EVANSVILLE, Ind., Aug. 13, 2012 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) announced that revenues for the second quarter of 2012 were up 3% over the same quarter last year. Year to date revenues have increased more than 5% over the same period last year. The Company generated net income for the quarter of $1.1 million, or $0.08 basic and diluted earnings per share compared to net income of $1.5 million or $0.12 basic and $0.11 diluted earnings per share for the same quarter in 2011. For the first half of 2012, net income is $2.7 million or $0.20 basic and diluted earnings per share, while the first half of 2011 also showed net income of $2.7 million with $0.21 basic and $0.20 diluted earnings per share.
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Revenues from the Sporting Goods business were up 5.7% for the quarter and 9.6% for the first half of 2012, compared to the same periods prior year. Management believes improved sales in the Sporting Goods segment will continue through the remainder of the year as the Company builds on new product placements and expanded brand-building activity.
Revenues from the Information Security and Print Finishing business decreased 4.6% and 4.9% for the second quarter and first half of 2012, respectively, compared to last year. Excluding the effects of changes in the currency exchange rates, revenues decreased 0.5% and 1.7%, for the second quarter and first half of 2012, respectively. Revenues in this business segment remain fairly flat to prior year and the Company expects continued challenges in the international market due partly to austerity measures taken in European and other governmental channels.
"After favorable spring weather helped drive first quarter sales, we experienced lower growth in the second quarter," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. "The 5% sales growth and 13% operating income growth in the first half are reflective of the overall improvement in the business. While it appears consumers will be more cautious with spending in the second half of 2012, we anticipate continued growth through new product placements and expanded brand-building activity."
Escalade is a leading manufacturer and marketer of sporting goods and information security and print finishing products sold worldwide. To obtain more information on the Company and its products, visit our website at: www.EscaladeInc.com or contact Deborah Meinert, Vice President and CFO at 812/467-4449.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements relating to present or future trends or factors that are subject to risks and uncertainties. These risks include, but are not limited to, the impact of competitive products and pricing, product demand and market acceptance, Escalade's ability to successfully integrate the operations of acquired assets and businesses, new product development, the continuation and development of key customer and supplier relationships, Escalade's ability to control costs, general economic conditions, fluctuation in operating results, changes in foreign currency exchange rates, changes in the securities market, Escalade's ability to obtain financing and to maintain compliance with the terms of such financing, and other risks detailed from time to time in Escalade's filings with the Securities and Exchange Commission. Escalade's future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.
ESCALADE, INCORPORATED AND SUBSIDIARIES |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
(Unaudited, In Thousands Except Per Share Amounts) |
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| Three Months Ended | Six Months Ended | Twelve Months Ended |
| 14 July 2012 | 09 July 2011 | 14 July 2012 | 09 July 2011 | 14 July 2012 | 09 July 2011 |
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NET SALES | $ 42,029 | $ 40,850 | $ 72,594 | $ 68,848 | $ 137,995 | $ 128,598 |
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OPERATING EXPENSES |
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Cost of goods sold | 29,685 | 28,043 | 49,694 | 45,916 | 96,319 | 88,946 |
Selling and administrative | 8,966 | 9,598 | 16,263 | 17,339 | 34,866 | 30,113 |
Amortization | 689 | 492 | 1,206 | 809 | 1,993 | 1,423 |
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OPERATING INCOME | 2,689 | 2,717 | 5,431 | 4,784 | 4,817 | 8,116 |
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OTHER INCOME (EXPENSE) |
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Interest expense | (192) | (228) | (346) | (412) | (627) | (794) |
Other income | 240 | 513 | 412 | 635 | 3,175 | 2,373 |
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INCOME BEFORE INCOME TAXES | 2,737 | 3,002 | 5,497 | 5,007 | 7,365 | 9,695 |
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PROVISION FOR INCOME TAXES | 1,650 | 1,517 | 2,834 | 2,319 | 2,949 | 3,612 |
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NET INCOME | $ 1,087 | $ 1,485 | $ 2,663 | $ 2,688 | $ 4,416 | $ 6,083 |
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PER SHARE DATA |
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Basic earnings per share | $0.08 | $0.12 | $0.20 | $0.21 | $0.34 | $0.48 |
Diluted earnings per share | $ 0.08 | $ 0.11 | $0.20 | $0.20 | $0.34 | $0.45 |
Average shares outstanding | 13,260 | 12,839 | 13,103 | 12,824 | 12,997 | 12,793 |
CONSOLIDATED CONDENSED BALANCE SHEET |
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(Unaudited, In Thousands) |
| 14 July 2012 | 31 December 2011 | 9 July 2011 |
ASSETS |
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Current assets | $ 64,989 | $ 64,146 | $ 61,733 |
Property, plant & equipment – net | 12,045 | 11,915 | 19,593 |
Other assets | 26,926 | 28,769 | 27,786 |
Goodwill | 24,806 | 25,285 | 26,163 |
Total | $ 128,766 | $ 130,115 | $ 135,275 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities | $ 34,105 | $ 34,650 | $ 34,732 |
Other liabilities | 6,876 | 7,900 | 8,155 |
Stockholders' equity | 87,785 | 87,565 | 92,388 |
Total | $ 128,766 | $ 130,115 | $ 135,275 |
