Escalade Reports Third Quarter 2017 Results

EVANSVILLE, Ind., Nov. 2, 2017 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) - "We are encouraged by the growth in sales and income achieved in the third quarter under continued challenging conditions," stated Dave Fetherman, President and Chief Executive Officer of Escalade, Inc. "The entire Escalade team has worked very hard this year to overcome the industry-wide downturn in the archery category, a reduction in contribution from our joint venture, Stiga Sports, AB, and the bankruptcies that have plagued the retail industry. We believe these conditions have masked the improvements in our other existing and acquired businesses. Our balance sheet remains strong, as inventory levels and receivables are down for the quarter, and long-term debt has been reduced by 31.3% over the last year."

Net sales for the third quarter of 2017 were $41.9 million compared to net sales of $38.8 million for the same quarter in 2016, an increase of $3.1 million or 8.0%.

Gross margin ratio for the third quarter of 2017 increased to 27.1%, compared to 26.5% for the same period in the prior year.

Selling, general and administrative expenses (SG&A) were $6.9 million for the quarter compared to $4.6 million for the same period in the prior year, an increase of $2.3 million or 49.8%.  SG&A, as a percent of sales, for the third quarter of 2017 increased to 16.4% from 11.8% reported for the same period prior year. In the third quarter of 2016, SG&A was favorably impacted by the recognition of a gain of approximately $1.9 million on the sale of our Wabash, IN land and building. One-time expenses of $0.4 million unfavorably impacted SG&A during the third quarter of 2016. As a result of the property sale and one-time expenses, SG&A was reduced by $1.5 million in the third quarter of 2016.

Operating income for the third quarter of 2017 was $4.1 million compared to operating income of $5.3 million for the same period in the prior year, a decrease of $1.2 million or 22.5%. Excluding the property sale and one-time expenses, operating income in the prior year would have been $3.8 million.

Other income for the third quarter of 2017 was relatively flat year over year.

Net income for the third quarter of 2017 was $3.1 million, or $0.22 diluted earnings per share compared to net income of $4.2 million, or $0.30 diluted earnings per share for the same quarter in 2016, before adjusting for the property sale and one-time expenses.

The Company announced a quarterly dividend of $0.115 per share would be paid to all shareholders of record on December 11, 2017 and disbursed on December 18, 2017.

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

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 Sports™ indoor and outdoor games, Goalrilla™ 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, and Cue and 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, 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 markets, 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.

SOURCE Escalade, Inc.

Related Links

http://www.escaladeinc.com