Le Lézard
Classified in: Business, Sports and recreation
Subject: ERN

Escalade Reports Second Quarter 2018 Results


EVANSVILLE, Ind., Aug. 14, 2018 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) -- "Revenue was down as the unseasonably cold spring weather carried well into the second quarter affecting our Outdoor product categories. The product mix pushed margins down and inventories higher. SG&A came in slightly below prior year even with additional costs related to the sale of our interest in Stiga AB.," stated Dave Fetherman, President and Chief Executive Officer of Escalade, Inc. "The timing of the Stiga AB sale was tax efficient and contributed $0.73 to our second quarter financial results, driving our EPS to $0.84 per share. The Company continues to evaluate various uses of our strong balance sheet, which include acquisitions, internal development, repurchase of shares and cash dividends."

Escalade, Inc. (PRNewsFoto/Escalade, Inc.)

Net sales for the second quarter of 2018 were $48.7 million compared to net sales of $53.9 million for the same quarter in 2017.

Gross margin ratio for the second quarter of 2018 decreased to 23.6%, compared to 24.3% for the same period in the prior year. Gross profit for the second quarter of 2018 was $11.5 million compared to gross profit of $13.1 million for the same quarter in 2017.

Selling, general and administrative expenses (SG&A) were $9.1 million for the quarter compared to $9.3 million for the same period in the prior year. 

Operating income for the second quarter of 2018 was $2.0 million compared to operating income of $3.3 million for the same period in the prior year.

The Company recognized a $13.0 million gain in other income during the second quarter of 2018 on the sale of our 50% owned equity method investment, Stiga, a Swedish entity.

Net income for the second quarter of 2018 was $12.1 million, or $0.835 diluted earnings per share compared to net income of $2.1 million, or $0.146 diluted earnings per share for the same quarter in 2017.

The Company announced a quarterly dividend of $0.125 per share to be paid to all shareholders of record on September 10, 2018 and disbursed on September 17, 2018.

Escalade is a leading manufacturer and marketer of sporting goods products sold worldwide. To obtain more information on the Company and its products, visit our website at: www.EscaladeInc.com or contact Patrick Griffin, Vice President of Corporate Development & Investor Relations at 812/467-4449.

ABOUT ESCALADE SPORTS

Headquartered in Evansville, IN, Escalade Sports is a global manufacturer and distributor of sports and outdoor recreational equipment.  Leaders in their respective categories, Escalade Sports' brands include Bear® Archery and Trophy Ridge® archery accessories; STIGA® and Ping-Pong® table tennis, Accudart® and Unicorn® darting, Onix® pickleball equipment; Triumph Sportstm indoor and outdoor games, Goalrillatm and Goalsetter® residential in-ground basketball systems, Goaliath® and Silverback® residential in-ground and portable basketball goals; the STEP® fitness products, Lifeline® personal fitness, Woodplay® premium playsets, Vulytm Trampolines and Cue&Case® specialty billiard accessories. Escalade Sports' products are available at sporting goods dealers and independent retailers nationwide.  For more information on Escalade Sports, its brands, instruction manuals, retailers, warranty, replacement parts or customer service, please call 1-888-784-4288 or visit www.escaladesports.com.

FORWARD-LOOKING STATEMENTS 

This report contains forward-looking statements relating to present or future trends or factors that are subject to risks and uncertainties. These risks include, but are not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, Escalade's ability to achieve its business objectives, especially with respect to its Sporting Goods business on which it has chosen to focus, Escalade's ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and of divestitures or discontinuances of certain operations, assets, brands, and products, the continuation and development of key customer, supplier, licensing and other business relationships, the 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 supply chain, Escalade's ability to control costs, general economic conditions, fluctuation in operating results, changes in foreign currency exchange rates, changes in the securities market, Escalade's ability to obtain financing and to maintain compliance with the terms of such financing, the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology, risks related to data security of privacy breaches, and other risks detailed from time to time in Escalade's filings with the Securities and Exchange Commission. Escalade's future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.

Escalade, Incorporated and Subsidiaries

Consolidated Condensed Statements of Operations

(Unaudited, In Thousands Except Per Share Data)



Three Months Ended


Six Months Ended

All Amounts in Thousands Except Per Share Data

July 14,
2018


July 15,
2017


July 14,
2018


July 15,
2017









Net sales

$48,684


$53,921


$80,833


$85,787









Costs and Expenses








Cost of products sold

37,187


40,843


60,348


64,425

Selling, administrative and general expenses

9,121


9,257


16,071


15,187

Amortization

425


489


748


847









Operating Income

1,951


3,332


3,666


5,328









Other Income (Expense)








Interest expense

(166)


(234)


(355)


(401)

Equity in earnings of affiliates

133


76


121


24

Gain on sale of equity method investment includes
  ($3,729) of accumulated other comprehensive
  loss reclassification from foreign currency
  translation adjustment)

13,020


--


13,020


--

Gain on bargain purchase

--


--


--


256

Other income (expense)

(76)


(47)


(99)


(43)









Income Before Income Taxes

14,862


3,127


16,353


5,164









Provision for Income Taxes

2,791


1,031


3,066


1,680









Net Income

$12,071


$ 2,096


$13,287


$ 3,484









Earnings Per Share Data:








Basic earnings per share

$  0.837


$  0.146


$  0.922


$  0.243

Diluted earnings per share

$  0.835


$  0.146


$  0.921


$  0.242









Dividends declared

$  0.125


$  0.115


$  0.25


$  0.23









 

 

Consolidated Condensed Balance Sheets

(Unaudited, In Thousands)


All Amounts in Thousands Except Share Information

July 14,

2018

December 30,

2017

July 15,

2017


(Unaudited)

(Audited)

(Unaudited)

ASSETS




Current Assets:




Cash and cash equivalents

$ 15,572

$  1,572

$   2,280

Receivables, less allowance of $534; $623; and $532; respectively

30,758

39,350

32,236

Inventories

41,454

35,160

37,470

Prepaid expenses

2,834

3,414

3,043

Prepaid income tax

--

764

773

Other current assets

21

--

--

TOTAL CURRENT ASSETS

90,639

80,260

75,802





Property, plant and equipment, net

12,990

14,286

13,910

Intangible assets, net

18,943

19,691

20,423

Goodwill

21,548

21,548

21,548

Investments

--

20,278

18,506

Other assets

--

42

60

TOTAL ASSETS

$144,120

$156,105

$150,249





LIABILITIES AND STOCKHOLDERS' EQUITY




Current Liabilities:




Current portion of long-term debt

$ --

$  1,250

$  1,300

Trade accounts payable

6,874

4,295

8,047

Accrued liabilities

9,242

13,997

9,227

Income tax payable

480

--

--

TOTAL CURRENT LIABILITIES

16,596

19,542

18,574





Other Liabilities:




Long?term debt

--

21,871

22,386

Deferred income tax liability

2,469

2,469

5,216

Other liabilities

503

553

--

                TOTAL LIABILITIES

19,568

44,435

46,176





Stockholders' Equity:




Preferred stock:




Authorized 1,000,000 shares; no par value, none issued




Common stock:




Authorized 30,000,000 shares; no par value, issued and outstanding ?
  14,439,724; 14,371,586; and 14,364,586; shares respectively

 

14,440

 

14,372

 

14,365

Retained earnings

110,112

99,908

92,368

Accumulated other comprehensive loss

--

(2,610)

(2,660)

TOTAL STOCKHOLDERS' EQUITY

124,552

111,670

104,073

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$144,120

$156,105

$150,249

 

 

SOURCE Escalade, Incorporated


These press releases may also interest you

at 17:38
GoBoat, an innovator in personal adventure watercraft, proudly showcases its innovative dog dock ramp, making it easier than ever to bring your furry four-legged companions along for any adventure....

at 16:40
Vista Outdoor Inc. ("Vista Outdoor", "we", "us" or "our") and Czechoslovak Group a.s. ("CSG") announced today that they have voluntarily withdrawn and re-filed their joint voluntary notice to the Committee on Foreign Investment in the United States...

at 16:38
Visalia, the nation's first Certified Autism Destination, recognizes Autism Awareness month in April. Visit Visalia and local tourism partners will highlight Visalia's initiative: Every day is autism acceptance day in our community. A recent survey...

at 16:30
Rapids Waterpark, South Florida's largest waterpark, debuted its latest and most exhilarating attraction to the media - MEGA MAYHEM, Florida's only Dueling Water Coaster! The official grand opening will be on April 4th.MEGA MAYHEM Florida's only...

at 15:36
This year marks the 30th anniversary of Bike to Work Day and the San Francisco Bay Area is celebrating Bike Month throughout the month of May with Bike to Wherever Days pledges, challenges, events and prizes. Seasoned and novice cyclists in all nine...

at 15:17
Schools and colleges across the country rely on Immediate Post-Concussion Assessment and Cognitive Testing (ImPACT) evaluations to assess and manage student-athlete concussions on the sidelines. However, this FDA-cleared tool is not recommended for...



News published on and distributed by: