Welcome!

News Feed Item

Escalade Announces Sporting Goods Focus, Dividend Increase And Second Quarter Earnings

EVANSVILLE, Ind., Aug. 25, 2014 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) today announced that its Board of Directors has unanimously approved a plan to focus the Company on the Sporting Goods segment.  The Company conducted a careful evaluation of each business unit with the objective of increasing shareholder value and redeploying capital where possible. The resulting plan includes the Company's intent to sell the Information Security business.  The decision to divest the Information Security business, coupled with the previously announced sale of its Print Finishing business on June 30, 2014, will represent the Company's complete exit from the Information Security and Print Finishing segment.  Timing for the divesture of the Information Security business will be determined by market conditions, but is expected to be completed within one year.  Escalade believes its focus on the Sporting Goods segment will facilitate better deployment of Company resources, increased market leadership and greater returns for shareholders.

Escalade, Inc.

Following this decision, Escalade's Board of Directors increased the quarterly dividend on the Company's common stock from $0.09 per share to $0.10, to be paid to all shareholders of record on September 14, 2014 and disbursed on September 21, 2014.  Escalade's Board of Directors will evaluate its dividend policy on an ongoing basis, giving careful consideration to the Company's financial condition, outlook, and potential cash flow requirements. 

As a result of the decision to exit the Information Security business, effective as of the quarter ended July 12, 2014, the Company incurred an impairment of certain assets totaling $12.9 million.  Net loss for the second quarter of 2014 was $8.1 million, or $(0.57) diluted earnings per share compared to net income of $2.6 million or $0.19 diluted earnings per share for the same quarter in 2013.  Operating income from Continuing Operations for the quarter was $3.9 million compared with $6.0 million for the same quarter in 2013, a 35% decline.  The decline in operating profits is primarily driven by a lower sales volume and an unfavorable product mix in certain Sporting Goods categories, coupled with increased product research and development investments for which the benefit will be realized in future quarters. 

Revenue from the Sporting Goods business was flat for the second quarter of 2014 and up 4% for the first half of 2014, compared with the same periods in 2013.   During the first half of 2013, the Company realized exceptional sales growth in certain categories that was not matched during the first half of 2014.  The Company expects improved sales growth for the remainder of the year.

The Sporting Goods gross margin ratio for the first half of 2014 was 31.3% compared to 33.6% for the same period in 2013.  Decreased gross margin resulted from lower sales in certain higher margin categories and increased product research and development investments.

"We are excited to announce Escalade's clear strategic vision for the Sporting Goods segment," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc.  "We are a team of sports and outdoor enthusiasts with a passion for innovation and a close connection to our brands and the active lifestyles they inspire. We look forward to building Escalade into a premier Sports and Outdoors company that will play an important leadership role in the $27 billion Sporting Goods equipment industry.  Strong cash flow from profits in the Sporting Goods segment and proceeds from the sale of the Print Finishing business allowed the Company to reduce its debt by more than 50% thus far in 2014.  As a result, the Company is pleased to increase its quarterly dividend."

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 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 achieve its business objectives, especially with respect to its Sporting Goods business on which is 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 the anticipated sale of its Information Security business, 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 Statement of Operations

(Unaudited, In Thousands Except Per Share Data)



Three Months Ended


Twelve Months Ended

All Amounts in Thousands Except Per Share Data

July 12,
2014


July 13,
2013


July 12,
2014


July 13,
2013









Net sales

$38,012


$38,003


$135,456


$122,222









Costs, Expenses and Other Income








Cost of products sold

26,445


25,299


96,140


84,529

Selling, administrative and general expenses

6,879


5,980


22,951


19,817

Amortization

756


717


2,433


2,264









Operating Income

3,932


6,007


13,932


15,612









Interest expense

104


139


362


277

Other expense (income)

(213)


27


(3,400)


(2,551)

Equity method investment impairment

--


--


--


382









Income Before Income Taxes from continuing operations

4,041


5,841


16,970


17,504









Provision for Income Taxes from continuing operations

1,274


1,990


5,337


4,428









Net Income from continuing operations

2,767


3,851


11,633


13,076









Discontinuing operations








Loss from operations

(159)


(783)


(734)


(15,638)

Loss on classification as held for sale

(12,945)


--


(12,945)


--

Gain on disposal

547


--


547


--

Provision (Benefit) for Income Taxes

(1,706)


450


(1,226)


787

Net Loss from discontinuing operations

(10,851)


(1,233)


(11,906)


(16,425)









Net Income (Loss)

$ (8,084)


$ 2,618


$ (273)


$ (3,349)









Basic Earnings Per Share Data:








Income from continuing operations

$  0.20


$  0.29


$  0.85


$  0.97

Loss from discontinued operations

(0.78)


(0.09)


(0.87)


(1.22)

Net Income (Loss)

$  (0.58)


$  0.19


$  (0.02)


$  (0.25)









Diluted Earnings Per Share Data:








Income from continuing operations

$  0.20


$  0.28


$  0.84


$  0.97

Loss from discontinued operations

(0.77)


(0.09)


(0.86)


(1.21)

Net Income (Loss)

$  (0.57)


$  0.19


$  (0.02)


$  (0.25)









Average shares outstanding

13,867


13,484


13,679


13,440

 

 

Consolidated Condensed Balance Sheets

(In Thousands)



July 12,
2014
(Unaudited)


December 28,
2013
(Audited)


July 13,
2013
(Unaudited)

Assets






Current assets excluding assets held for sale

$  63,115


$  64,655


$  55,911

Property, plant & equipment, net

10,563


10,635


9,959

Other assets

28,080


30,540


26,535

Goodwill

13,242


13,113


12,017

Assets held for sale

4,348


23,031


25,003

Total

$ 119,348


$ 141,974


$ 129,425







Liabilities and Stockholders' Equity





Current liabilities excluding liabilities  held for sale

$   24,551


$   36,839


$   32,901

Other liabilities

9,214


10,340


7,080

Liabilities  held for sale

5,130


6,840


6,679

Stockholders' equity

80,453


87,955


82,765

Total

$ 119,348


$ 141,974


$ 129,425

 

Logo - http://photos.prnewswire.com/prnh/20130830/MM72120LOGO

SOURCE Escalade, Incorporated

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Cloud-based disaster recovery is critical to any production environment and is a high priority for many enterprise organizations today. Nearly 40% of organizations have had to execute their BCDR plan due to a service disruption in the past two years. Zerto on IBM Cloud offer VMware and Microsoft customers simple, automated recovery of on-premise VMware and Microsoft workloads to IBM Cloud data centers.
Why Federal cloud? What is in Federal Clouds and integrations? This session will identify the process and the FedRAMP initiative. But is it sufficient? What is the remedy for keeping abreast of cutting-edge technology? In his session at 21st Cloud Expo, Rasananda Behera will examine the proposed solutions: Private or public or hybrid cloud Responsible governing bodies How can we accomplish?
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
The last two years has seen discussions about cloud computing evolve from the public / private / hybrid split to the reality that most enterprises will be creating a complex, multi-cloud strategy. Companies are wary of committing all of their resources to a single cloud, and instead are choosing to spread the risk – and the benefits – of cloud computing across multiple providers and internal infrastructures, as they follow their business needs. Will this approach be successful? How large is the ...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Many organizations adopt DevOps to reduce cycle times and deliver software faster; some take on DevOps to drive higher quality and better end-user experience; others look to DevOps for a clearer line-of-sight to customers to drive better business impacts. In truth, these three foundations go together. In this power panel at @DevOpsSummit 21st Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, industry experts will discuss how leading organizations build application success from all...
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.