Escalade (ESCA) 8-K Escalade Reports Profit for Third Quarter 2009

EXHIBIT 99.1

PRESS RELEASE

ESCALADE REPORTS PROFIT FOR THIRD QUARTER 2009

Evansville, IN (November 5, 2009) Escalade, Incorporated (NASDAQ: ESCA) announced that net income for the third quarter of 2009 increased to $618 thousand or $0.05 per share compared to a net loss of $1,365 thousand or $0.11 loss per share for the same quarter last year. Net income for the period 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 would be $186 thousand or $0.01 per share. Net revenue for the third quarter and nine months ended October 3, 2009 declined 35.4% and 24.9%, respectively, compared to same periods last year; however, the Company has improved gross margins year to date to 30.7%, compared with 26.1% for the prior year. In addition, the Company has reduced selling, administrative and general expenses by 22.5%, 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 third quarter and nine months ended October 3, 2009 was $612 thousand and $1,358 thousand, respectively, compared to operating income (loss) of $82 thousand and $(1,763) thousand for the same periods last year.

Sporting Goods net revenues this quarter were down significantly compared with same quarter last year, which included sales of Gameroom products to Sears Holdings not repeated in 2009.

Office Products experienced a further softening in net revenue for the quarter from 26.3% decline in the prior quarter to 28.8% decline in the current quarter. Compared to last year, Office Products net revenue declined 28.8% and 25.0% for the three and nine months ended October 3, 2009, respectively. Net revenue declined 25.9% in the United States and 24.2% in Europe for the first nine months of 2009. Excluding the effect of changes in foreign currency rates, year to date net revenue in Europe declined 21.5% compared with prior year.

Based on the year to date results and product placement information, the Company expects full year net revenue will be approximately 25% below prior year. The Company is continuing to identify and implement cost saving initiatives and product design enhancements to expand market share and improve Company profits.

“Our entire organization has worked hard to implement many cost savings initiatives, resulting in improved gross margins and lower operating expense,” said Robert J. Keller, President and Chief Executive Office of Escalade, Inc. “These savings, combined with our focus on inventory reduction, has generated improved cash flow throughout 2009. We are committed to making continued progress in lowering our cost of operation going forward. Most importantly, we have brought significant innovation to our latest product introductions to offer increased levels of value and performance. Given the current economic environment, we believe our brands and product offerings are positioned to capture the increased consumer need for greater value and performance.”

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.

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ESCALADE, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited, In Thousands Except Per Share Amounts)

	Three Months Ended						Nine Months Ended						Twelve Months Ended
	03 October 2009			04 October 2008			03 October 2009			04 October 2008			03 October 2009			04 October 2008
NET SALES	$	26,358		$	40,797		$	86,957		$	115,759		$	119,884		$	156,651
OPERATING EXPENSES
Cost of goods sold		18,558			31,576			60,233			85,594			86,778			115,986
Selling and administrative		6,571			8,520			23,342			30,140			33,086			38,555
Long-lived asset impairment		—			—			—			—			2,623			—
Amortization		617			619			2,024			1,788			2,399			2,186
OPERATING INCOME (LOSS)		612			82			1,358			(1,763	)		(5,002	)		(76	)
OTHER INCOME (EXPENSE)
Interest expense		(630	)		(552	)		(1,530	)		(1,699	)		(1,856	)		(2,354	)
Other income (expense)		966			(61	)		1,197			144			1,019			2,349
INCOME (LOSS) BEFORE INCOME TAXES		948			(531	)		1,025			(3,318	)		(5,839	)		(81	)
PROVISION FOR INCOME TAXES		330			834			480			(401	)		(1,805	)		244
NET INCOME (LOSS)	$	618		$	(1,365	)	$	545		$	(2,917	)	$	(4,034	)	$	(325	)
PER SHARE DATA
Basic earnings (loss) per share	$	0.05		$	(0.11	)	$	0.04		$	(0.23	)	$	(0.32	)	$	(0.03	)
Diluted earnings (loss) per share	$	0.05		$	(0.11	)	$	0.04		$	(0.23	)	$	(0.32	)	$	(0.03	)
Average shares outstanding		12,624			12,616			12,620			12,644			12,620			12,650

CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited, In Thousands)

	03 October 2009		04 October 2008		27 December 2008
ASSETS
Current assets	$	64,551	$	80,608	$	72,576
Property, Plant & Equipment – net		19,094		24,453		20,209
Other assets		28,201		31,220		29,105
Goodwill		26,325		25,527		25,811
Total	$	138,171	$	161,808	$	147,701
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	54,506	$	72,606	$	67,734
Other liabilities		1,262		5,704		1,177
Stockholders’ equity		82,403		83,498		78,790
Total	$	138,171	$	161,808	$	147,701

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