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
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...