Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 14, 2020 | Jul. 13, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ESCALADE INC | ||
Entity Central Index Key | 0000033488 | ||
Current Fiscal Year End Date | --12-28 | ||
Trading Symbol | ESCA | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 121,962,334 | ||
Entity Common Stock, Shares Outstanding | 14,072,877 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 5,882 | $ 2,824 |
Receivables, less allowances of $483 and $532; respectively | 35,450 | 40,682 |
Inventories | 42,269 | 39,122 |
Prepaid expenses | 3,151 | 4,151 |
Prepaid income tax | 163 | 1,082 |
Other current assets | 0 | 2 |
TOTAL CURRENT ASSETS | 86,915 | 87,863 |
Property, plant and equipment, net | 15,111 | 15,498 |
Operating lease right-of-use assets | 1,080 | |
Intangible assets | 18,847 | 19,785 |
Goodwill | 26,749 | 26,381 |
Other assets | 77 | 0 |
TOTAL ASSETS | 148,779 | 149,527 |
Current Liabilities: | ||
Note payable | 135 | 0 |
Trade accounts payable | 7,765 | 5,631 |
Accrued liabilities | 9,689 | 11,072 |
Current operating lease liabilities | 621 | 0 |
TOTAL CURRENT LIABILITIES | 18,210 | 16,703 |
Other Liabilities: | ||
Long-term debt | 0 | 0 |
Deferred income tax liability | 3,537 | 3,409 |
Operating lease liabilities | 475 | |
Other liabilities | 387 | 1,094 |
TOTAL LIABILITIES | 22,609 | 21,206 |
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: 2019-14,214,777 shares, 2018 -14,438,824 shares | 14,215 | 14,439 |
Retained earnings | 111,955 | 113,882 |
TOTAL STOCKHOLDERS' EQUITY | 126,170 | 128,321 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 148,779 | $ 149,527 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Consolidated Balance Sheets | ||
Receivables allowance (in dollars) | $ 483 | $ 532 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred Stock, Par Value | $ 0 | $ 0 |
Common stock, Par value | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,214,777 | 14,438,824 |
Common stock, shares outstanding | 14,214,777 | 14,438,824 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Consolidated Statements of Operations | |||
Net Sales | $ 180,541 | $ 175,780 | $ 177,333 |
Costs and Expenses | |||
Cost of products sold | 138,181 | 130,750 | 132,606 |
Selling, administrative and general expenses | 31,616 | 29,807 | 28,548 |
Amortization | 1,469 | 1,406 | 1,579 |
Operating Income | 9,275 | 13,817 | 14,600 |
Other Income (Expense) | |||
Interest expense | (356) | (427) | (804) |
Equity in earnings of affiliates | 0 | 121 | 1,634 |
Gain on sale of equity method investment (includes ($3,729) of accumulated other comprehensive loss reclassification from foreign currency translation adjustment) | 0 | 13,020 | 0 |
Gain on bargain purchase | 0 | 0 | 256 |
Other income (expense) | 15 | (89) | (169) |
Income Before Income Taxes | 8,934 | 26,442 | 15,517 |
Provision for Income Taxes | 1,676 | 6,000 | 1,456 |
Net Income | $ 7,258 | $ 20,442 | $ 14,061 |
Earnings Per Share Data: | |||
Basic earnings per share | $ 0.50 | $ 1.42 | $ 0.98 |
Diluted earnings per share | $ 0.50 | $ 1.41 | $ 0.98 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Consolidated Statements of Operations | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | $ 0 | $ (3,729) | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Consolidated Statements of Comprehensive Income | |||
Net Income | $ 7,258 | $ 20,442 | $ 14,061 |
Foreign currency translation adjustment before reclassification | 0 | (1,119) | 1,670 |
Amounts reclassified from comprehensive income due to divestiture of equity investment | 0 | 3,729 | 0 |
Comprehensive Income | $ 7,258 | $ 23,052 | $ 15,731 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2016 | $ 14,305 | $ 91,688 | $ (4,280) | $ 101,713 |
Balance (in shares) at Dec. 31, 2016 | 14,305 | |||
Other comprehensive income | 1,670 | 1,670 | ||
Net income | 14,061 | 14,061 | ||
Expense of stock options and restricted stock units | 522 | 522 | ||
Exercise of stock options | $ 28 | 131 | 159 | |
Exercise of stock options (in shares) | 28 | |||
Settlement of restricted stock units | $ 26 | (26) | 0 | |
Settlement of restricted stock units (in shares) | 26 | |||
Dividends declared | (6,607) | (6,607) | ||
Stock issued to directors as compensation | $ 13 | 139 | 152 | |
Stock issued to directors as compensation (in shares) | 13 | |||
Balance at Dec. 30, 2017 | $ 14,372 | 99,908 | (2,610) | 111,670 |
Balance (in shares) at Dec. 30, 2017 | 14,372 | |||
Other comprehensive income | $ 2,610 | 2,610 | ||
Net income | 20,442 | 20,442 | ||
Expense of stock options and restricted stock units | 604 | 604 | ||
Exercise of stock options | $ 9 | 45 | 54 | |
Exercise of stock options (in shares) | 9 | |||
Settlement of restricted stock units | $ 47 | (47) | 0 | |
Settlement of restricted stock units (in shares) | 47 | |||
Dividends declared | (7,215) | (7,215) | ||
Stock issued to directors as compensation | $ 12 | 154 | 166 | |
Stock issued to directors as compensation (in shares) | 12 | |||
Purchase of stock | $ (1) | (9) | (10) | |
Purchase of stock (in shares) | (1) | |||
Balance at Dec. 29, 2018 | $ 14,439 | 113,882 | 128,321 | |
Balance (in shares) at Dec. 29, 2018 | 14,439 | |||
Net income | 7,258 | 7,258 | ||
Expense of stock options and restricted stock units | 513 | 513 | ||
Exercise of stock options | $ 10 | 108 | 118 | |
Exercise of stock options (in shares) | 10 | |||
Settlement of restricted stock units | $ 29 | (29) | 0 | |
Settlement of restricted stock units (in shares) | 29 | |||
Dividends declared | (7,204) | (7,204) | ||
Stock issued to directors as compensation | $ 9 | 93 | 102 | |
Stock issued to directors as compensation (in shares) | 9 | |||
Purchase of stock | $ (272) | (2,666) | (2,938) | |
Purchase of stock (in shares) | (272) | |||
Balance at Dec. 28, 2019 | $ 14,215 | $ 111,955 | $ 126,170 | |
Balance (in shares) at Dec. 28, 2019 | 14,215 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Operating Activities: | |||
Net income | $ 7,258 | $ 20,442 | $ 14,061 |
Reconciling adjustments: | |||
Depreciation and amortization | 4,031 | 3,857 | 3,910 |
Provision for doubtful accounts | 322 | 155 | 775 |
Stock option and restricted stock unit expense | 513 | 604 | 522 |
Equity in net income of joint venture investments | 0 | (121) | (1,634) |
Deferred income taxes | 128 | 940 | (2,947) |
Gain on sale of equity method investment | 0 | (13,020) | 0 |
Gain on insurance proceeds received for damage to property | 0 | (377) | 0 |
Gain on bargain purchase | 0 | 0 | (256) |
Loss (gain) on disposals of assets | 7 | 0 | (5) |
Proceeds from Equity Method Investment, Distribution | 0 | 2,323 | 2,168 |
Changes in | |||
Accounts receivable | 4,911 | (1,140) | (3,366) |
Inventories | (3,147) | (3,359) | (468) |
Prepaids and other assets | 1,971 | 194 | (507) |
Accounts payable and accrued expenses | 44 | (3,992) | 1,110 |
Net cash provided by operating activities | 16,038 | 6,506 | 13,363 |
Investing Activities: | |||
Purchase of property and equipment | (2,185) | (2,818) | (2,745) |
Acquisitions | (765) | (7,169) | (1,450) |
Proceeds from sale of equity investment | 0 | 33,705 | 0 |
Insurance proceeds received for damage to property | 0 | 1,154 | 0 |
Proceeds from sale of property and equipment | 4 | 0 | 5 |
Net cash provided (used) by investing activities | (2,946) | 24,872 | (4,190) |
Financing Activities: | |||
Dividends paid | (7,204) | (7,215) | (6,607) |
Proceeds from issuance of long-term debt | 77,502 | 28,024 | 56,713 |
Payments on long-term debt | (77,502) | (51,145) | (59,031) |
Proceeds from exercise of stock options | 118 | 54 | 159 |
Deferred financing fees | (112) | 0 | 0 |
Purchase of stock | (2,938) | (10) | 0 |
Director stock compensation | 102 | 166 | 152 |
Net cash used in financing activities | (10,034) | (30,126) | (8,614) |
Increase in Cash and Cash Equivalents | 3,058 | 1,252 | 559 |
Cash and Cash Equivalents, beginning of year | 2,824 | 1,572 | 1,013 |
Cash and Cash Equivalents, end of year | 5,882 | 2,824 | 1,572 |
Supplemental Cash Flows Information | |||
Interest paid | 346 | 423 | 792 |
Income taxes paid | 1,383 | 4,844 | 3,816 |
Non-Cash Transactions | |||
Fair value of assets acquired | 900 | 9,285 | 2,018 |
Cash paid for assets | (765) | (7,169) | (1,450) |
Consideration of holdback provision | 0 | 286 | 0 |
Note payable for deferred purchase price obligation | (135) | 0 | 0 |
Liabilities assumed | $ 0 | $ 2,402 | $ 568 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1 — Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Escalade, Incorporated and its wholly-owned subsidiaries (Escalade, the Company, we, us or our) are engaged in the manufacture and sale of sporting goods products. The Company is headquartered in Evansville, Indiana and has manufacturing facilities in the United States of America and Mexico. The Company sells products to customers primarily in North America with minimal sales throughout the remainder of the world. Principles of Consolidation The consolidated financial statements include the accounts of Escalade, Incorporated and its wholly-owned subsidiaries. All material inter-company accounts and transactions have been eliminated. Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The books and records of subsidiaries located in foreign countries are maintained according to generally accepted accounting principles in those countries. Upon consolidation, the Company evaluates the differences in accounting principles and determines whether adjustments are necessary to convert the foreign financial statements to the accounting principles upon which the consolidated financial statements are based. As a result of this evaluation no material adjustments were identified. Fiscal Year End The Company’s fiscal year is a 52 or 53 week period ending on the last Saturday in December. Fiscal year 2019 was 52 weeks long, ending December 28, 2019. Fiscal year 2018 was 52 weeks long, ending December 29, 2018. Fiscal year 2017 was 52 weeks long, ending on December 30, 2017. Cash and Cash Equivalents Highly liquid financial instruments with insignificant interest rate risk and with original maturities of three months or less are classified as cash and cash equivalents. Cash and cash equivalent balances may at times be in excess of federally insured limits. The Company maintains its cash and cash equivalent balances at high-credit quality financial institutions. Accounts Receivable Revenue from the sale of the Company’s products is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Accounts receivable are stated at the amount billed to customers. Interest and late charges billed to customers are not material and, because collection is uncertain, are not recognized until collected and are therefore not included in accounts receivable. The Company provides an allowance for doubtful accounts which is described in Note 2 – Certain Significant Estimates. Inventories Inventory cost is computed on a currently adjusted standard cost basis (which approximates actual cost on a current average or first-in, first-out basis). Work in process and finished goods inventory are determined to be saleable based on a demand forecast within a specific time horizon, generally one year or less. Inventory in excess of saleable amounts is reserved, and the remaining inventory is valued at the lower of cost or net realizable value. This inventory valuation reserve totaled $786 thousand and $456 thousand at fiscal year-end 2019 and 2018, respectively. Inventories, net of the valuation reserve, at fiscal year-ends were as follows: In Thousands 2019 2018 Raw materials $ 3,186 $ 3,622 Work in process 2,177 2,892 Finished goods 36,906 32,608 $ 42,269 $ 39,122 Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation and amortization are computed for financial reporting purposes principally using the straight-line method over the following estimated useful lives: buildings, 20‑30 years; leasehold improvements, term of the lease; machinery and equipment, 5‑15 years; and tooling, dies and molds, 2‑5 years. Property, plant and equipment consist of the following: In Thousands 2019 2018 Land $ 1,943 $ 1,943 Buildings and leasehold improvements 16,831 16,768 Machinery and equipment 24,721 27,458 Total cost 43,495 46,169 Accumulated depreciation and amortization (28,384) (30,671) $ 15,111 $ 15,498 The Company evaluates the recoverability of certain long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Estimates of future cash flows used to test recoverability of long-lived assets include separately identifiable undiscounted cash flows expected to arise from the use and eventual disposition of the assets. Where estimated future cash flows are less than the carrying value of the assets, impairment losses are recognized based on the amount by which the carrying value exceeds the fair value of the assets. No asset impairment was recognized during the years ended 2019, 2018, or 2017. Investments Non-Marketable Equity Investment: The Company had an equity position in a company that strategically related to the Company’s business, but the Company did not have control over that entity. The accounting method employed was dependent on the level of ownership and degree of influence the Company could exert on operations. Where the equity interest was less than 20% and the degree of influence was not significant, the cost method of accounting was employed. Where the equity interest was greater than 20% but not more than 50%, the equity method of accounting was utilized. Under the equity method, the Company’s proportionate share of net income was recorded in equity in earnings of affiliates on the consolidated statement of operations. The proportionate share of net income was $0.1 million and $1.6 million in 2018 and 2017, respectively. Total cash dividends received from this equity investment amounted to $2,323 thousand and $2,168 thousand in 2018 and 2017, respectively. The Company considered whether the fair value of its equity investment declined below its carrying value whenever adverse events or changes in circumstances indicated that recorded values may not be recoverable. If the Company considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities and overall health of the investments’ industry), a write-down was recorded to estimated fair value. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over fair value of net tangible and identifiable intangible assets of acquired businesses. Intangible assets consist of patents, consulting agreements, non-compete agreements, customer lists, developed technology, license agreements, and trademarks. Goodwill is deemed to have an indefinite life and is not amortized, but is subject to impairment testing annually in accordance with guidance included in FASB ASC 350 , Intangibles – Goodwill and Other . Other intangible assets are amortized using the straight-line method over the following lives: license agreements, 17 years; developed technology, 5 years; trademarks, 20 years to indefinite life; consulting agreements, the life of the agreement; customer lists, 3 to 14 years; non-compete agreements, the lesser of the term or 5 years; and patents, the lesser of the remaining life or 5 to 15 years. The Company reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable, in accordance with guidance in FASB ASC 350, Intangibles – Goodwill and Other . A qualitative assessment is first performed to determine if the fair value of the reporting unit is "more likely than not" less than the carrying value. If so, we proceed to step one of the two-step goodwill impairment test, in which the fair value of the reporting unit is compared to its carrying value. If not, then performance of the second step of the goodwill impairment test is not necessary. If the carrying value of goodwill exceeds the implied estimated fair value calculated in the second step, an impairment charge to current operations is recorded to reduce the carrying value to the implied estimated fair value. Employee Incentive Plan During 2017, the Company approved an incentive plan explained in Note 10. The Company accounts for this plan under the recognition and measurement principles of FASB ASC 718, Equity Based Payments . Foreign Currency Translation The functional currency for the foreign operations of Escalade is the U.S. dollar. Gains or losses resulting from foreign currency transactions are included in selling, general and administrative expense in the Consolidated Statements of Operations and were insignificant in fiscal years 2019, 2018, and 2017. Cost of Products Sold Cost of products sold is comprised of those costs directly associated with or allocated to the products sold and include materials, labor and factory overhead. Other Income (Loss) The components of Other Income (Loss) are as follows: In Thousands 2019 2018 2017 Other income (loss) $ 15 $ (89) $ (169) $ 15 $ (89) $ (169) Provision for Income Taxes Income tax in the consolidated statement of operations includes deferred income tax provisions or benefits for all significant temporary differences in recognizing income and expenses for financial reporting and income tax purposes. A valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. Research and Development Research and development costs are charged to expense as incurred. Research and development costs incurred during 2019, 2018 and 2017 were approximately $1.6 million, $1.5 million, and $1.6 million, respectively. New Accounting Pronouncements and Changes in Accounting Principles Standards Adopted : In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU) 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. The amendments in this update will increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under ASU 2016‑02, a lessee will recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current GAAP. ASU 2016‑02 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases will be substantially similar to the classification criteria for distinguishing between capital leases and operating leases under prior GAAP. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The guidance permits a practical expedient with regards to initial adoption, allowing adopters the option to apply the new leases standard prospectively at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this expedient, comparative periods presented in the financial statements in which the new lease standard is adopted, will continue to be presented in accordance with prior GAAP. The Company adopted this standard on December 30, 2018 using the prospective application method practical expedient. The adoption of this standard had an immaterial impact on our consolidated balance sheet, recognizing a ROU asset and lease liability of $985 thousand. Refer to Note 4 for disclosure requirements related to this standard. New Accounting Standards to be Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This amendment requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The amendments are effective in fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We do not expect the standard to have a material impact on our consolidated financial statements. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This amendment delays the effective dates of specific ASUs, including ASU 2016-13 by one year. In January 2017, the FASB issued ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. These amendments eliminate Step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments are effective for annual impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The provisions of the amendment should be adopted on a prospective basis. Adoption of this standard will not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes. This guidance will be effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Certain Significant Estimates
Certain Significant Estimates | 12 Months Ended |
Dec. 28, 2019 | |
Certain Significant Estimates | |
Certain Significant Estimates | Note 2 — Certain Significant Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities; the disclosure of contingent assets and liabilities at the date of the consolidated financial statements; and the reported amounts of revenues and expenses during the reporting period. These estimates and judgments are evaluated on an ongoing basis and are based on experience; current and expected future conditions; third party evaluations; and various other assumptions believed reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and liabilities. Actual results may differ from the estimates and assumptions used in the financial statements and related notes. Listed below are certain significant estimates and assumptions related to the preparation of the consolidated financial statements: Goodwill and Intangible Assets The Company reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable, in accordance with guidance in FASB ASC 350, Intangibles – Goodwill and Other. A qualitative assessment is first performed to determine if the fair value of the reporting unit is "more likely than not" less than the carrying value. If so, we proceed to step one of the two-step goodwill impairment test, in which the fair value of the reporting unit is compared to its carrying value. If not, then performance of the second step of the goodwill impairment test is not necessary. If the carrying value of goodwill exceeds the implied estimated fair value calculated in the second step, an impairment charge to current operations is recorded to reduce the carrying value to the implied estimated fair value. Other intangible assets are amortized using the straight-line method over the following lives: license agreements, 17 years; developed technology, 5 years; trademarks, 20 years to indefinite life; consulting agreements, the life of the agreement; customer lists, 3 to 14 years; non-compete agreements, the lesser of the term or 5 years; and patents, the lesser of the remaining life or 5 to 15 years. Indefinite-lived intangible assets are reviewed for impairment annually, or whenever events or changes in circumstances indicate the carrying amount of an intangible asset may not be recoverable. There are inherent assumptions and judgments required in the analysis of goodwill and intangible impairment. Product Warranty The Company provides limited warranties on certain of its products, for varying periods. Generally, the warranty periods range from 90 days to one year. However, some products carry extended warranties of three-year, five-year, seven-year, ten-year, fifteen-year, and lifetime warranties. The Company records an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year. Changes in product warranty were as follows: In Thousands 2019 2018 2017 Beginning balance $ 702 $ 691 $ 876 Additions 1,736 1,448 1,036 Deductions (1,750) (1,437) (1,221) Ending balance $ 688 $ 702 $ 691 Inventory Valuation Reserves The Company evaluates inventory for obsolescence and excess quantities based on demand forecasts based on specified time frames; usually one year. The demand forecast is based on historical usage, sales forecasts and current as well as anticipated market conditions. All amounts in excess of the demand forecast are deemed to be excess or obsolete and a reserve is established based on the anticipated net realizable value. Changes in inventory valuation reserves were as follows: In Thousands 2019 2018 2017 Beginning balance $ 456 $ 504 $ 415 Additions 756 383 288 Deductions (426) (431) (199) Ending balance $ 786 $ 456 $ 504 Allowance for Doubtful Accounts The Company provides an allowance for doubtful accounts based upon a review of outstanding receivables, historical collection information and existing economic conditions. Accounts receivable are ordinarily due between 30 and 60 days after the issuance of the invoice. Accounts are considered delinquent when more than 90 days past due. Delinquent receivables are reserved or written off based on individual credit evaluation and specific circumstances of the customer. Changes in allowance for doubtful accounts were as follows: In Thousands 2019 2018 2017 Beginning balance $ 532 $ 623 $ 910 Additions 322 155 775 Deductions (371) (246) (1,062) Ending balance $ 483 $ 532 $ 623 Customer Allowances Customer allowances are common practice in the industries in which the Company operates. These agreements are typically in the form of advertising subsidies, volume rebates and catalog allowances and are accounted for as a reduction to gross sales. The Company reviews such allowances on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available. Changes in customer allowances for advertising subsidies, volume rebates and catalog allowances were as follows: In Thousands 2019 2018 2017 Beginning balance $ 1,550 $ 3,357 $ 2,777 Additions 7,292 6,575 6,608 Deductions (7,550) (8,382) (6,028) Ending balance $ 1,292 $ 1,550 $ 3,357 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
Accrued Liabilities | |
Accrued Liabilities | Note 3 — Accrued Liabilities Accrued liabilities consist of the following: In Thousands 2019 2018 Employee compensation $ 1,917 $ 2,858 Customer related allowances and accruals 4,876 4,627 Other accrued items 2,896 3,587 $ 9,689 $ 11,072 |
Leases
Leases | 12 Months Ended |
Dec. 28, 2019 | |
Leases | |
Leases | Note 4 — Leases We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our leases have remaining lease terms of 1 year to 5 years. As of December 28, 2019, the Company has not entered into any lease arrangements classified as a finance lease. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, current operating lease liabilities and operating lease liabilities on our consolidated balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. The Company also elected the package of practical expedients which applies to leases that commenced before the adoption date. By electing the package of practical expedients, the Company did not need to reassess the following; whether any existing contracts are or contain leases, the lease classification for any existing leases and initial direct costs for any existing leases. ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information as follows: Twelve Months Ended December 28, All Amounts in Thousands 2019 Lease Expense Operating Lease Cost $ 826 Short-term Lease Cost 446 Variable Lease Cost 244 Total Operating Lease Cost $ 1,516 Operating Lease – Operating Cash Flows $ 755 New ROU Assets – Operating Leases $ 867 Other information about lease amounts recognized in our consolidated financial statements is summarized as follows: Period Ended December 28, 2019 Weighted Average Remaining Lease Term – Operating Leases 1.98 years Weighted Average Discount Rate – Operating Leases 5.00 % Future minimum lease payments under non-cancellable leases as of December 28, 2019 were as follows: All Amounts in Thousands Year 1 $ 658 Year 2 378 Year 3 70 Year 4 31 Year 5 13 Thereafter — Total future minimum lease payments 1,150 Less imputed interest (54) Total $ 1,096 Reported as of December 28, 2019 Current operating lease liabilities 621 Long-term operating lease liabilities 475 Total $ 1,096 |
Acquired Intangible Assets and
Acquired Intangible Assets and Goodwill | 12 Months Ended |
Dec. 28, 2019 | |
Acquired Intangible Assets and Goodwill | |
Acquired Intangible Assets and Goodwill | Note 5 — Acquired Intangible Assets and Goodwill The carrying basis and accumulated amortization of recognized intangible assets are summarized in the following table: 2019 2018 Gross Gross Carrying Accumulated Carrying Accumulated In Thousands Amount Amortization Amount Amortization Patents 24,515 23,689 24,515 23,506 Non-compete agreements 2,749 2,702 2,749 2,625 Customer list 14,317 5,575 13,963 4,520 Trademarks 8,359 143 8,181 124 Developed technology 475 111 475 16 License agreements 700 48 700 7 51,115 32,268 50,583 30,798 Amortization expense was $1.5 million, $1.4 million and $1.6 million for 2019, 2018 and 2017, respectively. Estimated future amortization expense is summarized in the following table: In Thousands 2020 2021 2022 2023 2024 Thereafter Sporting Goods 1,437 1,388 1,368 1,290 1,165 4,415 All goodwill is allocated to the operating segment of the business. The changes in the carrying amount of goodwill were: In Thousands Sporting Goods Balance at December 30, 2017 $ 21,548 Acquisition 4,833 Balance at December 29, 2018 $ 26,381 Acquisition 368 Balance at December 28, 2019 $ 26,749 The Company reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable, in accordance with guidance in FASB ASC 350, Intangibles – Goodwill and Other . A qualitative assessment is first performed to determine if the fair value of the reporting unit is "more likely than not" less than the carrying value. If so, we proceed to step one of the two-step goodwill impairment test, in which the fair value of the reporting unit is compared to its carrying value. If not, then performance of the second step of the goodwill impairment test is not necessary. If the carrying value of goodwill exceeds the implied estimated fair value calculated in the second step, an impairment charge to current operations is recorded to reduce the carrying value to the implied estimated fair value. |
Equity Interest Investments
Equity Interest Investments | 12 Months Ended |
Dec. 28, 2019 | |
Equity Interest Investments | |
Equity Interest Investments | Note 6 — Equity Interest Investments The Company had a 50% interest in a joint venture, Stiga Sports AB (Stiga). The joint venture was accounted for under the equity method of accounting. Stiga, located in Sweden, is a global sporting goods company producing table tennis equipment, snow sleds and game products. The Company entered into a share purchase agreement for the private sale of the Company's 50% interest in the Stiga joint venture. On May 17, 2018, the Company completed the sale of its 50% interest for $33.7 million, resulting in a gain on sale of $13.0 million. In conjunction with the sale, the Company entered into a new license agreement with Stiga for the licensing rights to manufacture, market, promote, sell and distribute Stiga-branded table tennis hobby products in the United States, Mexico and Canada. The Company has had the licensing rights for such products since 1995 pursuant to an existing license agreement that expired December 31, 2018. The new license agreement went into effect on January 1, 2019. Financial information for Stiga reflected in the table below has been translated from local currency to U.S. dollars using average exchange rates for income statement amounts. The Company's 50% portion of net income for Stiga for the period from December 31, 2017 through May 17, 2018 is $121 thousand. The Company’s 50% portion of net income for Stiga for the year ended December 30, 2017 was $1.6 million. For each of the years ended December 29, 2018 and December 30, 2017, the Company paid royalties to Stiga in the amount of $0.4 million. For the year ended December 28, 2019, the Company paid royalties to Stiga in the amount of $0.5 million. In accordance with Rule 4‑08(g) of Regulation S-X, summarized financial information for Stiga Sports AB statements of operations for the period from December 31, 2017 through May 17, 2018 and for the year ended December 31, 2017 is as follows: Period from December 31, 2017 through May 17, 2018 2017 Net sales $ 12,978 $ 46,296 Gross profit 6,019 21,427 Net income 3,268 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 28, 2019 | |
Borrowings | |
Borrowings | Note 7 — Borrowings On January 21, 2019, the Company entered into an Amended and Restated Credit Agreement (“2019 Restated Credit Agreement”) with the Lender. Under the terms of the 2019 Restated Credit Agreement, the Lender has made available to the Company a senior revolving credit facility with increased maximum availability of $50.0 million. The maturity date was extended to January 31, 2022. In addition to the increased borrowing amount and extended maturity date, other significant changes reflected in the 2019 Restated Credit Agreement include: more favorable interest rate provisions; increases in borrowing base availability; releases of existing mortgages on the Company's real property; and increasing to $25.0 million the total consideration that the Company may use for acquisitions without obtaining the Lender's consent, as long as no event of default exists. The 2019 Restated Credit Agreement allows Escalade to request the issuance of letters of credit of up to $5.0 million. Each loan will bear interest at the Adjusted LIBO Rate for the interest period in effect plus the Applicable Rate. Applicable Rate means the applicable rate per annum set forth below, based upon Escalade’s Funded Debt to Adjusted Ratio as of the most recent determination date: Funded Debt to Revolving ABR EBITDA Eurodollar Revolving Letter of Commitment Ratio Borrowing Borrowing Credit Fee Fee Category 1 Greater than or equal to 2.50 to 1.0 2.00 % 0 % 2.00 % 0.30 % Category 2 Greater than or equal to 1.50 to 1.0 but less than 2.50 to 1.0 1.75 % (0.25) % 1.75 % 0.30 % Category 3 Less than 1.50 to 1.0 1.50 % (0.50) % 1.50 % 0.30 % The Applicable Rate shall be determined as of the end of each quarter based upon the Company’s annual or quarterly consolidated financial statements and shall be effective during the period commencing the date of delivery to the agent. Indebtedness under the 2019 Restated Credit Agreement continues to be collateralized by liens on all of the present and future equity of each of the Company’s and Indian Industries’ domestic subsidiaries and substantially all of the assets of their respective assets pursuant to the Pledge and Security Agreement dated January 25, 2019 by and among the Company, Indian Industries, their domestic subsidiaries, and Chase. The 2019 Pledge and Security Agreement supersedes the pledge and security agreements previously entered into by the Company, Indian Industries, and their domestic subsidiaries. In addition, each direct and indirect domestic subsidiary of the Company and Indian Industries, Inc. continues to unconditionally guarantee all of the indebtedness of Escalade arising under the 2019 Restated Credit Agreement pursuant to the terms thereof. The subsidiary guarantees arising under the 2019 Restated Credit Agreement supersede the unlimited continuing guaranty agreements previously entered into by such domestic subsidiaries. As of December 28, 2019, the Company did not have any borrowings outstanding under the 2019 Restated Credit Agreement. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share | |
Earnings Per Share | Note 8 — Earnings Per Share The shares used in the computation of the Company’s basic and diluted earnings per common share are as follows: In Thousands 2019 2018 2017 Weighted average common shares outstanding 14,407 14,422 14,352 Dilutive effect of stock options and restricted stock units 32 55 39 Weighted average common shares outstanding, assuming dilution 14,439 14,477 14,391 Number of anti-dilutive stock options and unvested restricted stock units 80 70 58 Weighted average common shares outstanding, assuming dilution, includes the incremental shares that would be issued upon the assumed exercise of stock options outstanding. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 28, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 9 — Employee Benefit Plans The Company has an employee profit-sharing salary reduction plan, pursuant to the provisions of Section 401(k) of the Internal Revenue Code, for all employees. The Company’s contribution is a matching percentage of the employee contribution as determined by the Board of Directors annually. The Company’s expense for the plan was $816 thousand, $715 thousand and $695 thousand for 2019, 2018 and 2017, respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 28, 2019 | |
Stock Compensation Plans | |
Stock Compensation Plans | Note 10 — Stock Compensation Plans In May 2017, Shareholders approved the Escalade, Incorporated 2017 Incentive Plan (2017 Incentive Plan), which is an incentive plan for key employees, directors and consultants with various equity-based incentives as described in the plan document. The 2017 Incentive Plan is a replacement for the 2007 Incentive Plan, which expired at the end of April 2017. All options issued and outstanding under the expired plans will remain in effect until exercised, expired or forfeited. The 2017 Incentive Plan is administered by the Board of Directors or a committee thereof, which is authorized to determine, among other things, the key employees, directors or consultants who will receive awards under the plan, the amount and type of award, exercise prices or performance criteria, if applicable, and vesting schedules. Under the original terms of the plan and subject to various restrictions contained in the plan document, the total number of shares of common stock which may be issued pursuant to awards under the Plan may not exceed 1,661,598. Restricted Stock Units During 2019, and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 8,839 shares of common stock. In 2019, the Company awarded 11,400 restricted stock units to directors and 35,900 restricted stock units to employees. The restricted stock units awarded to directors time vest over two years (one-half one year from grant date and one-half two years from grant date) provided that the director is still a director of the Company at the vesting date. Director restricted stock units are subject to forfeiture, except for termination of services as a result of retirement, death or disability, if on the vesting date the director no longer holds a position with the Company. The 2019 restricted stock units awarded to employees are subject to a three year cliff vesting schedule, which means that these restricted stock units will fully vest, if at all, three years from the grant date provided that the employee is still employed by the Company on the vesting date. In addition, vesting of certain of the restricted stock units is subject to the Company meeting certain conditions based on Return on Equity and Adjusted EBITDA. A summary of restricted stock unit activity is as follows: Weighted Number of Average Grant Shares Date Fair Value Non-vested stock units as of December 30, 2017 103,076 $ 11.92 Granted 74,528 12.39 Vested (47,358) 12.34 Forfeited (4,259) 11.65 Non-vested stock units as of December 29, 2018 125,987 $ 12.05 Granted 47,300 11.54 Vested (28,888) 12.40 Forfeited (15,763) 12.08 Non-vested stock units as of December 28, 2019 128,636 $ 11.78 When vesting is dependent on certain market criteria, the fair value of restricted stock units is determined by the use of Monte Carlo techniques. The market price of the Company’s stock on the grant date is used to value restricted stock units where vesting is not contingent on market criteria. In 2019, 2018, and 2017 the Company recognized $505 thousand, $591 thousand, and $504 thousand respectively in compensation expense related to restricted stock units and as of December 28, 2019 and December 29, 2018, there was $622 thousand and $754 thousand respectively, of unrecognized compensation expense related to restricted stock units. Stock Options Total compensation expense recorded in the statements of operations for 2019, 2018 and 2017 relating to stock options was $8 thousand, $13 thousand and $18 thousand, respectively. As of December 28, 2019 and December 29, 2018, there was $5 thousand and $13 thousand respectively, of total unrecognized compensation costs related to stock options. These costs are expected to be recognized over a weighted average period of 1.0 years. No stock options were awarded during 2019, 2018 or 2017. The following table summarizes option activity for each of the three years ended 2019: Incentive Stock Options Director Stock Options Granted Outstanding Granted Outstanding 2019 — 20,000 — — 2018 — 20,000 — 15,000 2017 — 29,250 — 15,000 The following table summarizes stock option transactions for the three years ended 2019: 2019 2018 2017 Option Option Option Shares Price Shares Price Shares Price Outstanding at beginning of year 35,000 $11.86 to $14.39 44,250 $5.85 to $14.39 72,375 $5.28 to $14.39 Issued during year — — — — — — Canceled or expired (5,000) $ 11.86 — — Exercised during year (10,000) $ 11.86 (9,250) $ 5.85 (28,125) $5.28 to $5.85 Outstanding at end of year 20,000 $ 14.39 35,000 $11.86 to $14.39 44,250 $5.85 to $14.39 Exercisable at end of year 6,666 15,000 24,250 Weighted-average fair value of options granted during the year — — — The total intrinsic value of options exercised was $0.0 million, $0.1 million and $0.2 million for 2019, 2018 and 2017, respectively. The following table summarizes information about stock options outstanding at December 28, 2019: Options Outstanding Options Exercisable Weighted-Average Range of Number of Remaining Weighted-Average Number of Weighted-Average Exercise Prices Shares Contractual Life Exercise Price Shares Exercise Price $ 14.39 20,000 2.17 years $ 14.39 6,666 $ 14.39 During the year ended December 28, 2019, the following activity occurred under the Company’s stock option plan: Weighted Average Number of Grant Date Fair Options Value Nonvested balance, beginning of year 20,000 $ 2.52 Granted — — Vested (6,666) $ 2.52 Forfeited — — Nonvested balance, end of year 13,334 $ 2.52 |
Other Comprehensive Loss
Other Comprehensive Loss | 12 Months Ended |
Dec. 28, 2019 | |
Other Comprehensive Loss | |
Other Comprehensive Loss | Note 11 — Other Comprehensive Loss The components of other comprehensive loss were as follows: In Thousands 2019 2018 2017 Change in foreign currency translation adjustment before reclassifications — $ (1,119) $ 1,670 Amounts reclassified from comprehensive income due to a divestiture of equity investment — 3,729 — The components of accumulated other comprehensive loss, net of tax, were as follows: In Thousands 2019 2018 2017 Foreign currency translation adjustment $ — $ — $ (2,610) |
Provision for Taxes
Provision for Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Provision for Taxes | |
Provision for Taxes | Note 12 — Provision for Taxes Income before taxes and the provision for taxes consisted of the following: In Thousands 2019 2018 2017 Income before taxes: $ 8,934 $ 26,442 $ 15,517 Provision (benefit) for taxes: Current Federal $ 1,419 $ 4,574 $ 4,191 State 129 486 212 1,548 5,060 4,403 Deferred Federal 367 591 (2,441) State (239) 349 (506) 128 940 (2,947) $ 1,676 $ 6,000 $ 1,456 The provision for income taxes was computed based on financial statement income. A reconciliation of the provision for income taxes to the amount computed using the statutory rate follows: In Thousands 2019 2018 2017 Income tax at statutory rate $ 1,876 $ 5,553 $ 5,431 Increase (decrease) in income tax resulting from State tax expense, net of federal effect (86) 660 (191) Federal true-ups (60) (23) 193 Federal tax credits (93) (115) (242) Effect of foreign tax rates — (304) (399) Valuation allowances (state and foreign) — (150) (148) Captive insurance earnings — (263) (128) Incentive stock options (1) (9) (22) Tax Cuts & Jobs Act of 2017 — 588 (2,986) Other 40 63 (52) Recorded provision for income taxes $ 1,676 $ 6,000 $ 1,456 The provision for income taxes was computed based on financial statement income. In accordance with FASB ASC 740, the Company does not have any uncertain tax positions as of and for the years ended December 28, 2019 and December 29, 2018. Interest costs and penalties related to income taxes are classified as interest expense and selling, general and administrative costs, respectively in the Company’s financial statements. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and multiple state and foreign jurisdictions. The Company is subject to future examinations by federal, state and other tax authorities for all years after 2015. The Company also has state, net of federal benefit, research tax credit carryforwards of $346 thousand as of December 28, 2019. The state research tax credit carryforwards begin to expire in 2021. During the year ended December 30, 2017, the Company calculated its best estimate of the impact of the Tax Cuts and Jobs Act of 2017 and as a result, recorded $3.0 million of income tax benefits. During the year ended December 29, 2018, the Company continued its work to determine the amount of accumulated foreign earnings and the corresponding foreign tax credit. Based on the work completed, the Company recorded $0.6 million in income tax expense. We do not expect any further changes or adjustments to be made for the accumulated foreign earnings and corresponding foreign tax credit. At December 28, 2019, the Company had domestic federal income taxes payable of $41 thousand, domestic income taxes receivable of $204 thousand and a transition tax payable of $387 thousand recorded. At December 29, 2018, the Company had domestic federal income taxes receivable of $943 thousand, domestic state income taxes receivable of $139 thousand, and transition tax payable of $1.1 million recorded. The components of the net deferred tax liabilities are as follows: In Thousands 2019 2018 Assets Employee benefits $ 55 $ 30 Valuation reserves 779 615 Stock based compensation 208 179 Federal and state credits 347 297 Net operating loss carry forward — 1 Total assets 1,389 1,122 Liabilities Property and equipment (470) (532) Goodwill and intangible assets (4,278) (3,812) Prepaid insurance (178) (187) Total liabilities (4,926) (4,531) Valuation Allowance Beginning balance — (160) Decrease during period — 160 Ending balance — — $ (3,537) $ (3,409) Deferred tax assets (liabilities) are included in the consolidated balance sheets as follows: In Thousands 2019 2018 Deferred income tax asset - current $ — $ — Deferred income tax asset (liability) – long-term (3,537) (3,409) $ (3,537) $ (3,409) The Company has utilized all state net operating losses during the year ended December 28, 2019. |
Operating Segment and Geographi
Operating Segment and Geographic Information | 12 Months Ended |
Dec. 28, 2019 | |
Operating Segment and Geographic Information | |
Operating Segment and Geographic Information | Note 13 — Operating Segment and Geographic Information The following table presents certain operating segment information. In Thousands 2019 2018 2017 Sporting Goods Net revenue $ 180,541 $ 175,780 $ 177,333 Operating income 8,611 13,999 15,600 Interest expense 358 427 975 Provision for taxes 2,272 3,739 6,134 Net income 5,997 9,869 8,626 Identifiable assets 141,167 142,490 130,388 Depreciation & amortization 4,031 3,857 3,910 Capital expenditures 2,185 2,818 2,745 All Other Net revenue — — — Operating income (loss) 664 (182) (1,000) Interest expense (income) (2) — (171) Provision (benefit) for taxes (596) 2,261 (4,678) Net income 1,261 10,573 5,435 Identifiable assets 7,612 7,037 25,717 Non-marketable equity investments (equity method) — — 20,278 Depreciation & amortization — — — Capital expenditures — — — Total Net revenue 180,541 175,780 177,333 Operating income 9,275 13,817 14,600 Interest expense 356 427 804 Provision for taxes 1,676 6,000 1,456 Net income 7,258 20,442 14,061 Identifiable assets 148,779 149,527 156,105 Non-marketable equity investments (equity method) — — 20,278 Depreciation & amortization 4,031 3,857 3,910 Capital expenditures 2,185 2,818 2,745 Each operating segment is individually managed and has separate financial results that are reviewed by the Company’s management. There were no changes to the composition of segments in 2019. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The Sporting Goods segment consists of home entertainment products such as table tennis tables and accessories; basketball goals; pool tables and accessories; outdoor playsets; soccer and hockey tables; archery equipment and accessories; and fitness, arcade and darting products. Customers include retailers, dealers and wholesalers located throughout North America, Europe and the rest of the world. All Other consist of general and administrative expenses not specifically related to the operating business segments and included investment income from equity investments. Interest expense is allocated to operating segments based on working capital usage and the provision for taxes is allocated based on a combined federal and state statutory rate of 27.5% adjusted for actual taxes on foreign income. Permanent tax adjustments and timing differences are included in the all other segment. Identifiable assets are principally those assets used in each segment. The assets in the all other segment are principally cash and cash equivalents; deferred tax assets; and investments. During 2019, 2018 and 2017, the Company had one customer, Amazon.com, Inc., that accounted for approximately 21%, 19% and 18%, respectively of the Company's revenues. During 2019, 2018 and 2017 the Company had another customer, Dick’s Sporting Goods, which accounted for approximately 13%, 13% and 17%, respectively, of the Company’s revenues. As of December 28, 2019, the Company had approximately 27% and 18% of its total accounts receivable with Amazon.com, Inc. and Dick’s Sporting Goods, respectively. As of December 29, 2018, the Company had approximately 24% and 14% of its total accounts receivable with Amazon.com, Inc. and Dick’s Sporting Goods, respectively. As of December 28, 2019, approximately 31 employees of the Company’s labor force were covered by a collective bargaining agreement that expires May 1, 2021. Raw materials for Escalade’s various product lines consist of wood, tempered glass, particle board, standard grades of steel and steel tubing, aluminum, engineering plastics, fiberglass and packaging materials. Escalade relies upon domestic, Mexico, and Asian suppliers for these materials and upon various Asian manufacturers for many of its products. Net sales are attributed to country based on location of customer. Net sales by geographic region/country were as follows: In Thousands 2019 2018 2017 North America $ 178,069 $ 172,656 $ 175,065 Europe 1,001 965 974 Other 1,471 2,159 1,294 $ 180,541 $ 175,780 $ 177,333 Identified assets by geographic region/country were as follows: In Thousands 2019 2018 2017 North America $ 148,779 $ 149,527 $ 156,105 Europe — — — $ 148,779 $ 149,527 $ 156,105 |
Summary of Quarterly Results
Summary of Quarterly Results | 12 Months Ended |
Dec. 28, 2019 | |
Summary of Quarterly Results | |
Summary of Quarterly Results | Note 14 — Summary of Quarterly Results In thousands, except per share data (unaudited) March 23 July 13 October 5 December 28 2019 Net Sales $ 32,102 $ 55,639 $ 45,756 $ 47,044 Operating Income 394 2,471 2,899 3,511 Net income 267 1,876 2,540 2,575 Basic Earnings Per Share Data: $ 0.02 $ 0.13 $ 0.18 $ 0.18 Diluted Earnings Per Share Data: $ 0.02 $ 0.13 $ 0.18 $ 0.18 In thousands, except per share data (unaudited) March 24 July 14 October 6 December 29 2018 Net Sales $ 32,149 $ 48,684 $ 43,955 $ 50,992 Operating Income 1,715 1,951 5,134 5,017 Net income 1,216 12,071 3,575 3,580 Basic Earnings Per Share Data: $ 0.08 $ 0.84 $ 0.25 $ 0.25 Diluted Earnings Per Share Data: $ 0.08 $ 0.84 $ 0.25 $ 0.25 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 28, 2019 | |
Acquisitions | |
Acquisitions | Note 15 — Acquisitions All of the Company’s acquisitions have been accounted for using the purchase method of accounting. 2019 During 2019, the Company acquired Dura Pickleball, a brand known for being the official ball of the US Open Pickleball Championships, Tournament of Champions, and the USA National Pickleball Championships for a total consideration of cash and note payable to seller of $900 thousand. 2018 During 2018, the Company acquired Victory Tailgate, LLC, a brand known for its premium licensed and custom tailgating games for total consideration of cash of approximately $7.2 million, subject to adjustments for working capital and consideration of holdback provision. The consideration paid by the Company for this acquisition was allocated to the assets acquired, net of the liabilities assumed, based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair value of the assets acquired, net of the estimated fair value of the liabilities assumed, was recorded as goodwill. The allocation of the purchase price, including values assigned to assets, liabilities and the amount of goodwill and intangible assets are represented in the table below. In thousands Assets acquired and liabilities assumed: Cash $ 94 Accounts receivable 252 Inventories 603 Other assets 2,003 Goodwill 4,833 Intangible assets 1,500 Accounts payable (2,088) Other liabilities (314) $ 6,883 Consideration of holdback provision 286 $ 7,169 2017 During 2017, the Company acquired certain assets and liabilities through two acquisitions. Total consideration paid for the acquisitions was $1.5 million. The consideration paid by the company for these acquisitions was allocated to the assets acquired, net of the liabilities assumed, based upon their estimated fair values as of the date of the acquisition. ASC 805 requires that when fair value of the net assets acquired exceeds the purchase price, resulting in a bargain purchase, the acquirer must reassess the reasonableness of the values assigned to all of the net assets acquired, liabilities assumed and consideration transferred. The Company has performed such assessment and has concluded that the values assigned appear to be reasonable. The following table summarizes the allocation of the purchase price for the acquisition that resulted in a bargain purchase: In thousands Accounts receivable, net $ 852 Inventories, net 737 Other assets 64 Intangible assets 413 Total fair value of assets acquired 2,066 Total liabilities assumed (563) Net assets acquired 1,503 Total consideration paid (1,101) Gain before deferred income tax liability 402 Income tax liability – deferred (146) Gain on bargain purchase $ 256 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 16 — Commitments and Contingencies The Company is involved in litigation arising in the normal course of its business. The Company does not believe that the disposition or ultimate resolution of existing claims or lawsuits will have a material adverse effect on the business or financial condition of the Company. The Company has entered into various agreements whereby it is required to make royalty and license payments. At December 28, 2019, the Company had future estimated minimum non-cancelable royalty and license payments as follows: In Thousands Amount 2020 $ 1,662 2021 845 2022 677 2023 540 2024 — Thereafter — $ 3,724 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 28, 2019 | |
Fair Values of Financial Instruments | |
Fair Values of Financial Instruments | Note 17 — Fair Values of Financial Instruments The following methods were used to estimate the fair value of all financial instruments recognized in the accompanying balance sheets at amounts other than fair values. Cash and Cash Equivalents and Time Deposits Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity. Notes Payable and Long-term Debt The Company believes the carrying value of short-term debt, including current portion of long-term debt, and long-term debt adequately reflects the fair value of these instruments. The following table presents estimated fair values of the Company’s financial instruments in accordance with FASB ASC 825 at December 28, 2019 and December 29, 2018. Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant 2019 for Identical Observable Unobservable In Thousands Fair Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Financial assets Cash and cash equivalents $ 5,882 $ 5,882 $ — $ — Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant 2018 for Identical Observable Unobservable In Thousands Fair Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Financial assets Cash and cash equivalents $ 2,824 $ 2,824 $ — $ — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note 18 — Revenue from Contracts with Customers Revenue Recognition - Effective December 31, 2017, we adopted ASC 606. The adoption of this standard did not impact the timing of revenue recognition for customer sales. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue. Gross-to-net sales adjustments - We recognize revenue net of various sales adjustments to arrive at net sales as reported on the statement of operations. These adjustments are referred to as gross-to-net sales adjustments and primarily fall into one of three categories; returns, warranties and customer allowances. Returns - The Company records an accrued liability and reduction in sales for estimated product returns based upon historical experience. An accrued liability and reduction in sales is also recorded for approved return authorizations that have been communicated by the customer. Warranties - Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management's estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year. Customer Allowances - Customer allowances are common practice in the industries in which the Company operates. These agreements are typically in the form of advertising subsidies, volume rebates and catalog allowances and are accounted for as a reduction to gross sales. The Company reviews such allowances on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available. Disaggregation of Revenue - We generate revenue from the sale of widely recognized sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products. These products are sold through multiple sales channels that include; mass merchants, specialty dealers, key on-line retailers ("E-commerce") and international. The following table depicts the disaggregation of revenue according to sales channel: Years Ended All Amounts in Thousands December 28, 2019 December 29, 2018 December 30, 2017 Gross Sales by Channel: Mass Merchants $ 66,428 $ 68,196 $ 80,539 Specialty Dealers 53,878 59,211 56,862 E-commerce 74,029 58,026 50,431 International 6,562 8,533 7,545 Other 2,475 1,828 402 Total Gross Sales 203,372 195,794 195,779 Less: Gross-to-Net Sales Adjustments Returns 5,415 5,085 4,729 Warranties 1,736 1,448 1,036 Customer Allowances 15,680 13,481 12,681 Total Gross-to-Net Sales Adjustments 22,831 20,014 18,446 Total Net Sales $ 180,541 $ 175,780 $ 177,333 Contract Balances - The following table provides information on changes in our contract liability balances during the twelve month periods ended December 28, 2019, December 29, 2018 and December 30, 2017. The contract liability recorded during the twelve month periods ended December 29, 2018 is related to a lump sum payment received for consulting services to be provided over the next year. The contract liability was amortized, and revenues recognized, evenly over the year. At December 29, 2018, the contract liability balance was $413 and was reported within Accrued liabilities in our Consolidated Balance Sheet. During the year ended December 28, 2019, the liability was fully amortized. Years Ended All Amounts in Thousands December 28, 2019 December 29, 2018 December 30, 2017 Increase due to cash received, excluding amounts recognized as revenue during the period $ — $ 413 $ — Revenue recognized that was included in the contract liability balance at the beginning of the period (413) — — Increase in contract liability during the period $ — $ 413 $ — |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Escalade, Incorporated and its wholly-owned subsidiaries. All material inter-company accounts and transactions have been eliminated. |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The books and records of subsidiaries located in foreign countries are maintained according to generally accepted accounting principles in those countries. Upon consolidation, the Company evaluates the differences in accounting principles and determines whether adjustments are necessary to convert the foreign financial statements to the accounting principles upon which the consolidated financial statements are based. As a result of this evaluation no material adjustments were identified. |
Fiscal Year End | Fiscal Year End The Company’s fiscal year is a 52 or 53 week period ending on the last Saturday in December. Fiscal year 2019 was 52 weeks long, ending December 28, 2019. Fiscal year 2018 was 52 weeks long, ending December 29, 2018. Fiscal year 2017 was 52 weeks long, ending on December 30, 2017. |
Cash and Cash Equivalents | Cash and Cash Equivalents Highly liquid financial instruments with insignificant interest rate risk and with original maturities of three months or less are classified as cash and cash equivalents. Cash and cash equivalent balances may at times be in excess of federally insured limits. The Company maintains its cash and cash equivalent balances at high-credit quality financial institutions. |
Accounts Receivable | Accounts Receivable Revenue from the sale of the Company’s products is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Accounts receivable are stated at the amount billed to customers. Interest and late charges billed to customers are not material and, because collection is uncertain, are not recognized until collected and are therefore not included in accounts receivable. The Company provides an allowance for doubtful accounts which is described in Note 2 – Certain Significant Estimates. |
Inventories | Inventories Inventory cost is computed on a currently adjusted standard cost basis (which approximates actual cost on a current average or first-in, first-out basis). Work in process and finished goods inventory are determined to be saleable based on a demand forecast within a specific time horizon, generally one year or less. Inventory in excess of saleable amounts is reserved, and the remaining inventory is valued at the lower of cost or net realizable value. This inventory valuation reserve totaled $786 thousand and $456 thousand at fiscal year-end 2019 and 2018, respectively. Inventories, net of the valuation reserve, at fiscal year-ends were as follows: In Thousands 2019 2018 Raw materials $ 3,186 $ 3,622 Work in process 2,177 2,892 Finished goods 36,906 32,608 $ 42,269 $ 39,122 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation and amortization are computed for financial reporting purposes principally using the straight-line method over the following estimated useful lives: buildings, 20‑30 years; leasehold improvements, term of the lease; machinery and equipment, 5‑15 years; and tooling, dies and molds, 2‑5 years. Property, plant and equipment consist of the following: In Thousands 2019 2018 Land $ 1,943 $ 1,943 Buildings and leasehold improvements 16,831 16,768 Machinery and equipment 24,721 27,458 Total cost 43,495 46,169 Accumulated depreciation and amortization (28,384) (30,671) $ 15,111 $ 15,498 The Company evaluates the recoverability of certain long-lived assets whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Estimates of future cash flows used to test recoverability of long-lived assets include separately identifiable undiscounted cash flows expected to arise from the use and eventual disposition of the assets. Where estimated future cash flows are less than the carrying value of the assets, impairment losses are recognized based on the amount by which the carrying value exceeds the fair value of the assets. No asset impairment was recognized during the years ended 2019, 2018, or 2017. |
Investments | Investments Non-Marketable Equity Investment: The Company had an equity position in a company that strategically related to the Company’s business, but the Company did not have control over that entity. The accounting method employed was dependent on the level of ownership and degree of influence the Company could exert on operations. Where the equity interest was less than 20% and the degree of influence was not significant, the cost method of accounting was employed. Where the equity interest was greater than 20% but not more than 50%, the equity method of accounting was utilized. Under the equity method, the Company’s proportionate share of net income was recorded in equity in earnings of affiliates on the consolidated statement of operations. The proportionate share of net income was $0.1 million and $1.6 million in 2018 and 2017, respectively. Total cash dividends received from this equity investment amounted to $2,323 thousand and $2,168 thousand in 2018 and 2017, respectively. The Company considered whether the fair value of its equity investment declined below its carrying value whenever adverse events or changes in circumstances indicated that recorded values may not be recoverable. If the Company considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities and overall health of the investments’ industry), a write-down was recorded to estimated fair value. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over fair value of net tangible and identifiable intangible assets of acquired businesses. Intangible assets consist of patents, consulting agreements, non-compete agreements, customer lists, developed technology, license agreements, and trademarks. Goodwill is deemed to have an indefinite life and is not amortized, but is subject to impairment testing annually in accordance with guidance included in FASB ASC 350 , Intangibles – Goodwill and Other . Other intangible assets are amortized using the straight-line method over the following lives: license agreements, 17 years; developed technology, 5 years; trademarks, 20 years to indefinite life; consulting agreements, the life of the agreement; customer lists, 3 to 14 years; non-compete agreements, the lesser of the term or 5 years; and patents, the lesser of the remaining life or 5 to 15 years. The Company reviews goodwill for impairment annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable, in accordance with guidance in FASB ASC 350, Intangibles – Goodwill and Other . A qualitative assessment is first performed to determine if the fair value of the reporting unit is "more likely than not" less than the carrying value. If so, we proceed to step one of the two-step goodwill impairment test, in which the fair value of the reporting unit is compared to its carrying value. If not, then performance of the second step of the goodwill impairment test is not necessary. If the carrying value of goodwill exceeds the implied estimated fair value calculated in the second step, an impairment charge to current operations is recorded to reduce the carrying value to the implied estimated fair value. |
Employee Incentive Plan | Employee Incentive Plan During 2017, the Company approved an incentive plan explained in Note 10. The Company accounts for this plan under the recognition and measurement principles of FASB ASC 718, Equity Based Payments . |
Foreign Currency Translation | Foreign Currency Translation The functional currency for the foreign operations of Escalade is the U.S. dollar. Gains or losses resulting from foreign currency transactions are included in selling, general and administrative expense in the Consolidated Statements of Operations and were insignificant in fiscal years 2019, 2018, and 2017. |
Cost of Products Sold | Cost of Products Sold Cost of products sold is comprised of those costs directly associated with or allocated to the products sold and include materials, labor and factory overhead. |
Other Income (Loss) | Other Income (Loss) The components of Other Income (Loss) are as follows: In Thousands 2019 2018 2017 Other income (loss) $ 15 $ (89) $ (169) $ 15 $ (89) $ (169) |
Provision for Income Taxes | Provision for Income Taxes Income tax in the consolidated statement of operations includes deferred income tax provisions or benefits for all significant temporary differences in recognizing income and expenses for financial reporting and income tax purposes. A valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. |
Research and Development | Research and Development Research and development costs are charged to expense as incurred. Research and development costs incurred during 2019, 2018 and 2017 were approximately $1.6 million, $1.5 million, and $1.6 million, respectively. |
New Accounting Pronouncements and Changes in Accounting Principles | New Accounting Pronouncements and Changes in Accounting Principles Standards Adopted : In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU) 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. The amendments in this update will increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Under ASU 2016‑02, a lessee will recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from current GAAP. ASU 2016‑02 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases will be substantially similar to the classification criteria for distinguishing between capital leases and operating leases under prior GAAP. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The guidance permits a practical expedient with regards to initial adoption, allowing adopters the option to apply the new leases standard prospectively at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Under this expedient, comparative periods presented in the financial statements in which the new lease standard is adopted, will continue to be presented in accordance with prior GAAP. The Company adopted this standard on December 30, 2018 using the prospective application method practical expedient. The adoption of this standard had an immaterial impact on our consolidated balance sheet, recognizing a ROU asset and lease liability of $985 thousand. Refer to Note 4 for disclosure requirements related to this standard. New Accounting Standards to be Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This amendment requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The amendments are effective in fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We do not expect the standard to have a material impact on our consolidated financial statements. In November 2019, the FASB issued ASU 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates. This amendment delays the effective dates of specific ASUs, including ASU 2016-13 by one year. In January 2017, the FASB issued ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. These amendments eliminate Step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments are effective for annual impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The provisions of the amendment should be adopted on a prospective basis. Adoption of this standard will not have a material impact on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes. This guidance will be effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Schedule of Inventories | Inventories, net of the valuation reserve, at fiscal year-ends were as follows: In Thousands 2019 2018 Raw materials $ 3,186 $ 3,622 Work in process 2,177 2,892 Finished goods 36,906 32,608 $ 42,269 $ 39,122 |
Schedule Property, Plant and Equipment | Property, plant and equipment consist of the following: In Thousands 2019 2018 Land $ 1,943 $ 1,943 Buildings and leasehold improvements 16,831 16,768 Machinery and equipment 24,721 27,458 Total cost 43,495 46,169 Accumulated depreciation and amortization (28,384) (30,671) $ 15,111 $ 15,498 |
Schedule of Other Nonoperating Income, by Component | The components of Other Income (Loss) are as follows: In Thousands 2019 2018 2017 Other income (loss) $ 15 $ (89) $ (169) $ 15 $ (89) $ (169) |
Certain Significant Estimates (
Certain Significant Estimates (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Product Warranty | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Valuation and qualifying accounts | Changes in product warranty were as follows: In Thousands 2019 2018 2017 Beginning balance $ 702 $ 691 $ 876 Additions 1,736 1,448 1,036 Deductions (1,750) (1,437) (1,221) Ending balance $ 688 $ 702 $ 691 |
Inventory Valuation Reserves | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Valuation and qualifying accounts | Changes in inventory valuation reserves were as follows: In Thousands 2019 2018 2017 Beginning balance $ 456 $ 504 $ 415 Additions 756 383 288 Deductions (426) (431) (199) Ending balance $ 786 $ 456 $ 504 |
Allowance for Doubtful Accounts | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Valuation and qualifying accounts | Changes in allowance for doubtful accounts were as follows: In Thousands 2019 2018 2017 Beginning balance $ 532 $ 623 $ 910 Additions 322 155 775 Deductions (371) (246) (1,062) Ending balance $ 483 $ 532 $ 623 |
Reserve For Customer Allowances | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Valuation and qualifying accounts | Changes in customer allowances for advertising subsidies, volume rebates and catalog allowances were as follows: In Thousands 2019 2018 2017 Beginning balance $ 1,550 $ 3,357 $ 2,777 Additions 7,292 6,575 6,608 Deductions (7,550) (8,382) (6,028) Ending balance $ 1,292 $ 1,550 $ 3,357 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities consist of the following: In Thousands 2019 2018 Employee compensation $ 1,917 $ 2,858 Customer related allowances and accruals 4,876 4,627 Other accrued items 2,896 3,587 $ 9,689 $ 11,072 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases | |
Schedule of lease, cost | Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information as follows: Twelve Months Ended December 28, All Amounts in Thousands 2019 Lease Expense Operating Lease Cost $ 826 Short-term Lease Cost 446 Variable Lease Cost 244 Total Operating Lease Cost $ 1,516 Operating Lease – Operating Cash Flows $ 755 New ROU Assets – Operating Leases $ 867 Other information about lease amounts recognized in our consolidated financial statements is summarized as follows: Period Ended December 28, 2019 Weighted Average Remaining Lease Term – Operating Leases 1.98 years Weighted Average Discount Rate – Operating Leases 5.00 % |
Schedule of future minimum rental payments for operating leases | Future minimum lease payments under non-cancellable leases as of December 28, 2019 were as follows: All Amounts in Thousands Year 1 $ 658 Year 2 378 Year 3 70 Year 4 31 Year 5 13 Thereafter — Total future minimum lease payments 1,150 Less imputed interest (54) Total $ 1,096 Reported as of December 28, 2019 Current operating lease liabilities 621 Long-term operating lease liabilities 475 Total $ 1,096 |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Acquired Intangible Assets and Goodwill | |
Schedule of finite-lived intangible assets | The carrying basis and accumulated amortization of recognized intangible assets are summarized in the following table: 2019 2018 Gross Gross Carrying Accumulated Carrying Accumulated In Thousands Amount Amortization Amount Amortization Patents 24,515 23,689 24,515 23,506 Non-compete agreements 2,749 2,702 2,749 2,625 Customer list 14,317 5,575 13,963 4,520 Trademarks 8,359 143 8,181 124 Developed technology 475 111 475 16 License agreements 700 48 700 7 51,115 32,268 50,583 30,798 |
Schedule of finite-lived intangible assets, future amortization expense | Estimated future amortization expense is summarized in the following table: In Thousands 2020 2021 2022 2023 2024 Thereafter Sporting Goods 1,437 1,388 1,368 1,290 1,165 4,415 |
Schedule of goodwill | All goodwill is allocated to the operating segment of the business. The changes in the carrying amount of goodwill were: In Thousands Sporting Goods Balance at December 30, 2017 $ 21,548 Acquisition 4,833 Balance at December 29, 2018 $ 26,381 Acquisition 368 Balance at December 28, 2019 $ 26,749 |
Equity Interest Investments (Ta
Equity Interest Investments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity Interest Investments | |
Schedule of financial information for statement of operations | Period from December 31, 2017 through May 17, 2018 2017 Net sales $ 12,978 $ 46,296 Gross profit 6,019 21,427 Net income 3,268 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Borrowings | |
Schedule of funded debt to adjusted ratio percentage | Applicable Rate means the applicable rate per annum set forth below, based upon Escalade’s Funded Debt to Adjusted Ratio as of the most recent determination date: Funded Debt to Revolving ABR EBITDA Eurodollar Revolving Letter of Commitment Ratio Borrowing Borrowing Credit Fee Fee Category 1 Greater than or equal to 2.50 to 1.0 2.00 % 0 % 2.00 % 0.30 % Category 2 Greater than or equal to 1.50 to 1.0 but less than 2.50 to 1.0 1.75 % (0.25) % 1.75 % 0.30 % Category 3 Less than 1.50 to 1.0 1.50 % (0.50) % 1.50 % 0.30 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share | |
Schedule of weighted average number of shares | The shares used in the computation of the Company’s basic and diluted earnings per common share are as follows: In Thousands 2019 2018 2017 Weighted average common shares outstanding 14,407 14,422 14,352 Dilutive effect of stock options and restricted stock units 32 55 39 Weighted average common shares outstanding, assuming dilution 14,439 14,477 14,391 Number of anti-dilutive stock options and unvested restricted stock units 80 70 58 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Stock Compensation Plans | |
Schedule of restricted stock unit activity | A summary of restricted stock unit activity is as follows: Weighted Number of Average Grant Shares Date Fair Value Non-vested stock units as of December 30, 2017 103,076 $ 11.92 Granted 74,528 12.39 Vested (47,358) 12.34 Forfeited (4,259) 11.65 Non-vested stock units as of December 29, 2018 125,987 $ 12.05 Granted 47,300 11.54 Vested (28,888) 12.40 Forfeited (15,763) 12.08 Non-vested stock units as of December 28, 2019 128,636 $ 11.78 |
Schedule of option activity | The following table summarizes option activity for each of the three years ended 2019: Incentive Stock Options Director Stock Options Granted Outstanding Granted Outstanding 2019 — 20,000 — — 2018 — 20,000 — 15,000 2017 — 29,250 — 15,000 |
Schedule of stock option transactions | The following table summarizes stock option transactions for the three years ended 2019: 2019 2018 2017 Option Option Option Shares Price Shares Price Shares Price Outstanding at beginning of year 35,000 $11.86 to $14.39 44,250 $5.85 to $14.39 72,375 $5.28 to $14.39 Issued during year — — — — — — Canceled or expired (5,000) $ 11.86 — — Exercised during year (10,000) $ 11.86 (9,250) $ 5.85 (28,125) $5.28 to $5.85 Outstanding at end of year 20,000 $ 14.39 35,000 $11.86 to $14.39 44,250 $5.85 to $14.39 Exercisable at end of year 6,666 15,000 24,250 Weighted-average fair value of options granted during the year — — — |
Schedule of information about stock options outstanding | The following table summarizes information about stock options outstanding at December 28, 2019: Options Outstanding Options Exercisable Weighted-Average Range of Number of Remaining Weighted-Average Number of Weighted-Average Exercise Prices Shares Contractual Life Exercise Price Shares Exercise Price $ 14.39 20,000 2.17 years $ 14.39 6,666 $ 14.39 |
Schedule of activity occurred under the Company's stock option plan | During the year ended December 28, 2019, the following activity occurred under the Company’s stock option plan: Weighted Average Number of Grant Date Fair Options Value Nonvested balance, beginning of year 20,000 $ 2.52 Granted — — Vested (6,666) $ 2.52 Forfeited — — Nonvested balance, end of year 13,334 $ 2.52 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Other Comprehensive Loss | |
Schedule of accumulated other comprehensive income loss | The components of other comprehensive loss were as follows: In Thousands 2019 2018 2017 Change in foreign currency translation adjustment before reclassifications — $ (1,119) $ 1,670 Amounts reclassified from comprehensive income due to a divestiture of equity investment — 3,729 — The components of accumulated other comprehensive loss, net of tax, were as follows: In Thousands 2019 2018 2017 Foreign currency translation adjustment $ — $ — $ (2,610) |
Provision for Taxes (Tables)
Provision for Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Provision for Taxes | |
Schedule of Income before taxes and the provision for taxes | In Thousands 2019 2018 2017 Income before taxes: $ 8,934 $ 26,442 $ 15,517 Provision (benefit) for taxes: Current Federal $ 1,419 $ 4,574 $ 4,191 State 129 486 212 1,548 5,060 4,403 Deferred Federal 367 591 (2,441) State (239) 349 (506) 128 940 (2,947) $ 1,676 $ 6,000 $ 1,456 |
Schedule of reconciliation of the provision for income taxes to the amount computed using the statutory rate | In Thousands 2019 2018 2017 Income tax at statutory rate $ 1,876 $ 5,553 $ 5,431 Increase (decrease) in income tax resulting from State tax expense, net of federal effect (86) 660 (191) Federal true-ups (60) (23) 193 Federal tax credits (93) (115) (242) Effect of foreign tax rates — (304) (399) Valuation allowances (state and foreign) — (150) (148) Captive insurance earnings — (263) (128) Incentive stock options (1) (9) (22) Tax Cuts & Jobs Act of 2017 — 588 (2,986) Other 40 63 (52) Recorded provision for income taxes $ 1,676 $ 6,000 $ 1,456 |
Schedule of components of the net deferred tax assets liabilities | In Thousands 2019 2018 Assets Employee benefits $ 55 $ 30 Valuation reserves 779 615 Stock based compensation 208 179 Federal and state credits 347 297 Net operating loss carry forward — 1 Total assets 1,389 1,122 Liabilities Property and equipment (470) (532) Goodwill and intangible assets (4,278) (3,812) Prepaid insurance (178) (187) Total liabilities (4,926) (4,531) Valuation Allowance Beginning balance — (160) Decrease during period — 160 Ending balance — — $ (3,537) $ (3,409) |
Schedule of Deferred tax assets (liabilities) are included in the consolidated balance sheets | In Thousands 2019 2018 Deferred income tax asset - current $ — $ — Deferred income tax asset (liability) – long-term (3,537) (3,409) $ (3,537) $ (3,409) |
Operating Segment and Geograp_2
Operating Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Operating Segment and Geographic Information | |
Schedule of certain operating segment information | In Thousands 2019 2018 2017 Sporting Goods Net revenue $ 180,541 $ 175,780 $ 177,333 Operating income 8,611 13,999 15,600 Interest expense 358 427 975 Provision for taxes 2,272 3,739 6,134 Net income 5,997 9,869 8,626 Identifiable assets 141,167 142,490 130,388 Depreciation & amortization 4,031 3,857 3,910 Capital expenditures 2,185 2,818 2,745 All Other Net revenue — — — Operating income (loss) 664 (182) (1,000) Interest expense (income) (2) — (171) Provision (benefit) for taxes (596) 2,261 (4,678) Net income 1,261 10,573 5,435 Identifiable assets 7,612 7,037 25,717 Non-marketable equity investments (equity method) — — 20,278 Depreciation & amortization — — — Capital expenditures — — — Total Net revenue 180,541 175,780 177,333 Operating income 9,275 13,817 14,600 Interest expense 356 427 804 Provision for taxes 1,676 6,000 1,456 Net income 7,258 20,442 14,061 Identifiable assets 148,779 149,527 156,105 Non-marketable equity investments (equity method) — — 20,278 Depreciation & amortization 4,031 3,857 3,910 Capital expenditures 2,185 2,818 2,745 |
Schedule of Net sales and Identified assets by geographic region/country | Net sales are attributed to country based on location of customer. Net sales by geographic region/country were as follows: In Thousands 2019 2018 2017 North America $ 178,069 $ 172,656 $ 175,065 Europe 1,001 965 974 Other 1,471 2,159 1,294 $ 180,541 $ 175,780 $ 177,333 Identified assets by geographic region/country were as follows: In Thousands 2019 2018 2017 North America $ 148,779 $ 149,527 $ 156,105 Europe — — — $ 148,779 $ 149,527 $ 156,105 |
Summary of Quarterly Results (T
Summary of Quarterly Results (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Summary of Quarterly Results | |
Schedule of Quarterly Financial Information | In thousands, except per share data (unaudited) March 23 July 13 October 5 December 28 2019 Net Sales $ 32,102 $ 55,639 $ 45,756 $ 47,044 Operating Income 394 2,471 2,899 3,511 Net income 267 1,876 2,540 2,575 Basic Earnings Per Share Data: $ 0.02 $ 0.13 $ 0.18 $ 0.18 Diluted Earnings Per Share Data: $ 0.02 $ 0.13 $ 0.18 $ 0.18 In thousands, except per share data (unaudited) March 24 July 14 October 6 December 29 2018 Net Sales $ 32,149 $ 48,684 $ 43,955 $ 50,992 Operating Income 1,715 1,951 5,134 5,017 Net income 1,216 12,071 3,575 3,580 Basic Earnings Per Share Data: $ 0.08 $ 0.84 $ 0.25 $ 0.25 Diluted Earnings Per Share Data: $ 0.08 $ 0.84 $ 0.25 $ 0.25 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Victory Tailgate LLC [Member] | |
Schedule of allocation of the bargain purchase for the acquisition and including values assigned to assets, liabilities and the amount of goodwill and intangible assets | The allocation of the purchase price, including values assigned to assets, liabilities and the amount of goodwill and intangible assets are represented in the table below. In thousands Assets acquired and liabilities assumed: Cash $ 94 Accounts receivable 252 Inventories 603 Other assets 2,003 Goodwill 4,833 Intangible assets 1,500 Accounts payable (2,088) Other liabilities (314) $ 6,883 Consideration of holdback provision 286 $ 7,169 |
Acquisition One [Member] | |
Schedule of allocation of the bargain purchase for the acquisition and including values assigned to assets, liabilities and the amount of goodwill and intangible assets | The following table summarizes the allocation of the purchase price for the acquisition that resulted in a bargain purchase: In thousands Accounts receivable, net $ 852 Inventories, net 737 Other assets 64 Intangible assets 413 Total fair value of assets acquired 2,066 Total liabilities assumed (563) Net assets acquired 1,503 Total consideration paid (1,101) Gain before deferred income tax liability 402 Income tax liability – deferred (146) Gain on bargain purchase $ 256 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies | |
Schedule of estimated minimum non-cancelable royalty and license payments | At December 28, 2019, the Company had future estimated minimum non-cancelable royalty and license payments as follows: In Thousands Amount 2020 $ 1,662 2021 845 2022 677 2023 540 2024 — Thereafter — $ 3,724 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Fair Values of Financial Instruments | |
Schedule of estimated fair values of the Company's financial instruments | The following table presents estimated fair values of the Company’s financial instruments in accordance with FASB ASC 825 at December 28, 2019 and December 29, 2018. Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant 2019 for Identical Observable Unobservable In Thousands Fair Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Financial assets Cash and cash equivalents $ 5,882 $ 5,882 $ — $ — Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant 2018 for Identical Observable Unobservable In Thousands Fair Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Financial assets Cash and cash equivalents $ 2,824 $ 2,824 $ — $ — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contracts with Customers | |
Schedule of disaggregation of revenue | The following table depicts the disaggregation of revenue according to sales channel: Years Ended All Amounts in Thousands December 28, 2019 December 29, 2018 December 30, 2017 Gross Sales by Channel: Mass Merchants $ 66,428 $ 68,196 $ 80,539 Specialty Dealers 53,878 59,211 56,862 E-commerce 74,029 58,026 50,431 International 6,562 8,533 7,545 Other 2,475 1,828 402 Total Gross Sales 203,372 195,794 195,779 Less: Gross-to-Net Sales Adjustments Returns 5,415 5,085 4,729 Warranties 1,736 1,448 1,036 Customer Allowances 15,680 13,481 12,681 Total Gross-to-Net Sales Adjustments 22,831 20,014 18,446 Total Net Sales $ 180,541 $ 175,780 $ 177,333 |
Schedule of contract balances with Customer | Years Ended All Amounts in Thousands December 28, 2019 December 29, 2018 December 30, 2017 Increase due to cash received, excluding amounts recognized as revenue during the period $ — $ 413 $ — Revenue recognized that was included in the contract liability balance at the beginning of the period (413) — — Increase in contract liability during the period $ — $ 413 $ — |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Nature of Operations and Summary of Significant Accounting Policies | ||
Raw materials | $ 3,186 | $ 3,622 |
Work in process | 2,177 | 2,892 |
Finished goods | 36,906 | 32,608 |
Inventories | $ 42,269 | $ 39,122 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Nature of Operations and Summary of Significant Accounting Policies | ||
Land | $ 1,943 | $ 1,943 |
Buildings and leasehold improvements | 16,831 | 16,768 |
Machinery and equipment | 24,721 | 27,458 |
Total cost | 43,495 | 46,169 |
Accumulated depreciation and amortization | (28,384) | (30,671) |
Property, Plant and Equipment, Net, Total | $ 15,111 | $ 15,498 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Other Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Nature of Operations and Summary of Significant Accounting Policies | |||
Other income (loss) | $ 15 | $ (89) | $ (169) |
Other Income | $ 15 | $ (89) | $ (169) |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Inventory Valuation Reserves | $ 786 | $ 456 | |
Equity Method Investment, Description of Principal Activities | Where the equity interest was less than 20% and the degree of influence was not significant, the cost method of accounting was employed. Where the equity interest was greater than 20% but not more than 50%, the equity method of accounting was utilized. | ||
Proceeds from Equity Method Investment, Distribution | $ 0 | 2,323 | $ 2,168 |
Research and Development Expense, Total | 1,600 | 1,500 | 1,600 |
Proportionate Net Income | 100 | 1,600 | |
Proceeds from Sale of Property, Plant, and Equipment | 4 | 0 | 5 |
Gain (Loss) on Disposition of Property Plant Equipment | $ (7) | $ 0 | $ 5 |
Building [Member] | Maximum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 30 years | ||
Building [Member] | Minimum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Machinery and Equipment, Leasehold Improvements [Member] | Maximum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Machinery and Equipment, Leasehold Improvements [Member] | Minimum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Tools, Dies and Molds [Member] | Maximum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Tools, Dies and Molds [Member] | Minimum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Noncompete Agreements [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Patents [Member] | Maximum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Patents [Member] | Minimum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Customer Lists [Member] | Maximum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 14 years | ||
Customer Lists [Member] | Minimum [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||
Trademarks [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Licensing Agreements [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 17 years | ||
Developed Technology [Member] | |||
Nature Of Operations and Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years |
New Accounting Standards and Ch
New Accounting Standards and Changes in Accounting Principles (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 30, 2018 |
Operating Lease, Right-of-Use Asset | $ 1,080 | |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Right-of-Use Asset | $ 985 |
Certain Significant Estimates_2
Certain Significant Estimates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Product Warranty | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | $ 702 | $ 691 | $ 876 |
Additions | 1,736 | 1,448 | 1,036 |
Deductions | (1,750) | (1,437) | (1,221) |
Ending balance | 688 | 702 | 691 |
Inventory Valuation Reserves | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | 456 | 504 | 415 |
Additions | 756 | 383 | 288 |
Deductions | (426) | (431) | (199) |
Ending balance | 786 | 456 | 504 |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | 532 | 623 | 910 |
Additions | 322 | 155 | 775 |
Deductions | (371) | (246) | (1,062) |
Ending balance | 483 | 532 | 623 |
Reserve For Customer Allowances | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | 1,550 | 3,357 | 2,777 |
Additions | 7,292 | 6,575 | 6,608 |
Deductions | (7,550) | (8,382) | (6,028) |
Ending balance | $ 1,292 | $ 1,550 | $ 3,357 |
Certain Significant Estimates -
Certain Significant Estimates - Additional Information (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Trademarks [Member] | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Noncompete Agreements [Member] | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Developed Technology [Member] | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Licensing Agreements [Member] | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Maximum [Member] | Customer Lists [Member] | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 14 years |
Maximum [Member] | Patents [Member] | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Minimum [Member] | Customer Lists [Member] | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Minimum [Member] | Patents [Member] | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Accrued Liabilities | ||
Employee compensation | $ 1,917 | $ 2,858 |
Customer related allowances and accruals | 4,876 | 4,627 |
Other accrued items | 2,896 | 3,587 |
Accrued Liabilities, Current, Total | $ 9,689 | $ 11,072 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Lease Expense | |
Operating Lease Cost | $ 826 |
Short-term Lease Cost | 446 |
Variable Lease Cost | 244 |
Total Operating Lease Cost | 1,516 |
Operating Lease - Operating Cash Flows | 755 |
New ROU Assets - Operating Leases | $ 867 |
Weighted Average Remaining Lease Term - Operating Leases | 1 year 11 months 23 days |
Weighted Average Discount Rate - Operating Leases | 5.00% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Leases | ||
Year 1 | $ 658 | |
Year 2 | 378 | |
Year 3 | 70 | |
Year 4 | 31 | |
Year 5 | 13 | |
Total future minimum lease payments | 1,150 | |
Less imputed interest | (54) | |
Total | 1,096 | |
Current operating lease liabilities | 621 | $ 0 |
Long-term operating lease liabilities | 475 | |
Total | $ 1,096 |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 28, 2019 |
Leases | |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 11 months 23 days |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 51,115 | $ 50,583 |
Finite-Lived Intangible Assets, Accumulated Amortization | 32,268 | 30,798 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 24,515 | 24,515 |
Finite-Lived Intangible Assets, Accumulated Amortization | 23,689 | 23,506 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 2,749 | 2,749 |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,702 | 2,625 |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 14,317 | 13,963 |
Finite-Lived Intangible Assets, Accumulated Amortization | 5,575 | 4,520 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 8,359 | 8,181 |
Finite-Lived Intangible Assets, Accumulated Amortization | 143 | 124 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 475 | 475 |
Finite-Lived Intangible Assets, Accumulated Amortization | 111 | 16 |
Licensing Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 700 | 700 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 48 | $ 7 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Goodwill - Estimated future amortization expense (Details ) - Sporting Goods [Member] $ in Thousands | Dec. 28, 2019USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2020 | $ 1,437 |
2021 | 1,388 |
2022 | 1,368 |
2023 | 1,290 |
2024 | 1,165 |
Thereafter | $ 4,415 |
Acquired Intangible Assets an_5
Acquired Intangible Assets and Goodwill - Sporting Goods (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 26,381 | |
Goodwill, Ending Balance | 26,749 | $ 26,381 |
Sporting Goods [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 26,381 | 21,548 |
Acquisition | 368 | 4,833 |
Goodwill, Ending Balance | $ 26,749 | $ 26,381 |
Acquired Intangible Assets an_6
Acquired Intangible Assets and Goodwill - Additional Information (Details ) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Acquired Intangible Assets and Goodwill | |||
Amortization expense | $ 1.5 | $ 1.4 | $ 1.6 |
Equity Interest Investments (De
Equity Interest Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Mar. 23, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Mar. 24, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | May 17, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Net Sales | $ 47,044 | $ 45,756 | $ 32,102 | $ 50,992 | $ 43,955 | $ 32,149 | $ 55,639 | $ 48,684 | $ 180,541 | $ 175,780 | $ 177,333 | |
Net income | $ 2,575 | $ 2,540 | $ 267 | $ 3,580 | $ 3,575 | $ 1,216 | $ 1,876 | $ 12,071 | $ 7,258 | $ 20,442 | 14,061 | |
Stiga Sports B | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Net Sales | $ 12,978 | 46,296 | ||||||||||
Gross profit | 6,019 | 21,427 | ||||||||||
Net income | $ 241 | $ 3,268 |
Equity Interest Investments - A
Equity Interest Investments - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 5 Months Ended | 12 Months Ended | ||||||||
May 17, 2018 | Dec. 28, 2019 | Oct. 05, 2019 | Mar. 23, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Mar. 24, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | May 17, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Proceeds from Sale of Equity Method Investments | $ 33,700 | $ 0 | $ 33,705 | $ 0 | |||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 13,000 | 0 | 13,020 | 0 | |||||||||
Net Income (Loss) Attributable to Parent | $ 2,575 | $ 2,540 | $ 267 | $ 3,580 | $ 3,575 | $ 1,216 | $ 1,876 | $ 12,071 | 7,258 | 20,442 | $ 14,061 | ||
Stiga Sports B | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||||||||||
Stiga Sports B | Parent | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | ||||||||||
Net Income (Loss) Attributable to Parent | $ 121 | $ 1,600 | |||||||||||
Royalty Expense | $ 500 | $ 400 | $ 400 |
Borrowings (Details)
Borrowings (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Category 1 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Funded Debt to EBITDA Ratio | Greater than or equal to 2.50 to 1.0 |
Revolving Eurodollar Borrowing | 2.00% |
ABR Revolving Borrowing | 0.00% |
Letter of Credit Fee | 2.00% |
Commitment Fee | 0.30% |
Category 2 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Funded Debt to EBITDA Ratio | Greater than or equal to 1.50 to 1.0 but less than 2.50 to 1.0 |
Revolving Eurodollar Borrowing | 1.75% |
ABR Revolving Borrowing | (0.25%) |
Letter of Credit Fee | 1.75% |
Commitment Fee | 0.30% |
Category 3 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Funded Debt to EBITDA Ratio | Less than 1.50 to 1.0 |
Revolving Eurodollar Borrowing | 1.50% |
ABR Revolving Borrowing | (0.50%) |
Letter of Credit Fee | 1.50% |
Commitment Fee | 0.30% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jan. 21, 2019 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Increase in Total Consideration That Used For Acquisitions | $ 25 | |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 5 | |
Senior Revolving Credit Facility [Member] | Restated Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Increase (Decrease), Net, Total | $ 50 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average common shares outstanding | 14,407 | 14,422 | 14,352 |
Dilutive effect of stock options and restricted stock units | 32 | 55 | 39 |
Weighted average common shares outstanding, assuming dilution | 14,439 | 14,477 | 14,391 |
Number of anti-dilutive stock options and unvested restricted stock units | 80 | 70 | 58 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Profit Sharing Salary Reduction Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Labor-related Expenses | $ 816 | $ 715 | $ 695 |
Stock Compensation Plans (Detai
Stock Compensation Plans (Details) - Non-vested stock units [Member] - $ / shares | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested, Number of Shares | 125,987 | 103,076 |
Granted, Number of Shares | 47,300 | 74,528 |
Vested, Number of Shares | (28,888) | (47,358) |
Forfeited, Number of Shares | (15,763) | (4,259) |
Nonvested, Number of Shares | 128,636 | 125,987 |
Weighted Average Grant Date Fair Value, Outstanding at beginning of year | $ 12.05 | $ 11.92 |
Granted, Weighted Average Grant Date Fair Value | 11.54 | 12.39 |
Vested, Weighted Average Grant Date Fair Value | 12.40 | 12.34 |
Forfeited, Weighted Average Grant Date Fair Value | 12.08 | 11.65 |
Weighted Average Grant Date Fair Value, Outstanding at end of year | $ 11.78 | $ 12.05 |
Stock Compensation Plans - Stoc
Stock Compensation Plans - Stock options activity (Details) - shares | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Option, Granted | 0 | 0 | 0 | |
Option, Outstanding | 20,000 | 35,000 | 44,250 | 72,375 |
Incentive Stock Options [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Option, Granted | 0 | 0 | 0 | |
Option, Outstanding | 20,000 | 20,000 | 29,250 | |
Director Stock Options [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Option, Granted | 0 | 0 | 0 | |
Option, Outstanding | 0 | 15,000 | 15,000 |
Stock Compensation Plans - St_2
Stock Compensation Plans - Stock option transactions (Details) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Outstanding at beginning of year | 35,000 | 44,250 | 72,375 |
Options, Issued during year | 0 | 0 | 0 |
Options, Canceled or expired | (5,000) | ||
Options, Exercised during year | (10,000) | (9,250) | (28,125) |
Options, Outstanding at end of year | 20,000 | 35,000 | 44,250 |
Options, Exercisable at end of year | 6,666 | 15,000 | 24,250 |
Weighted-average fair value of options granted during the year | $ 0 | $ 0 | $ 0 |
Weighted Average Exercise Price, Issued during year | 0 | 0 | |
Weighted Average Exercise Price, Canceled or expired | 11.86 | ||
Weighted Average Exercise Price, Exercised during year | 11.86 | 5.85 | |
Weighted Average Grant Date Fair Value, Outstanding at end of year | 14.39 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value, Outstanding at beginning of year | 14.39 | 14.39 | 14.39 |
Weighted Average Exercise Price, Exercised during year | 5.85 | ||
Weighted Average Grant Date Fair Value, Outstanding at end of year | 14.39 | 14.39 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value, Outstanding at beginning of year | $ 11.86 | 5.85 | 5.28 |
Weighted Average Exercise Price, Exercised during year | 5.28 | ||
Weighted Average Grant Date Fair Value, Outstanding at end of year | $ 11.86 | $ 5.85 |
Stock Compensation Plans - St_3
Stock Compensation Plans - Stock options outstanding (Details) - $ / shares | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding, Number of Shares | 20,000 | 35,000 | 44,250 | 72,375 |
Options Outstanding, Weighted-Average Exercise Price | $ 14.39 | |||
Options Exercisable, Number of Shares | 6,666 | 15,000 | 24,250 | |
Range Of Exercise Prices 1439 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options Outstanding, Number of Shares | 20,000 | |||
Options Outstanding, Weighted-Average Remaining Contractual Life | 2 years 2 months 1 day | |||
Options Outstanding, Weighted-Average Exercise Price | $ 14.39 | |||
Options Exercisable, Number of Shares | 6,666 | |||
Options Exercisable, Weighted-Average Exercise Price | $ 14.39 |
Stock Compensation Plans - Nonv
Stock Compensation Plans - Nonvested stock option plan (Details) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Schedule of Nonvested Shares Activity [Line Items] | |||
Number of Options, Granted | 0 | 0 | 0 |
Weighted Average Grant Date Fair Value, Granted | $ 0 | $ 0 | |
Weighted Average Grant Date Fair Value, Outstanding at end of year | $ 14.39 | ||
Nonvested Stock Option Plan [Member] | |||
Schedule of Nonvested Shares Activity [Line Items] | |||
Number of Options, Outstanding at beginning of year | 20,000 | ||
Number of Options, Granted | 0 | ||
Number of Options, Vested | (6,666) | ||
Number of Options, Forfeited | 0 | ||
Number of Options, Outstanding at end of year | 13,334 | 20,000 | |
Weighted Average Grant Date Fair Value, Outstanding at beginning of year | $ 2.52 | ||
Weighted Average Grant Date Fair Value, Granted | 0 | ||
Weighted Average Grant Date Fair Value, Vested | 2.52 | ||
Weighted Average Grant Date Fair Value, Forfeited | 0 | ||
Weighted Average Grant Date Fair Value, Outstanding at end of year | $ 2.52 | $ 2.52 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 28, 2019 | Dec. 31, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 26, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | ||
Incentive Plan 2007 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,661,598 | ||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 8,839 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 35,900 | ||||
Restricted Stock Units (RSUs) [Member] | Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 11,400 | ||||
Nonvested Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ 505 | $ 591 | $ 504 | ||
Employee and Non Employee Service Share-based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | 622 | 754 | |||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | 8 | 13 | 18 | ||
Employee and Non Employee Service Share-based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | $ 5 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 | $ 100 | $ 200 |
Other Comprehensive Loss (Detai
Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Other Comprehensive Loss | |||
Change in foreign currency translation adjustment before reclassifications | $ 0 | $ (1,119) | $ 1,670 |
Amounts reclassified from comprehensive income due to a divestiture of equity investment | 0 | (3,729) | 0 |
Foreign currency translation adjustment | $ 0 | $ 0 | $ (2,610) |
Provision for Taxes (Details)
Provision for Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income before taxes: | |||
Income before taxes: | $ 8,934 | $ 26,442 | $ 15,517 |
Current | |||
Federal | 1,419 | 4,574 | 4,191 |
State | 129 | 486 | 212 |
Current Income Tax Expense (Benefit) | 1,548 | 5,060 | 4,403 |
Deferred | |||
Federal | 367 | 591 | (2,441) |
State | (239) | 349 | (506) |
Deferred Income Tax Expense (Benefit) | 128 | 940 | (2,947) |
Income Tax Expense (Benefit), Total | $ 1,676 | $ 6,000 | $ 1,456 |
Provision for Taxes - Computed
Provision for Taxes - Computed using the statutory rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Provision for Taxes | |||
Income tax at statutory rate | $ 1,876 | $ 5,553 | $ 5,431 |
Increase (decrease) in income tax resulting from | |||
State tax expense, net of federal effect | (86) | 660 | (191) |
Federal true-ups | (60) | (23) | 193 |
Federal tax credits | (93) | (115) | (242) |
Effect of foreign tax rates | 0 | (304) | (399) |
Valuation allowances (state and foreign) | 0 | (150) | (148) |
Captive insurance earnings | 0 | (263) | (128) |
Incentive stock options | (1) | (9) | (22) |
Tax Cuts & Jobs Act of 2017 | 0 | 588 | (2,986) |
Other | 40 | 63 | (52) |
Recorded provision for income taxes | $ 1,676 | $ 6,000 | $ 1,456 |
Provision for Taxes - Component
Provision for Taxes - Components of the net deferred tax assets liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Assets | ||
Employee benefits | $ 55 | $ 30 |
Valuation reserves | 779 | 615 |
Stock based compensation | 208 | 179 |
Federal and state credits | 347 | 297 |
Net operating loss carry forward | 0 | 1 |
Total assets | 1,389 | 1,122 |
Liabilities | ||
Property and equipment | (470) | (532) |
Goodwill and intangible assets | (4,278) | (3,812) |
Prepaid insurance | (178) | (187) |
Total liabilities | (4,926) | (4,531) |
Valuation Allowance | ||
Beginning balance | 0 | (160) |
Decrease during period | 0 | 160 |
Ending balance | 0 | 0 |
Deferred Tax Liabilities, Net | $ (3,537) | $ (3,409) |
Provision for Taxes - Deferred
Provision for Taxes - Deferred tax assets (liabilities) included in consolidated balance sheets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred income tax asset - current | $ 0 | $ 0 |
Deferred income tax asset (liability) - long-term | 3,537 | 3,409 |
Deferred Tax Liabilities, Net | $ (3,537) | $ (3,409) |
Provision for Taxes - Additiona
Provision for Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
State, net of federal benefit, research tax credit carryforwards | $ 346 | ||
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | $ 600 | $ (3,000) | |
Transition tax payable | 1,100 | ||
Domestic Tax Authority [Member] | |||
Income taxes payable | 41 | ||
Transition tax payable | 387 | ||
Income taxes receivable | $ 204 | 943 | |
State and Local Jurisdiction [Member] | |||
Income taxes receivable | $ 139 |
Operating Segment and Geograp_3
Operating Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Mar. 23, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Mar. 24, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ 180,541 | $ 175,780 | $ 177,333 | ||||||||
Operating income (loss) | $ 3,511 | $ 2,899 | $ 394 | $ 5,017 | $ 5,134 | $ 1,715 | $ 2,471 | $ 1,951 | 9,275 | 13,817 | 14,600 |
Interest expense (income) | 356 | 427 | 804 | ||||||||
Provision (benefit) for taxes | 1,676 | 6,000 | 1,456 | ||||||||
Net income | 2,575 | $ 2,540 | $ 267 | 3,580 | $ 3,575 | $ 1,216 | $ 1,876 | $ 12,071 | 7,258 | 20,442 | 14,061 |
Identifiable assets | 148,779 | 149,527 | 148,779 | 149,527 | 156,105 | ||||||
Non-marketable equity investments (equity method) | 0 | 0 | 0 | 0 | 20,278 | ||||||
Depreciation & amortization | 4,031 | 3,857 | 3,910 | ||||||||
Capital expenditures | 2,185 | 2,818 | 2,745 | ||||||||
Sporting Goods [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 180,541 | 175,780 | 177,333 | ||||||||
Operating income (loss) | 8,611 | 13,999 | 15,600 | ||||||||
Interest expense (income) | 358 | 427 | 975 | ||||||||
Provision (benefit) for taxes | 2,272 | 3,739 | 6,134 | ||||||||
Net income | 5,997 | 9,869 | 8,626 | ||||||||
Identifiable assets | 141,167 | 142,490 | 141,167 | 142,490 | 130,388 | ||||||
Depreciation & amortization | 4,031 | 3,857 | 3,910 | ||||||||
Capital expenditures | 2,185 | 2,818 | 2,745 | ||||||||
All Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | 0 | 0 | 0 | ||||||||
Operating income (loss) | 664 | (182) | (1,000) | ||||||||
Interest expense (income) | (2) | 0 | (171) | ||||||||
Provision (benefit) for taxes | (596) | 2,261 | (4,678) | ||||||||
Net income | 1,261 | 10,573 | 5,435 | ||||||||
Identifiable assets | 7,612 | 7,037 | 7,612 | 7,037 | 25,717 | ||||||
Non-marketable equity investments (equity method) | $ 0 | $ 0 | 0 | 0 | 20,278 | ||||||
Depreciation & amortization | 0 | 0 | 0 | ||||||||
Capital expenditures | $ 0 | $ 0 | $ 0 |
Operating Segment and Geograp_4
Operating Segment and Geographic Information - Net sales by geographic region/country (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Mar. 23, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Mar. 24, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 47,044 | $ 45,756 | $ 32,102 | $ 50,992 | $ 43,955 | $ 32,149 | $ 55,639 | $ 48,684 | $ 180,541 | $ 175,780 | $ 177,333 |
North America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 178,069 | 172,656 | 175,065 | ||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 1,001 | 965 | 974 | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 1,471 | $ 2,159 | $ 1,294 |
Operating Segment and Geograp_5
Operating Segment and Geographic Information - Identified assets by geographic region/country (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 148,779 | $ 149,527 | $ 156,105 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | 148,779 | 149,527 | 156,105 |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Identifiable assets | $ 0 | $ 0 | $ 0 |
Operating Segment and Geograp_6
Operating Segment and Geographic Information - Additional Information (Details) - employee | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of Employees Covered Under Collective Bargaining Agreement | 31 | ||
Amazon.com, Inc [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Entity-Wide Revenue, Major Customer, Percentage | 21.00% | 19.00% | 18.00% |
Amazon.com, Inc [Member] | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Accounts Receivables | 27.00% | 24.00% | |
Dick's Sporting Goods [Member] | Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Entity-Wide Revenue, Major Customer, Percentage | 13.00% | 13.00% | 17.00% |
Dick's Sporting Goods [Member] | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage Of Accounts Receivables | 18.00% | 14.00% | |
Consolidated Total Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 27.50% |
Summary of Quarterly Results (D
Summary of Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
Dec. 28, 2019 | Oct. 05, 2019 | Mar. 23, 2019 | Dec. 29, 2018 | Oct. 06, 2018 | Mar. 24, 2018 | Jul. 13, 2019 | Jul. 14, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Summary of Quarterly Results | |||||||||||
Net Sales | $ 47,044 | $ 45,756 | $ 32,102 | $ 50,992 | $ 43,955 | $ 32,149 | $ 55,639 | $ 48,684 | $ 180,541 | $ 175,780 | $ 177,333 |
Operating Income | 3,511 | 2,899 | 394 | 5,017 | 5,134 | 1,715 | 2,471 | 1,951 | 9,275 | 13,817 | 14,600 |
Net income | $ 2,575 | $ 2,540 | $ 267 | $ 3,580 | $ 3,575 | $ 1,216 | $ 1,876 | $ 12,071 | $ 7,258 | $ 20,442 | $ 14,061 |
Basic Earnings Per Share Data: | |||||||||||
Net Income (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.02 | $ 0.25 | $ 0.25 | $ 0.08 | $ 0.13 | $ 0.84 | $ 0.50 | $ 1.42 | $ 0.98 |
Diluted Earnings Per Share Data: | |||||||||||
Net Income (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.02 | $ 0.25 | $ 0.25 | $ 0.08 | $ 0.13 | $ 0.84 | $ 0.50 | $ 1.41 | $ 0.98 |
Acquisitions - (Details)
Acquisitions - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Assets acquired and liabilities assumed: | |||
Goodwill | $ 26,749 | $ 26,381 | |
Total consideration paid | $ (1,500) | ||
Gain on bargain purchase | $ 0 | 0 | 256 |
Victory Tailgate LLC [Member] | |||
Assets acquired and liabilities assumed: | |||
Cash | 94 | ||
Accounts receivable, net | 252 | ||
Inventories, net | 603 | ||
Other assets | 2,003 | ||
Goodwill | 4,833 | ||
Intangible assets | 1,500 | ||
Accounts payable | (2,088) | ||
Other liabilities | (314) | ||
Total fair value of assets acquired | 6,883 | ||
Consideration of holdback provision | 286 | ||
Gain on bargain purchase | $ 7,169 | ||
Acquisition One [Member] | |||
Assets acquired and liabilities assumed: | |||
Accounts receivable, net | 852 | ||
Inventories, net | 737 | ||
Other assets | 64 | ||
Intangible assets | 413 | ||
Total fair value of assets acquired | 2,066 | ||
Total liabilities assumed | (563) | ||
Net assets acquired | 1,503 | ||
Total consideration paid | (1,101) | ||
Gain before deferred income tax liability | 402 | ||
Income tax liability - deferred | (146) | ||
Gain on bargain purchase | $ 256 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred, Total | $ 1,500 | ||
Dura Pickleball [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 900 | ||
Victory Tailgate LLC [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 7,200 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Commitments and Contingencies | |
2020 | $ 1,662 |
2021 | 845 |
2022 | 677 |
2023 | 540 |
2024 | 0 |
Thereafter | 0 |
Royalty And License Future Minimum Payments Due | $ 3,724 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Financial assets, Fair Value | ||
Cash and cash equivalents, Fair Value | $ 5,882 | $ 2,824 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets, Fair Value | ||
Cash and cash equivalents, Fair Value | 5,882 | 2,824 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets, Fair Value | ||
Cash and cash equivalents, Fair Value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets, Fair Value | ||
Cash and cash equivalents, Fair Value | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Sales Revenues Goods Net [Abstract] | |||
Total Gross Sales | $ 203,372 | $ 195,794 | $ 195,779 |
Sales Returns And Allowance Goods [Abstract] | |||
Returns | 5,415 | 5,085 | 4,729 |
Warranties | 1,736 | 1,448 | 1,036 |
Customer Allowances | 15,680 | 13,481 | 12,681 |
Total Gross-to-Net Sales Adjustments | 22,831 | 20,014 | 18,446 |
Total Net Sales | 180,541 | 175,780 | 177,333 |
Mass Merchants [Member] | |||
Sales Revenues Goods Net [Abstract] | |||
Total Gross Sales | 66,428 | 68,196 | 80,539 |
Specialty Dealers [Member] | |||
Sales Revenues Goods Net [Abstract] | |||
Total Gross Sales | 53,878 | 59,211 | 56,862 |
E-commerce [Member] | |||
Sales Revenues Goods Net [Abstract] | |||
Total Gross Sales | 74,029 | 58,026 | 50,431 |
International [Member] | |||
Sales Revenues Goods Net [Abstract] | |||
Total Gross Sales | 6,562 | 8,533 | 7,545 |
Other [Member] | |||
Sales Revenues Goods Net [Abstract] | |||
Total Gross Sales | $ 2,475 | $ 1,828 | $ 402 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue from Contracts with Customers | |||
Increase due to cash received, excluding amounts recognized as revenue during the period | $ 0 | $ 413 | $ 0 |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (413) | 0 | 0 |
Increase in contract liability during the period | $ 0 | $ 413 | $ 0 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Revenue from Contracts with Customers | |
Contract with Customer, Liability, Current | $ 413 |