Escalade Reports Second Quarter 2021 Results
For the second quarter of 2021, Escalade, Incorporated (NASDAQ: ESCA) reported a 19.3% increase in revenue, totaling $99.7 million. Despite this growth, the gross margin declined by 267 basis points to 25.2%. Operating income was $10.7 million, down slightly from $10.9 million in Q2 2020. Diluted earnings per share stood at $0.58. Year-to-date sales rose 31.5% with net income increasing 27.3%. Escalade faces ongoing cost pressures but maintains sufficient inventory to meet demand.
- Revenue increased by 19.3% to $99.7 million.
- Year-to-date sales rose 31.5%, showing strong business growth.
- Net income increased by 27.3% year-to-date.
- Gross margin declined by 267 basis points to 25.2%.
- Operating income decreased to $10.7 million from $10.9 million in Q2 2020.
- Selling, general and administrative expenses rose to $13.8 million, an increase of 15.8%.
Second-Quarter Highlights
- Revenue increased
19.3% on net sales of$99.7 million - Gross margin declined 267 basis points to
25.2% - Operating income of
$10.7 million vs.$10.9 million in the second quarter of 2020 - Diluted EPS of
$0.58 per share
EVANSVILLE, Ind., Aug. 05, 2021 (GLOBE NEWSWIRE) -- Escalade, Incorporated (NASDAQ: ESCA) – today announced its second quarter results for 2021, ended July 10, 2021. The Company posted quarterly revenue of
“Second quarter results reflect strong demand for our products, offset by sharply higher raw material costs, increased wage pressure, and inventory handling costs. Global supply chain issues persist as our logistics team works to keep goods flowing to our customers. While gross margin declined in the quarter, price increases are beginning to work through the system and tight expense control allowed us to generate EBITDA above last year’s record second quarter,” said Walter P. Glazer, Jr., Interim President and CEO of Escalade, Inc.
“Year to date sales are up
Net sales for the second quarter of 2021 were
Gross margin ratio for the second quarter of 2021 was
Selling, general and administrative expenses (SG&A) were
Operating income for the second quarter of 2021 was
Net income for the second quarter of 2021 was
The Company announced a quarterly dividend of
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 Interim 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; 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 | Six Months Ended | ||||||||||||||
| All Amounts in Thousands Except Per Share Data | July 10, 2021 | July 11, 2020 | July 10, 2021 | July 11, 2020 | |||||||||||
| Net sales | $ | 99,679 | $ | 83,524 | $ | 158,870 | $ | 120,813 | |||||||
| Costs and Expenses | |||||||||||||||
| Cost of products sold | 74,606 | 60,289 | 116,363 | 87,363 | |||||||||||
| Selling, administrative and general expenses | 13,810 | 11,921 | 23,686 | 19,378 | |||||||||||
| Amortization | 577 | 442 | 1,006 | 776 | |||||||||||
| Operating Income | 10,686 | 10,872 | 17,815 | 13,296 | |||||||||||
| Other Income (Expense) | |||||||||||||||
| Interest expense | (387 | ) | (60 | ) | (621 | ) | (104 | ) | |||||||
| Other income | 21 | 22 | 56 | 68 | |||||||||||
| Income Before Income Taxes | 10,320 | 10,834 | 17,250 | 13,260 | |||||||||||
| Provision for Income Taxes | 2,194 | 2,124 | 3,682 | 2,599 | |||||||||||
| Net Income | $ | 8,126 | $ | 8,710 | $ | 13,568 | $ | 10,661 | |||||||
| Earnings Per Share Data: | |||||||||||||||
| Basic earnings per share | $ | 0.59 | $ | 0.62 | $ | 0.98 | $ | 0.76 | |||||||
| Diluted earnings per share | $ | 0.58 | $ | 0.61 | $ | 0.97 | $ | 0.75 | |||||||
| Dividends declared | $ | 0.14 | $ | 0.125 | $ | 0.28 | $ | 0.25 | |||||||
Consolidated Balance Sheets
(Unaudited, In Thousands)
| All Amounts in Thousands Except Share Information | July 10, 2021 | December 26, 2020 | July 11, 2020 | ||||||||
| (Unaudited) | (Audited) | (Unaudited) | |||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 10,641 | $ | 3,505 | $ | 16,669 | |||||
| Receivables, less allowance of | 52,248 | 65,280 | 49,516 | ||||||||
| Inventories | 86,612 | 72,488 | 41,653 | ||||||||
| Prepaid expenses | 4,775 | 4,068 | 2,085 | ||||||||
| Prepaid income tax | -- | 57 | -- | ||||||||
| TOTAL CURRENT ASSETS | 154,276 | 145,398 | 109,923 | ||||||||
| Property, plant and equipment, net | 20,792 | 18,232 | 14,713 | ||||||||
| Operating lease right-of-use assets | 2,079 | 1,608 | 1,395 | ||||||||
| Intangible assets, net | 21,638 | 22,645 | 18,071 | ||||||||
| Goodwill | 32,695 | 32,695 | 26,749 | ||||||||
| Other assets | 137 | 127 | 57 | ||||||||
| TOTAL ASSETS | $ | 231,617 | $ | 220,705 | $ | 170,908 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Current portion of long-term debt | $ | 7,143 | $ | -- | $ | -- | |||||
| Trade accounts payable | 14,705 | 20,947 | 18,109 | ||||||||
| Accrued liabilities | 14,875 | 24,271 | 13,196 | ||||||||
| Income tax payable | 180 | -- | 1,705 | ||||||||
| Current operating lease liabilities | 1,526 | 854 | 711 | ||||||||
| TOTAL CURRENT LIABILITIES | 38,429 | 46,072 | 33,721 | ||||||||
| Other Liabilities: | |||||||||||
| Long-term debt | 42,857 | 30,073 | -- | ||||||||
| Deferred income tax liability | 4,193 | 4,193 | 3,537 | ||||||||
| Operating lease liabilities | 557 | 763 | 699 | ||||||||
| Other liabilities | 448 | 448 | 387 | ||||||||
| TOTAL LIABILITIES | 86,484 | 81,549 | 38,344 | ||||||||
| 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 – 13,779,489; 13,919,380; and 14,153,579; shares respectively | 13,779 | 13,919 | 14,154 | ||||||||
| Retained earnings | 131,354 | 125,237 | 118,410 | ||||||||
| TOTAL STOCKHOLDERS' EQUITY | 145,133 | 139,156 | 132,564 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 231,617 | $ | 220,705 | $ | 170,908 | |||||
FAQ
What were Escalade's second quarter 2021 revenue figures?
How did Escalade's gross margin change in Q2 2021?
What was Escalade's diluted EPS for Q2 2021?
How does Escalade's year-to-date sales compare to last year?
What was Escalade's operating income for Q2 2021?
