Escalade Reports 9% Increase in First Quarter Revenue

Marketwired

EVANSVILLE, IN--(Marketwire -04/23/12)- Escalade, Incorporated (NASDAQ: ESCA - News) announced that net income for the first quarter of 2012 was $1.6 million, or $0.12 basic and diluted earnings per share compared to net income of $1.2 million or $0.09 basic and diluted earnings per share for the same quarter in 2011. Net revenues for the first quarter of 2012 were 9% higher than the same quarter last year. The Company continues to focus on product innovation and brand marketing to drive product demand.

In the Sporting Goods segment, net revenue increased 15.8% in the first quarter of 2012 compared to the same quarter in 2011. An overall increase in consumer spending and demand for the Company's products was further aided by mild weather in parts of the U.S. which helped jump start sales in the basketball and playground categories. Management believes improved sales in the Sporting Goods segment will continue through the remainder of the year; however, the improvement may be less than that experienced in the first quarter.

Net revenue in the Information Security and Print Finishing segment decreased 5.2% in the first quarter 2012 compared to the same quarter in 2011. The decrease in sales is the result of the timing of certain shipments made in the first quarter of the prior year that were not repeated this year. The Company expects revenues for the remainder of the year to equal or exceed prior year.

"Growing demand for our product line, favorable weather and improved consumer spending trends have all contributed to excellent results for the first quarter," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. "Our consumers are embracing the investments we are making in product innovation and brand marketing, resulting in new product placement and increased sell-through at retail."

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 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 STATEMENTS OF OPERATIONS
             (Unaudited, In Thousands Except Per Share Amounts)

                                  Three Months Ended   Twelve Months Ended
                                --------------------- ---------------------
                                 24 March   19 March   24 March   19 March
                                   2012       2011       2012       2011
                                ---------- ---------- ---------- ----------

NET SALES                       $   30,565 $   27,998 $  136,817 $  123,485

OPERATING EXPENSES
  Cost of goods sold                20,009     17,873     94,676     84,731
  Selling and administrative         7,297      7,741     35,499     28,584
  Amortization                         517        317      1,796      1,322
                                ---------- ---------- ---------- ----------

OPERATING INCOME                     2,742      2,067      4,846      8,848

OTHER INCOME (EXPENSE)
  Interest expense                    (154)      (184)      (663)      (987)
  Other income                         172        122      3,448      1,912
                                ---------- ---------- ---------- ----------

INCOME BEFORE INCOME TAXES           2,760      2,005      7,631      9,773

PROVISION FOR INCOME TAXES           1,184        802      2,817      3,313
                                ---------- ---------- ---------- ----------

NET INCOME                      $    1,576 $    1,203 $    4,814 $    6,460
                                ========== ========== ========== ==========

PER SHARE DATA
  Basic earnings per share      $     0.12 $     0.09 $     0.37 $     0.51
                                ========== ========== ========== ==========
  Diluted earnings per share    $     0.12 $     0.09 $     0.36 $     0.48
                                ========== ========== ========== ==========
  Average shares outstanding        12,894     12,804     12,870     12,754






                    CONSOLIDATED CONDENSED BALANCE SHEET
                          (Unaudited, In Thousands)

                                           24 March  31 December   19 March
                                             2012        2011        2011
                                         ----------- ----------- -----------
ASSETS
  Current assets                         $    65,004 $    64,146 $    59,224
  Property, plant & equipment - net           12,060      11,915      19,675
  Other assets                                28,725      28,769      28,076
  Goodwill                                    25,468      25,285      26,024
                                         ----------- ----------- -----------
    Total                                $   131,257 $   130,115 $   132,999
                                         =========== =========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities                    $    34,370 $    34,650 $    33,616
  Other liabilities                            7,885       7,900       9,105
  Stockholders' equity                        89,002      87,565      90,278
                                         ----------- ----------- -----------
    Total                                $   131,257 $   130,115 $   132,999
                                         =========== =========== ===========



Contact:

Deborah Meinert
Vice President and CFO
812/467-4449

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