Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 11, 2020 | Jul. 31, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-6966 | |
Entity Incorporation, State or Country Code | IN | |
Entity Address, Address Line One | 817 Maxwell Ave | |
Entity Address, State or Province | IN | |
Entity Tax Identification Number | 13-2739290 | |
Entity Address, City or Town | Evansville | |
Entity Address, Postal Zip Code | 47711 | |
City Area Code | 812 | |
Local Phone Number | 467-1358 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, No Par Value | |
Amendment Flag | false | |
Document Period End Date | Jul. 11, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | ESCALADE, INCORPORATED | |
Entity Central Index Key | 0000033488 | |
Current Fiscal Year End Date | --12-28 | |
Trading Symbol | ESCA | |
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 Common Stock, Shares Outstanding | 14,153,579 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 11, 2020 | Dec. 28, 2019 | Jul. 13, 2019 |
Current Assets: | |||
Cash and cash equivalents | $ 16,669 | $ 5,882 | $ 4,598 |
Receivables, less allowance of $728; $483; and $533; respectively | 49,516 | 35,450 | 35,229 |
Inventories | 41,653 | 42,269 | 47,984 |
Prepaid expenses | 2,085 | 3,151 | 2,958 |
Prepaid income tax | 163 | 1,687 | |
TOTAL CURRENT ASSETS | 109,923 | 86,915 | 92,456 |
Property, plant and equipment, net | 14,713 | 15,111 | 15,387 |
Operating lease right-of-use assets | 1,395 | 1,080 | 1,288 |
Intangible assets, net | 18,071 | 18,847 | 19,529 |
Goodwill | 26,749 | 26,749 | 26,749 |
Other assets | 57 | 77 | 94 |
TOTAL ASSETS | 170,908 | 148,779 | 155,503 |
Current Liabilities: | |||
Note payable | 135 | 135 | |
Trade accounts payable | 18,109 | 7,765 | 7,187 |
Accrued liabilities | 13,196 | 9,689 | 7,732 |
Income tax payable | 1,705 | 0 | 0 |
Current operating lease liabilities | 711 | 621 | 694 |
TOTAL CURRENT LIABILITIES | 33,721 | 18,210 | 15,748 |
Other Liabilities: | |||
Long-term debt | 0 | 7,393 | |
Deferred income tax liability | 3,537 | 3,537 | 3,409 |
Operating lease liabilities | 699 | 475 | 616 |
Other liabilities | 387 | 387 | 1,094 |
TOTAL LIABILITIES | 38,344 | 22,609 | 28,260 |
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 - 14,153,579; 14,214,777; and 14,467,634; shares respectively | 14,154 | 14,215 | 14,468 |
Retained earnings | 118,410 | 111,955 | 112,775 |
TOTAL STOCKHOLDERS' EQUITY | 132,564 | 126,170 | 127,243 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 170,908 | $ 148,779 | $ 155,503 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 11, 2020 | Dec. 28, 2019 | Jul. 13, 2019 |
CONSOLIDATED CONDENSED BALANCE SHEETS | |||
Receivables allowance (in dollars) | $ 728 | $ 483 | $ 533 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred Stock, Par Value | $ 0 | $ 0 | $ 0 |
Common stock, Par value | $ 0 | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,153,579 | 14,214,777 | 14,467,634 |
Common stock, shares outstanding | 14,153,579 | 14,214,777 | 14,467,634 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 83,524 | $ 55,639 | $ 120,813 | $ 87,741 |
Costs and Expenses | ||||
Cost of products sold | 60,289 | 42,680 | 87,363 | 66,305 |
Selling, administrative and general expenses | 11,921 | 10,038 | 19,378 | 17,783 |
Amortization | 442 | 450 | 776 | 788 |
Operating Income | 10,872 | 2,471 | 13,296 | 2,865 |
Other Income (Expense) | ||||
Interest expense | (60) | (131) | (104) | (199) |
Other income | 22 | 3 | 68 | 9 |
Income Before Income Taxes | 10,834 | 2,343 | 13,260 | 2,675 |
Provision for Income Taxes | 2,124 | 467 | 2,599 | 532 |
Net Income | $ 8,710 | $ 1,876 | $ 10,661 | $ 2,143 |
Earnings Per Share Data: | ||||
Basic earnings per share | $ 0.62 | $ 0.13 | $ 0.76 | $ 0.15 |
Diluted earnings per share | 0.61 | 0.13 | 0.75 | 0.15 |
Dividends declared | $ 0.125 | $ 0.125 | $ 0.25 | $ 0.25 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Retained Earnings | Total |
Balance at Dec. 29, 2018 | $ 14,439 | $ 113,882 | $ 128,321 |
Balance (in shares) at Dec. 29, 2018 | 14,439 | ||
Net income | 2,143 | 2,143 | |
Expense of stock options and restricted stock units | 341 | 341 | |
Exercise of stock options | $ 10 | 108 | 118 |
Exercise of stock options (in shares) | 10 | ||
Settlement of restricted stock units | $ 25 | (25) | |
Settlement of restricted stock units (in shares) | 25 | ||
Dividends declared | (3,618) | (3,618) | |
Purchase of stock | $ (15) | (149) | (164) |
Purchase of stock (in shares) | (15) | ||
Stock issued to directors as compensation | $ 9 | 93 | 102 |
Stock issued to directors as compensation (in shares) | 9 | ||
Balance at Jul. 13, 2019 | $ 14,468 | 112,775 | 127,243 |
Balance (in shares) at Jul. 13, 2019 | 14,468 | ||
Balance at Mar. 23, 2019 | $ 14,471 | 112,545 | 127,016 |
Balance (in shares) at Mar. 23, 2019 | 14,471 | ||
Net income | 1,876 | 1,876 | |
Expense of stock options and restricted stock units | 197 | 197 | |
Dividends declared | (1,809) | (1,809) | |
Purchase of stock | $ (12) | (127) | (139) |
Purchase of stock (in shares) | (12) | ||
Stock issued to directors as compensation | $ 9 | 93 | 102 |
Stock issued to directors as compensation (in shares) | 9 | ||
Balance at Jul. 13, 2019 | $ 14,468 | 112,775 | 127,243 |
Balance (in shares) at Jul. 13, 2019 | 14,468 | ||
Balance at Dec. 28, 2019 | $ 14,215 | 111,955 | 126,170 |
Balance (in shares) at Dec. 28, 2019 | 14,215 | ||
Net income | 10,661 | 10,661 | |
Expense of stock options and restricted stock units | 493 | 493 | |
Settlement of restricted stock units | $ 36 | (36) | |
Settlement of restricted stock units (in shares) | 36 | ||
Issuance of restricted stock awards | $ 35 | (35) | |
Issuance of restricted stock awards (in shares) | 35 | ||
Dividends declared | (3,531) | (3,531) | |
Purchase of stock | $ (142) | (1,184) | (1,326) |
Purchase of stock (in shares) | (142) | ||
Stock issued to directors as compensation | $ 10 | 87 | 97 |
Stock issued to directors as compensation (in shares) | 10 | ||
Balance at Jul. 11, 2020 | $ 14,154 | 118,410 | 132,564 |
Balance (in shares) at Jul. 11, 2020 | 14,154 | ||
Balance at Mar. 21, 2020 | $ 14,097 | 111,072 | 125,169 |
Balance (in shares) at Mar. 21, 2020 | 14,097 | ||
Net income | 8,710 | 8,710 | |
Expense of stock options and restricted stock units | 357 | 357 | |
Settlement of restricted stock units | $ 12 | (12) | |
Settlement of restricted stock units (in shares) | 12 | ||
Issuance of restricted stock awards | $ 35 | (35) | |
Issuance of restricted stock awards (in shares) | 35 | ||
Dividends declared | (1,769) | (1,769) | |
Stock issued to directors as compensation | $ 10 | 87 | 97 |
Stock issued to directors as compensation (in shares) | 10 | ||
Balance at Jul. 11, 2020 | $ 14,154 | $ 118,410 | $ 132,564 |
Balance (in shares) at Jul. 11, 2020 | 14,154 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 11, 2020 | Jul. 13, 2019 | |
Operating Activities: | ||
Net income | $ 10,661 | $ 2,143 |
Reconciling adjustments: | ||
Depreciation and amortization | 2,234 | 2,266 |
Provision for doubtful accounts | 325 | 259 |
Loss (gain) on disposal of property and equipment | (2) | 6 |
Stock-based compensation | 493 | 341 |
Adjustments necessary to reconcile net income to net cash provided by operating activities | 3,029 | (4,822) |
Changes in | ||
Net cash provided by operating activities | 16,740 | 193 |
Investing Activities: | ||
Purchase of property and equipment | (1,061) | (1,377) |
Acquisitions | (765) | |
Payment on note payable related to an acquisition | (135) | 0 |
Proceeds from sale of property and equipment | 3 | 4 |
Net cash used by investing activities | (1,193) | (2,138) |
Financing Activities: | ||
Proceeds from issuance of long-term debt | 6,306 | 43,299 |
Payments on long-term debt | (6,306) | (35,906) |
Proceeds from exercise of stock options | 118 | |
Deferred financing fees | (112) | |
Purchase of stock | (1,326) | (164) |
Cash dividends paid | (3,531) | (3,618) |
Director stock compensation | 97 | 102 |
Net cash provided (used) by financing activities | (4,760) | 3,719 |
Net increase in cash and cash equivalents | 10,787 | 1,774 |
Cash and Cash Equivalents, beginning of period | 5,882 | 2,824 |
Cash and Cash Equivalents, end of period | $ 16,669 | 4,598 |
Non-Cash Transactions | ||
Note payable for deferred purchase price obligation | $ (135) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 11, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note A – Summary of Significant Accounting Policies Presentation of Consolidated Condensed Financial Statements Reclassifications |
Seasonal Aspects
Seasonal Aspects | 6 Months Ended |
Jul. 11, 2020 | |
Seasonal Aspects | |
Seasonal Aspects | Note B – Seasonal Aspects The results of operations for the three and six month periods ended July 11, 2020 and July 13, 2019 are not necessarily indicative of the results to be expected for the full year. |
Inventories
Inventories | 6 Months Ended |
Jul. 11, 2020 | |
Inventories | |
Inventories | Note C – Inventories July 11, December 28, July 13, In thousands 2020 2019 2019 Raw materials $ 6,222 $ 3,186 $ 4,329 Work in progress 3,297 2,177 2,729 Finished goods 32,134 36,906 40,926 $ 41,653 $ 42,269 $ 47,984 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 6 Months Ended |
Jul. 11, 2020 | |
Fair Values of Financial Instruments | |
Fair Values of Financial Instruments | Note D – 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 Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity. Long-term Debt Fair values of long-term debt is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model. The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at July 11, 2020, December 28, 2019 and July 13, 2019. Fair Value Measurements Using Quoted Prices in Significant Active Markets Significant Other Unobservable July 11, 2020 Carrying for Identical Observable Inputs Inputs In thousands Amount Assets (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 16,669 $ 16,669 $ — $ — Fair Value Measurements Using Quoted Prices in Significant Active Markets Significant Other Unobservable December 28, 2019 Carrying for Identical Observable Inputs Inputs In thousands Amount Assets (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 5,882 $ 5,882 $ — $ — Fair Value Measurements Using Quoted Prices in Significant Active Markets Significant Other Unobservable July 13, 2019 Carrying for Identical Observable Inputs Inputs In thousands Amount Assets (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 4,598 $ 4,598 $ — $ — Financial liabilities Long-term debt $ 7,393 $ — $ 7,393 $ — |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jul. 11, 2020 | |
Stock Compensation | |
Stock Compensation | Note E – Stock Compensation The fair value of stock-based compensation is recognized in accordance with the provisions of FASB ASC 718, Stock Compensation During the six months ended July 11, 2020 and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 9,448 shares of common stock. During the six months ended July 11, 2020, the Company awarded 22,850 restricted stock units to directors, 113,669 restricted stock units and 35,000 shares of restricted stock 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 vest 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. All of the 2020 restricted stock units awarded to employees time vest over three years ( one-third one year from grant, one-third two years from grant and one-third three years from grant) provided that the employee is still employed by the Company on the vesting date, and 18,268 of such restricted stock units are also subject to performance conditions. The 35,000 shares of restricted stock vest over three years (40% one year from grant, 30% two years from grant and 30% three years from grant) provided that the employee is still employed by the Company on the vesting date. For the three and six months ended July 11, 2020, including expense associated with issuing certain directors stock in lieu of cash for certain director fees, the Company recognized stock based compensation expense of $454 thousand and $590 thousand, respectively compared to stock based compensation expense of $299 thousand and $443 thousand for the same periods in the prior year. At July 11, 2020 and July 13, 2019, respectively, there was $1.4 million and $1.0 million in unrecognized stock-based compensation expense related to non-vested stock awards. |
Segment Information
Segment Information | 6 Months Ended |
Jul. 11, 2020 | |
Segment Information | |
Segment Information | Note F – Segment Information For the Three Months Ended July 11, 2020 In thousands Sporting Goods Corp. Total Revenues from external customers $ 83,524 $ — $ 83,524 Operating income (loss) 11,640 (768) 10,872 Net income 8,414 296 8,710 As of and for the Six Months Ended July 11, 2020 In thousands Sporting Goods Corp. Total Revenues from external customers $ 120,813 $ — $ 120,813 Operating income (loss) 14,463 (1,167) 13,296 Net income 10,463 198 10,661 Total assets $ 153,308 $ 17,600 $ 170,908 For the Three Months Ended July 13, 2019 In thousands Sporting Goods Corp. Total Revenues from external customers $ 55,639 $ — $ 55,639 Operating income (loss) 3,017 (546) 2,471 Net income (loss) 2,094 (218) 1,876 As of and for the Six Months Ended July 13, 2019 In thousands Sporting Goods Corp. Total Revenues from external customers $ 87,741 $ — $ 87,741 Operating income (loss) 3,778 (913) 2,865 Net income (loss) 2,602 (459) 2,143 Total assets $ 148,846 $ 6,657 $ 155,503 |
Dividend Payment
Dividend Payment | 6 Months Ended |
Jul. 11, 2020 | |
Dividend Payment | |
Dividend Payment | Note G – Dividend Payment On June 8, 2020, the Company paid a quarterly dividend of $0.125 per common share to all shareholders of record on June 1, 2020. The total amount of the dividend was approximately $1.7 million and was charged against retained earnings. On March 16, 2020, the Company paid a quarterly dividend of $0.125 per common share to all shareholders of record on March 9, 2020. The total amount of the dividend was approximately $1.8 million and was charged against retained earnings. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jul. 11, 2020 | |
Earnings Per Share | |
Earnings Per Share | Note H – Earnings Per Share The shares used in computation of the Company’s basic and diluted earnings per common share are as follows: Three Months Ended Six Months Ended July 11, July 13, July 11, July 13, In thousands 2020 2019 2020 2019 Weighted average common shares outstanding 14,108 14,472 14,113 14,462 Dilutive effect of stock options and restricted stock units 71 23 66 23 Weighted average common shares outstanding, assuming dilution 14,179 14,495 14,179 14,485 Stock options that are anti-dilutive as to earnings per share and unvested restricted stock units which have a market condition for vesting that has not been achieved are ignored in the computation of dilutive earnings per share. The number of stock options and restricted stock units that were excluded in 2020 and 2019 were 106,869 and 89,431, respectively. |
New Accounting Standards and Ch
New Accounting Standards and Changes in Accounting Principles | 6 Months Ended |
Jul. 11, 2020 | |
New Accounting Standards and Changes in Accounting Principles | |
New Accounting Standards and Changes in Accounting Principles | Note I – New Accounting Standards and Changes in Accounting Principles With the exception of that discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the three and six month periods ended July 11, 2020, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2019, that are of significance, or potential significance to the Company. In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU) 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this update eliminate Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company adopted this standard on December 29, 2019. The adoption of this standard did not have an impact to the financial statements of the Company. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jul. 11, 2020 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | Note J – Revenue from Contracts with Customers Revenue Recognition Gross-to-net sales adjustments Returns – Warranties Customer Allowances Disaggregation of Revenue Three Months Ended Six Months Ended July 11, July 13, July 11, July 13, All Amounts in Thousands 2020 2019 2020 2019 Gross Sales by Channel: Mass Merchants $ 27,716 $ 18,838 $ 41,184 $ 30,268 Specialty Dealers 22,858 16,163 35,925 29,764 E-commerce 39,489 24,806 53,070 34,740 International 1,936 2,174 3,492 3,348 Other 595 740 1,071 1,442 Total Gross Sales 92,594 62,721 134,742 99,562 Less: Gross-to-Net Sales Adjustments Returns 2,342 1,705 3,421 2,880 Warranties 371 359 776 732 Customer Allowances 6,357 5,018 9,732 8,209 Total Gross-to-Net Sales Adjustments 9,070 7,082 13,929 11,821 Total Net Sales $ 83,524 $ 55,639 $ 120,813 $ 87,741 |
Leases
Leases | 6 Months Ended |
Jul. 11, 2020 | |
Leases | |
Leases | Note K – 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 July 11, 2020, 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: Three Months Ended Six Months Ended July 11, July 13, July 11, July 13, All Amounts in Thousands 2020 2019 2020 2019 Lease Expense Operating Lease Cost $ 206 $ 253 $ 413 $ 444 Short-term Lease Cost 251 109 274 199 Variable Lease Cost 81 86 117 141 Total Operating Lease Cost 538 $ 448 $ 804 $ 784 Operating Lease - Operating Cash Flows $ 188 $ 221 $ 375 $ 396 New ROU Assets - Operating Leases $ — $ 652 $ 688 $ 725 Other information about lease amounts recognized in our consolidated financial statements is summarized as follows: Six Months Ended July 11, July 13, All Amounts in Thousands 2020 2019 Weighted Average Remaining Lease Term – Operating Leases 2.45 years 2.07 years Weighted Average Discount Rate – Operating Leases 5.00 % 5.00 % Future minimum lease payments under non-cancellable leases as of July 11, 2020 were as follows: All Amounts in Thousands Year 1 $ 762 Year 2 403 Year 3 262 Year 4 46 Year 5 23 Thereafter — Total future minimum lease payments 1,496 Less imputed interest (86) Total $ 1,410 Reported as of July 11, 2020 Current operating lease liabilities 711 Long-term operating lease liabilities 699 Total $ 1,410 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 11, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note L – Commitments and Contingencies The Company is involved in litigation arising in the normal course of 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 11, 2020 | |
Summary of Significant Accounting Policies | |
Presentation of Consolidated Condensed Financial Statements | Presentation of Consolidated Condensed Financial Statements |
Reclassifications | Reclassifications |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Inventories | |
Schedule of Inventories | July 11, December 28, July 13, In thousands 2020 2019 2019 Raw materials $ 6,222 $ 3,186 $ 4,329 Work in progress 3,297 2,177 2,729 Finished goods 32,134 36,906 40,926 $ 41,653 $ 42,269 $ 47,984 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
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 and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at July 11, 2020, December 28, 2019 and July 13, 2019. Fair Value Measurements Using Quoted Prices in Significant Active Markets Significant Other Unobservable July 11, 2020 Carrying for Identical Observable Inputs Inputs In thousands Amount Assets (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 16,669 $ 16,669 $ — $ — Fair Value Measurements Using Quoted Prices in Significant Active Markets Significant Other Unobservable December 28, 2019 Carrying for Identical Observable Inputs Inputs In thousands Amount Assets (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 5,882 $ 5,882 $ — $ — Fair Value Measurements Using Quoted Prices in Significant Active Markets Significant Other Unobservable July 13, 2019 Carrying for Identical Observable Inputs Inputs In thousands Amount Assets (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 4,598 $ 4,598 $ — $ — Financial liabilities Long-term debt $ 7,393 $ — $ 7,393 $ — |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Segment Information | |
Schedule of certain operating segment information | For the Three Months Ended July 11, 2020 In thousands Sporting Goods Corp. Total Revenues from external customers $ 83,524 $ — $ 83,524 Operating income (loss) 11,640 (768) 10,872 Net income 8,414 296 8,710 As of and for the Six Months Ended July 11, 2020 In thousands Sporting Goods Corp. Total Revenues from external customers $ 120,813 $ — $ 120,813 Operating income (loss) 14,463 (1,167) 13,296 Net income 10,463 198 10,661 Total assets $ 153,308 $ 17,600 $ 170,908 For the Three Months Ended July 13, 2019 In thousands Sporting Goods Corp. Total Revenues from external customers $ 55,639 $ — $ 55,639 Operating income (loss) 3,017 (546) 2,471 Net income (loss) 2,094 (218) 1,876 As of and for the Six Months Ended July 13, 2019 In thousands Sporting Goods Corp. Total Revenues from external customers $ 87,741 $ — $ 87,741 Operating income (loss) 3,778 (913) 2,865 Net income (loss) 2,602 (459) 2,143 Total assets $ 148,846 $ 6,657 $ 155,503 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Earnings Per Share | |
Schedule of weighted average number of shares | The shares used in computation of the Company’s basic and diluted earnings per common share are as follows: Three Months Ended Six Months Ended July 11, July 13, July 11, July 13, In thousands 2020 2019 2020 2019 Weighted average common shares outstanding 14,108 14,472 14,113 14,462 Dilutive effect of stock options and restricted stock units 71 23 66 23 Weighted average common shares outstanding, assuming dilution 14,179 14,495 14,179 14,485 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Revenue from Contracts with Customers | |
Schedule of disaggregation of revenue | Three Months Ended Six Months Ended July 11, July 13, July 11, July 13, All Amounts in Thousands 2020 2019 2020 2019 Gross Sales by Channel: Mass Merchants $ 27,716 $ 18,838 $ 41,184 $ 30,268 Specialty Dealers 22,858 16,163 35,925 29,764 E-commerce 39,489 24,806 53,070 34,740 International 1,936 2,174 3,492 3,348 Other 595 740 1,071 1,442 Total Gross Sales 92,594 62,721 134,742 99,562 Less: Gross-to-Net Sales Adjustments Returns 2,342 1,705 3,421 2,880 Warranties 371 359 776 732 Customer Allowances 6,357 5,018 9,732 8,209 Total Gross-to-Net Sales Adjustments 9,070 7,082 13,929 11,821 Total Net Sales $ 83,524 $ 55,639 $ 120,813 $ 87,741 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jul. 11, 2020 | |
Leases | |
Schedule of lease, cost | Three Months Ended Six Months Ended July 11, July 13, July 11, July 13, All Amounts in Thousands 2020 2019 2020 2019 Lease Expense Operating Lease Cost $ 206 $ 253 $ 413 $ 444 Short-term Lease Cost 251 109 274 199 Variable Lease Cost 81 86 117 141 Total Operating Lease Cost 538 $ 448 $ 804 $ 784 Operating Lease - Operating Cash Flows $ 188 $ 221 $ 375 $ 396 New ROU Assets - Operating Leases $ — $ 652 $ 688 $ 725 Other information about lease amounts recognized in our consolidated financial statements is summarized as follows: Six Months Ended July 11, July 13, All Amounts in Thousands 2020 2019 Weighted Average Remaining Lease Term – Operating Leases 2.45 years 2.07 years Weighted Average Discount Rate – Operating Leases 5.00 % 5.00 % |
Schedule of future minimum rental payments for operating leases | Future minimum lease payments under non-cancellable leases as of July 11, 2020 were as follows: All Amounts in Thousands Year 1 $ 762 Year 2 403 Year 3 262 Year 4 46 Year 5 23 Thereafter — Total future minimum lease payments 1,496 Less imputed interest (86) Total $ 1,410 Reported as of July 11, 2020 Current operating lease liabilities 711 Long-term operating lease liabilities 699 Total $ 1,410 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 11, 2020 | Dec. 28, 2019 | Jul. 13, 2019 |
Inventories | |||
Raw materials | $ 6,222 | $ 3,186 | $ 4,329 |
Work in progress | 3,297 | 2,177 | 2,729 |
Finished goods | 32,134 | 36,906 | 40,926 |
Inventories | $ 41,653 | $ 42,269 | $ 47,984 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jul. 11, 2020 | Dec. 28, 2019 | Jul. 13, 2019 |
Financial assets, Carrying Amount | |||
Cash and cash equivalents | $ 16,669 | $ 5,882 | $ 4,598 |
Financial liabilities, Fair Value | |||
Long-term debt, Fair Value | 7,393 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets, Carrying Amount | |||
Cash and cash equivalents | 16,669 | 5,882 | 4,598 |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets, Carrying Amount | |||
Cash and cash equivalents | 0 | 0 | 0 |
Financial liabilities, Fair Value | |||
Long-term debt, Fair Value | 7,393 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets, Carrying Amount | |||
Cash and cash equivalents | $ 0 | $ 0 | $ 0 |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 454 | $ 299 | $ 590 | $ 443 |
Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock issued in lieu of cash payments of director fees | 9,448 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards subject to performance conditions | 18,268 | |||
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 | 22,850 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||
Restricted Stock Units (RSUs) [Member] | Employees [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 | 113,669 | |||
Nonvested Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee and Non Employee Service Share-based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | $ 1,400 | $ 1,000 | $ 1,400 | $ 1,000 |
Restricted Stock | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted | 35,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
One year from grant | Restricted Stock Units (RSUs) [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.50% | |||
One year from grant | Restricted Stock Units (RSUs) [Member] | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.30% | |||
One year from grant | Restricted Stock | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 40.00% | |||
Two years from grant | Restricted Stock Units (RSUs) [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.50% | |||
Two years from grant | Restricted Stock Units (RSUs) [Member] | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.30% | |||
Two years from grant | Restricted Stock | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 30.00% | |||
Three years from grant | Restricted Stock Units (RSUs) [Member] | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0.30% | |||
Three years from grant | Restricted Stock | Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 30.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | |||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | Dec. 28, 2019 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 83,524 | $ 55,639 | $ 120,813 | $ 87,741 | |
Operating income (loss) | 10,872 | 2,471 | 13,296 | 2,865 | |
Net income | 8,710 | 1,876 | 10,661 | 2,143 | |
Total assets | 170,908 | 155,503 | 170,908 | 155,503 | $ 148,779 |
Sporting Goods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 83,524 | 55,639 | 120,813 | 87,741 | |
Operating income (loss) | 11,640 | 3,017 | 14,463 | 3,778 | |
Net income | 8,414 | 2,094 | 10,463 | 2,602 | |
Total assets | 153,308 | 148,846 | 153,308 | 148,846 | |
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 0 | 0 | |||
Operating income (loss) | (768) | (546) | (1,167) | (913) | |
Net income | 296 | (218) | 198 | (459) | |
Total assets | $ 17,600 | $ 6,657 | $ 17,600 | $ 6,657 |
Dividend Payment (Details)
Dividend Payment (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 08, 2020 | Mar. 16, 2020 | Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 |
Dividend Payment | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.125 | $ 0.125 | ||||
Dividends, Common Stock, Cash | $ 1,700 | $ 1,800 | $ 1,769 | $ 1,809 | $ 3,531 | $ 3,618 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Earnings Per Share | ||||
Weighted average common shares outstanding | 14,108 | 14,472 | 14,113 | 14,462 |
Dilutive effect of stock options and restricted stock units | 71 | 23 | 66 | 23 |
Weighted average common shares outstanding, assuming dilution | 14,179 | 14,495 | 14,179 | 14,485 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 6 Months Ended | |
Jul. 11, 2020 | Jul. 13, 2019 | |
Earnings Per Share | ||
Number of anti-dilutive stock options and unvested restricted stock units | 106,869 | 89,431 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Sales Revenues Goods Net [Abstract] | ||||
Total Gross Sales | $ 92,594 | $ 62,721 | $ 134,742 | $ 99,562 |
Sales Returns And Allowance Goods [Abstract] | ||||
Returns | 2,342 | 1,705 | 3,421 | 2,880 |
Warranties | 371 | 359 | 776 | 732 |
Customer Allowances | 6,357 | 5,018 | 9,732 | 8,209 |
Total Gross-to-Net Sales Adjustments | 9,070 | 7,082 | 13,929 | 11,821 |
Total Net Sales | 83,524 | 55,639 | 120,813 | 87,741 |
Mass Merchants [Member] | ||||
Sales Revenues Goods Net [Abstract] | ||||
Total Gross Sales | 27,716 | 18,838 | 41,184 | 30,268 |
Specialty Dealers [Member] | ||||
Sales Revenues Goods Net [Abstract] | ||||
Total Gross Sales | 22,858 | 16,163 | 35,925 | 29,764 |
E-commerce [Member] | ||||
Sales Revenues Goods Net [Abstract] | ||||
Total Gross Sales | 39,489 | 24,806 | 53,070 | 34,740 |
International [Member] | ||||
Sales Revenues Goods Net [Abstract] | ||||
Total Gross Sales | 1,936 | 2,174 | 3,492 | 3,348 |
Other [Member] | ||||
Sales Revenues Goods Net [Abstract] | ||||
Total Gross Sales | $ 595 | $ 740 | $ 1,071 | $ 1,442 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 11, 2020 | Jul. 13, 2019 | Jul. 11, 2020 | Jul. 13, 2019 | |
Lease Expense | ||||
Operating Lease Cost | $ 206 | $ 253 | $ 413 | $ 444 |
Short-term Lease Cost | 251 | 109 | 274 | 199 |
Variable Lease Cost | 81 | 86 | 117 | 141 |
Total Operating Lease Cost | 538 | 448 | 804 | 784 |
Operating Lease - Operating Cash Flows | $ 188 | 221 | 375 | 396 |
New ROU Assets - Operating Leases | $ 652 | $ 688 | $ 725 | |
Weighted Average Remaining Lease Term - Operating Leases | 2 years 5 months 12 days | 2 years 25 days | 2 years 5 months 12 days | 2 years 25 days |
Weighted Average Discount Rate - Operating Leases | 5.00% | 5.00% | 5.00% | 5.00% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | Jul. 11, 2020 | Dec. 28, 2019 | Jul. 13, 2019 |
Leases | |||
Year 1 | $ 762 | ||
Year 2 | 403 | ||
Year 3 | 262 | ||
Year 4 | 46 | ||
Year 5 | 23 | ||
Thereafter | 0 | ||
Total future minimum lease payments | 1,496 | ||
Less imputed interest | (86) | ||
Total | 1,410 | ||
Current operating lease liabilities | 711 | $ 621 | $ 694 |
Long-term operating lease liabilities | 699 | $ 475 | $ 616 |
Total | $ 1,410 |
Leases - Additional Information
Leases - Additional Information (Details) | 6 Months Ended |
Jul. 11, 2020 | |
Maximum [Member] | |
Operating Lease Remaining Lease Term | 5 years |
Minimum [Member] | |
Operating Lease Remaining Lease Term | 1 year |