EVANSVILLE, IN--(Marketwire - Apr 20, 2011) - Escalade, Incorporated (
In the Sporting Goods segment, net revenue increased 13.2% in the first quarter of 2011 compared to the same quarter in 2010. Increases in consumer spending, new product development, expanded product placement and additional customer base are driving sales increases. Management believes improved sales in the Sporting Goods segment will continue through the remainder of the year; however, the improvement may be slightly less than that experienced in the first quarter.
Net revenue in the Information Security and Print Finishing segment increased 7.2% in the first quarter 2011 compared to the same quarter in 2010. A portion of the increase in the first quarter is the result of the timing of certain shipments which may not be repeated in subsequent quarters; however, the Company anticipates sales in 2011 will exceed prior year.
Escalade also announced that, on April 14, 2011, it amended its existing Credit Agreement with its issuing bank, JPMorgan Chase Bank, N.A. As amended, the Credit Agreement now provides Escalade with a senior revolving credit facility in the maximum principal amount of up to $22,000,000 with an extended maturity date of July 31, 2013 and a term loan in the principal amount of $8,500,000 with a maturity date of May 31, 2015. The amendment also reduced the interest rates payable by Escalade under the revolving credit facility, increased the amount of capital expenditures allowed under the Credit Agreement, and provides for certain qualifying acquisitions without the lender's consent for aggregate consideration up to $5,000,000.
"We are pleased to see healthy sales and profit growth in both the Sporting Goods and Information Security and Print Finishing business segments," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. "Our strategy of making significant investments in product innovation and brand marketing is working. Major advances in our product placement have been achieved. We anticipate our strategy, coupled with improvement in the global economy, will result in continued sales and earnings growth for the Company. We are also very pleased with the amendment to our Credit Agreement, which reflects the reduction of our debt load over the last year and improved financial condition as evidenced by lower interest rates and the extended maturity date of our U.S. revolving credit facility."
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 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 | ||||||||||||||||
| 19 March 2011 | 20 March 2010 | 19 March 2011 | 20 March 2010 | ||||||||||||||
| NET SALES | $ | 27,998 | $ | 25,169 | $ | 123,485 | $ | 116,210 | |||||||||
| OPERATING EXPENSES | |||||||||||||||||
| Cost of goods sold | 17,873 | 16,616 | 84,731 | 81,770 | |||||||||||||
| Selling and administrative | 7,741 | 6,861 | 28,584 | 28,323 | |||||||||||||
| Amortization | 317 | 283 | 1,322 | 2,081 | |||||||||||||
| OPERATING INCOME | 2,067 | 1,409 | 8,848 | 4,036 | |||||||||||||
| OTHER INCOME (EXPENSE) | |||||||||||||||||
| Interest expense | (184 | ) | (360 | ) | (987 | ) | (1,784 | ) | |||||||||
| Other income | 122 | 258 | 1,912 | 2,346 | |||||||||||||
| INCOME BEFORE INCOME TAXES | 2,005 | 1,307 | 9,773 | 4,598 | |||||||||||||
| PROVISION FOR INCOME TAXES | 802 | 505 | 3,313 | (1,699 | ) | ||||||||||||
| NET INCOME | $ | 1,203 | $ | 802 | $ | 6,460 | $ | 2,899 | |||||||||
| PER SHARE DATA | |||||||||||||||||
| Basic earnings per share | $ | 0.09 | $ | 0.06 | $ | 0.51 | $ | 0.23 | |||||||||
| Diluted earnings per share | $ | 0.09 | $ | 0.06 | $ | 0.48 | $ | 0.22 | |||||||||
| Average shares outstanding | 12,804 | 12,685 | 12,754 | 12,648 | |||||||||||||
| CONSOLIDATED CONDENSED BALANCE SHEET | |||||||||||
| (Unaudited, In Thousands) | |||||||||||
| 19 March 2011 | 20 March 2010 | 25 December 2010 | |||||||||
| ASSETS | |||||||||||
| Current assets | $ | 59,224 | $ | 50,423 | $ | 55,010 | |||||
| Property, plant & equipment - net | 19,675 | 20,584 | 19,844 | ||||||||
| Other assets | 28,076 | 26,552 | 27,302 | ||||||||
| Goodwill | 26,024 | 25,681 | 25,397 | ||||||||
| Total | $ | 132,999 | $ | 123,240 | $ | 127,553 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities | $ | 33,616 | $ | 40,328 | $ | 30,878 | |||||
| Other liabilities | 9,105 | -- | 9,645 | ||||||||
| Stockholders' equity | 90,278 | 82,912 | 87,030 | ||||||||
| Total | $ | 132,999 | $ | 123,240 | $ | 127,553 | |||||
Contact Information:
Contact:
Deborah Meinert
Vice President and CFO
812/467-4449