ESCALADE, INCORPORATED 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
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All Amounts in Thousands Except Per Share Data December December December December
31, 2016 26, 2015 31, 2016 26, 2015
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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
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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, December 26,
2016 2015
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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
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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
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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)
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TOTAL STOCKHOLDERS' EQUITY 101,713 96,480
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $150,761 $143,737
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SOURCE Escalade, Incorporated
