Escalade, Incorporated Announces Third Quarter Earnings
THIRD QUARTER ENDED OCTOBER 5, 2002
EVANSVILLE, Ind., Oct. 25 /PRNewswire-FirstCall/ -- FlashResults Escalade, Incorporated (Nasdaq: ESCA) (Numbers in Thousands, Except Per Share Data) 3rd quarter ended 3rd quarter ended 10/5/2002 YTD 10/6/2001 YTD Sales $51,859 $101,566 $54,423 $100,678 Net Income $4,149 $6,684 $4,040 $6,252 Average Shares 6,509 6,479 6,420 6,453 EPS $.64 $1.03 $.63 $.97 Escalade, Incorporated (Nasdaq: ESCA) reports in spite of a 5% decline in net sales, the company earned record third quarter net income of $4,149,000 or 64 cents per share bringing year to date net income to $6,684,000, 7% ahead of last year, or $1.03 per share. Escalade Sport's net sales declined 6% to $44,674,000 for the quarter primarily due to product deliveries delayed by the West Coast longshoreman's lockout. Pre tax net income also decreased 6%. Year to date net sales are up 3% to $78,615,000 and pre tax net income is up 6%. While the lockout has been discontinued, we are still experiencing delays due to the backlog at the ports. Our challenge will be to get products to our customers in time for their promotions and main selling season. Our customers continue to forecast increases in fourth quarter orders however, they have become more cautious. We continue to be focused on the integration of our recent acquisitions and the development of new products for our recently acquired billiards brand names. Martin Yale's sales of office and graphic arts products increased 1% for the quarter to $7,185,000, reversing several quarters of decline. Pre tax net income increased 34%. For the year, net sales are down 4% and pre tax net income is up 8%. The third quarter's strong profitability is the result of increased margins due to the relocation of Los Angeles production to Mexico and the elimination of high startup costs of redesigned product lines in Wabash in the 2001 third quarter. The sale of the last Los Angeles property was completed during the quarter resulting in an $11,000 gain bringing the total gain for the property sales to $434,000. During the quarter, an additional $213,000 was spent on the continued development and evaluation of the new line of patented photo frame/desk accessories with a pop-out front matte and high quality finish bringing the total expense for this project to $524,000 to date. Martin Yale's focus is to return to continued growth through the development of new products and increased distribution. Overall, we are guardedly optimistic about the fourth quarter based upon the level of orders booked at Escalade Sports and Martin Yale's comparison to a weak 2001 fourth quarter. We are continuing to review acquisition opportunities and other means of enhancing shareholder value. (Escalade, Incorporated continued) (Unaudited in thousands, except per share figures) 3 Months Ended 9 Months Ended 12 Months Ended Oct. 5, Oct. 6, Oct. 5, Oct. 6, Oct. 5, Oct. 6, 2002 2001 2002 2001 2002 2001 Net Sales $51,859 $54,423 $101,566 $100,678 $149,741 $143,589 Cost of Goods Sold 36,686 39,732 70,599 71,241 106,279 101,055 Selling & Admin. Expense 8,015 7,318 19, 632 17,024 24,458 23,251 Operating Income 7,158 7,373 11,335 12,413 19,004 19,283 Interest Expense (303) (374) (670) (1,097) (932) (1,722) Goodwill --- (228) --- (758) (104) (877) Other Income (Expense) (371) (286) (220) (503) (147) (651) Income Before Taxes 6,484 6,485 10,445 10,055 17,821 16,033 Provision for Taxes 2,335 2,445 3,761 3,803 6,250 6,132 Net Income 4,149 4,040 6,684 6,252 11,571 9,901 Basic Earnings Per Share .64 .63 1.03 .97 1.79 1.53 Diluted Earnings Per Share $.63 $.62 $1.02 $.96 $1.77 $ 1.51 Average Shares Outstanding 6,509 6,420 6,479 6,453 6,466 6,465 Oct. 5, 2002 Oct. 6, 2001 Current Assets $ 73,909 $ 72,705 Fixed Assets 8,776 9,991 Other Assets 14,331 6,025 Goodwill 13,351 13,755 Total $110,367 $102,476 Current Liabilities $ 49,464 $ 53,484 Other Liabilities 19,515 19,440 Shareholders' Equity 41,388 29,552 Total $110,367 $102,476 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, Escalade's ability to successfully integrate the operations of acquired assets and businesses, new product development, the continuation and development of key customer and supplier relationships, Escalade's ability to control costs, general economic conditions, fluctuations in operating results, changes in the securities markets 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 update these forward- looking statements after the date of this report. Make Your Opinion Count - Click Here http://tbutton.prnewswire.com/prn/11690X02041994
SOURCE Escalade, Inc.
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