Escalade Reports First Quarter Revenue Increase of 14% in the Sporting Goods Segment

EVANSVILLE, Ind., April 25, 2013 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) announced that net income for the first quarter of 2013 was $1.6 million, or $0.12 basic and diluted earnings per share which equaled results for the same quarter in 2012.  Consolidated net revenues for the first quarter of 2013 were 4% higher than the same quarter last year.  Net revenue for the Sporting Goods segment increased by 14% while quarterly net revenue in the Information Security and Print Finishing segment declined 21% compared with the same period last year.     

(Logo: http://photos.prnewswire.com/prnh/20120622/MM29287LOGO )

The Company attributes increases in revenue in the Sporting Goods segment to new product development and brand marketing which has increased consumer demand for its products.  Management expects continued revenue growth in the Sporting Goods segment through the remainder of the year, though the improvement may be less than that experienced in the first quarter.

Revenues from the Information Security and Print Finishing business decreased 21% for the first quarter of 2013 compared with the same period last year, with minimal effects of changes in the currency exchange rates during the quarter. Contributing to the decrease in revenue is a reduction in government spending in European countries along with increased competition.  The Company expects challenges in this segment for the remainder of the year.  

"In spite of unfavorable weather, the Sporting Goods segment experienced excellent growth during the first quarter," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc.  "Consumers and retail partners are enthusiastically responding to the breadth of new products we are launching under our flagship brands."

Escalade is a leading manufacturer and marketer of sporting goods and information security and print finishing products sold worldwide. To obtain more information on the Company and its products, visit our website at: www.EscaladeInc.com or contact Deborah Meinert, Vice President and CFO at 812/467-4449.

FORWARD-LOOKING STATEMENTS 

This report contains forward-looking statements relating to present or future trends or factors that are subject to risks and uncertainties.  These risks include, but are not limited to, the impact of competitive products and pricing, product demand and market acceptance, 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, fluctuation in operating results, changes in foreign currency exchange rates, changes in the securities market, Escalade's ability to obtain financing and to maintain compliance with the terms of such financing, and other risks detailed from time to time in Escalade's filings with the Securities and Exchange Commission.  Escalade's future financial performance could differ materially from the expectations of management contained herein.  Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.

CONTACT:
Deborah Meinert
Vice President and CFO
812/467-1251

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited, In Thousands Except Per Share Amounts)



   Three Months Ended

    Twelve Months Ended


23 March

2013

24 March

2012

23 March

2013

24 March

2012






NET SALES

$  31,838

$  30,565

$ 148,862

$ 136,817






OPERATING  EXPENSES





Cost of goods sold

20,960

20,009

104,126

94,676

Selling and administrative

7,273

7,297

31,366

35,499

Goodwill intangible asset impairment

charges

--

--

13,362

--

Amortization

557

517

2,286

1,796






OPERATING INCOME (LOSS)

3,048

2,742

(2,278)

4,846






OTHER INCOME (EXPENSE)





Interest expense

(167)

(154)

(616)

(663)

Other income (expense) 

(38)

172

2,820

3,448

Equity method investment impairment

--

--

(382)

--






INCOME (LOSS) BEFORE INCOME TAXES

2,843

2,760

(456)

7,631






PROVISION FOR INCOME TAXES

1,219

1,184

4,426

2,817






NET INCOME (LOSS)

$    1,624

$    1,576

$   (4,882)

$   4,814






PER SHARE DATA





Basic earnings(loss) per share  

$ 0.12

$ 0.12

$ (0.37)

$ 0.37

Diluted earnings (loss) per share

$ 0.12

$ 0.12

$( 0.36)

$ 0.36

Average shares outstanding

13,447

12,894

13,371

12,870

















 

CONSOLIDATED CONDENSED BALANCE SHEET

(In Thousands)



23 March 2013

29 December 2012

24 March 2012


(Unaudited)

(Audited)

(Unaudited)

ASSETS




Current assets

$  69,896

$   70,965

$  65,004

Property, plant & equipment – net

14,166

12,281

12,060

Other assets

29,915

30,477

28,725

Goodwill

12,017

12,017

25,468

Total

$ 125,994

$ 125,740

$ 131,257





LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities

$   36,785

$   38,309

$   34,370

Other liabilities

8,082

6,974

7,885

Stockholders' equity

81,127

80,457

89,002

Total

$ 125,994

$ 125,740

$ 131,257

 

 

SOURCE Escalade, Incorporated



RELATED LINKS
http://www.escaladeinc.com

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