• Escalade Reports Fourth Quarter 2021 Results

    来源: Nasdaq GlobeNewswire / 17 2月 2022 05:00:00   America/New_York

    Highlights

    • Revenue of $73.4 million vs. $74.8 million in Q4 2020 and $47.0 million in Q4 2019
    • Gross margin declined 170 basis points to 22.2% vs. 23.9% in Q4 2020
    • Operating income of $6.4 million vs. $6.9 million in Q4 2020 and $3.5 million in Q4 2019
    • Quarterly Diluted EPS of $0.36 per share vs. $0.36 in Q4 2020 and $0.18 in Q4 2019
    • Full year Diluted EPS of $1.76 per share vs. $1.82 in 2020 and $0.50 in 2019

    EVANSVILLE, Ind., Feb. 17, 2022 (GLOBE NEWSWIRE) -- Escalade, Incorporated (NASDAQ: ESCA) – today announced its fourth quarter results for 2021, ended December 25, 2021. The Company posted quarterly revenue of $73.4 million, a decrease of 1.8% over prior year. Quarterly diluted earnings per share were $0.36, which is flat vs. Q4 2020, and an increase of 100% vs. Q4 2019.

    Three Year Quarterly Comparison

     Three Months Ended
    All Amounts in ThousandsDecember 25, 2021 December 26, 2020 December 28, 2019
          
    Net sales$73,444  $74,767  $47,044 
    Cost of products sold 57,127   56,911   36,159 
    Gross Profit 16,317   17,856   10,885 
      22.2%  23.9%  23.1%
          
    Operating Income 6,409   6,921   3,511 
          
    Net Income 4,871   5,087   2,575 
          
    Diluted earnings per share$0.36  $0.36  $0.18 
          
    Average Shares Outstanding 13,611   14,176   14,288 

    “Our fourth quarter sales decline of 1.8% reflects supply chain challenges rather than a softening of demand for our portfolio of brands,” said Walter P. Glazer, Jr., President and CEO of Escalade, Inc. “Demand was particularly strong in archery and pickleball driven by category growth and market share gains. Indoor game sales were hampered by a shortage of timely supply. Once again, higher supply chain, raw material, and inventory carrying costs squeezed gross margins. While net income declined 4.2%, EPS was flat due to a lower share base.”

    “For the full year, sales increased 14.6% vs. 2020 and 73.7% vs. 2019. Net income declined 5.9% vs. 2020 and increased 236.2% vs. 2019,” continued Glazer. “Diluted EPS for the year was $1.76 vs. $1.82, a decline of 3.3%. Given the extraordinary challenges with the supply chain, inflation, and labor shortages, our teams did an outstanding job delivering fun and innovative products to our retail partners and consumers. While we expect continued cost pressures and challenging supply chain conditions in the foreseeable future, we continue to invest and innovate for the long term. Our recent acquisition of Brunswick Billiards® is the latest example of our strategy to invest in leading brands that complement and enhance our existing businesses. We expect Brunswick Billiards® to be accretive to earnings in the latter half of 2022.”

    Fourth Quarter Results

    Net sales for the fourth quarter of 2021 were $73.4 million compared to net sales of $74.8 million for the same quarter in 2020, a decrease of $1.3 million or 1.8%.

    Gross margin for the fourth quarter of 2021 was 22.2%, compared to 23.9% for the same period in the prior year. Gross profit for the fourth quarter of 2021 was $16.3 million compared to gross profit of $17.9 million for the same quarter in 2020.

    Selling, general and administrative expenses (SG&A) were $9.5 million for the quarter compared to $10.5 million for the same period in the prior year, a decrease of $1.0 million or 10.3%. SG&A, as a percent of sales, for the fourth quarter of 2021 decreased to 12.9% from 14.1% reported for the same period prior year.

    Operating income for the fourth quarter of 2021 was $6.4 million compared to operating income of $6.9 million for the same period in the prior year.

    Net income for the fourth quarter of 2021 was $4.9 million, or $0.36 diluted earnings per share compared to net income of $5.1 million, or $0.36 diluted earnings per share for the same quarter in 2020.

    The Company announced a quarterly dividend of $0.15 per share to be paid to all shareholders of record on March 14, 2022 and disbursed on March 21, 2022.

    Full Year Results

    Full year net sales for 2021 were $313.6 million compared to $273.6 million in 2020, an increase of $40.0 million, or 14.6%.

    Gross margin for full year 2021 decreased to 24.6% from 27.3%. Margins were unfavorably impacted by raw material costs, currency exchange rates, inventory handling costs, and higher transportation costs. Gross profit for 2021 was $77.1 million compared to gross profit of $74.8 million in 2020, an increase of $2.3 million, or 3.1%.

    SG&A expenses for full year 2021 were $43.4 million compared to $40.3 million in 2020, an increase of $3.1 million, or 7.6%. As a percent of sales, SG&A decreased to 13.8% from 14.7% in 2020.

    Operating income for full year 2021 was $31.9 million compared to $33.0 million in 2020, a decrease of $1.1 million, or 3.4%.

    Full year net income for 2021 was $24.4 million, or $1.76 diluted earnings per share compared to net income of $25.9 million, or $1.82 diluted earnings per share for 2020.

    ABOUT ESCALADE, INC
    Founded in 1922, and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods, fitness, and indoor/outdoor recreation equipment. Our mission is to connect family and friends creating lasting memories. Leaders in our respective categories, Escalade’s brands include Bear® Archery; STIGA® table tennis; Accudart®; RAVE Sports®; Victory Tailgate®; Onix® Pickleball; Goalrilla™; Lifeline® fitness products; Woodplay®; American Heritage Billiards®. Escalade’s products are available online and at leading retailers nationwide. For more information about Escalade’s many brands, history, financials, and governance please visit 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: specific and overall impacts of the COVID-19 global pandemic on Escalade’s financial condition and results of operations; Escalade’s plans and expectations surrounding the transition to its new Chief Executive Officer and all potential related effects and consequences; 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 or discontinuances of certain operations, assets, brands, and products; the continuation and development of key customer, supplier, licensing and other business relationships; Escalade’s ability to develop and implement our own direct to consumer e-commerce distribution channel; Escalade’s ability to successfully negotiate the shifting retail environment and changes in consumer buying habits; the financial health of our customers; disruptions or delays in our business operations, including without limitation disruptions or delays in our supply chain, arising from political unrest, war, labor strikes, natural disasters, public health crises such as the coronavirus pandemic, and other events and circumstances beyond our control; Escalade’s ability to control costs; Escalade’s ability to successfully implement actions to lessen the potential impacts of tariffs and other trade restrictions applicable to our products and raw materials, including impacts on the costs of producing our goods, importing products and materials into our markets for sale, and on the pricing of our products; general economic conditions; fluctuation in operating results; changes in foreign currency exchange rates; changes in the securities markets; continued listing of the Company’s common stock on the NASDAQ Global Market and/or inclusion in market indices such as the Russell 2000; Escalade’s ability to obtain financing and to maintain compliance with the terms of such financing; the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology; risks related to data security of privacy breaches; 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 Statements of Operations
    (Unaudited, In Thousands Except Per Share Data)

     Three Months Ended Twelve Months Ended
    All Amounts in Thousands Except Per Share DataDecember 25, 2021 December 26, 2020 December 25, 2021 December 26, 2020
            
    Net sales$73,444  $74,767  $313,612  $273,649 
            
    Costs and Expenses       
    Cost of products sold 57,127   56,911   236,482   198,822 
    Selling, administrative and general expenses 9,479   10,563   43,367   40,315 
    Amortization 429   372   1,867   1,480 
            
    Operating Income 6,409   6,921   31,896   33,032 
            
    Other Income (Expense)       
    Interest expense (475)  (102)  (1,510)  (250)
    Other income 39   32   163   140 
            
    Income Before Income Taxes 5,973   6,851   30,549   32,922 
            
    Provision for Income Taxes 1,102   1,764   6,144   6,988 
            
    Net Income$4,871  $5,087  $24,405  $25,934 
            
    Earnings Per Share Data:       
    Basic earnings per share$0.36  $0.36  $1.78  $1.84 
    Diluted earnings per share$0.36  $0.36  $1.76  $1.82 
            
    Dividends declared$0.14  $0.14  $0.56  $0.53 
            



    Consolidated Balance Sheets
    (Unaudited, In Thousands)


    All Amounts in Thousands Except Share Information
     December 25,
    2021
     December 26,
    2020
         
    ASSETS    
    Current Assets:    
    Cash and cash equivalents $4,374  $3,505 
    Receivables, less allowances of $457 and $896; respectively  65,991   65,280 
    Inventories  92,382   72,488 
    Prepaid expenses  7,569   4,068 
    Prepaid income tax  739   57 
    TOTAL CURRENT ASSETS  171,055   145,398 
         
    Property, plant and equipment, net  24,936   18,232 
    Operating lease right-of-use assets  2,210   1,608 
    Intangible assets  20,778   22,645 
    Goodwill  32,695   32,695 
    Other assets  124   127 
    TOTAL ASSETS $251,798  $220,705 
         
    LIABILITIES AND STOCKHOLDERS’ EQUITY    
    Current liabilities:    
    Current portion of long-term debt $7,143  $- 
    Trade accounts payable  15,847   20,947 
    Accrued liabilities  24,385   24,271 
    Current operating lease liabilities  818   854 
    TOTAL CURRENT LIABILITIES  48,193   46,072 
         
    Long-term debt  50,396   30,073 
    Deferred income tax liability  4,759   4,193 
    Operating lease liabilities  1,387   763 
    Other liabilities  448   448 
    TOTAL LIABILITIES  105,183   81,549 
         
    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: 2021 —13,493,332 shares, 2020 —13,919,380 shares  13,493   13,919 
    Retained earnings  133,122   125,237 
    TOTAL STOCKHOLDERS’ EQUITY  146,615   139,156 
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $251,798  $220,705 


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