EVANSVILLE, Ind., Feb. 23, 2017 /PRNewswire/ — Escalade, Incorporated (NASDAQ: ESCA) announced that net sales for the fourth quarter of 2016 were $45.8 million, or 5% higher compared to net sales of $43.7 million for the same quarter in 2015. Acquisitions completed in 2016 as well as new product offerings introduced into the market during 2016 are the primary drivers for the increase in sales. Continued softness within the archery category partially offset these increases.

Gross margin ratio for the fourth quarter of 2016 decreased slightly to 22% from 23% for the same period in 2015. 

Selling, general and administrative expenses (SG&A) were $6.1 million for the quarter compared to $6.8 million for the same period in 2015, a decrease of $0.7 million. As a percentage of sales, SG&A for the fourth quarter of 2016 have decreased to 13% from 15% reported for the same period in 2015.

Net income for the fourth quarter of 2016 was $3.5 million, or $0.24 diluted earnings per share compared to net income of $2.9 million or $0.20 diluted earnings per share for the same quarter in 2015.

The Company announced an increase in its current quarterly dividend from $0.11 to $0.115 per share that would be paid to all shareholders of record on March 13, 2017 and disbursed on March 20, 2017.

«Revenue growth of 8% in a year that had challenges, including retail bankruptcies and a continuation of a soft archery category, was more than offset with on-line sales growth and market share gains in the basketball category,» stated Dave Fetherman, President and Chief Executive Officer of Escalade, Inc. «We see those challenges continuing through the first quarter of 2017, yet remain confident of continued revenue growth from internally developed products and as we look for accretive acquisitions. Based on 2016 operating results, we are pleased to increase the current quarterly dividend to $0.115 per share.»

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.

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 of non-core assets and businesses, the continuation and development of key customer and supplier relationships, 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 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

Twelve Months Ended

All Amounts in Thousands Except Per Share Data

December
31, 2016

December 
26, 2015

December
31, 2016

December 
26, 2015

Net sales

$ 45,826

$ 43,744

$ 167,650

$ 155,542

Costs and Expenses

Cost of products sold

35,590

33,732

123,383

112,068

Selling, administrative and general expenses

6,101

6,757

27,357

27,775

Amortization

364

754

2,327

2,881

Operating Income

3,771

2,501

14,583

12,818

Other Income (Expense)

Interest expense

(203)

(130)

(834)

(470)

Equity in earnings of affiliates

923

913

1,672

2,993

Other income (expense)

(47)

57

121

333

Income Before Income Taxes

4,444

3,341

15,542

15,674

Provision for Income Taxes

981

482

4,049

4,068

Net Income

$ 3,463

$ 2,859

$ 11,493

$ 11,606

Earnings Per Share Data:

Basic earnings per share

$  0.24

$  0.20

$  0.81

$  0.82

Diluted earnings per share

$  0.24

$  0.20

$  0.80

$  0.82

Dividends declared

$  0.11

$  0.11

$  0.44

$  0.43

 

 

Consolidated Condensed Balance Sheets

(Unaudited, In Thousands)

All Amounts in Thousands Except Share Information

December 31,

2016

December 26,

2015

ASSETS

Current Assets:

Cash and cash equivalents

$   1,013

$   1,982

Receivables, less allowances of $910 and $1,086

35,894

38,984

Inventories

33,802

25,862

Prepaid expenses

2,798

2,494

Deferred income tax benefit

1,283

1,543

Prepaid income tax

833

1,910

TOTAL CURRENT ASSETS

75,623

72,775

Property, plant and equipment, net

13,714

14,363

Intangible assets

20,857

16,868

Goodwill

21,456

20,047

Investments

19,030

19,644

Other assets

81

40

TOTAL ASSETS

$150,761

$143,737

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt

$    1,250

$    1,810

Trade accounts payable

4,376

2,547

Accrued liabilities

12,792

14,174

TOTAL CURRENT LIABILITIES

18,418

18,531

Long-term debt

24,189

21,526

Deferred income tax liability

6,441

7,200

TOTAL LIABILITIES

49,048

47,257

Commitments and contingencies

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: 2016 —14,304,959 shares, 2015 —14,179,844 shares

14,305

14,180

Retained earnings

91,688

85,478

Accumulated other comprehensive loss

(4,280)

(3,178)

TOTAL STOCKHOLDERS’ EQUITY

101,713

96,480

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$150,761

$143,737

 

 

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SOURCE Escalade, Incorporated