the Company entered into the Third Amendment (the “Third Amendment”) to the Restated Credit Agreement. The Third Amendment adjusted the funded debt to EBITDA ratio financial covenant to 4:25 to 1:00 as of the end of the Company’s second fiscal quarter of 2023, 3:00 to 1:00 as of the end of the Company’s third fiscal quarter of 2023, and 2:75 to 1:00 as of the end of the Company’s fourth fiscal quarter of 2023 and thereafter. The Third Amendment adjusted the fixed charge coverage ratio covenant to 1:10 to 1:00 commencing as of the Company’s fourth fiscal quarter of 2023 and 1:25 to 1:00 as of the end of the Company’s first fiscal quarter of 2024 and thereafter. For the Company’s second and third fiscal quarters in 2023, the Third Amendment suspended the fixed charge coverage ratio covenant and added a minimum EBITDA covenant of $22.5 million as of the end of each such fiscal quarter. Under the terms of the Third Amendment, the Company and the Lender also agreed to decrease the maximum availability under the senior revolving credit facility from $90.0 million to $75.0 million, upon the consummation of the sale of the Company’s Mexican subsidiary and the dissolution of Escalade Insurance, Inc. The proceeds from such sale and dissolution, respectively, will be used to partially prepay the amounts outstanding under the revolving credit facility.

 

As of June 30, 2023, the outstanding principal amount of the term loan was $36.3 million and total amount drawn under the Revolving Facility was $47.7 million.

 

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Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

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 and residual effects of the COVID-19 global pandemic on Escalade’s financial condition and results of operations; the impact of competitive products and pricing; product demand and market acceptance; new product development; Escalade’s ability to achieve its business objectives; 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, including inflationary pressures; fluctuation in operating results; changes in foreign currency exchange rates; changes in the securities markets; continued listing of the Company’s common stock on the NASDAQ Global Market; the Company’s inclusion or exclusion from certain market indices; 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; the potential impact of actual or perceived defects in, or safety of, our products, including any impact of product recalls or legal or regulatory claims, proceedings or investigations involving our products; risks related to data security of privacy breaches; the potential impact of regulatory claims, proceedings or investigations involving our products; 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.

 

Overview

 

Escalade, Incorporated (Escalade, the Company, we, us or our) is focused on growing its Sporting Goods business through organic growth of existing categories, strategic acquisitions, and new product development. The Sporting Goods business competes in a variety of categories including basketball goals, archery, billiards, indoor and outdoor game recreation and fitness products. Strong brands and on-going investment in product development provide a solid foundation for building customer loyalty and continued growth.

 

Within the sporting goods industry, the Company has successfully built a robust market presence in several niche markets. This strategy is heavily dependent on expanding our customer base, barriers to entry, strong brands, excellent customer service and a commitment to innovation. A key strategic advantage is the Company’s established relationships with major customers that allow the Company to bring new products to market in a cost effective manner while maintaining a diversified portfolio of products to meet the demands of consumers. In addition to strategic customer relations, the Company has substantial manufacturing and import experience that enable it to be a low cost supplier.

 

To enhance growth opportunities, the Company has focused on promoting new product innovation and development and brand marketing. In addition, the Company has embarked on a strategy of acquiring companies or product lines that complement or expand the Company's existing product lines or provide expansion into new or emerging categories in sporting goods. A key objective is the acquisition of product lines with barriers to entry that the Company can take to market through its established distribution channels or through new market channels. Significant synergies are achieved through assimilation of acquired product lines into the existing Company structure.

 

 

In October 2020, the Company acquired the assets of the billiard table, game room, and recreational product lines of American Heritage Billiards, including the related intellectual property. In December 2020, the Company acquired substantially all of the business and assets of Revel Match LLC, dba RAVE Sports, a brand known for its innovative and high-quality water recreation products. In January 2022, the Company acquired the assets of the Brunswick Billiards® business, complementing its existing portfolio of billiards brands and other offerings in the Company’s indoor recreation market. These and other acquisitions strengthen the Company’s leadership in various product categories, while providing exciting new opportunities within the growing water sports market. The Company also sometimes divests or discontinues certain operations, assets, and products that do not perform to the Company's expectations or no longer fit with the Company's strategic objectives.

 

Management believes that key indicators in measuring the success of these strategies are revenue growth, earnings growth, new product introductions, and the expansion of channels of distribution.

 

Notwithstanding that the World Health Organization has declared that COVID-19 no longer constitutes a public health emergency, the impact of the COVID-19 pandemic continues to evolve and the Company continues to respond to the challenges and opportunities arising from the residual effects of the pandemic. Even though the pandemic may not have had a material adverse direct effect on the Company, the pandemic’s effects on the global supply chain, higher freight and materials costs, supplier product delays, workforce availability and labor costs have caused operational challenges for the Company. The ultimate extent of the effects of the COVID-19 pandemic on the Company is highly uncertain and will depend on future developments, and such effects could exist for an extended period of time. Consumer demand for the Company’s products may be slowing due to additional factors such as general economic conditions, inflation, recessionary fears, rising interest rates, changes in the housing market and declining consumer confidence. Management cannot predict the full impact of these factors on the Company. Due to the above circumstances and as described generally in this Form 10-Q, the Company’s results of operations for the period ended June 30, 2023 are not necessarily indicative of the results to be expected for fiscal year 2023.

 

Results of Operations

 

The following schedule sets forth certain consolidated statement of operations data as a percentage of net revenue:

 

		Second Quarter Ended								Two Quarters Ended
		June 30, 2023				July 9, 2022				June 30, 2023				July 9, 2022
Net revenue			100.0	%			100.0	%			100.0	%			100.0	%
Cost of products sold			75.4	%			74.8	%			77.8	%			73.7	%
Gross margin			24.6	%			25.2	%			22.2	%			26.3	%
Selling, administrative and general expenses			14.5	%			15.6	%			16.1	%			15.1	%
Amortization			0.9	%			0.9	%			1.0	%			0.9	%
Operating income			9.2	%			8.7	%			5.1	%			10.3	%

 

Revenue and Gross Margin

 

Sales decreased by 28.2% for the second quarter of 2023, compared with the same period in the prior year. The decrease in sales was due to a combination of reduced post-pandemic consumer demand across most product categories, together with 21 fewer days in the Company’s new reporting calendar, when compared to the year-ago period. Excluding the impact of the change in the Company’s reporting calendar, sales declined 9.5% on a year-over-year basis. For the two quarters ended June 30, 2023, sales were down 25.2% on a year-over-year basis in the first half of 2023 due mainly to reduced post-pandemic demand, particularly in archery, basketball, and indoor/outdoor games categories as well as excess inventory levels in the retail channel.

 

The overall gross margin percentage decreased to 24.6% for the second quarter of 2023 compared to 2022, primarily driven by higher-cost inventory, elevated inventory storage and handling costs, and lower operating leverage on a comparably lower revenue base partially offset by improved margins in several categories and expense reductions implemented through the second quarter.

 

Gross margin percentage decreased to 22.2% for the first two quarters ended June 30, 2023, compared to 26.3% for the same period in the prior year. The decline was primarily due to less favorable product mix, ongoing inventory storage and handling costs, and lower operating leverage with the lower sales level.

 

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses (SG&A) were $9.8 million for the second quarter of 2023 compared to $14.7 million for the same period in the prior year, a decrease of $4.9 million or 33.5%. SG&A as a percent of sales is 14.5% for the second quarter of 2023 compared with 15.6% for the same period in the prior year. For the first half of 2023, SG&A were $20.1 million compared to $25.2 million for the same period in 2022, a decrease of $5.1 million or 20.4%. As a percent of sales, SG&A is 16.1% for the first half of 2023 compared with 15.1% for the same period in the prior year.

 

Provision (Benefit) for Income Taxes

 

The effective tax rate for the first half of 2023 was 22.6% compared to 21.9% for the same period last year.

 

Financial Condition and Liquidity

 

Total debt as of June 30, 2023 was $84.0 million, a decrease of $10.9 million from December 31, 2022. The following schedule summarizes the Company’s total debt:

 

In thousands		June 30, 2023				December 31, 2022				July 9, 2022
Current portion of long-term debt		$	7,143			$	7,143			$	7,143
Long term debt			76,809				87,738				94,040
Total Debt		$	83,952			$	94,881			$	101,183

 

As a percentage of stockholders’ equity, total debt was 53.0%, 59.9% and 64.9% at June 30, 2023, December 31, 2022, and July 9, 2022 respectively.

 

On January 21, 2022, the Company and its wholly owned subsidiary, Indian Industries, Inc. (“Indian”), entered into an Amended and Restated Credit Agreement (the “2022 Restated Credit Agreement”) with its issuing bank, JPMorgan Chase Bank, N.A. (“Chase”), and the other lenders identified in the Restated Credit Agreement (collectively, the “Lenders”). The 2022 Restated Credit Agreement amended and restated the Amended and Restated Credit Agreement dated as of January 21, 2019, as amended, in its entirety, and continues the existing Company’s credit facilities which have been in place since April 30, 2009. The Company’s indebtedness under the 2022 Restated Credit Agreement continues to be collateralized by liens on all of the present and future equity of each of the Company’s domestic subsidiaries and substantially all of the assets of the Company (excluding real estate). Under the terms of the 2022 Restated Credit Agreement, Old National Bank was added as a Lender. The Lenders made available to Escalade and Indian a senior revolving credit facility with increased maximum availability of $65.0 million (the “Revolving Facility”), up from $50.0 million, plus an accordion feature that would allow borrowings up to $90.0 million under the Revolving Facility subject to certain terms and conditions. The maturity date of the revolving credit facility was extended to January 21, 2027. The Company may prepay the Revolving Facility, in whole or in part, and reborrow prior to the revolving loan maturity date. The 2022 Restated Credit Agreement further extended the maturity date for the existing $50.0 million term loan facility to January 21, 2027.

 

In addition to the increased borrowing amount and extended maturity date, the 2022 Restated Credit Agreement provided a $7.5 million swingline commitment by Chase, replaced LIBOR with the replacement benchmark secured overnight financing rate, and adjusted certain financial covenants relating to the fixed charge coverage ratio.

 

On July 18, 2022, the Company entered into the First Amendment to the 2022 Restated Credit Agreement. Under the terms of the First Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $65.0 million to $75.0 million pursuant to the accordion feature in the 2022 Restated Credit Agreement. The First Amendment also adjusted the funded debt to EBITDA ratio financial covenant to 3:00 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022.

 

On October 26, 2022, the Company entered into the Second Amendment ("Second Amendment”) to the 2022 Restated Credit Agreement. Under the terms of the Second Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $75.0 million to $90.0 million pursuant to the accordion feature in the 2022 Restated Credit Agreement. The Second Amendment adjusted the funded debt to EBITDA ratio financial covenant to 3:25 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022 and 3:00 to 1:00 as of the end of the Company’s first fiscal quarter of 2023. The Second Amendment also modified the EBITDA definition to permit add-backs of a) up to $2.0 million for disposition related expenses; and b) up to $2.0 million for unusual or non-recurring expenses which are incurred prior to the end of fiscal year 2023 and which are subject to the approval of the Administrative Agent.

 

 

On May 8, 2023, the Company entered into the Third Amendment (the “Third Amendment”) to the Restated Credit Agreement. The Third Amendment adjusted the funded debt to EBITDA ratio financial covenant to 4:25 to 1:00 as of the end of the Company’s second fiscal quarter of 2023, 3:00 to 1:00 as of the end of the Company’s third fiscal quarter of 2023, and 2:75 to 1:00 as of the end of the Company’s fourth fiscal quarter of 2023 and thereafter. The Third Amendment adjusted the fixed charge coverage ratio covenant to 1:10 to 1:00 commencing as of the Company’s fourth fiscal quarter of 2023 and 1:25 to 1:00 as of the end of the Company’s first fiscal quarter of 2024 and thereafter. For the Company’s second and third fiscal quarters in 2023, the Third Amendment suspended the fixed charge coverage ratio covenant and added a minimum EBITDA covenant of $22.5 million as of the end of each such fiscal quarter. Under the terms of the Third Amendment, the Company and the Lender also agreed to decrease the maximum availability under the senior revolving credit facility from $90.0 million to $75.0 million, upon the consummation of the sale of the Company’s Mexican subsidiary and the dissolution of Escalade Insurance, Inc. The proceeds from such sale and dissolution, respectively, will be used to partially prepay the amounts outstanding under the revolving credit facility.

 

As of June 30, 2023, the outstanding principal amount of the term loan was $36.3 million and total amount drawn under the Revolving Facility was $47.7 million.

 

The Company funds working capital requirements, shareholder dividends, and stock repurchases through operating cash flows and revolving credit agreements with its Lenders. The Company expects that cash generated from its 2023 operations and its access to adequate levels of revolving credit will provide it with sufficient cash flows for its operations and to meet growth needs.

 

Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not Required.

 

Item 4.

CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Escalade maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of “disclosure controls and procedures” in Rules 13a-15(e) and 15d-15(e). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, could provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 

The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

 

Changes in Internal Control over Financial Reporting

 

Management of the Company has evaluated, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, changes in the Company’s internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the second quarter of 2023.

 

There have been no changes to the Company’s internal control over financial reporting that occurred since the beginning of the Company’s first quarter of 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 

PART II. OTHER INFORMATION

 

Item 1. LEGAL PROCEEDINGS.

 

None.

 

Item 1A. RISK FACTORS.

 

In addition to the other information set forth in this report, you should carefully consider the risks and uncertainties disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. These risks and uncertainties could materially and adversely affect our business, consolidated financial condition, results of operations, or cash flows. Our operations could also be affected by additional risks or uncertainties that are not presently known to us or that we currently do not consider material to our business. As of the date of this filing, there have been no material changes in our risk factors from those disclosed in the above-referenced Form 10-K, which risk factors are incorporated herein by reference.

 

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

c) Issuer Purchases of Equity Securities

 

Period

(a) Total Number of Shares (or Units) Purchased

(b) Average Price Paid per Share (or Unit)

(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs

(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs

Share purchases prior to 3/31/2023 under the current repurchase program.

2,153,132

$

13.38

2,153,132

$

4,153,252

Second quarter purchases:

4/1/2023-4/30/2023

None

None

No Change

No Change

5/1/2023-5/31/2023

None

None

No Change

No Change

6/1/2023-6/30/2023

None

None

No Change

No Change

Total share purchases under the current program

2,153,132

$

13.38

2,153,132

$

4,153,252

 

The Company has one stock repurchase program which was established in February 2003 by the Board of Directors and which initially authorized management to expend up to $3,000,000 to repurchase shares on the open market as well as in private negotiated transactions. In February 2005, February 2006, August 2007 and February 2008 the Board of Directors increased the remaining balance on this plan to its original level of $3,000,000. In September 2019, the Board of Directors increased the stock repurchase program from $3,000,000 to $5,000,000. In December 2020, the Board of Directors increased the stock repurchase program to $15,000,000. From its inception date through June 30, 2023, the Company has repurchased 2,153,132 shares of its common stock under this repurchase program for an aggregate price of $28,812,686. The repurchase program has no termination date and there have been no share repurchases that were not part of a publicly announced program.

 

Item 3. DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

Item 4. MINE SAFETY DISCLOSURES.

 

Not applicable.

 

Item 5. OTHER INFORMATION.

 

None.

 

 

Item 6. EXHIBITS

 

Number	Description
3.1	Articles of Incorporation of Escalade, Incorporated. Incorporated by reference from the Company’s 2007 First Quarter Report on Form 10-Q.
3.2	Amended By-laws of Escalade, Incorporated, as amended August 10, 2022. Incorporated by reference from the Company’s 2022 Third Quarter Report on Form 10-Q.
31.1	Chief Executive Officer Rule 13a-14(a)/15d-14(a) Certification.
31.2	Chief Financial Officer Rule 13a-14(a)/15d-14(a) Certification.
32.1	Chief Executive Officer Section 1350 Certification.
32.2	Chief Financial Officer Section 1350 Certification.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

ESCALADE, INCORPORATED

 

 

Date:         July 27, 2023	/s/ Stephen R. Wawrin
	Vice President and Chief Financial Officer
	(On behalf of the registrant and in his
	capacities as Principal Financial Officer
	and Principal Accounting Officer)

 

 

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

 

I, Walter P. Glazer, Jr., certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of Escalade, Incorporated;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-15(f)) for the registrant and we have:

 

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

 

Date: July 27, 2023

/s/ Walter P. Glazer, Jr. Chief Executive Officer

 

 

Exhibit 31.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

 

I, Stephen R. Wawrin, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of Escalade, Incorporated;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-15(f)) for the registrant and we have:

 

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.

The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

 

Date: July 27, 2023

/s/ Stephen R. Wawrin Vice President and Chief Financial Officer (On behalf of the registrant and in his capacities as Principal Financial Officer and Principal Accounting Officer)

 

 

Exhibit 32.1

 

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly Report of Escalade, Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Walter P. Glazer, Jr., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

/s/ Walter P. Glazer, Jr.

Chief Executive Officer

July 27, 2023

 

Exhibit 32.2

 

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly Report of Escalade, Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen R. Wawrin, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

/s/ Stephen R. Wawrin

Vice President and Chief Financial Officer

(On behalf of the registrant and in his

capacities as Principal Financial Officer

and Principal Accounting Officer)

July 27, 2023

 

 

v3.23.2

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2023	Jul. 26, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	0-6966
Entity Registrant Name	ESCALADE, INCORPORATED
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	13-2739290
Entity Address, Address Line One	817 Maxwell Ave
Entity Address, City or Town	Evansville
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47711
City Area Code	812
Local Phone Number	467-1358
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	ESCA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		13,736,800
Entity Central Index Key	0000033488
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

v3.23.2

Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jul. 09, 2022
Current Assets:
Cash and cash equivalents	$ 577	$ 3,967	$ 6,195
Receivables, less allowance of $355; $492; and $726; respectively	54,975	57,419	60,011
Inventories	111,676	121,870	130,246
Prepaid expenses	3,925	4,942	7,263
Prepaid income tax	1,518	0	621
TOTAL CURRENT ASSETS	172,671	188,198	204,336
Property, plant and equipment, net	24,261	24,751	28,344
Assets held for sale	2,823	2,823	0
Operating lease right-of-use assets	8,669	9,100	9,318
Intangible assets, net	29,880	31,120	35,353
Goodwill	42,326	42,326	39,226
Other assets	455	400	275
TOTAL ASSETS	281,085	298,718	316,852
Current Liabilities:
Current portion of long-term debt	7,143	7,143	7,143
Trade accounts payable	14,680	9,414	24,650
Accrued liabilities	9,897	21,320	20,483
Income tax payable	0	71	0
Current operating lease liabilities	1,002	993	676
TOTAL CURRENT LIABILITIES	32,722	38,941	52,952
Other Liabilities:
Long‑term debt	76,809	87,738	94,040
Deferred income tax liability	4,516	4,516	4,759
Operating lease liabilities	8,222	8,641	8,660
Other liabilities	407	407	448
TOTAL LIABILITIES	122,676	140,243	160,859
Stockholders' Equity:
Authorized 30,000,000 shares; no par value, issued and outstanding – 13,736,800; 13,594,407; and 13,590,407; shares respectively	13,737	13,594	13,590
Retained earnings	144,672	144,881	142,403
TOTAL STOCKHOLDERS' EQUITY	158,409	158,475	155,993
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 281,085	$ 298,718	$ 316,852

v3.23.2

Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jul. 09, 2022
Receivables, allowance	$ 355	$ 492	$ 726
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000	1,000,000
Preferred Stock, No Par Value (in dollars per share)	$ 0	$ 0	$ 0
Preferred Stock, Shares Issued (in shares)	0	0	0
Common stock, shares authorized (in shares)	30,000,000	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0	$ 0	$ 0
Common Stock, Shares, Issued (in shares)	13,736,800	13,594,407	13,590,407
Common stock, shares outstanding (in shares)	13,736,800	13,594,407	13,590,407

v3.23.2

Consolidated Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2023	Jul. 09, 2022	Jun. 30, 2023	Jul. 09, 2022
Net sales	$ 67,771	$ 94,337	$ 124,702	$ 166,717
Costs and Expenses
Cost of products sold	51,124	70,613	97,003	122,874
Selling, administrative and general expenses	9,769	14,680	20,052	25,206
Amortization	620	855	1,240	1,425
Operating Income	6,258	8,189	6,407	17,212
Other Income (Expense)
Interest expense	(1,580)	(948)	(2,955)	(1,508)
Other income	7	29	25	72
Income Before Income Taxes	4,685	7,270	3,477	15,776
Provision for Income Taxes	1,043	1,597	787	3,449
Net Income	$ 3,642	$ 5,673	$ 2,690	$ 12,327
Earnings (Loss) Per Share Data:
Basic earnings per share (in dollars per share)	$ 0.27	$ 0.42	$ 0.20	$ 0.91
Diluted earnings per share (in dollars per share)	0.26	0.42	0.20	0.91
Dividends declared (in dollars per share)	$ 0.15	$ 0.15	$ 0.30	$ 0.30

v3.23.2

Consolidated Condensed Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Dec. 25, 2021	13,493
Balances at Dec. 25, 2021	$ 13,493	$ 133,122	$ 146,615
Net income		12,327	12,327
Expense of restricted stock units		1,076	1,076
Settlement of restricted stock units (in shares)	93
Settlement of restricted stock units	$ 93	(93)	0
Dividends declared		(4,076)	(4,076)
Stock issued to directors as compensation (in shares)	4
Stock issued to directors as compensation	$ 4	47	51
Balances (in shares) at Mar. 19, 2022	13,585
Balances at Mar. 19, 2022	$ 13,585	138,034	151,619
Net income		5,673	5,673
Expense of restricted stock units		688	688
Settlement of restricted stock units (in shares)	1
Settlement of restricted stock units	$ 1	(1)	0
Dividends declared		(2,038)	(2,038)
Stock issued to directors as compensation (in shares)	4
Stock issued to directors as compensation	$ 4	47	51
Balances (in shares) at Dec. 31, 2022	13,594
Balances at Dec. 31, 2022	$ 13,594	144,881	158,475
Net income		2,690	2,690
Expense of restricted stock units		917	917
Settlement of restricted stock units (in shares)	108
Settlement of restricted stock units	$ 108	(108)	0
Dividends declared		(4,120)	(4,120)
Stock issued to directors as compensation (in shares)	4
Stock issued to directors as compensation	$ 4	48	52
Balances (in shares) at Mar. 31, 2023	13,730
Balances at Mar. 31, 2023	$ 13,730	142,588	156,318
Net income		3,642	3,642
Expense of restricted stock units		458	458
Settlement of restricted stock units (in shares)	3
Settlement of restricted stock units	$ 3	(3)	0
Dividends declared		(2,061)	(2,061)
Stock issued to directors as compensation (in shares)	4
Stock issued to directors as compensation	$ 4	$ 48	$ 52

v3.23.2

Consolidated Condensed Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Dec. 25, 2021	13,493
Balances at Dec. 25, 2021	$ 13,493	$ 133,122	$ 146,615
Net income		12,327	12,327
Expense of restricted stock units		1,076	1,076
Settlement of restricted stock units (in shares)	93
Settlement of restricted stock units	$ 93	(93)	0
Dividends declared		(4,076)	(4,076)
Stock issued to directors as compensation (in shares)	4
Stock issued to directors as compensation	$ 4	47	51
Balances (in shares) at Jul. 09, 2022	13,590
Balances at Jul. 09, 2022	$ 13,590	142,403	155,993
Balances (in shares) at Mar. 19, 2022	13,585
Balances at Mar. 19, 2022	$ 13,585	138,034	151,619
Net income		5,673	5,673
Expense of restricted stock units		688	688
Settlement of restricted stock units (in shares)	1
Settlement of restricted stock units	$ 1	(1)	0
Dividends declared		(2,038)	(2,038)
Stock issued to directors as compensation (in shares)	4
Stock issued to directors as compensation	$ 4	47	51
Balances (in shares) at Jul. 09, 2022	13,590
Balances at Jul. 09, 2022	$ 13,590	142,403	155,993
Balances (in shares) at Dec. 31, 2022	13,594
Balances at Dec. 31, 2022	$ 13,594	144,881	158,475
Net income		2,690	2,690
Expense of restricted stock units		917	917
Settlement of restricted stock units (in shares)	108
Settlement of restricted stock units	$ 108	(108)	0
Dividends declared		(4,120)	(4,120)
Stock issued to directors as compensation (in shares)	4
Stock issued to directors as compensation	$ 4	48	52
Issuance of common stock for service (in shares)	31
Issuance of common stock for service	$ 31	364	395
Balances (in shares) at Jun. 30, 2023	13,737
Balances at Jun. 30, 2023	$ 13,737	144,672	158,409
Balances (in shares) at Mar. 31, 2023	13,730
Balances at Mar. 31, 2023	$ 13,730	142,588	156,318
Net income		3,642	3,642
Expense of restricted stock units		458	458
Settlement of restricted stock units (in shares)	3
Settlement of restricted stock units	$ 3	(3)	0
Dividends declared		(2,061)	(2,061)
Stock issued to directors as compensation (in shares)	4
Stock issued to directors as compensation	$ 4	48	52
Balances (in shares) at Jun. 30, 2023	13,737
Balances at Jun. 30, 2023	$ 13,737	$ 144,672	$ 158,409

v3.23.2

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jul. 09, 2022
Operating Activities:
Net income	$ 2,690	$ 12,327
Depreciation and amortization	2,798	3,603
Provision for doubtful accounts	35	258
Stock-based compensation	917	1,076
Adjustments necessary to reconcile net income to net cash provided by operating activities	6,009	(17,589)
Net cash provided (used) by operating activities	12,896	(274)
Investing Activities:
Purchase of property and equipment	(1,068)	(1,536)
Acquisitions	0	(35,757)
Net cash used by investing activities	(1,068)	(37,293)
Financing Activities:
Proceeds from issuance of long-term debt	62,196	124,571
Payments on long-term debt	(73,125)	(80,927)
Deferred financing fees	(169)	(180)
Cash dividends paid	(4,120)	(4,076)
Net cash provided (used) by financing activities	(15,218)	39,388
Net increase in cash and cash equivalents	(3,390)	1,821
Cash and cash equivalents, beginning of period	3,967	4,374
Cash and cash equivalents, end of period	577	6,195
Officer [Member]
Operating Activities:
Stock compensation	395	0
Director [Member]
Operating Activities:
Stock compensation	$ 52	$ 51

v3.23.2

Note A - Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	Note A – Summary of Significant Accounting Policies   Presentation of Consolidated Condensed Financial Statements – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 31, 2022 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2022 filed with the Securities and Exchange Commission.   On August 10, 2022, Escalade’s Board of Directors approved a change in its fiscal year end from the last Saturday in December of each year to December 31 of each year. Escalade’s fiscal quarters will end on March 31, June 30, and September 30. The second quarter of 2023 is a traditional calendar quarter with 91 days, whereas the 2022 quarter was four four-week periods constituting a total of 112 days. The fiscal year change is effective beginning with Escalade’s 2023 fiscal calendar, which began on January 1, 2023. Consistent with SEC guidance, no transition report is required in connection with the change in Escalade’s fiscal year end.   Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings.

v3.23.2

Note B - Seasonal Aspects	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Seasonal Aspects [Text Block]	Note B ‑ Seasonal Aspects   The results of operations for the second quarter and two quarter periods ended June 30, 2023 and July 9, 2022 are not necessarily indicative of the results to be expected for the full year.

v3.23.2

Note C - Inventories	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note C ‑ Inventories   In thousands   June 30, 2023     December 31, 2022     July 9, 2022                             Raw materials   $ 6,537     $ 7,789     $ 9,821   Work in progress     2,910       3,478       4,653   Finished goods     102,229       110,603       115,772       $ 111,676     $ 121,870     $ 130,246

v3.23.2

Note D - Fair Values of Financial Instruments	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note D – Fair Values of Financial Instruments   The following methods were used to estimate the fair value of all financial instruments recognized in the accompanying balance sheets at amounts other than fair values.   Cash and Cash Equivalents   Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity.   Long-term Debt   Fair values of long-term debt is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model.     The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at June 30, 2023, December 31, 2022 and July 9, 2022.               Fair Value Measurements Using   June 30, 2023 In thousands   Carrying Amount     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Financial assets                                 Cash and cash equivalents   $ 577     $ 577     $ --     $ --                                     Financial liabilities                                 Current portion of long-term debt   $ 7,143     $ --     $ 7,143     $ --   Long-term debt   $ 76,809     $ --     $ 76,809     $ --                 Fair Value Measurements Using   December 31, 2022 In thousands   Carrying Amount     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Financial assets                                 Cash and cash equivalents   $ 3,967     $ 3,967     $ --     $ --                                     Financial liabilities                                 Current portion of long-term debt   $ 7,143     $ --     $ 7,143     $ --   Long-term debt   $ 87,738     $ --     $ 87,738     $ --                 Fair Value Measurements Using   July 9, 2022 In thousands   Carrying Amount     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Financial assets                                 Cash and cash equivalents   $ 6,195     $ 6,195     $ --     $ --                                     Financial liabilities                                 Current portion of long-term debt   $ 7,143     $ --     $ 7,143     $ --   Long-term debt   $ 94,040     $ --     $ 94,040     $ --

v3.23.2

Note E - Stock Compensation	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	Note E – Stock Compensation   The fair value of stock-based compensation is recognized in accordance with the provisions of FASB ASC 718, Stock Compensation.   During the two quarters ended June 30, 2023, and pursuant to the 2017 Incentive Plan, the Company issued 30,921 shares of common stock with a fair market value of $395 thousand in lieu of accrued and unpaid annual cash incentives for fiscal year 2022 to certain officers. During the two quarters ended June 30, 2023 and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 4,441 shares of common stock.   During the two quarters ended June 30, 2023, the Company awarded 21,200 restricted stock units to directors and 145,563 restricted stock units to employees. The restricted stock units awarded to directors time vest over two years (one-half one year from grant date and one-half two years from grant date) provided that the director is still a director of the Company at the vest date. Director restricted stock units are subject to forfeiture, except for termination of services as a result of retirement, death or disability, if on the vesting date the director no longer holds a position with the Company. The 2023 restricted stock units awarded to employees time vest over three years (one-third one year from grant, one-third two years from grant and one-third three years from grant) provided that the employee is still employed by the Company on the vesting date.     For the second quarter and two quarters ended June 30, 2022, the Company recognized stock based compensation expense of $458 thousand and $917 thousand, respectively compared to stock based compensation expense of $688 thousand and $1,076 thousand for the same periods in the prior year. At June 30, 2023 and July 9, 2022, respectively, there was $2.5 million and $2.6 million in unrecognized stock-based compensation expense related to non-vested stock awards.

v3.23.2

Note F - Segment Information	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note F ‑ Segment Information       For the Second Quarter Ended June 30, 2023   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 67,771     $ --     $ 67,771   Operating income (loss)     6,837       (579 )     6,258   Net income (loss)     3,817       (175 )     3,642         As of and for the Two Quarters Ended June 30, 2023   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 124,702     $ --     $ 124,702   Operating income (loss)     7,527       (1,120 )     6,407   Net income (loss)     3,333       (643 )     2,690   Total assets   $ 278,734     $ 2,351     $ 281,085           For the Second Quarter Ended July 9, 2022   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 94,337     $ --     $ 94,337   Operating income (loss)     8,830       (641 )     8,189   Net income (loss)     5,737       (64 )     5,673         As of and for the Two Quarters Ended July 9, 2022   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 166,717     $ --     $ 166,717   Operating income (loss)     18,365       (1,153 )     17,212   Net income     12,278       49       12,327   Total assets   $ 307,941     $ 8,911     $ 316,852

v3.23.2

Note G - Dividend Payment	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Dividend Payment Terms [Text Block]	Note G – Dividend Payment On June 19, 2023, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on June 12, 2023. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.   On March 20, 2023, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on March 13, 2023. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

v3.23.2

Note H - Earnings Per Share	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Earnings Per Share [Text Block]	Note H ‑ Earnings Per Share   The shares used in computation of the Company’s basic and diluted earnings per common share are as follows:       Second Quarter Ended     Two Quarters Ended   In thousands   June 30, 2023     July 9, 2022     June 30, 2023     July 9, 2022                                     Weighted average common shares outstanding     13,733       13,588       13,691       13,554   Dilutive effect of stock options and restricted stock units     109       55       102       62   Weighted average common shares outstanding, assuming dilution     13,842       13,643       13,793       13,616

v3.23.2

Note I - New Accounting Standards and Changes in Accounting Principles	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Accounting Standards Update and Change in Accounting Principle [Text Block]	Note I – New Accounting Standards and Changes in Accounting Principles   With the exception of that discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the second quarter and two quarters ended June 30, 2023, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, that are of significance, or potential significance to the Company.   In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This amendment requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses.   The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a material impact on the financial statements of the Company.

v3.23.2

Note J - Revenue From Contracts With Customers	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	Note J – Revenue from Contracts with Customers   Revenue Recognition – Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue.   Gross-to-net sales adjustments – We recognize revenue net of various sales adjustments to arrive at net sales as reported on the statement of operations. These adjustments are referred to as gross-to-net sales adjustments and primarily fall into one of three categories: returns, warranties and customer allowances.   Returns – The Company records an accrued liability and reduction in sales for estimated product returns based upon historical experience. An accrued liability and reduction in sales is also recorded for approved return authorizations that have been communicated by the customer.   Warranties – Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year.     Customer Allowances – Customer allowances are common practice in the industries in which the Company operates. These agreements are typically in the form of advertising subsidies, volume rebates and catalog allowances and are accounted for as a reduction to gross sales. The Company reviews such allowances on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available.   Disaggregation of Revenue – We generate revenue from the sale of widely recognized sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products. These products are sold through multiple sales channels that include: mass merchants, specialty dealers, key on-line retailers (“E-commerce”) and international. The following table depicts the disaggregation of revenue according to sales channel:       Second Quarter Ended     Two Quarters Ended   All Amounts in Thousands   June 30, 2023     July 9, 2022     June 30, 2023     July 9, 2022                                     Gross Sales by Channel:                                 Mass Merchants   $ 19,480     $ 28,925     $ 36,170     $ 55,955   Specialty Dealers     23,850       28,990       45,465       54,333   E-commerce     27,135       38,495       47,727       61,351   International     3,187       4,531       6,228       8,611   Other     1,279       1,492       2,314       2,266   Total Gross Sales     74,931       102,433       137,904       182,516                                     Less: Gross-to-Net Sales Adjustments                                 Returns     2,034       678       3,546       2,848   Warranties     190       697       630       1,322   Customer Allowances     4,936       6,721       9,026       11,629   Total Gross-to-Net Sales Adjustments     7,160       8,096       13,202       15,799   Total Net Sales   $ 67,771     $ 94,337     $ 124,702     $ 166,717

v3.23.2

Note K - Leases	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	Note K – Leases   We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our leases have remaining lease terms of 1 year to 9 years. As of June 30, 2023, the Company has not entered into any lease arrangements classified as a finance lease.   We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and operating lease liabilities on our consolidated balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. The Company also elected the package of practical expedients which applies to leases that commenced before the adoption date.     ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information is as follows:       Second Quarter Ended     Two Quarters Ended   All Amounts in Thousands   June 30, 2023     July 9, 2022     June 30, 2023     July 9, 2022                                     Lease Expense                                 Operating Lease Cost   $ 375     $ 342     $ 749     $ 680   Short-term Lease Cost     611       723       1,223       1,224   Variable Lease Cost     169       130       298       312   Total Operating Lease Cost   $ 1,155     $ 1,195     $ 2,270     $ 2,216                                     Operating Lease – Operating Cash Flows   $ 248     $ 309     $ 493     $ 612   New ROU Assets – Operating Leases   $ 83     $ 7,743     $ 83     $ 7,743     Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:       Two Quarters Ended   All Amounts in Thousands   June 30, 2023     July 9, 2022                     Weighted Average Remaining Lease Term – Operating Leases (in years)   8.57     9.47   Weighted Average Discount Rate – Operating Leases     5.09 %     5.00 %   Future minimum lease payments under non-cancellable leases as of June 30, 2023 were as follows:   All Amounts in Thousands                   Year 1   $ 738   Year 2     1,422   Year 3     1,387   Year 4     1,343   Year 5     1,257   Thereafter     5,283   Total future minimum lease payments     11,430   Less imputed interest     (2,206 ) Total   $ 9,224             Reported as of June 30, 2023         Current operating lease liabilities     1,002   Long-term operating lease liabilities     8,222   Total   $ 9,224

v3.23.2

Note L - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note L – Commitments and Contingencies   The Company is involved in litigation arising in the normal course of business. The Company does not believe that the disposition or ultimate resolution of existing claims or lawsuits will have a material adverse effect on the business or financial condition of the Company.

v3.23.2

Note M - Debt	6 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Debt Disclosure [Text Block]	Note M – Debt   On January 21, 2022, the Company entered into an Amended and Restated Credit Agreement (“Restated Credit Agreement”) with its issuing bank, JP Morgan Chase Bank, N.A. (“Chase”), and the other lenders identified in the Restated Credit Agreement (collectively, the “Lender”). Under the terms of the Restated Credit Agreement, Old National Bank has been added as a Lender. The Lenders made available to the Company a senior revolving credit facility with increased maximum availability of $65.0 million (the “Revolving Facility”), up from $50.0 million, plus an accordion feature that would allow borrowings up to $90.0 million under the Revolving Facility subject to certain terms and conditions. The maturity date of the revolving credit facility was extended to January 21, 2027. The Company may prepay the Revolving Facility, in whole or in part, and reborrow prior to the revolving loan maturity date. The Restated Credit Agreement further extended the maturity date for the term loan facility to January 21, 2027.   On July 18, 2022, the Company entered into the First Amendment to the Restated Credit Agreement. Under the terms of the First Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $65.0 million to $75.0 million pursuant to the accordion feature in the Restated Credit Agreement. The First Amendment also adjusted the funded debt to EBITDA ratio financial covenant to 3:00 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022.   On October 26, 2022, the Company entered into the Second Amendment ("Second Amendment”) to the Restated Credit Agreement. Under the terms of the Second Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $75.0 million to $90.0 million pursuant to the accordion feature in the Restated Credit Agreement. The Second Amendment adjusted the funded debt to EBITDA ratio financial covenant to 3:25 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022 and 3:00 to 1:00 as of the end of the Company’s first fiscal quarter of 2023. The Second Amendment also modified the EBITDA definition to permit add-backs of a) up to $2.0 million for disposition related expenses; and b) up to $2.0 million for unusual or non-recurring expenses which are incurred prior to the end of fiscal year 2023 and which are subject to the approval of the Administrative Agent.   On May 8, 2023, the Company entered into the Third Amendment (the “Third Amendment”) to the Restated Credit Agreement. The Third Amendment adjusted the funded debt to EBITDA ratio financial covenant to 4:25 to 1:00 as of the end of the Company’s second fiscal quarter of 2023, 3:00 to 1:00 as of the end of the Company’s third fiscal quarter of 2023, and 2:75 to 1:00 as of the end of the Company’s fourth fiscal quarter of 2023 and thereafter. The Third Amendment adjusted the fixed charge coverage ratio covenant to 1:10 to 1:00 commencing as of the Company’s fourth fiscal quarter of 2023 and 1:25 to 1:00 as of the end of the Company’s first fiscal quarter of 2024 and thereafter. For the Company’s second and third fiscal quarters in 2023, the Third Amendment suspended the fixed charge coverage ratio covenant and added a minimum EBITDA covenant of $22.5 million as of the end of each such fiscal quarter. Under the terms of the Third Amendment, the Company and the Lender also agreed to decrease the maximum availability under the senior revolving credit facility from $90.0 million to $75.0 million, upon the consummation of the sale of the Company’s Mexican subsidiary and the dissolution of Escalade Insurance, Inc. The proceeds from such sale and dissolution, respectively, will be used to partially prepay the amounts outstanding under the revolving credit facility.   As of June 30, 2023, the outstanding principal amount of the term loan was $36.3 million and total amount drawn under the Revolving Facility was $47.7 million.

v3.23.2

Note C - Inventories (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Inventory, Current [Table Text Block]	In thousands   June 30, 2023     December 31, 2022     July 9, 2022                             Raw materials   $ 6,537     $ 7,789     $ 9,821   Work in progress     2,910       3,478       4,653   Finished goods     102,229       110,603       115,772       $ 111,676     $ 121,870     $ 130,246

v3.23.2

Note D - Fair Values of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Fair Value, by Balance Sheet Grouping [Table Text Block]	Fair Value Measurements Using   June 30, 2023 In thousands   Carrying Amount     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Financial assets                                 Cash and cash equivalents   $ 577     $ 577     $ --     $ --                                     Financial liabilities                                 Current portion of long-term debt   $ 7,143     $ --     $ 7,143     $ --   Long-term debt   $ 76,809     $ --     $ 76,809     $ --               Fair Value Measurements Using   December 31, 2022 In thousands   Carrying Amount     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Financial assets                                 Cash and cash equivalents   $ 3,967     $ 3,967     $ --     $ --                                     Financial liabilities                                 Current portion of long-term debt   $ 7,143     $ --     $ 7,143     $ --   Long-term debt   $ 87,738     $ --     $ 87,738     $ --               Fair Value Measurements Using   July 9, 2022 In thousands   Carrying Amount     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)   Financial assets                                 Cash and cash equivalents   $ 6,195     $ 6,195     $ --     $ --                                     Financial liabilities                                 Current portion of long-term debt   $ 7,143     $ --     $ 7,143     $ --   Long-term debt   $ 94,040     $ --     $ 94,040     $ --

v3.23.2

Note F - Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	For the Second Quarter Ended June 30, 2023   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 67,771     $ --     $ 67,771   Operating income (loss)     6,837       (579 )     6,258   Net income (loss)     3,817       (175 )     3,642       As of and for the Two Quarters Ended June 30, 2023   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 124,702     $ --     $ 124,702   Operating income (loss)     7,527       (1,120 )     6,407   Net income (loss)     3,333       (643 )     2,690   Total assets   $ 278,734     $ 2,351     $ 281,085       For the Second Quarter Ended July 9, 2022   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 94,337     $ --     $ 94,337   Operating income (loss)     8,830       (641 )     8,189   Net income (loss)     5,737       (64 )     5,673       As of and for the Two Quarters Ended July 9, 2022   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 166,717     $ --     $ 166,717   Operating income (loss)     18,365       (1,153 )     17,212   Net income     12,278       49       12,327   Total assets   $ 307,941     $ 8,911     $ 316,852

v3.23.2

Note H - Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Second Quarter Ended     Two Quarters Ended   In thousands   June 30, 2023     July 9, 2022     June 30, 2023     July 9, 2022                                     Weighted average common shares outstanding     13,733       13,588       13,691       13,554   Dilutive effect of stock options and restricted stock units     109       55       102       62   Weighted average common shares outstanding, assuming dilution     13,842       13,643       13,793       13,616

v3.23.2

Note J - Revenue From Contracts With Customers (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Disaggregation of Revenue [Table Text Block]	Second Quarter Ended     Two Quarters Ended   All Amounts in Thousands   June 30, 2023     July 9, 2022     June 30, 2023     July 9, 2022                                     Gross Sales by Channel:                                 Mass Merchants   $ 19,480     $ 28,925     $ 36,170     $ 55,955   Specialty Dealers     23,850       28,990       45,465       54,333   E-commerce     27,135       38,495       47,727       61,351   International     3,187       4,531       6,228       8,611   Other     1,279       1,492       2,314       2,266   Total Gross Sales     74,931       102,433       137,904       182,516                                     Less: Gross-to-Net Sales Adjustments                                 Returns     2,034       678       3,546       2,848   Warranties     190       697       630       1,322   Customer Allowances     4,936       6,721       9,026       11,629   Total Gross-to-Net Sales Adjustments     7,160       8,096       13,202       15,799   Total Net Sales   $ 67,771     $ 94,337     $ 124,702     $ 166,717

v3.23.2

Note K - Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Notes Tables
Lease, Cost [Table Text Block]	Second Quarter Ended     Two Quarters Ended   All Amounts in Thousands   June 30, 2023     July 9, 2022     June 30, 2023     July 9, 2022                                     Lease Expense                                 Operating Lease Cost   $ 375     $ 342     $ 749     $ 680   Short-term Lease Cost     611       723       1,223       1,224   Variable Lease Cost     169       130       298       312   Total Operating Lease Cost   $ 1,155     $ 1,195     $ 2,270     $ 2,216                                     Operating Lease – Operating Cash Flows   $ 248     $ 309     $ 493     $ 612   New ROU Assets – Operating Leases   $ 83     $ 7,743     $ 83     $ 7,743       Two Quarters Ended   All Amounts in Thousands   June 30, 2023     July 9, 2022                     Weighted Average Remaining Lease Term – Operating Leases (in years)   8.57     9.47   Weighted Average Discount Rate – Operating Leases     5.09 %     5.00 %
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	All Amounts in Thousands                   Year 1   $ 738   Year 2     1,422   Year 3     1,387   Year 4     1,343   Year 5     1,257   Thereafter     5,283   Total future minimum lease payments     11,430   Less imputed interest     (2,206 ) Total   $ 9,224             Reported as of June 30, 2023         Current operating lease liabilities     1,002   Long-term operating lease liabilities     8,222   Total   $ 9,224

v3.23.2

Note C - Inventories - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jul. 09, 2022
Raw materials	$ 6,537	$ 7,789	$ 9,821
Work in progress	2,910	3,478	4,653
Finished goods	102,229	110,603	115,772
Inventory, Net	$ 111,676	$ 121,870	$ 130,246

v3.23.2

Note D - Fair Values of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jul. 09, 2022
Cash and cash equivalents	$ 577	$ 3,967	$ 6,195
Current portion of long-term debt	7,143	7,143	7,143
Long-term debt	76,809	87,738	94,040
Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents	577	3,967	6,195
Fair Value, Inputs, Level 2 [Member]
Current portion of long-term debt	7,143	7,143	7,143
Long-term debt	$ 76,809	$ 87,738	$ 94,040

v3.23.2

Note E - Stock Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2023	Jul. 09, 2022	Jun. 30, 2023	Jul. 09, 2022
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture	$ 52	$ 51	$ 52	$ 51
Share-Based Payment Arrangement, Expense	458	688	917	1,076
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 2,500	$ 2,600	$ 2,500	$ 2,600
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period			145,563
Director [Member] | Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period			21,200
Incentive Plan 2017 [Member]
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture			30,921
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture			$ 395
Incentive Plan 2017 [Member] | Director [Member]
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture			4,441

v3.23.2

Note F - Segment Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2023	Jul. 09, 2022	Jun. 30, 2023	Jul. 09, 2022	Dec. 31, 2022
Revenues from external customers	$ 67,771	$ 94,337	$ 124,702	$ 166,717
Operating income (loss)	6,258	8,189	6,407	17,212
Net income (loss)	3,642	5,673	2,690	12,327
Total assets	281,085	316,852	281,085	316,852	$ 298,718
Sporting Goods [Member]
Revenues from external customers	67,771	94,337	124,702	166,717
Operating income (loss)	6,837	8,830	7,527	18,365
Net income (loss)	3,817	5,737	3,333	12,278
Total assets	278,734	307,941	278,734	307,941
Corporate Segment [Member]
Operating income (loss)	(579)	(641)	(1,120)	(1,153)
Net income (loss)	(175)	(64)	(643)	49
Total assets	$ 2,351	$ 8,911	$ 2,351	$ 8,911

v3.23.2

Note G - Dividend Payment (Details Textual) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 19, 2023	Mar. 20, 2023	Jun. 30, 2023	Jul. 09, 2022	Jun. 30, 2023	Jul. 09, 2022
Common Stock, Dividends, Per Share, Cash Paid	$ 0.15	$ 0.15
Dividends, Common Stock, Cash	$ 2,100	$ 2,100	$ 2,061	$ 2,038	$ 4,120	$ 4,076

v3.23.2

Note H - Earnings Per Share - Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2023	Jul. 09, 2022	Jun. 30, 2023	Jul. 09, 2022
Weighted average common shares outstanding (in shares)	13,733	13,588	13,691	13,554
Dilutive effect of stock options and restricted stock units (in shares)	109	55	102	62
Weighted average common shares outstanding, assuming dilution (in shares)	13,842	13,643	13,793	13,616

v3.23.2

Note J - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2023	Jul. 09, 2022	Jun. 30, 2023	Jul. 09, 2022
Total Gross Sales	$ 74,931	$ 102,433	$ 137,904	$ 182,516
Returns	2,034	678	3,546	2,848
Warranties	190	697	630	1,322
Customer Allowances	4,936	6,721	9,026	11,629
Total Gross-to-Net Sales Adjustments	7,160	8,096	13,202	15,799
Total Net Sales	67,771	94,337	124,702	166,717
Mass Merchants [Member]
Total Gross Sales	19,480	28,925	36,170	55,955
Specialty Dealers [Member]
Total Gross Sales	23,850	28,990	45,465	54,333
E-commerce [Member]
Total Gross Sales	27,135	38,495	47,727	61,351
International [Member]
Total Gross Sales	3,187	4,531	6,228	8,611
Other Channels [Member]
Total Gross Sales	$ 1,279	$ 1,492	$ 2,314	$ 2,266

v3.23.2

Note K - Leases (Details Textual)	Jun. 30, 2023
Minimum [Member]
Lessee, Operating Lease, Remaining Lease Term	1 year
Maximum [Member]
Lessee, Operating Lease, Remaining Lease Term	9 years

v3.23.2

Note K - Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2023	Jul. 09, 2022	Jun. 30, 2023	Jul. 09, 2022
Weighted Average Remaining Lease Term – Operating Leases (in years) (Year)	8 years 6 months 25 days	9 years 5 months 19 days	8 years 6 months 25 days	9 years 5 months 19 days
Operating Lease Cost	$ 375	$ 342	$ 749	$ 680
Weighted Average Discount Rate – Operating Leases	5.09%	5.00%	5.09%	5.00%
Short-term Lease Cost	$ 611	$ 723	$ 1,223	$ 1,224
Variable Lease Cost	169	130	298	312
Total Operating Lease Cost	1,155	1,195	2,270	2,216
Operating Lease – Operating Cash Flows	248	309	493	612
New ROU Assets – Operating Leases (non-cash)	$ 83	$ 7,743	$ 83	$ 7,743

v3.23.2

Note K - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jul. 09, 2022
Year 1	$ 738
Year 2	1,422
Year 3	1,387
Year 4	1,343
Year 5	1,257
Thereafter	5,283
Total future minimum lease payments	11,430
Less imputed interest	(2,206)
Total	9,224
Current operating lease liabilities	1,002	$ 993	$ 676
Long-term operating lease liabilities	8,222	$ 8,641	$ 8,660
Total	$ 9,224

v3.23.2

Note M - Debt (Details Textual) - Revolving Credit Facility [Member] - Restated Credit Agreement [Member] $ in Millions		3 Months Ended				6 Months Ended
	Jul. 18, 2022 USD ($)	Dec. 31, 2023	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023	Dec. 31, 2022	Jan. 01, 2024	May 08, 2023 USD ($)	Oct. 26, 2022 USD ($)	Jan. 21, 2022 USD ($)	Dec. 25, 2021 USD ($)
Line of Credit Facility, Maximum Borrowing Capacity	$ 75.0							$ 75.0	$ 90.0	$ 65.0	$ 50.0
Line of Credit Facility, Maximum Borrowing Capacity, Accordion Feature										$ 90.0
Debt to EBITDA Ratio	3.00			4.25	3.00	3.25
EBITDA Add-backs for Disposition Expenses									2.0
EBITDA Add-backs for Unusual or Non Recurring Expenses									$ 2.0
Long-Term Debt, Gross				$ 36.3
Amount Drawn Under the Revolving Facility, Total				$ 47.7
Forecast [Member]
Debt to EBITDA Ratio		2.75	3.00
Debt Instrument, Covenant, Fixed Charge Coverage Ratio		1.10					1.25
Debt Instrument, Covenant, Minimum EBITDA			$ 22.5

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