Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ESCALADE INC | escalade_8k.htm |
EXHIBIT 99.1
PRESS RELEASE
ESCALADE REPORTS 9% INCREASE IN FIRST QUARTER REVENUE
Evansville, IN (April 23, 2012) Escalade, Incorporated (NASDAQ: ESCA) announced that net income for the first quarter of 2012 was $1.6 million, or $0.12 basic and diluted earnings per share compared to net income of $1.2 million or $0.09 basic and diluted earnings per share for the same quarter in 2011. Net revenues for the first quarter of 2012 were 9% higher than the same quarter last year. The Company continues to focus on product innovation and brand marketing to drive product demand.
In the Sporting Goods segment, net revenue increased 15.8% in the first quarter of 2012 compared to the same quarter in 2011. An overall increase in consumer spending and demand for the Company’s products was further aided by mild weather in parts of the U.S. which helped jump start sales in the basketball and playground categories. Management believes improved sales in the Sporting Goods segment will continue through the remainder of the year; however, the improvement may be less than that experienced in the first quarter.
Net revenue in the Information Security and Print Finishing segment decreased 5.2% in the first quarter 2012 compared to the same quarter in 2011. The decrease in sales is the result of the timing of certain shipments made in the first quarter of the prior year that were not repeated this year. The Company expects revenues for the remainder of the year to equal or exceed prior year.
“Growing demand for our product line, favorable weather and improved consumer spending trends have all contributed to excellent results for the first quarter,” stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. “Our consumers are embracing the investments we are making in product innovation and brand marketing, resulting in new product placement and increased sell-through at retail.”
Escalade is a leading manufacturer and marketer of sporting goods and information security and print finishing 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 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 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.
| 3 |
ESCALADE, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited, In Thousands Except Per Share Amounts)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| 24 March 2012 | 19 March 2011 | 24 March 2012 | 19 March 2011 | |||||||||||||
| NET SALES | $ | 30,565 | $ | 27,998 | $ | 136,817 | $ | 123,485 | ||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Cost of goods sold | 20,009 | 17,873 | 94,676 | 84,731 | ||||||||||||
| Selling and administrative | 7,297 | 7,741 | 35,499 | 28,584 | ||||||||||||
| Amortization | 517 | 317 | 1,796 | 1,322 | ||||||||||||
| OPERATING INCOME | 2,742 | 2,067 | 4,846 | 8,848 | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest expense | (154 | ) | (184 | ) | (663 | ) | (987 | ) | ||||||||
| Other income | 172 | 122 | 3,448 | 1,912 | ||||||||||||
| INCOME BEFORE INCOME TAXES | 2,760 | 2,005 | 7,631 | 9,773 | ||||||||||||
| PROVISION FOR INCOME TAXES | 1,184 | 802 | 2,817 | 3,313 | ||||||||||||
| NET INCOME | $ | 1,576 | $ | 1,203 | $ | 4,814 | $ | 6,460 | ||||||||
| PER SHARE DATA | ||||||||||||||||
| Basic earnings per share | $ | 0.12 | $ | 0.09 | $ | 0.37 | $ | 0.51 | ||||||||
| Diluted earnings per share | $ | 0.12 | $ | 0.09 | $ | 0.36 | $ | 0.48 | ||||||||
| Average shares outstanding | 12,894 | 12,804 | 12,870 | 12,754 | ||||||||||||
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited, In Thousands)
| 24 March 2012 | 31 December 2011 | 19 March 2011 | ||||||||||
| ASSETS | ||||||||||||
| Current assets | $ | 65,004 | $ | 64,146 | $ | 59,224 | ||||||
| Property, plant & equipment – net | 12,060 | 11,915 | 19,675 | |||||||||
| Other assets | 28,725 | 28,769 | 28,076 | |||||||||
| Goodwill | 25,468 | 25,285 | 26,024 | |||||||||
| Total | $ | 131,257 | $ | 130,115 | $ | 132,999 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | $ | 34,370 | $ | 34,650 | $ | 33,616 | ||||||
| Other liabilities | 7,885 | 7,900 | 9,105 | |||||||||
| Stockholders’ equity | 89,002 | 87,565 | 90,278 | |||||||||
| Total | $ | 131,257 | $ | 130,115 | $ | 132,999 |
4