Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 14, 2018 | Aug. 09, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 14, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | ESCALADE INC | |
Entity Central Index Key | 33,488 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | ESCA | |
Entity Common Stock, Shares Outstanding | 14,439,724 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 14, 2018 | Dec. 30, 2017 | Jul. 15, 2017 |
Current Assets: | |||
Cash and cash equivalents | $ 15,572 | $ 1,572 | $ 2,280 |
Receivables, less allowance of $534; $623; and $532; respectively | 30,758 | 39,350 | 32,236 |
Inventories | 41,454 | 35,160 | 37,470 |
Prepaid expenses | 2,834 | 3,414 | 3,043 |
Prepaid income tax | 0 | 764 | 773 |
Other current assets | 21 | 0 | 0 |
TOTAL CURRENT ASSETS | 90,639 | 80,260 | 75,802 |
Property, plant and equipment, net | 12,990 | 14,286 | 13,910 |
Intangible assets, net | 18,943 | 19,691 | 20,423 |
Goodwill | 21,548 | 21,548 | 21,548 |
Investments | 0 | 20,278 | 18,506 |
Other assets | 0 | 42 | 60 |
TOTAL ASSETS | 144,120 | 156,105 | 150,249 |
Current Liabilities: | |||
Current portion of long-term debt | 0 | 1,250 | 1,300 |
Trade accounts payable | 6,874 | 4,295 | 8,047 |
Accrued liabilities | 9,242 | 13,997 | 9,227 |
Income tax payable | 480 | 0 | 0 |
TOTAL CURRENT LIABILITIES | 16,596 | 19,542 | 18,574 |
Other Liabilities: | |||
Long-term debt | 0 | 21,871 | 22,386 |
Deferred income tax liability | 2,469 | 2,469 | 5,216 |
Other liabilities | 503 | 553 | 0 |
TOTAL LIABILITIES | 19,568 | 44,435 | 46,176 |
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 – 14,439,724; 14,371,586; and 14,364,586; shares respectively | 14,440 | 14,372 | 14,365 |
Retained earnings | 110,112 | 99,908 | 92,368 |
Accumulated other comprehensive loss | 0 | (2,610) | (2,660) |
TOTAL STOCKHOLDERS' EQUITY | 124,552 | 111,670 | 104,073 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 144,120 | $ 156,105 | $ 150,249 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jul. 14, 2018 | Dec. 30, 2017 | Jul. 15, 2017 |
Receivables allowance (in dollars) | $ 534 | $ 623 | $ 532 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 | $ 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,439,724 | 14,371,586 | 14,364,586 |
Common stock, shares outstanding | 14,439,724 | 14,371,586 | 14,364,586 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | |
Net sales | $ 48,684 | $ 53,921 | $ 80,833 | $ 85,787 |
Costs and Expenses | ||||
Cost of products sold | 37,187 | 40,843 | 60,348 | 64,425 |
Selling, administrative and general expenses | 9,121 | 9,257 | 16,071 | 15,187 |
Amortization | 425 | 489 | 748 | 847 |
Operating Income | 1,951 | 3,332 | 3,666 | 5,328 |
Other Income (Expense) | ||||
Interest expense | (166) | (234) | (355) | (401) |
Equity in earnings of affiliates | 133 | 76 | 121 | 24 |
Gain on sale of equity method investment (includes ($3,729) of accumulated other comprehensive loss reclassification from foreign currency translation adjustment) | 13,020 | 0 | 13,020 | 0 |
Gain on bargain purchase | 0 | 0 | 0 | 256 |
Other income (expense) | (76) | (47) | (99) | (43) |
Income Before Income Taxes | 14,862 | 3,127 | 16,353 | 5,164 |
Provision for Income Taxes | 2,791 | 1,031 | 3,066 | 1,680 |
Net Income | $ 12,071 | $ 2,096 | $ 13,287 | $ 3,484 |
Earnings Per Share Data: | ||||
Basic earnings per share | $ 0.837 | $ 0.146 | $ 0.922 | $ 0.243 |
Diluted earnings per share | 0.835 | 0.146 | 0.921 | 0.242 |
Dividends declared | $ 0.125 | $ 0.115 | $ 0.25 | $ 0.23 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS [Parenthetical] - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | $ (3,729) | $ 0 | $ (3,729) | $ 0 |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | |
Net Income | $ 12,071 | $ 2,096 | $ 13,287 | $ 3,484 |
Foreign currency translation adjustment before reclassification | (1,028) | 1,071 | (1,119) | 1,620 |
Amounts reclassified from comprehensive income due to divestiture of equity investment | 3,729 | 0 | 3,729 | 0 |
Comprehensive Income | $ 14,772 | $ 3,167 | $ 15,897 | $ 5,104 |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 14, 2018 | Jul. 15, 2017 | |
Operating Activities: | ||
Net income | $ 13,287 | $ 3,484 |
Depreciation and amortization | 2,129 | 2,192 |
Gain on disposal of property and equipment | 0 | (4) |
Stock-based compensation | 370 | 288 |
Gain on sale of equity method investment | (13,020) | 0 |
Gain on insurance proceeds received for damage to property | (241) | 0 |
Gain on bargain purchase | 0 | (256) |
Dividends received from equity method investments | 2,323 | 2,168 |
Adjustments necessary to reconcile net income to net cash provided by operating activities | 1,796 | 1,009 |
Net cash provided by operating activities | 6,644 | 8,881 |
Investing Activities: | ||
Purchase of property and equipment | (861) | (1,382) |
Acquisitions | 0 | (1,401) |
Proceeds from sale of equity investment | 33,705 | 0 |
Insurance proceeds received for damage to property | 1,018 | 0 |
Proceeds from sale of property and equipment | 0 | 4 |
Net cash provided (used) by investing activities | 33,862 | (2,779) |
Financing Activities: | ||
Proceeds from issuance of long-term debt | 21,873 | 29,400 |
Payments on long-term debt | (44,994) | (31,203) |
Proceeds from exercise of stock options | 54 | 118 |
Cash dividends paid | (3,604) | (3,302) |
Director stock compensation | 165 | 152 |
Net cash used by financing activities | (26,506) | (4,835) |
Net increase in cash and cash equivalents | 14,000 | 1,267 |
Cash and cash equivalents, beginning of period | 1,572 | 1,013 |
Cash and cash equivalents, end of period | 15,572 | 2,280 |
Non-Cash Transactions | ||
Note payable for deferred purchase price obligation | $ 0 | $ 50 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 14, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note A – Summary of Significant Accounting Policies Presentation of Consolidated Condensed Financial Statements Reclassifications |
Seasonal Aspects
Seasonal Aspects | 6 Months Ended |
Jul. 14, 2018 | |
Accounting Policies [Abstract] | |
Seasonal Aspects [Text Block] | Note B - Seasonal Aspects The results of operations for the three and six month periods ended July 14, 2018 and July 15, 2017 are not necessarily indicative of the results to be expected for the full year. |
Inventories
Inventories | 6 Months Ended |
Jul. 14, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note C - Inventories In thousands July 14, 2018 December 30, 2017 July 15, 2017 Raw materials $ 3,924 $ 3,462 $ 4,356 Work in progress 3,452 2,927 4,134 Finished goods 34,078 28,771 28,980 $ 41,454 $ 35,160 $ 37,470 |
Equity Interest Investments
Equity Interest Investments | 6 Months Ended |
Jul. 14, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Disclosure [Text Block] | Note D – 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 continues through December 31, 2018. The new license agreement will go 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 exchange rates in effect at the respective period-end for balance sheet amounts, and using average exchange rates for statement of operations amounts. Financial information for the current year represents the results of Stiga through the sale completion date. The Company’s 50% portion of net income for Stiga, included in equity in earnings of affiliates on the Company’s statements of operations, is as follows: In thousands Period from March 25, 2018 through May 17, 2018 Three Months Ended July 15, 2017 Period from December 31, 2017 through May 17, 2018 Six Months Ended July 15, 2017 Equity in earnings of affiliates $ 133 $ 76 $ 121 $ 24 Summarized financial information for Stiga Sports AB balance sheets as of December 30, 2017, and July 15, 2017 and statements of operations for the period from March 25, 2018 through May 17, 2018, period from December 31, 2017 through May 17, 2018, and the three month and six month periods ended July 15, 2017 is as follows: In thousands December 30, 2017 July 15, 2017 Current assets $ 30,623 $ 26,058 Non-current assets 10,854 10,451 Total assets 41,477 36,509 Current liabilities 6,897 5,755 Non-current liabilities 5,462 5,535 Total liabilities 12,359 11,290 Net assets $ 29,118 $ 25,219 In thousands Period from March 25, 2018 through May 17, 2018 Three Months Ended July 15, 2017 Period from December 31, 2017 through May 17, 2018 Six Months Ended July 15, 2017 Net sales $ 6,804 $ 11,172 $ 12,978 $ 16,297 Gross profit 3,342 5,434 6,019 7,712 Net income 264 154 241 49 |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 14, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note E – Income Taxes The provision for income taxes was computed based on financial statement income. 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. Additional work is necessary to determine the amount of accumulated foreign earnings and the corresponding foreign tax credit. The final impact may differ from these provisional amounts, possibly materially, due to, among other things, issuance of additional regulatory guidance, changes in interpretations and assumptions the Company has made, and actions the Company may take as a result of the Tax Cuts and Jobs Act of 2017. No adjustments were made to the provisional estimate during the six month period ended July 14, 2018. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 6 Months Ended |
Jul. 14, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note F – 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. Proceeds from the sale of the Company’s 50% interest in Stiga were used to pay off outstanding debt during the quarter ending July 14, 2018. 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 14, 2018, December 30, 2017 and July 15, 2017. Fair Value Measurements Using July 14, 2018 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 15,572 $ 15,572 $ — $ — Fair Value Measurements Using December 30, 2017 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 1,572 $ 1,572 $ — $ — Financial liabilities Current portion of long-term debt $ 1,250 $ — $ 1,250 $ — Long-term debt $ 21,871 $ — $ 21,871 $ — Fair Value Measurements Using July 15, 2017 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 2,280 $ 2,280 $ — $ — Financial liabilities Current portion of long-term debt $ 1,300 $ — $ 1,300 $ — Long-term debt $ 22,386 $ — $ 22,386 $ — |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jul. 14, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note G – 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 14, 2018 and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 11,530 shares of common stock. During the six months ended July 14, 2018, the Company awarded 14,250 restricted stock units to directors and 40,278 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 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. The 2018 restricted stock units awarded to employees fully vest over four years (one-third two years from grant date, one-third three years from grant date and one-third four years from grant date) provided that the employee is still employed by the Company on each applicable vesting date and that the performance criteria related to the market price of the Company’s stock is satisfied. The performance criteria is for any 30 consecutive trading days on the NASDAQ Stock Market (or such other principal securities exchange on which the Company’s shares of common stock are then traded) during the period beginning on the grant date and ending on the fourth anniversary thereof, the cumulative average Volume Weighted Average Price per share is at least 15% higher than the closing price per share on the grant date plus any incremental dividends paid above the current quarterly dividend rate of $0.125 per share by the Company during such four year period. If the performance criteria is not satisfied as of an applicable vesting date, then one-half of the RSUs eligible to vest on that date will vest and the remaining one-half will vest if, and only if, the performance criteria is met prior to the end of the four year vesting period. The Company utilizes the Monte Carlo technique to determine the fair value of restricted stock units granted for awards with market conditions. For the three and six months ended July 14, 2018, including expense associated with issuing certain directors stock in lieu of cash for certain director fees, the Company recognized stock based compensation expense of $374 thousand and $535 thousand, respectively compared to stock based compensation expense of $326 thousand and $440 thousand for the same periods in the prior year. At July 14, 2018 and July 15, 2017, respectively, there was $0.8 million and $0.8 million in unrecognized stock-based compensation expense related to non-vested stock awards. |
Segment Information
Segment Information | 6 Months Ended |
Jul. 14, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note H - Segment Information For the Three Months Ended July 14, 2018 In thousands Sporting Goods Corp. Total Revenues from external customers $ 48,684 $ — $ 48,684 Operating income (loss) 2,468 (517 ) 1,951 Net income 1,685 10,386 12,071 As of and for the Six Months Ended July 14, 2018 In thousands Sporting Goods Corp. Total Revenues from external customers $ 80,833 $ — $ 80,833 Operating income (loss) 4,561 (895 ) 3,666 Net income 3,069 10,218 13,287 Total assets $ 127,777 $ 16,343 $ 144,120 For the Three Months Ended July 15, 2017 In thousands Sporting Goods Corp. Total Revenues from external customers $ 53,921 $ — $ 53,921 Operating income (loss) 3,810 (478 ) 3,332 Net income 2,005 91 2,096 As of and for the Six Months Ended July 15, 2017 In thousands Sporting Goods Corp. Total Revenues from external customers $ 85,787 $ — $ 85,787 Operating income (loss) 6,169 (841 ) 5,328 Net income 3,399 85 3,484 Total assets $ 127,999 $ 22,250 $ 150,249 |
Dividend Payment
Dividend Payment | 6 Months Ended |
Jul. 14, 2018 | |
Payments of Dividends [Abstract] | |
Dividend Payment Terms [Text Block] | Note I – Dividend Payment On June 14, 2018, the Company paid a quarterly dividend of $0.125 per common share to all shareholders of record on June 7, 2018. The total amount of the dividend was approximately $1.8 million and was charged against retained earnings. On March 19, 2018, the Company paid a quarterly dividend of $0.125 per common share to all shareholders of record on March 12, 2018. 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. 14, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note J - 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 In thousands July 14, 2018 July 15, 2017 July 14, 2018 July 15, 2017 Weighted average common shares outstanding 14,424 14,354 14,407 14,338 Dilutive effect of stock options and restricted stock units 26 30 24 31 Weighted average common shares outstanding, assuming dilution 14,450 14,384 14,431 14,369 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 2018 and 2017 were 71,781 and 83,600, respectively. |
New Accounting Standards and Ch
New Accounting Standards and Changes in Accounting Principles | 6 Months Ended |
Jul. 14, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note K – 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 14, 2018, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017, that are of significance, or potential significance to the Company. In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU) 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company adopted this standard on December 31, 2017. The adoption of this ASU did not have an impact on our condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) to clarify the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. The Company adopted this standard on December 31, 2017. The adoption did not have any impact on our condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new standard is in response to current diversity in practice and will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years, with early adoption permitted. The Company adopted this standard on December 31, 2017. The adoption of this ASU did not have any impact on our consolidated condensed statements of cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single comprehensive revenue model for entities to use in accounting for revenue arising from contracts with customers. The guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 is effective for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years, with early adoption permitted for periods beginning after December 15, 2016. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). In 2016, the FASB issued further guidance that offers narrow scope improvements and clarifies certain implementation issues related to revenue recognition, including principal versus agent considerations and the identification of performance obligations and licensing. These additional updates have the same effective date as the new revenue guidance. The Company adopted this standard on December 31, 2017 using the modified retrospective method. The adoption of this standard did not impact the timing of revenue recognition for our customer sales. We do not incur significant costs to obtain or to fulfill revenue contracts. For the Company, the most significant impact of the new standard is the requirement for enhanced footnote disclosures. Refer to Note L for disclosure requirements related to the adoption of this standard. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jul. 14, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note L – 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 All Amounts in Thousands July 14, 2018 July 15, 2017 July 14, 2018 July 15, 2017 Gross Sales by Channel: Mass Merchants $ 19,562 $ 25,355 $ 32,693 $ 38,263 Specialty Dealers 19,301 17,841 31,961 31,338 E-commerce 12,864 14,192 20,254 21,504 International 2,351 1,728 4,582 2,944 Other 348 104 537 289 Total Gross Sales 54,426 59,220 90,027 94,338 Less: Gross-to-Net Sales Adjustments Returns 1,272 1,568 2,198 2,371 Warranties 494 62 801 321 Customer Allowances 3,976 3,669 6,195 5,859 Total Gross-to-Net Sales Adjustments 5,742 5,299 9,194 8,551 Total Net Sales $ 48,684 $ 53,921 $ 80,833 $ 85,787 Contract Balances Three Months Ended Six Months Ended All Amounts in Thousands July 14, 2018 July 15, 2017 July 14, 2018 July 15, 2017 Increase due to cash received, excluding amounts recognized as revenue during the period $ 930 $ - $ 930 $ - Revenue recognized that was included in the contract liability balance at the beginning of the period - - - - Increase in contract liability during the period $ 930 $ - $ 930 $ - |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 14, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note M – 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 Accoun21
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 14, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Presentation of Consolidated Condensed Financial Statements |
Reclassification, Policy [Policy Text Block] | Reclassifications |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 14, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | In thousands July 14, 2018 December 30, 2017 July 15, 2017 Raw materials $ 3,924 $ 3,462 $ 4,356 Work in progress 3,452 2,927 4,134 Finished goods 34,078 28,771 28,980 $ 41,454 $ 35,160 $ 37,470 |
Equity Interest Investments (Ta
Equity Interest Investments (Tables) | 6 Months Ended |
Jul. 14, 2018 | |
Equity Method Investments [Table Text Block] | Summarized financial information for Stiga Sports AB balance sheets as of December 30, 2017, and July 15, 2017 and statements of operations for the period from March 25, 2018 through May 17, 2018, period from December 31, 2017 through May 17, 2018, and the three month and six month periods ended July 15, 2017 is as follows: In thousands December 30, 2017 July 15, 2017 Current assets $ 30,623 $ 26,058 Non-current assets 10,854 10,451 Total assets 41,477 36,509 Current liabilities 6,897 5,755 Non-current liabilities 5,462 5,535 Total liabilities 12,359 11,290 Net assets $ 29,118 $ 25,219 |
Schedule Of Joint Ventures Income Statement Information [Table Text Block] | In thousands Period from March 25, 2018 through May 17, 2018 Three Months Ended July 15, 2017 Period from December 31, 2017 through May 17, 2018 Six Months Ended July 15, 2017 Net sales $ 6,804 $ 11,172 $ 12,978 $ 16,297 Gross profit 3,342 5,434 6,019 7,712 Net income 264 154 241 49 |
Stiga Sports B [Member] | |
Schedule Of Joint Ventures Income Statement Information [Table Text Block] | The Company’s 50% portion of net income for Stiga, included in equity in earnings of affiliates on the Company’s statements of operations, is as follows: In thousands Period from March 25, 2018 through May 17, 2018 Three Months Ended July 15, 2017 Period from December 31, 2017 through May 17, 2018 Six Months Ended July 15, 2017 Equity in earnings of affiliates $ 133 $ 76 $ 121 $ 24 |
Fair Values of Financial Inst24
Fair Values of Financial Instruments (Tables) | 6 Months Ended |
Jul. 14, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | 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 14, 2018, December 30, 2017 and July 15, 2017. Fair Value Measurements Using July 14, 2018 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 15,572 $ 15,572 $ — $ — Fair Value Measurements Using December 30, 2017 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 1,572 $ 1,572 $ — $ — Financial liabilities Current portion of long-term debt $ 1,250 $ — $ 1,250 $ — Long-term debt $ 21,871 $ — $ 21,871 $ — Fair Value Measurements Using July 15, 2017 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 2,280 $ 2,280 $ — $ — Financial liabilities Current portion of long-term debt $ 1,300 $ — $ 1,300 $ — Long-term debt $ 22,386 $ — $ 22,386 $ — |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jul. 14, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three Months Ended July 14, 2018 In thousands Sporting Goods Corp. Total Revenues from external customers $ 48,684 $ — $ 48,684 Operating income (loss) 2,468 (517 ) 1,951 Net income 1,685 10,386 12,071 As of and for the Six Months Ended July 14, 2018 In thousands Sporting Goods Corp. Total Revenues from external customers $ 80,833 $ — $ 80,833 Operating income (loss) 4,561 (895 ) 3,666 Net income 3,069 10,218 13,287 Total assets $ 127,777 $ 16,343 $ 144,120 For the Three Months Ended July 15, 2017 In thousands Sporting Goods Corp. Total Revenues from external customers $ 53,921 $ — $ 53,921 Operating income (loss) 3,810 (478 ) 3,332 Net income 2,005 91 2,096 As of and for the Six Months Ended July 15, 2017 In thousands Sporting Goods Corp. Total Revenues from external customers $ 85,787 $ — $ 85,787 Operating income (loss) 6,169 (841 ) 5,328 Net income 3,399 85 3,484 Total assets $ 127,999 $ 22,250 $ 150,249 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jul. 14, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | 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 In thousands July 14, 2018 July 15, 2017 July 14, 2018 July 15, 2017 Weighted average common shares outstanding 14,424 14,354 14,407 14,338 Dilutive effect of stock options and restricted stock units 26 30 24 31 Weighted average common shares outstanding, assuming dilution 14,450 14,384 14,431 14,369 |
Revenue from Contracts with C27
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jul. 14, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table depicts the disaggregation of revenue according to sales channel: Three Months Ended Six Months Ended All Amounts in Thousands July 14, 2018 July 15, 2017 July 14, 2018 July 15, 2017 Gross Sales by Channel: Mass Merchants $ 19,562 $ 25,355 $ 32,693 $ 38,263 Specialty Dealers 19,301 17,841 31,961 31,338 E-commerce 12,864 14,192 20,254 21,504 International 2,351 1,728 4,582 2,944 Other 348 104 537 289 Total Gross Sales 54,426 59,220 90,027 94,338 Less: Gross-to-Net Sales Adjustments Returns 1,272 1,568 2,198 2,371 Warranties 494 62 801 321 Customer Allowances 3,976 3,669 6,195 5,859 Total Gross-to-Net Sales Adjustments 5,742 5,299 9,194 8,551 Total Net Sales $ 48,684 $ 53,921 $ 80,833 $ 85,787 |
Contract with Customer, Asset and Liability [Table Text Block] | Three Months Ended Six Months Ended All Amounts in Thousands July 14, 2018 July 15, 2017 July 14, 2018 July 15, 2017 Increase due to cash received, excluding amounts recognized as revenue during the period $ 930 $ - $ 930 $ - Revenue recognized that was included in the contract liability balance at the beginning of the period - - - - Increase in contract liability during the period $ 930 $ - $ 930 $ - |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 14, 2018 | Dec. 30, 2017 | Jul. 15, 2017 |
Inventory [Line Items] | |||
Raw materials | $ 3,924 | $ 3,462 | $ 4,356 |
Work in progress | 3,452 | 2,927 | 4,134 |
Finished goods | 34,078 | 28,771 | 28,980 |
Inventories | $ 41,454 | $ 35,160 | $ 37,470 |
Equity Interest Investments (De
Equity Interest Investments (Details) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 5 Months Ended | 6 Months Ended | ||
May 17, 2018 | Jul. 14, 2018 | Jul. 15, 2017 | May 17, 2018 | Jul. 14, 2018 | Jul. 15, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in earnings of affiliates | $ 133 | $ 76 | $ 121 | $ 24 | ||
Stiga Sports B [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in earnings of affiliates | $ 133 | $ 76 | $ 121 | $ 24 |
Equity Interest Investments (30
Equity Interest Investments (Details 1) - USD ($) $ in Thousands | Jul. 14, 2018 | Dec. 30, 2017 | Jul. 15, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Current assets | $ 90,639 | $ 80,260 | $ 75,802 |
Total assets | 144,120 | 156,105 | 150,249 |
Current liabilities | 16,596 | 19,542 | 18,574 |
Total liabilities | $ 19,568 | 44,435 | 46,176 |
Stiga Sports AB [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Current assets | 30,623 | 26,058 | |
Non-current assets | 10,854 | 10,451 | |
Total assets | 41,477 | 36,509 | |
Current liabilities | 6,897 | 5,755 | |
Non-current liabilities | 5,462 | 5,535 | |
Total liabilities | 12,359 | 11,290 | |
Net assets | $ 29,118 | $ 25,219 |
Equity Interest Investments (31
Equity Interest Investments (Details 2) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 5 Months Ended | 6 Months Ended | ||
May 17, 2018 | Jul. 14, 2018 | Jul. 15, 2017 | May 17, 2018 | Jul. 14, 2018 | Jul. 15, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Net sales | $ 54,426 | $ 59,220 | $ 90,027 | $ 94,338 | ||
Net income | $ 12,071 | 2,096 | $ 13,287 | 3,484 | ||
Stiga Sports AB [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net sales | $ 6,804 | 11,172 | $ 12,978 | 16,297 | ||
Gross profit | 3,342 | 5,434 | 6,019 | 7,712 | ||
Net income | $ 264 | $ 154 | $ 241 | $ 49 |
Equity Interest Investments (32
Equity Interest Investments (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 4 Months Ended | 6 Months Ended | ||
May 17, 2018 | Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from Sale of Equity Method Investments | $ 33,700 | $ 33,705 | $ 0 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 13,000 | $ 13,020 | $ 0 | $ 13,020 | $ 0 |
Stiga Sports AB [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | ||
Stiga Sports AB [Member] | Parent [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | Dec. 30, 2017 | |
Income Tax Expense (Benefit) | $ 2,791 | $ 1,031 | $ 3,066 | $ 1,680 | $ (3,000) |
Fair Values of Financial Inst34
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jul. 14, 2018 | Dec. 30, 2017 | Jul. 15, 2017 | Dec. 31, 2016 |
Financial assets, Carrying Amount | ||||
Cash and cash equivalents, Carrying Amount | $ 15,572 | $ 1,572 | $ 2,280 | $ 1,013 |
Financial liabilities, Carrying Amount | ||||
Current portion of Long-term debt, Carrying Amount | 1,250 | 1,300 | ||
Long-term debt, Carrying Amount | 0 | 21,871 | 22,386 | |
Fair Value, Inputs, Level 1 [Member] | ||||
Financial assets, Fair Value | ||||
Cash and cash equivalents, Fair Value | 15,572 | 1,572 | 2,280 | |
Financial liabilities, Fair Value | ||||
Current portion of Long-term debt, Fair Value | 0 | 0 | ||
Long-term debt, Fair Value | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial assets, Fair Value | ||||
Cash and cash equivalents, Fair Value | 0 | 0 | 0 | |
Financial liabilities, Fair Value | ||||
Current portion of Long-term debt, Fair Value | 1,250 | 1,300 | ||
Long-term debt, Fair Value | 21,871 | 22,386 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Financial assets, Fair Value | ||||
Cash and cash equivalents, Fair Value | $ 0 | 0 | 0 | |
Financial liabilities, Fair Value | ||||
Current portion of Long-term debt, Fair Value | 0 | 0 | ||
Long-term debt, Fair Value | $ 0 | $ 0 |
Fair Values of Financial Inst35
Fair Values of Financial Instruments (Details Textual) | Jul. 14, 2018 | May 17, 2018 |
Stiga Sports B [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Stock Compensation (Details Tex
Stock Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative Average Volume Weighted Average Price Per Share | 15.00% | |||
Common Stock, Dividends, Per Share, Declared | $ 0.125 | $ 0.115 | $ 0.25 | $ 0.23 |
Incentive Plan 2007 [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 | 11,530 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 days | |||
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 | 14,250 | |||
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 | 40,278 | |||
Nonvested Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 374 | $ 326 | $ 535 | $ 440 |
Employee and Non Employee Service Share-based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | $ 800 | $ 800 | $ 800 | $ 800 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | |||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 48,684 | $ 53,921 | $ 80,833 | $ 85,787 | |
Operating income (loss) | 1,951 | 3,332 | 3,666 | 5,328 | |
Net income | 12,071 | 2,096 | 13,287 | 3,484 | |
Total assets | 144,120 | 150,249 | 144,120 | 150,249 | $ 156,105 |
Sporting Goods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 48,684 | 53,921 | 80,833 | 85,787 | |
Operating income (loss) | 2,468 | 3,810 | 4,561 | 6,169 | |
Net income | 1,685 | 2,005 | 3,069 | 3,399 | |
Total assets | 127,777 | 127,999 | 127,777 | 127,999 | |
Corporate Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 0 | 0 | 0 | 0 | |
Operating income (loss) | (517) | (478) | (895) | (841) | |
Net income | 10,386 | 91 | 10,218 | 85 | |
Total assets | $ 16,343 | $ 22,250 | $ 16,343 | $ 22,250 |
Dividend Payment (Details Textu
Dividend Payment (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended |
Mar. 19, 2018 | Jul. 14, 2018 | |
Dividend Payment Terms [Line Items] | ||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.125 | $ 0.125 |
Dividends, Common Stock, Cash (in dollars) | $ 1.8 | $ 1.8 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares outstanding | 14,424 | 14,354 | 14,407 | 14,338 |
Dilutive effect of stock options and restricted stock units | 26 | 30 | 24 | 31 |
Weighted average common shares outstanding, assuming dilution | 14,450 | 14,384 | 14,431 | 14,369 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Jul. 14, 2018 | Jul. 15, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 71,781 | 83,600 |
Revenue from Contracts with C41
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | |
Gross Sales by Channel: | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 54,426 | $ 59,220 | $ 90,027 | $ 94,338 |
Sales Returns And Allowance Goods [Abstract] | ||||
Returns | 1,272 | 1,568 | 2,198 | 2,371 |
Warranties | 494 | 62 | 801 | 321 |
Customer Allowances | 3,976 | 3,669 | 6,195 | 5,859 |
Total Gross-to-Net Sales Adjustments | 5,742 | 5,299 | 9,194 | 8,551 |
Total Net Sales | 48,684 | 53,921 | 80,833 | 85,787 |
Mass Merchants [Member] | ||||
Gross Sales by Channel: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 19,562 | 25,355 | 32,693 | 38,263 |
Specialty Dealers [Member] | ||||
Gross Sales by Channel: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 19,301 | 17,841 | 31,961 | 31,338 |
E-commerce [Member] | ||||
Gross Sales by Channel: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 12,864 | 14,192 | 20,254 | 21,504 |
International [Member] | ||||
Gross Sales by Channel: | ||||
Revenue from Contract with Customer, Including Assessed Tax | 2,351 | 1,728 | 4,582 | 2,944 |
Other [Member] | ||||
Gross Sales by Channel: | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 348 | $ 104 | $ 537 | $ 289 |
Revenue from Contracts with C42
Revenue from Contracts with Customers (Details 1) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | ||
Jul. 14, 2018 | Jul. 15, 2017 | Jul. 14, 2018 | Jul. 15, 2017 | |
Increase due to cash received, excluding amounts recognized as revenue during the period | $ 930 | $ 0 | $ 930 | $ 0 |
Revenue recognized that was included in the contract liability balance at the beginning of the period | 0 | 0 | 0 | 0 |
Increase in contract liability during the period | $ 930 | $ 0 | $ 930 | $ 0 |
Revenue from Contracts with C43
Revenue from Contracts with Customers (Details Textual) $ in Thousands | Jul. 14, 2018USD ($) |
Contract with Customer, Liability, Current | $ 930 |