Escalade Reports Net Income Up 55% in First Quarter and Sales Growth of 21%
EVANSVILLE, Ind., April 20, 2015 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) announced that net income from continuing operations for the first quarter of 2015 was $3.5 million, or $0.25 diluted earnings per share compared to net income from continuing operations of $2.3 million or $0.16 diluted earnings per share for the same quarter in 2014. Net sales from continuing operations for the first quarter of 2015 were $33.4 million, or 21% higher compared to net sales from continuing operations of $27.7 million for the same quarter in 2014.
Gross margin ratio from continuing operations for the first quarter of 2015 was essentially unchanged from the same quarter in 2014 in spite of increased research and development spending on new products. Selling, general and administrative expenses (SG&A) were $5.9 million for the first quarter of 2015 compared to $5.1 million for the same period in 2014, an increase of $799 thousand or 16%. The increase in SG&A is primarily due to increased marketing efforts in new categories acquired during 2014 as well as in new products to be introduced in the future.
The Company is focused on growing its Sporting Goods business through organic growth of existing categories, strategic acquisitions, and new category development. The Company competes in a variety of categories including archery, team and individual sports and games. Strong brands and on-going investment in product development provide a solid foundation for building customer loyalty and continued growth.
"We are pleased with achieving an increase of 55% in net income and sales growth of 21%," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. "We are experiencing favorable retail sell-through trends and broad acceptance of our new product introductions. To achieve sustained growth in our markets, we will continue to make strategic investments in product line expansion and new category entry."
Escalade is a leading manufacturer and marketer of sporting goods products sold worldwide. To obtain more information on the Company and its products, visit our website at: www.EscaladeInc.com or contact Patrick Griffin, Vice President of Corporate Development & Investor Relations 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, new product development, Escalade's ability to achieve its business objectives, especially with respect to its Sporting Goods business on which it has chosen to focus, Escalade's ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and the divestiture of its Information Security and Print Finishing segment, the continuation and development of key customer and supplier relationships, disruptions or delays in our supply chain, 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 Statement of Operations
(Unaudited, In Thousands Except Per Share Data)
Three Months Ended | Twelve Months Ended | ||||||
March 21, | March 22, | March 21, 2015 | March 22, 2014 | ||||
Net sales | $ 33,419 | $ 27,721 | $ 143,674 | $ 135,447 | |||
Costs, Expenses and Other Income | |||||||
Cost of products sold | 22,585 | 18,713 | 100,785 | 94,994 | |||
Selling, administrative and general expenses | 5,914 | 5,115 | 23,736 | 22,052 | |||
Amortization | 633 | 571 | 2,683 | 2,395 | |||
Operating Income | 4,287 | 3,322 | 16,470 | 16,006 | |||
Interest expense | 101 | 87 | 461 | 396 | |||
Other expense (income) | (733) | (189) | (5,271) | (3,162) | |||
Income Before Income Taxes from Continuing Operations | 4,919 | 3,424 | 21,280 | 18,772 | |||
Provision for Income Taxes from Continuing Operations | 1,422 | 1,159 | 6,701 | 6,153 | |||
Net Income from Continuing Operations | 3,497 | 2,265 | 14,579 | 12,619 | |||
Discontinued Operations | |||||||
Income (loss) from operations | -- | 143 | (754) | (1,361) | |||
Loss on classification as held for sale | -- | -- | (12,945) | -- | |||
Gain on disposal (includes $2,565 of accumulated other comprehensive income reclassification from foreign currency translation adjustment) | -- | -- | 5,929 | -- | |||
Provision (benefit) for Income Taxes | -- | 157 | (6,256) | 827 | |||
Net Loss from Discontinued Operations | -- | (14) | (1,514) | (2,188) | |||
Net Income | $ 3,497 | $ 2,251 | $ 13,065 | $ 10,431 | |||
Basic Earnings Per Share Data: | |||||||
Income from continuing operations | $ 0.25 | $ 0.16 | $ 1.05 | $ 0.93 | |||
Loss from discontinued operations | 0.00 | 0.00 | (0.11) | (0.16) | |||
Net Income | $ 0.25 | $ 0.16 | $ 0.94 | $ 0.77 | |||
Diluted Earnings Per Share Data: | |||||||
Income from continuing operations | $ 0.25 | $ 0.16 | $ 1.03 | $ 0.92 | |||
Loss from discontinued operations | 0.00 | 0.00 | (0.11) | (0.16) | |||
Net Income | $ 0.25 | $ 0.16 | $ 0.92 | $ 0.76 | |||
Average shares outstanding | 14,015 | 13,686 | 13,929 | 13,561 | |||
Consolidated Condensed Balance Sheets
(Unaudited, In Thousands)
March 21, 2015 | December 27, 2014 | March 22, 2014 | |||
Assets | |||||
Current assets excluding assets held for sale | $ 67,820 | $ 68,851 | $ 57,034 | ||
Property, plant & equipment, net | 11,592 | 11,596 | 10,487 | ||
Other assets | 30,579 | 32,559 | 30,552 | ||
Goodwill | 14,875 | 14,875 | 13,113 | ||
Assets held for sale | -- | -- | 22,433 | ||
Total | $ 124,866 | $ 127,881 | $ 133,619 | ||
Liabilities and Stockholders' Equity | |||||
Current liabilities excluding liabilities held for sale | $ 28,694 | $ 31,746 | $ 27,167 | ||
Other liabilities | 5,957 | 6,356 | 9,944 | ||
Liabilities held for sale | -- | -- | 6,432 | ||
Stockholders' equity | 90,215 | 89,779 | 90,076 | ||
Total | $ 124,866 | $ 127,881 | $ 133,619 |
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SOURCE Escalade, Inc.
