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Escalade, Inc.: Escalade Reports Profit for Second Quarter 2009

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  Published in House and Home on Thursday, August 6th 2009 at 6:44 GMT, Last Modified on 2009-08-06 06:44:31 by Market Wire
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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 ================ ================ ================