Escalade Reports Fourth Quarter 2016 Results
PR Newswire
- Fourth quarter sales of $45.8 million, up 5% from prior year
- Diluted earnings per share of $0.24, up 20% from prior year
- Increased the quarterly dividend to $0.115 per share, up 5% from prior quarter

EVANSVILLE, Ind., Feb. 23, 2017 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) announced that net sales for the fourth quarter of 2016 were $45.8 million, or 5% higher compared to net sales of $43.7 million for the same quarter in 2015. Acquisitions completed in 2016 as well as new product offerings introduced into the market during 2016 are the primary drivers for the increase in sales. Continued softness within the archery category partially offset these increases.

Gross margin ratio for the fourth quarter of 2016 decreased slightly to 22% from 23% for the same period in 2015. 

Selling, general and administrative expenses (SG&A) were $6.1 million for the quarter compared to $6.8 million for the same period in 2015, a decrease of $0.7 million. As a percentage of sales, SG&A for the fourth quarter of 2016 have decreased to 13% from 15% reported for the same period in 2015.

Net income for the fourth quarter of 2016 was $3.5 million, or $0.24 diluted earnings per share compared to net income of $2.9 million or $0.20 diluted earnings per share for the same quarter in 2015.

The Company announced an increase in its current quarterly dividend from $0.11 to $0.115 per share that would be paid to all shareholders of record on March 13, 2017 and disbursed on March 20, 2017.

"Revenue growth of 8% in a year that had challenges, including retail bankruptcies and a continuation of a soft archery category, was more than offset with on-line sales growth and market share gains in the basketball category," stated Dave Fetherman, President and Chief Executive Officer of Escalade, Inc. "We see those challenges continuing through the first quarter of 2017, yet remain confident of continued revenue growth from internally developed products and as we look for accretive acquisitions. Based on 2016 operating results, we are pleased to increase the current quarterly dividend to $0.115 per share."

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 812/467-1358.

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 of divestitures of non-core assets and businesses, 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 Statements of Operations

(Unaudited, In Thousands Except Per Share Data)



Three Months Ended


Twelve Months Ended

All Amounts in Thousands Except Per Share Data

December
31, 2016


December 
26, 2015


December
31, 2016


December 
26, 2015









Net sales

$ 45,826


$ 43,744


$ 167,650


$ 155,542









Costs and Expenses








Cost of products sold

35,590


33,732


123,383


112,068

Selling, administrative and general expenses

6,101


6,757


27,357


27,775

Amortization

364


754


2,327


2,881









Operating Income

3,771


2,501


14,583


12,818









Other Income (Expense)








Interest expense

(203)


(130)


(834)


(470)

Equity in earnings of affiliates

923


913


1,672


2,993

Other income (expense)

(47)


57


121


333









Income Before Income Taxes

4,444


3,341


15,542


15,674









Provision for Income Taxes

981


482


4,049


4,068









Net Income

$ 3,463


$ 2,859


$ 11,493


$ 11,606









Earnings Per Share Data:








Basic earnings per share

$  0.24


$  0.20


$  0.81


$  0.82

Diluted earnings per share

$  0.24


$  0.20


$  0.80


$  0.82









Dividends declared

$  0.11


$  0.11


$  0.44


$  0.43









 

 

Consolidated Condensed Balance Sheets

(Unaudited, In Thousands)


All Amounts in Thousands Except Share Information


December 31,

2016


December 26,

2015






ASSETS





Current Assets:





Cash and cash equivalents


$   1,013


$   1,982

Receivables, less allowances of $910 and $1,086


35,894


38,984

Inventories


33,802


25,862

Prepaid expenses


2,798


2,494

Deferred income tax benefit


1,283


1,543

Prepaid income tax


833


1,910

TOTAL CURRENT ASSETS


75,623


72,775






Property, plant and equipment, net


13,714


14,363

Intangible assets


20,857


16,868

Goodwill


21,456


20,047

Investments


19,030


19,644

Other assets


81


40

TOTAL ASSETS


$150,761


$143,737






LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities:





Current portion of long-term debt


$    1,250


$    1,810

Trade accounts payable


4,376


2,547

Accrued liabilities


12,792


14,174

TOTAL CURRENT LIABILITIES


18,418


18,531






Long-term debt


24,189


21,526

Deferred income tax liability


6,441


7,200

TOTAL LIABILITIES


49,048


47,257






Commitments and contingencies


--


--






Stockholders' equity:





Preferred stock





Authorized:  1,000,000 shares, no par value, none issued





Common stock





Authorized:  30,000,000 shares, no par value





Issued and outstanding: 2016 —14,304,959 shares, 2015 —14,179,844 shares


14,305


14,180

Retained earnings


91,688


85,478

Accumulated other comprehensive loss


(4,280)


(3,178)

TOTAL STOCKHOLDERS' EQUITY


101,713


96,480

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$150,761


$143,737

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/escalade-reports-fourth-quarter-2016-results-300412129.html

SOURCE Escalade, Incorporated

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