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| 8-K - FORM 8-K - ESCALADE INC | escalade_8k.htm |
EXHIBIT
99.1
PRESS
RELEASE
ESCALADE
REPORTS PROFIT FOR FOURTH QUARTER AND FULL YEAR 2009
Evansville,
IN (March 4, 2010) Escalade, Incorporated (NASDAQ: ESCA) announced that net
income for the year ended December 26, 2009 increased to $1.7 million or $0.13
per share compared to a net loss of $7.5 million or $0.59 loss per share for the
same period last year. Net income for the year includes a one-time benefit from
the sale of equity investments which resulted in a gain of $432 thousand. The
gain is a partial recovery of an asset impairment recorded in the prior year.
Without this one-time benefit, net income for the year would be $1.2 million or
$0.10 per share. Net revenue for the fourth quarter and fiscal year ended
December 26, 2009 declined 11.8% and 21.9%, respectively, compared to same
periods last year; however, the Company has improved gross margins year to date
to 29.1%, compared with 24.6% for the prior year. In addition, the Company has
reduced selling, administrative and general expenses by 26.1%, mainly due to
facility consolidation in the Sporting Goods segment and Company-wide cost
cutting measures implemented over the past year, which resulted in improved
Company profitability.
The
Company’s operating income for the fourth quarter and fiscal year ended December
26, 2009 was $0.6 million and $2.0 million, respectively, compared to operating
losses of $6.4 million and $8.1 million for the same periods last
year.
Sporting
Goods net revenues for the quarter and year ended December 26, 2009 were down
11.3% and 21.7%, respectively, compared with same periods last year. The
declines are reflective of the general slowdown in the economy and tightening of
credit availability which has slowed customer spending.
Office
Products experienced a similar decline in net revenue for the quarter and year
ended December 26, 2009 showing a decline of 13.0% and 22.6%, respectively,
compared with same periods last year. For the year, net revenue declined 21.8%
in the United States and 23.4% in Europe. Excluding the effect of changes in
foreign currency rates, year to date net revenue for the Office Products group
declined 19.5% compared with prior year.
The
Company anticipates net revenue to remain relatively stable for 2010 with slight
improvement to operating income resulting from increased efforts to reduce costs
and expand product offerings.
“We are
committed to build on our progress achieved in 2009 as we go forward,” said
Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. “Not
only are we dedicated to improving our operations through cost savings
initiatives, but we also are focused on developing and introducing a steady
stream of new products in each of our categories. For example, our all-new line
of bows from Bear Archery, including the top-of-the-line ‘Attack’ model, have
achieved strong marketplace acceptance and demonstrates our ability to deliver
cutting-edge technology and consumer value.”
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
|
Twelve
Months Ended
|
|||||||||||||||
|
26
December 2009
|
27
December 2008
|
26
December 2009
|
27
December 2008
|
|||||||||||||
|
NET
SALES
|
$ | 29,042 | $ | 32,927 | $ | 115,999 | $ | 148,686 | ||||||||
|
OPERATING
EXPENSES
|
||||||||||||||||
|
Cost
of goods sold
|
22,017 | 26,544 | 82,250 | 112,138 | ||||||||||||
|
Selling
and administrative
|
6,142 | 9,743 | 29,484 | 39,883 | ||||||||||||
|
Long-lived
asset impairment
|
— | 2,623 | — | 2,623 | ||||||||||||
|
Amortization
|
241 | 375 | 2,265 | 2,163 | ||||||||||||
|
OPERATING
INCOME (LOSS)
|
642 | (6,358 | ) | 2,000 | (8,121 | ) | ||||||||||
|
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
|
Interest
expense
|
(135 | ) | (325 | ) | (1,665 | ) | (2,025 | ) | ||||||||
|
Other
income (expense)
|
1,073 | (180 | ) | 2,270 | (34 | ) | ||||||||||
|
INCOME
(LOSS) BEFORE INCOME TAXES (BENEFIT)
|
1,580 | (6,863 | ) | 2,605 | (10,180 | ) | ||||||||||
|
PROVISION
(BENEFIT)FOR INCOME TAXES
|
468 | (2,284 | ) | 948 | (2,684 | ) | ||||||||||
|
NET
INCOME (LOSS)
|
$ | 1,112 | $ | (4,579 | ) | $ | 1,657 | $ | (7,496 | ) | ||||||
|
PER
SHARE DATA
|
||||||||||||||||
|
Basic
earnings (loss) per share
|
$ | 0.09 | $ | (0.35 | ) | $ | 0.13 | $ | (0.59 | ) | ||||||
|
Diluted
earnings (loss) per share
|
$ | 0.08 | $ | (0.35 | ) | $ | 0.13 | $ | (0.59 | ) | ||||||
|
Average
shares outstanding
|
12,654 | 12,616 | 12,632 | 12,637 | ||||||||||||
CONSOLIDATED
CONDENSED BALANCE SHEET
(Unaudited,
In Thousands)
|
26 December 2009
|
27 December 2008
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets
|
$ | 52,936 | $ | 72,576 | ||||
|
Property,
Plant & Equipment – net
|
21,493 | 20,209 | ||||||
|
Other
assets
|
26,594 | 29,105 | ||||||
|
Goodwill
|
26,215 | 25,811 | ||||||
|
Total
|
$ | 127,238 | $ | 147,701 | ||||
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current
liabilities
|
$ | 43,248 | $ | 67,734 | ||||
|
Other
liabilities
|
1,226 | 1,177 | ||||||
|
Stockholders’
equity
|
82,764 | 78,790 | ||||||
|
Total
|
$ | 127,238 | $ | 147,701 | ||||
2