SOURCE: Escalade, Inc.

Escalade, Inc.

August 06, 2009 09:30 ET

Escalade Reports Profit for Second Quarter 2009

EVANSVILLE, IN--(Marketwire - August 6, 2009) - Escalade, Incorporated (NASDAQ: ESCA) announced that net income for the second quarter of 2009 increased to $366 thousand or $0.03 per share compared to a net loss of $(704) thousand or $(0.06) loss per share for the same quarter last year. Net sales for the second quarter and first half of fiscal 2009 declined 22.2% and 19.2%, respectively, compared to same periods last year. For the first half of 2009, the Company has improved gross margins by 330 basis points and reduced selling, administrative and general expenses by 22%, mainly due to facility consolidation in the Sporting Goods segment and Company-wide cost cutting measures implemented last year, resulting in improved Company profitability.

Sporting Goods net sales declined 19.8% and 16.6% in the second quarter and first half of fiscal 2009 respectively, compared to the same periods last year. Based on the first half year results and product placement information, the Company expects Sporting Goods sales to be approximately 20% lower in 2009 compared to 2008. The Company is continuing to identify and implement cost saving initiatives and product design enhancements to expand market share and improve Company profits.

Compared to last year, Office Products sales declined 26.3% and 23.4% for the second quarter and first half of fiscal 2009, respectively. Sales declined 21.8% in the United States and 24.8% in Europe for the first half of 2009. The Company expects sales declines for the remainder of 2009 to be relatively unchanged from the decline experienced in the first half of fiscal 2009.

"Although we continue to experience challenging conditions in the retail market, we are pleased to deliver improved earnings and cash flow during the second quarter," said Robert J. Keller, President and Chief Executive Office of Escalade, Inc. "Our aggressive cost savings initiatives, including facility consolidation and operational streamlining, have resulted in improved gross margins and lower SG&A expenses. Our focus on working capital management has generated significant improvements in cash flow through the first half of 2009. In addition to streamlining our operation and reducing inventory levels, we are diligently focused on building our core brands through strategic marketing investments, innovative new products, and increased product distribution."

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   Six Months Ended   Twelve Months Ended
                ------------------  ------------------  ------------------
                11 July   12 July   11 July   12 July   11 July   12 July
                  2009      2008      2009      2008      2009      2008
                --------  --------  --------  --------  --------  --------
NET SALES       $ 35,641  $ 45,796  $ 60,599  $ 74,962  $134,323  $176,541

OPERATING
 EXPENSES
  Cost of goods
   sold           24,579    33,275    41,675    54,018    99,795   129,496
  Selling and
   administrative  8,748    12,578    16,771    21,620    35,034    39,069
  Long-lived
   asset
   impairment         --        --        --        --     2,623
                --------  --------  --------  --------
  Amortization       940       732     1,407     1,169     2,174     2,380
                --------  --------  --------  --------  --------  --------

OPERATING
 INCOME (LOSS)     1,374      (789)      746    (1,845)   (5,303)    5,596

OTHER INCOME
 (EXPENSE)
  Interest
   expense          (658)     (660)     (900)   (1,147)   (1,778)   (2,515)
  Other income
   (expense)          47        43       231       205      (235)    3,342
                --------  --------  --------  --------  --------  --------

INCOME (LOSS)
 BEFORE INCOME
 TAXES               763    (1,406)       77    (2,787)   (7,316)    6,423

PROVISION FOR
 INCOME TAXES        397       702       150     1,235    (1,299)   (2,252)
                --------  --------  --------  --------  --------  --------

NET INCOME
 (LOSS)         $    366  $   (704) $    (73) $ (1,552) $ (6,017) $  4,171
                ========  ========  ========  ========  ========  ========

PER SHARE DATA
  Basic
   earnings
   (loss) per
   share        $   0.03  $  (0.06) $  (0.01) $  (0.12) $  (0.48) $   0.33
                ========  ========  ========  ========  ========  ========
  Diluted
   earnings
   (loss) per
   share        $   0.03  $  (0.06) $  (0.01) $  (0.12) $  (0.46) $   0.33
                ========  ========  ========  ========  ========  ========
  Average
   shares
   outstanding    12,624    12,635    12,620    12,656    12,618    12,713





                   CONSOLIDATED CONDENSED BALANCE SHEET

                        (Unaudited, In Thousands)

                           11 July 2009     12 July 2008   27 December 2008
                         ---------------- ---------------- ----------------
ASSETS
  Current assets         $         65,591 $         83,237 $         72,576
  Property, Plant &
   Equipment - net                 19,488           23,719           20,209
  Other assets                     28,764           33,846           29,105
  Goodwill                         25,750           26,772           25,811
                         ---------------- ---------------- ----------------
    Total                $        139,593 $        167,574 $        147,701
                         ================ ================ ================

LIABILITIES AND
 STOCKHOLDERS’ EQUITY
  Current liabilities    $         57,954 $         75,228 $         67,734
  Other liabilities                 1,236            4,572            1,177
  Stockholders’ equity             80,403           87,774           78,790
                         ---------------- ---------------- ----------------
    Total                $        139,593 $        167,574 $        147,701
                         ================ ================ ================

Contact Information

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