SOURCE: Escalade, Inc.

Escalade, Inc.

April 23, 2012 09:52 ET

Escalade Reports 9% Increase in First Quarter Revenue

EVANSVILLE, IN--(Marketwire - Apr 23, 2012) - Escalade, Incorporated (NASDAQ: ESCA) announced that net income for the first quarter of 2012 was $1.6 million, or $0.12 basic and diluted earnings per share compared to net income of $1.2 million or $0.09 basic and diluted earnings per share for the same quarter in 2011. Net revenues for the first quarter of 2012 were 9% higher than the same quarter last year. The Company continues to focus on product innovation and brand marketing to drive product demand.

In the Sporting Goods segment, net revenue increased 15.8% in the first quarter of 2012 compared to the same quarter in 2011. An overall increase in consumer spending and demand for the Company's products was further aided by mild weather in parts of the U.S. which helped jump start sales in the basketball and playground categories. Management believes improved sales in the Sporting Goods segment will continue through the remainder of the year; however, the improvement may be less than that experienced in the first quarter.

Net revenue in the Information Security and Print Finishing segment decreased 5.2% in the first quarter 2012 compared to the same quarter in 2011. The decrease in sales is the result of the timing of certain shipments made in the first quarter of the prior year that were not repeated this year. The Company expects revenues for the remainder of the year to equal or exceed prior year.

"Growing demand for our product line, favorable weather and improved consumer spending trends have all contributed to excellent results for the first quarter," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. "Our consumers are embracing the investments we are making in product innovation and brand marketing, resulting in new product placement and increased sell-through at retail."

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.

ESCALADE, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited, In Thousands Except Per Share Amounts)
Three Months Ended Twelve Months Ended
24 March 2012 19 March
2011
24 March
2012
19 March 2011
NET SALES $ 30,565 $ 27,998 $ 136,817 $ 123,485
OPERATING EXPENSES
Cost of goods sold 20,009 17,873 94,676 84,731
Selling and administrative 7,297 7,741 35,499 28,584
Amortization 517 317 1,796 1,322
OPERATING INCOME 2,742 2,067 4,846 8,848
OTHER INCOME (EXPENSE)
Interest expense (154 ) (184 ) (663 ) (987 )
Other income 172 122 3,448 1,912
INCOME BEFORE INCOME TAXES 2,760 2,005 7,631 9,773
PROVISION FOR INCOME TAXES 1,184 802 2,817 3,313
NET INCOME $ 1,576 $ 1,203 $ 4,814 $ 6,460
PER SHARE DATA
Basic earnings per share $ 0.12 $ 0.09 $ 0.37 $ 0.51
Diluted earnings per share $ 0.12 $ 0.09 $ 0.36 $ 0.48
Average shares outstanding 12,894 12,804 12,870 12,754
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited, In Thousands)
24 March 2012 31 December 2011 19 March 2011
ASSETS
Current assets $ 65,004 $ 64,146 $ 59,224
Property, plant & equipment - net 12,060 11,915 19,675
Other assets 28,725 28,769 28,076
Goodwill 25,468 25,285 26,024
Total $ 131,257 $ 130,115 $ 132,999
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 34,370 $ 34,650 $ 33,616
Other liabilities 7,885 7,900 9,105
Stockholders' equity 89,002 87,565 90,278
Total $ 131,257 $ 130,115 $ 132,999

Contact Information

  • Contact:
    Deborah Meinert
    Vice President and CFO
    812/467-4449