Escalade Reports 141% Net Income Increase On 12% Revenue Growth In Second Quarter

PR Newswire

EVANSVILLE, Ind., Aug. 12, 2013 /PRNewswire/ -- Escalade, Incorporated (ESCA) announced that revenues for the second quarter of 2013 were up 12% over the same quarter in the prior year.  Year to date revenues have increased over 8% over the same period in the prior year.  The Company generated net income for the quarter of $2.6 million, or $0.19 basic and diluted earnings per share compared to net income of $1.1 million or $0.08 basic and diluted earnings per share for the same quarter in 2012.  For the first half of 2013, net income is $4.2 million or $0.31 basic and diluted earnings per share, while the first half of 2012 showed net income of $2.7 million with $0.20 basic and diluted earnings per share. 

Revenues from the Sporting Goods business were up 21% for the quarter and 18% for the first half of 2013, compared to the same periods in the prior year.  Management expects strong sales in the Sporting Goods segment for the remainder of the year.

Revenues from the Information Security and Print Finishing business decreased 15% and 18% for the second quarter and first half of 2013, respectively, compared to the same periods in the prior year. Excluding the effects of changes in the currency exchange rates, revenues decreased 16% and 18%, for the second quarter and first half of 2013, respectively.  Contributing to the decrease in revenue is a reduction in government spending in European countries along with increased competition globally in all major product lines.  The Information Security and Print Finishing segment represents 20% and 26% of year to date revenues for 2013 and 2012, respectively.    

"We experienced excellent results in the Sporting Goods segment, which generated a consolidated net income increase of 141% on 12% revenue growth for the second quarter," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc.  "Momentum continues to build with consumers and retailers in response to the innovation and performance delivered through our flagship brands.  Operational improvements and favorable product mix helped drive significant income growth."

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 812/467-1251.

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 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.

CONTACT:
Deborah Meinert
Vice President and CFO
812/467-1251

 

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


July 13,
2013


July 14,
2012


July 13,
2013


July 14,
2012


July 13,
2013


July 14,
2012













NET SALES

$   46,985


$   42,029


$  78,823


$  72,594


$ 153,818


$ 137,995













OPERATING  EXPENSES












Cost of goods sold

31,305


29,685


52,265


49,694


105,745


96,319

Selling and administrative

9,625


8,966


16,898


16,263


32,005


34,866

Goodwill intangible asset impairment charges

--


--


--


--


13,384


--

Amortization

718


689


1,275


1,206


2,315


1,993













OPERATING INCOME

5,337


2,689


8,385


5,431


369


4,817













OTHER INCOME (EXPENSE)












Interest expense

(253)


(192)


(420)


(346)


(676)


(627)

Other income

(26)


240


(64)


412


2,555


3,175

Equity method investment impairment

--


--


--


--


(382)


--













INCOME BEFORE INCOME TAXES

 

5,058


 

2,737


 

7,901


 

5,497


 

1,866


 

7,365













PROVISION FOR INCOME TAXES

2,440


1,650


3,659


2,834


5,216


2,949













NET INCOME

$     2,618


$     1,087


$    4,242


$    2,663


$   (3,350)


$     4,416













PER SHARE DATA












Basic earnings per share  

$       0.19


$       0.08


$     0.31


$     0.20


$    (0.25)


$      0.34

Diluted earnings per share

$       0.19


$       0.08


$     0.31


$     0.20


$    (0.25)


$      0.34

Average shares outstanding

13,484


13,260


13,468


13,103


13,440


12,997













 

CONSOLIDATED CONDENSED BALANCE SHEET

(In Thousands)






July 13, 2013

 December 29, 2012

July 14, 2012


(Unaudited)

(Audited)

(Unaudited)

ASSETS




Current assets

$  74,493

$   70,965

$  64,989

Property, plant & equipment – net

14,357

12,281

12,045

Other assets

28,558

30,477

26,926

Goodwill

12,017

12,017

24,806

Total

$ 129,425

$ 125,740

$ 128,766





LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities

$   39,580

$   38,309

$   34,105

Other liabilities

7,080

6,974

6,876

Stockholders' equity

82,765

80,457

87,785

Total

$ 129,425

$ 125,740

$ 128,766

 

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