EVANSVILLE, IN--(Marketwire - March 4, 2010) - Escalade, Incorporated (
NASDAQ:
ESCA)
announced that net income for the year ended December 26, 2009 increased to
$1.7 million or $0.13 per share compared to a net loss of $7.5 million or
$0.59 loss per share for the same period last year. Net income for the
year includes a one-time benefit from the sale of equity investments which
resulted in a gain of $432 thousand. The gain is a partial recovery of an
asset impairment recorded in the prior year. Without this one-time
benefit, net income for the year would be $1.2 million or $0.10 per share.
Net revenue for the fourth quarter and fiscal year ended December 26, 2009
declined 11.8% and 21.9%, respectively, compared to same periods last year;
however, the Company has improved gross margins year to date to 29.1%,
compared with 24.6% for the prior year. In addition, the Company has
reduced selling, administrative and general expenses by 26.1%, mainly due
to facility consolidation in the Sporting Goods segment and Company-wide
cost cutting measures implemented over the past year, which resulted in
improved Company profitability.
The Company's operating income for the fourth quarter and fiscal year ended
December 26, 2009 was $0.6 million and $2.0 million, respectively, compared
to operating losses of $6.4 million and $8.1 million for the same periods
last year.
Sporting Goods net revenues for the quarter and year ended December 26,
2009 were down 11.3% and 21.7%, respectively, compared with same periods
last year. The declines are reflective of the general slowdown in the
economy and tightening of credit availability which has slowed customer
spending.
Office Products experienced a similar decline in net revenue for the
quarter and year ended December 26, 2009 showing a decline of 13.0% and
22.6%, respectively, compared with same periods last year. For the year,
net revenue declined 21.8% in the United States and 23.4% in Europe.
Excluding the effect of changes in foreign currency rates, year to date net
revenue for the Office Products group declined 19.5% compared with prior
year.
The Company anticipates net revenue to remain relatively stable for 2010
with slight improvement to operating income resulting from increased
efforts to reduce costs and expand product offerings.
"We are committed to build on our progress achieved in 2009 as we go
forward," said Robert J. Keller, President and Chief Executive Officer of
Escalade, Inc. "Not only are we dedicated to improving our operations
through cost savings initiatives, but we also are focused on developing and
introducing a steady stream of new products in each of our categories. For
example, our all-new line of bows from Bear Archery, including the
top-of-the-line 'Attack' model, have achieved strong marketplace acceptance
and demonstrates our ability to deliver cutting-edge technology and
consumer value."
Escalade is a leading manufacturer and marketer of sporting goods and
office/graphic arts products sold worldwide. To obtain more information on
the Company and its products, visit our website at:
www.EscaladeInc.com or
contact Deborah J. 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
------------------------ ------------------------
26 December 27 December 26 December 27 December
2009 2008 2009 2008
----------- ----------- ----------- -----------
NET SALES $ 29,042 $ 32,927 $ 115,999 $ 148,686
OPERATING EXPENSES
Cost of goods sold 22,017 26,544 82,250 112,138
Selling and
administrative 6,142 9,743 29,484 39,883
Long-lived asset
impairment -- 2,623 -- 2,623
Amortization 241 375 2,265 2,163
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS) 642 (6,358) 2,000 (8,121)
OTHER INCOME (EXPENSE)
Interest expense (135) (325) (1,665) (2,025)
Other income
(expense) 1,073 (180) 2,270 (34)
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE
INCOME TAXES (BENEFIT) 1,580 (6,863) 2,605 (10,180)
PROVISION (BENEFIT) FOR
INCOME TAXES 468 (2,284) 948 (2,684)
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 1,112 $ (4,579) $ 1,657 $ (7,496)
=========== =========== =========== ===========
PER SHARE DATA
Basic earnings
(loss) per share $ 0.09 $ (0.35) $ 0.13 $ (0.59)
=========== =========== =========== ===========
Diluted earnings
(loss) per share $ 0.08 $ (0.35) $ 0.13 $ (0.59)
=========== =========== =========== ===========
Average shares
outstanding 12,654 12,616 12,632 12,637
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited, In Thousands)
26 December 2009 27 December 2008
------------------ ------------------
ASSETS
Current assets $ 52,936 $ 72,576
Property, Plant & Equipment - net 21,493 20,209
Other assets 26,594 29,105
Goodwill 26,215 25,811
------------------ ------------------
Total $ 127,238 $ 147,701
================== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 43,248 $ 67,734
Other liabilities 1,226 1,177
Stockholders' equity 82,764 78,790
------------------ ------------------
Total $ 127,238 $ 147,701
================== ==================
Contact Information: Contact
Deborah J. Meinert
Vice President and CFO
812/467-4449
www.EscaladeInc.com