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
================ ================ ================
Contact Information: Contact
Deborah J. Meinert
Vice President and CFO
812/467-4449