Escalade Crosses 2020 Finish Line with Four Consecutive Quarters of Record Revenue
Escalade, Incorporated (NASDAQ: ESCA) reported a robust fourth quarter and full year financial performance for 2020. The company achieved a revenue of $74.8 million, up 58.9% year-over-year, marking its fourth consecutive record quarter.
Operating income increased by 97.1% to $6.9 million, with diluted earnings per share rising to $0.36 from $0.18.
Annual net sales reached $273.6 million, a 51.6% increase compared to 2019, driven by strong consumer demand across product lines. Gross margin improved to 27.3%, reflecting operational efficiencies and favorable sales mix.
- Fourth quarter revenue increased by 58.9% to $74.8 million.
- Operating income rose by 97.1% to $6.9 million.
- Diluted EPS increased to $0.36, compared to $0.18 the previous year.
- Full year net sales grew 51.6% to $273.6 million.
- Full year gross profit surged 76.6% to $74.8 million.
- SG&A expenses as a percentage of sales decreased from 17.5% to 14.7%.
- SG&A expenses increased by 27.5% year-over-year, amounting to $40.3 million.
Fourth-Quarter Highlights
- Revenue increased
58.9% on net sales of$74.8 million - Gross margin improvement of 80 bps to
23.9% - Operating income of
$6.9 million , an increase of97.1% - Diluted EPS of
$0.36 per share vs.$0.18 in the fourth quarter of 2019
EVANSVILLE, Ind., Feb. 18, 2021 (GLOBE NEWSWIRE) -- Escalade, Incorporated (NASDAQ: ESCA) – today announced its fourth quarter and full year financial results for its 2020 fiscal year, ended December 26, 2020. The Company posted quarterly revenue of
“We completed our fiscal year with a record fourth quarter performance fueled by continued consumer demand for our innovative and dynamic portfolio of brands and product categories. Our fourth consecutive record quarterly performance demonstrates that we’ve built a sustainable business model, which drives profitable growth, invests in our team and key growth enablers, and delivers exceptional value and returns to our shareholders,” said Scott Sincerbeaux, President and CEO of Escalade, Inc.
“We took important steps in fiscal 2020 to strengthen Escalade’s competitive position over the long-term, including the acceleration of our product and asset creation pipeline and the acquisition of American Heritage Billiards and RAVE Sports, as well as key investments in our digital business and capabilities,” continued Sincerbeaux. “I would like to share my heartfelt thanks to the entire Escalade family, who have demonstrated incredible resilience throughout unprecedented times. Their dedication to serving customers and consumers, while balancing the health and wellbeing of friends, family and our community, is inspiring. Our team is what makes Escalade a truly special organization.”
“We had an excellent finish to the year, including record earnings on revenue growth,” said Stephen Wawrin, Escalade’s Chief Financial Officer. “For the full year, we delivered shareholder value through an increase in our dividend and the repurchase of 405,924 shares of stock at an average price of
Fourth Quarter Results
Net sales for the fourth quarter of 2020 were
Gross margin ratio for the fourth quarter of 2020 was
Selling, general and administrative expenses (SG&A) were
Operating income for the fourth quarter of 2020 was
Net income for the fourth quarter of 2020 was
Full Year Results
Full year net sales for 2020 were
Gross margin ratio for full year 2020 increased to
SG&A expenses for full year 2020 were
Operating income for full year 2020 was
Full year net income for 2020 was
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.
ABOUT ESCALADE SPORTS
Headquartered in Evansville, IN, Escalade Sports is a global manufacturer and distributor of sports and outdoor recreational equipment. Leaders in their respective categories, Escalade Sports’ brands include Bear® Archery, Bear X™, Trophy Ridge®, Rocket®, SIK® and Cajun Bowfishing™ archery equipment; STIGA® and Ping-Pong® table tennis; Accudart® and Unicorn® darting; RAVE Sports® water recreation products; Atomic®, Victory Tailgate®, Triumph™ Sports, Viva Sol®, Zume Games® recreational games; DURA® and Onix® pickleball equipment; Goalrilla™, Goalsetter® residential in-ground basketball systems, Goaliath® and Silverback® residential in-ground and portable basketball goals; Lifeline® and the STEP® fitness products; Woodplay® premium playsets; American Heritage Billiards® - premium billiards and game room assortment; and Cue&Case® - a leader in specialty billiard accessories. Escalade Sports’ products are available at sporting goods dealers and independent retailers nationwide. For more information on Escalade Sports, its brands, instruction manuals, retailers, warranty, replacement parts or customer service, please call 1-888-784-4288 or visit www.escaladesports.com
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; the ability to develop and implement our own direct to consumer e-commerce distribution channel; the 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; 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 Data | December 26, 2020 | December 28, 2019 | December 26, 2020 | December 28, 2019 | |||||||||||
| Net sales | $ | 74,767 | $ | 47,044 | $ | 273,649 | $ | 180,541 | |||||||
| Costs and Expenses | |||||||||||||||
| Cost of products sold | 56,911 | 36,159 | 198,822 | 138,181 | |||||||||||
| Selling, administrative and general expenses | 10,563 | 7,040 | 40,315 | 31,616 | |||||||||||
| Amortization | 372 | 334 | 1,480 | 1,469 | |||||||||||
| Operating Income | 6,921 | 3,511 | 33,032 | 9,275 | |||||||||||
| Other Income (Expense) | |||||||||||||||
| Interest expense | (102 | ) | (61 | ) | (250 | ) | (356 | ) | |||||||
| Other income (expense) | 32 | 3 | 140 | 15 | |||||||||||
| Income Before Income Taxes | 6,851 | 3,453 | 32,922 | 8,934 | |||||||||||
| Provision for Income Taxes | 1,764 | 878 | 6,988 | 1,676 | |||||||||||
| Net Income | $ | 5,087 | $ | 2,575 | $ | 25,934 | $ | 7,258 | |||||||
| Earnings Per Share Data: | |||||||||||||||
| Basic earnings per share | $ | 0.36 | $ | 0.18 | $ | 1.84 | $ | 0.50 | |||||||
| Diluted earnings per share | $ | 0.36 | $ | 0.18 | $ | 1.82 | $ | 0.50 | |||||||
| Dividends declared | $ | 0.14 | $ | 0.125 | $ | 0.53 | $ | 0.50 | |||||||
Consolidated Balance Sheets
(Unaudited, In Thousands)
All Amounts in Thousands Except Share Information | December 26, 2020 | December 28, 2019 | ||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 3,505 | $ | 5,882 | ||||
| Receivables, less allowances of | 65,280 | 35,450 | ||||||
| Inventories | 72,488 | 42,269 | ||||||
| Prepaid expenses | 4,068 | 3,151 | ||||||
| Prepaid income tax | 57 | 163 | ||||||
| TOTAL CURRENT ASSETS | 145,398 | 86,915 | ||||||
| Property, plant and equipment, net | 18,232 | 15,111 | ||||||
| Operating lease right-of-use assets | 1,608 | 1,080 | ||||||
| Intangible assets | 22,645 | 18,847 | ||||||
| Goodwill | 32,695 | 26,749 | ||||||
| Other assets | 127 | 77 | ||||||
| TOTAL ASSETS | $ | 220,705 | $ | 148,779 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Note payable | $ | - | $ | 135 | ||||
| Trade accounts payable | 20,947 | 7,765 | ||||||
| Accrued liabilities | 24,271 | 9,689 | ||||||
| Current operating lease liabilities | 854 | 621 | ||||||
| TOTAL CURRENT LIABILITIES | 46,072 | 18,210 | ||||||
| Long-term debt | 30,073 | - | ||||||
| Deferred income tax liability | 4,193 | 3,537 | ||||||
| Operating lease liabilities | 763 | 475 | ||||||
| Other liabilities | 448 | 387 | ||||||
| TOTAL LIABILITIES | 81,549 | 22,609 | ||||||
| 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: 2020 —13,919,380 shares, 2019 —14,214,777 shares | 13,919 | 14,215 | ||||||
| Retained earnings | 125,237 | 111,955 | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 139,156 | 126,170 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 220,705 | $ | 148,779 | ||||
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