Escalade Reports Third Quarter 2019 Results

EVANSVILLE, Ind., Oct. 31, 2019 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) - "We saw revenue growth of 4.1% in the quarter as we continue to grow sales in the Games category. This growth was partially offset by a continuing decline in archery vertical bow sales. Overall, consumer preferences continue to shift toward E-commerce," stated Dave Fetherman, President and CEO. "With the continuing shift to E-commerce, we are evaluating opportunities to optimize our organization and business processes. As we continue to focus on streamlining operations, we consolidated our Lifeline Fitness Chicago office into the Olney, Illinois facility and absorbed these consolidation costs during the third quarter. We are working with vendors and retailers to reduce the impact of tariffs and customer allowances. As a result of these initiatives, we anticipate gross margin to improve in 2020. The Company repurchased 176,287 shares of stock during the quarter and announced a quarterly dividend of $0.125 per share." 

Net sales for the third quarter of 2019 were $45.8 million compared to net sales of $44.0 million for the same quarter in 2018.

Gross margin ratio for the third quarter of 2019 was 21.9%, compared to 28.0% for the same period in the prior year. Gross profit for the third quarter of 2019 was $10.0 million compared to gross profit of $12.3 million for the same quarter in 2018. Margins were negatively impacted by customer allowances, lower factory utilization and sales mix.

Selling, general and administrative expenses (SG&A) were $6.8 million for the quarter compared to $6.9 million for the same period in the prior year, a decrease of $0.1 million or 0.9%. SG&A, as a percent of sales, for the third quarter of 2019 decreased to 14.8% from 15.6% reported for the same period prior year.

Operating income for the third quarter of 2019 was $2.9 million compared to operating income of $5.1 million for the same period in the prior year.

Net income for the third quarter of 2019 was $2.5 million, or $0.18 diluted earnings per share compared to net income of $3.6 million, or $0.25 diluted earnings per share for the same quarter in 2018.

The Company announced a quarterly dividend of $0.125 per share to be paid to all shareholders of record on December 9, 2019 and disbursed on December 16, 2019.

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 812/467-1358.

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, Bear X™, Trophy Ridge®, Rocket®, SIK™ and Cajun Bowfishing™ archery equipment; STIGA® and Ping-Pong® table tennis; Accudart® and Unicorn® darting; Atomic®, Victory Tailgate®, Triumph™ Sports, Viva Sol®, Zume Games® recreational games; Onix® pickleball equipment; Goalrilla™, Goalsetter® residential in-ground basketball systems, Goaliath® and Silverback® residential in-ground and portable basketball goals; Lifeline® and the STEP® fitness products; Woodplay® premium playsets; Vuly™ trampolines; and Cue&Case® - a leader in 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; 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; 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; 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.

SOURCE Escalade, Inc.

Related Links

http://www.escaladeinc.com