SOURCE: Escalade, Inc.

Escalade, Inc.

February 28, 2011 11:40 ET

Escalade Reports Full Year EPS of $0.48; Q4 2010 EPS More Than Double From Q4 2009

EVANSVILLE, IN--(Marketwire - February 28, 2011) - Escalade, Incorporated (NASDAQ: ESCA) announced that net income for the fourth quarter of 2010 was $2.2 million, or $0.18 basic earnings per share ($0.17 diluted earnings per share) compared to net income of $1.1 million or $0.08 basic earnings per share ($0.08 diluted earnings per share) for the same quarter in 2009. Net revenues for the fourth quarter of 2010 were 7% higher than the same quarter last year. Sales growth is a result of continued focus on product innovation and brand marketing. Net income for the full year 2010 was $6.1 million, or $0.48 basic earnings per share ($0.46 diluted earnings per share) compared to net income of $1.7 million, or $0.13 basic and diluted earnings per share for full year 2009.

In the Sporting Goods segment, net revenue increased 11.7% in 2010 compared to 2009 with growth coming from most sales channels. The Company continues to aggressively pursue opportunities to increase revenue through introduction of new products, expansion of product distribution, and increased investment in consumer marketing.

Net revenue in the Information Security and Print Finishing business declined 11.1% in 2010 compared to 2009 primarily due to the continued weakness in the global office products channel and the government channel. The Company has widened its product range to improve its opportunities in the information security and print finishing markets. Excluding the effect of changes in foreign exchange rates, 2010 sales were down 10.5% from 2009.

"We are pleased with the positive momentum we have built throughout 2010, including 7% top line growth for the fourth quarter. This increased revenue, coupled with operational improvements, has yielded fourth quarter EPS of $0.18, which is more than double the same period last year," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. "The Escalade team has a passion for driving top line growth through a balanced strategy of product innovation and brand marketing. Our goal is to be the market leader in each of our categories. With our debt level at a five year low, we have improved flexibility to invest in new product development and other strategic growth initiatives."

Mr. Keller further said, "As a reflection of Escalade's ongoing focus to introduce new products and services to better meet the needs of our existing and potential customers, our historical description of the business conducted by Martin Yale Group as 'Office Products' has become too narrow and outdated. We increasingly have been strategically focused on expanding the Martin Yale business to assist businesses and governments with their high security needs for handling sensitive customer, employee and business documents and information, in addition to Martin Yale's traditional product offerings. Going forward, we are referring to this business segment as 'Information Security and Print Finishing' which we believe more accurately describes this line of business today and into the future."

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
                        ------------------------  ------------------------
                        25 December  26 December  25 December  26 December
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------

NET SALES               $    31,185  $    29,042  $   120,656  $   115,999

OPERATING EXPENSES
  Cost of goods sold         23,662       22,017       83,475       82,250
  Selling and
   administrative             6,306        6,142       27,704       29,484
  Long-lived asset
   impairment                    --           --           --           --
  Amortization                  246          241        1,288        2,265
                        -----------  -----------  -----------  -----------

OPERATING INCOME                971          642        8,189        2,000

OTHER INCOME (EXPENSE)
  Interest expense             (158)        (135)      (1,163)      (1,665)
  Other income                1,464        1,073        2,050        2,270
                        -----------  -----------  -----------  -----------

INCOME BEFORE INCOME
 TAXES                        2,277        1,580        9,076        2,605

PROVISION FOR INCOME
 TAXES                           54          468        3,017          948
                        -----------  -----------  -----------  -----------

NET INCOME              $     2,223  $     1,112  $     6,059  $     1,657
                        ===========  ===========  ===========  ===========

PER SHARE DATA
  Basic earnings per
   share                $      0.18  $      0.08  $      0.48  $      0.13
                        ===========  ===========  ===========  ===========
  Diluted earnings per
   share                $      0.17  $      0.08  $      0.46  $      0.13
                        ===========  ===========  ===========  ===========
  Average shares
   outstanding               12,775       12,654       12,726       12,632





                    CONSOLIDATED CONDENSED BALANCE SHEET
                         (Unaudited, In Thousands)

                                        25 December 2010   26 December 2009
                                        ----------------   ----------------
ASSETS
  Current assets                        $         55,010   $         52,936
  Property, plant & equipment - net               19,844             21,493
  Other assets                                    27,302             26,594
  Goodwill                                        25,397             26,215
                                        ----------------   ----------------
    Total                               $        127,553   $        127,238
                                        ================   ================

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities                   $         30,878   $         43,248
  Other liabilities                                9,645              1,226
  Stockholders' equity                            87,030             82,764
                                        ----------------   ----------------
    Total                               $        127,553   $        127,238
                                        ================   ================

Contact Information

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