Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 23, 2019 | Apr. 17, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 23, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | ESCALADE INC | |
Entity Central Index Key | 0000033488 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | ESCA | |
Entity Common Stock, Shares Outstanding | 14,471,496 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 23, 2019 | Dec. 29, 2018 | Mar. 24, 2018 |
Current Assets: | |||
Cash and cash equivalents | $ 4,299 | $ 2,824 | $ 2,863 |
Receivables, less allowance of $548; $532; and $484; respectively | 31,951 | 40,682 | 28,850 |
Inventories | 47,744 | 39,122 | 40,114 |
Prepaid expenses | 2,986 | 4,151 | 2,866 |
Prepaid income tax | 1,033 | 1,082 | 501 |
Other current assets | 0 | 2 | 33 |
TOTAL CURRENT ASSETS | 88,013 | 87,863 | 75,227 |
Property, plant and equipment, net | 15,523 | 15,498 | 13,903 |
Operating lease right-of-use assets | 878 | 0 | 0 |
Intangible assets, net | 19,447 | 19,785 | 19,368 |
Goodwill | 26,381 | 26,381 | 21,548 |
Investments | 0 | 0 | 20,175 |
Other assets | 90 | 0 | 0 |
TOTAL ASSETS | 150,332 | 149,527 | 150,221 |
Current Liabilities: | |||
Current portion of long-term debt | 0 | 0 | 18,941 |
Trade accounts payable | 7,756 | 5,631 | 5,188 |
Accrued liabilities | 6,512 | 11,072 | 8,128 |
Current operating lease liabilities | 595 | 0 | 0 |
TOTAL CURRENT LIABILITIES | 14,863 | 16,703 | 32,257 |
Other Liabilities: | |||
Long-term debt | 3,662 | 0 | 3,750 |
Deferred income tax liability | 3,409 | 3,409 | 2,452 |
Operating lease liabilities | 288 | 0 | 0 |
Other liabilities | 1,094 | 1,094 | 553 |
TOTAL LIABILITIES | 23,316 | 21,206 | 39,012 |
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 – 14,471,496; 14,438,824; and 14,415,690; shares respectively | 14,471 | 14,439 | 14,416 |
Retained earnings | 112,545 | 113,882 | 99,495 |
Accumulated other comprehensive loss | 0 | 0 | (2,702) |
TOTAL STOCKHOLDERS' EQUITY | 127,016 | 128,321 | 111,209 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 150,332 | $ 149,527 | $ 150,221 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 23, 2019 | Dec. 29, 2018 | Mar. 24, 2018 |
Receivables allowance (in dollars) | $ 548 | $ 532 | $ 484 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,471,496 | 14,438,824 | 14,415,690 |
Common stock, shares outstanding | 14,471,496 | 14,438,824 | 14,415,690 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 23, 2019 | Mar. 24, 2018 | |
Net sales | $ 32,102 | $ 32,149 |
Costs and Expenses | ||
Cost of products sold | 23,625 | 23,161 |
Selling, administrative and general expenses | 7,745 | 6,950 |
Amortization | 338 | 323 |
Operating Income | 394 | 1,715 |
Other Income (Expense) | ||
Interest expense | (68) | (189) |
Equity in loss of affiliates | 0 | (12) |
Other income (loss) | 6 | (23) |
Income Before Income Taxes | 332 | 1,491 |
Provision for Income Taxes | 65 | 275 |
Net Income | $ 267 | $ 1,216 |
Earnings Per Share Data: | ||
Basic earnings per share | $ 0.02 | $ 0.09 |
Diluted earnings per share | 0.02 | 0.08 |
Dividends declared | $ 0.125 | $ 0.125 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 23, 2019 | Mar. 24, 2018 | |
Net Income | $ 267 | $ 1,216 |
Foreign currency translation adjustment | 0 | (91) |
Comprehensive Income | $ 267 | $ 1,125 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 30, 2017 | $ 111,670 | $ 14,372 | $ 99,908 | $ (2,610) |
Balance (in shares) at Dec. 30, 2017 | 14,372 | |||
Other comprehensive income (loss) | (92) | (92) | ||
Net income | 1,216 | 1,216 | ||
Expense of stock options and restricted stock units | 161 | 161 | ||
Exercise of stock options | 55 | $ 9 | 46 | |
Exercise of stock options (in shares) | 9 | |||
Settlement of restricted stock units | 0 | $ 35 | (35) | |
Settlement of restricted stock units (in shares) | 35 | |||
Dividends declared | (1,801) | (1,801) | ||
Balance at Mar. 24, 2018 | 111,209 | $ 14,416 | 99,495 | (2,702) |
Balance (in shares) at Mar. 24, 2018 | 14,416 | |||
Balance at Dec. 29, 2018 | 128,321 | $ 14,439 | 113,882 | 0 |
Balance (in shares) at Dec. 29, 2018 | 14,439 | |||
Other comprehensive income (loss) | 0 | 0 | ||
Net income | 267 | 267 | ||
Expense of stock options and restricted stock units | 144 | 144 | ||
Exercise of stock options | 118 | $ 10 | 108 | |
Exercise of stock options (in shares) | 10 | |||
Settlement of restricted stock units | 0 | $ 25 | (25) | |
Settlement of restricted stock units (in shares) | 25 | |||
Dividends declared | (1,809) | (1,809) | ||
Purchase of stock | (25) | $ (3) | (22) | |
Purchase of stock (in shares) | (3) | |||
Balance at Mar. 23, 2019 | $ 127,016 | $ 14,471 | $ 112,545 | $ 0 |
Balance (in shares) at Mar. 23, 2019 | 14,471 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 23, 2019 | Mar. 24, 2018 | |
Operating Activities: | ||
Net income | $ 267 | $ 1,216 |
Depreciation and amortization | 936 | 913 |
Gain on disposal of property and equipment | 0 | 0 |
Stock-based compensation | 144 | 161 |
Adjustments necessary to reconcile net income to net cash provided by operating activities | (1,099) | 1,384 |
Net cash provided by operating activities | 248 | 3,674 |
Investing Activities: | ||
Purchase of property and equipment | (623) | (206) |
Net cash used by investing activities | (623) | (206) |
Financing Activities: | ||
Proceeds from issuance of long-term debt | 14,200 | 12,888 |
Payments on long-term debt | (10,538) | (13,318) |
Proceeds from exercise of stock options | 118 | 54 |
Deferred financing fees | (96) | 0 |
Purchase of stock | (25) | 0 |
Cash dividends paid | (1,809) | (1,801) |
Net cash provided (used) by financing activities | 1,850 | (2,177) |
Net increase in cash and cash equivalents | 1,475 | 1,291 |
Cash and cash equivalents, beginning of period | 2,824 | 1,572 |
Cash and cash equivalents, end of period | $ 4,299 | $ 2,863 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 23, 2019 | |
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 – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 29, 2018 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2018 filed with the Securities and Exchange Commission. Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings. |
Seasonal Aspects
Seasonal Aspects | 3 Months Ended |
Mar. 23, 2019 | |
Accounting Policies [Abstract] | |
Seasonal Aspects [Text Block] | Note B - Seasonal Aspects The results of operations for the three months ended March 23, 2019 and March 24, 2018 are not necessarily indicative of the results to be expected for the full year. |
Inventories
Inventories | 3 Months Ended |
Mar. 23, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note C - Inventories In thousands March 23, 2019 December 29, 2018 March 24, 2018 Raw materials $ 4,052 $ 3,622 $ 3,466 Work in progress 2,891 2,892 3,346 Finished goods 40,801 32,608 33,302 $ 47,744 $ 39,122 $ 40,114 |
Equity Interest Investments
Equity Interest Investments | 3 Months Ended |
Mar. 23, 2019 | |
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 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 exchange rates in effect at the respective period-end for balance sheet amounts and using average exchange rates for income statement amounts. The Company’s 50% portion of net loss for Stiga for the period ended March 24, 2018 was ($12) thousand and is included in equity in loss of affiliates on the Company’s statements of operations. Summarized financial information for Stiga Sports AB balance sheet as of March 24, 2018 and statements of operations for the three months ended March 24, 2018 is as follows: In thousands March 24, 2018 Current assets $ 29,841 Non-current assets 10,560 Total assets 40,401 Current liabilities 6,020 Non-current liabilities 5,429 Total liabilities 11,449 Net assets $ 28,952 Three Months Ended March 24, 2018 Net sales $ 6,174 Gross profit 2,677 Net loss (23 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 23, 2019 | |
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. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended |
Mar. 23, 2019 | |
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. 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 March 23, 2019, December 29, 2018 and March 24, 2018. Fair Value Measurements Using March 23, 2019 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 $ 4,299 $ 4,299 $ — $ — Financial liabilities Long-term debt $ 3,662 $ — $ 3,662 $ — Fair Value Measurements Using December 29, 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 $ 2,824 $ 2,824 $ — $ — Fair Value Measurements Using March 24, 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 $ 2,863 $ 2,863 $ — $ — Financial liabilities Current portion of long-term debt $ 18,941 $ — $ 18,941 $ — Long-term debt $ 3,750 $ — $ 3,750 $ — |
Stock Compensation
Stock Compensation | 3 Months Ended |
Mar. 23, 2019 | |
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 three months ended March 23, 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 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 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. For the three months ended March 23, 2019 and March 24, 2018, the Company recognized stock based compensation expense of $144 thousand and $161 thousand, respectively. At March 23, 2019 and March 24, 2018, respectively, there was $1.2 million and $1.0 million in unrecognized stock-based compensation expense related to non-vested stock awards. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 23, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note H - Segment Information As of and for the Three Months Ended March 23, 2019 In thousands Sporting Goods Corp. Total Revenues from external customers $ 32,102 $ — $ 32,102 Operating income (loss) 761 (367 ) 394 Net income (loss) 507 (240 ) 267 Total assets $ 144,006 $ 6,326 $ 150,332 As of and for the Three Months Ended March 24, 2018 In thousands Sporting Goods Corp. Total Revenues from external customers $ 32,149 $ — $ 32,149 Operating income (loss) 2,093 (378 ) 1,715 Net income (loss) 1,384 (168 ) 1,216 Total assets $ 124,354 $ 25,867 $ 150,221 |
Dividend Payment
Dividend Payment | 3 Months Ended |
Mar. 23, 2019 | |
Payments of Dividends [Abstract] | |
Dividend Payment Terms [Text Block] | Note I – Dividend Payment On March 18, 2019, the Company paid a quarterly dividend of $0.125 per common share to all shareholders of record on March 11, 2019. The total amount of the dividend was approximately $1.8 million and was charged against retained earnings. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 23, 2019 | |
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 In thousands March 23, 2019 March 24, 2018 Weighted average common shares outstanding 14,447 14,383 Dilutive effect of stock options and restricted stock units 28 24 Weighted average common shares outstanding, assuming dilution 14,475 14,407 Stock options that are anti-dilutive as to earnings per share and unvested restricted stock units which have a market or performance 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 2019 and 2018 were 89,431 96,481 |
New Accounting Standards and Ch
New Accounting Standards and Changes in Accounting Principles | 3 Months Ended |
Mar. 23, 2019 | |
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 months ended March 23, 2019, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018, that are of significance, or potential significance to the Company. 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 M for disclosure requirements related to the adoption of this standard. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 23, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note L – 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: Three Months Ended All Amounts in Thousands March 23, 2019 March 24, 2018 Gross Sales by Channel: Mass Merchants $ 11,430 $ 13,089 Specialty Dealers 13,601 12,651 E-commerce 9,934 7,358 International 1,174 2,315 Other 702 188 Total Gross Sales 36,841 35,601 Less: Gross-to-Net Sales Adjustments Returns 1,175 926 Warranties 373 307 Customer Allowances 3,191 2,219 Total Gross-to-Net Sales Adjustments 4,739 3,452 Total Net Sales $ 32,102 $ 32,149 |
Leases
Leases | 3 Months Ended |
Mar. 23, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Note M – 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 3 years. As of March 23, 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: All Amounts in Thousands March 23, 2019 Lease Expense Operating Lease Cost $ 191 Short-term Lease Cost 90 Variable Lease Cost 55 Total Operating Lease Cost $ 336 Operating Lease – Operating Cash Flows $ 175 New ROU Assets – Operating Leases $ 73 Weighted Average Remaining Lease Term – Operating Leases 1.65 years Weighted Average Discount Rate – Operating Leases 5.00 % Future minimum lease payments under non-cancellable leases as of March 23, 2019 were as follows: All Amounts in Thousands Year 1 $ 619 Year 2 227 Year 3 59 Year 4 10 Year 5 - Thereafter - Total future minimum lease payments 915 Less imputed interest (32 ) Total $ 883 Reported as of March 23, 2019 Current operating lease liabilities 595 Long-term operating lease liabilities 288 Total $ 883 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 23, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note N – 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. |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 23, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Presentation of Consolidated Condensed Financial Statements – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 29, 2018 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2018 filed with the Securities and Exchange Commission. |
Reclassification, Policy [Policy Text Block] | Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 23, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | In thousands March 23, 2019 December 29, 2018 March 24, 2018 Raw materials $ 4,052 $ 3,622 $ 3,466 Work in progress 2,891 2,892 3,346 Finished goods 40,801 32,608 33,302 $ 47,744 $ 39,122 $ 40,114 |
Equity Interest Investments (Ta
Equity Interest Investments (Tables) | 3 Months Ended |
Mar. 23, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | Summarized financial information for Stiga Sports AB balance sheet as of March 24, 2018 and statements of operations for the three months ended March 24, 2018 is as follows: In thousands March 24, 2018 Current assets $ 29,841 Non-current assets 10,560 Total assets 40,401 Current liabilities 6,020 Non-current liabilities 5,429 Total liabilities 11,449 Net assets $ 28,952 |
Schedule of Joint Ventures Income Statement Information [Table Text Block] | Three Months Ended March 24, 2018 Net sales $ 6,174 Gross profit 2,677 Net loss (23 ) |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 3 Months Ended |
Mar. 23, 2019 | |
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 March 23, 2019, December 29, 2018 and March 24, 2018. Fair Value Measurements Using March 23, 2019 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 $ 4,299 $ 4,299 $ — $ — Financial liabilities Long-term debt $ 3,662 $ — $ 3,662 $ — Fair Value Measurements Using December 29, 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 $ 2,824 $ 2,824 $ — $ — Fair Value Measurements Using March 24, 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 $ 2,863 $ 2,863 $ — $ — Financial liabilities Current portion of long-term debt $ 18,941 $ — $ 18,941 $ — Long-term debt $ 3,750 $ — $ 3,750 $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 23, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | As of and for the Three Months Ended March 23, 2019 In thousands Sporting Goods Corp. Total Revenues from external customers $ 32,102 $ — $ 32,102 Operating income (loss) 761 (367 ) 394 Net income (loss) 507 (240 ) 267 Total assets $ 144,006 $ 6,326 $ 150,332 As of and for the Three Months Ended March 24, 2018 In thousands Sporting Goods Corp. Total Revenues from external customers $ 32,149 $ — $ 32,149 Operating income (loss) 2,093 (378 ) 1,715 Net income (loss) 1,384 (168 ) 1,216 Total assets $ 124,354 $ 25,867 $ 150,221 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 23, 2019 | |
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 In thousands March 23, 2019 March 24, 2018 Weighted average common shares outstanding 14,447 14,383 Dilutive effect of stock options and restricted stock units 28 24 Weighted average common shares outstanding, assuming dilution 14,475 14,407 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 23, 2019 | |
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 All Amounts in Thousands March 23, 2019 March 24, 2018 Gross Sales by Channel: Mass Merchants $ 11,430 $ 13,089 Specialty Dealers 13,601 12,651 E-commerce 9,934 7,358 International 1,174 2,315 Other 702 188 Total Gross Sales 36,841 35,601 Less: Gross-to-Net Sales Adjustments Returns 1,175 926 Warranties 373 307 Customer Allowances 3,191 2,219 Total Gross-to-Net Sales Adjustments 4,739 3,452 Total Net Sales $ 32,102 $ 32,149 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 23, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | 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: All Amounts in Thousands March 23, 2019 Lease Expense Operating Lease Cost $ 191 Short-term Lease Cost 90 Variable Lease Cost 55 Total Operating Lease Cost $ 336 Operating Lease – Operating Cash Flows $ 175 New ROU Assets – Operating Leases $ 73 Weighted Average Remaining Lease Term – Operating Leases 1.65 years Weighted Average Discount Rate – Operating Leases 5.00 % |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under non-cancellable leases as of March 23, 2019 were as follows: All Amounts in Thousands Year 1 $ 619 Year 2 227 Year 3 59 Year 4 10 Year 5 - Thereafter - Total future minimum lease payments 915 Less imputed interest (32 ) Total $ 883 Reported as of March 23, 2019 Current operating lease liabilities 595 Long-term operating lease liabilities 288 Total $ 883 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 23, 2019 | Dec. 29, 2018 | Mar. 24, 2018 |
Inventory [Line Items] | |||
Raw materials | $ 4,052 | $ 3,622 | $ 3,466 |
Work in process | 2,891 | 2,892 | 3,346 |
Finished goods | 40,801 | 32,608 | 33,302 |
Inventories | $ 47,744 | $ 39,122 | $ 40,114 |
Equity Interest Investments (De
Equity Interest Investments (Details) - Stiga Sports AB [Member] $ in Thousands | Mar. 24, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Current assets | $ 29,841 |
Non-current assets | 10,560 |
TOTAL ASSETS | 40,401 |
Current liabilities | 6,020 |
Non-current liabilities | 5,429 |
TOTAL LIABILITIES | 11,449 |
Net assets | $ 28,952 |
Equity Interest Investments (_2
Equity Interest Investments (Details 1) - Stiga Sports AB [Member] $ in Thousands | 3 Months Ended |
Mar. 24, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Net sales | $ 6,174 |
Gross profit | 2,677 |
Net loss | $ (23) |
Equity Interest Investments (_3
Equity Interest Investments (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 17, 2018 | Mar. 24, 2018 | Mar. 23, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Proceeds from Sale of Equity Method Investments | $ 33,700 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 13,000 | ||
Stiga Sports AB [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $ (12) | ||
Stiga Sports AB [Member] | Parent [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 23, 2019 | Dec. 29, 2018 | Mar. 24, 2018 |
Financial liabilities, Carrying Amount | |||
Long-term debt, Carrying Amount | $ 3,662 | $ 0 | $ 3,750 |
Financial assets, Fair Value | |||
Cash and cash equivalents, Fair Value | 4,299 | 2,824 | 2,863 |
Financial liabilities, Fair Value | |||
Current portion of Long-term debt, Fair Value | 18,941 | ||
Long-term debt, Fair Value | 3,662 | 3,750 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets, Carrying Amount | |||
Cash and cash equivalents, Carrying Amount | 4,299 | 2,824 | 2,863 |
Financial liabilities, Carrying Amount | |||
Current portion of Long-term debt, Carrying Amount | 0 | ||
Long-term debt, Carrying Amount | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets, Carrying Amount | |||
Cash and cash equivalents, Carrying Amount | 0 | 0 | 0 |
Financial liabilities, Carrying Amount | |||
Current portion of Long-term debt, Carrying Amount | 18,941 | ||
Long-term debt, Carrying Amount | 3,662 | 3,750 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets, Carrying Amount | |||
Cash and cash equivalents, Carrying Amount | 0 | $ 0 | 0 |
Financial liabilities, Carrying Amount | |||
Current portion of Long-term debt, Carrying Amount | 0 | ||
Long-term debt, Carrying Amount | $ 0 | $ 0 |
Stock Compensation (Details Tex
Stock Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 23, 2019 | Mar. 24, 2018 | |
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 | |
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 | 35,900 | |
Nonvested Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 144 | $ 161 |
Employee and Non Employee Service Share-based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | $ 1,200 | $ 1,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 23, 2019 | Mar. 24, 2018 | Dec. 29, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 32,102 | $ 32,149 | |
Operating income (loss) | 394 | 1,715 | |
Net income (loss) | 267 | 1,216 | |
Total assets | 150,332 | 150,221 | $ 149,527 |
Sporting Goods [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 32,102 | 32,149 | |
Operating income (loss) | 761 | 2,093 | |
Net income (loss) | 507 | 1,384 | |
Total assets | 144,006 | 124,354 | |
Corporate Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 0 | 0 | |
Operating income (loss) | (367) | (378) | |
Net income (loss) | (240) | (168) | |
Total assets | $ 6,326 | $ 25,867 |
Dividend Payment (Details Textu
Dividend Payment (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 18, 2019 | Mar. 23, 2019 | Mar. 24, 2018 | |
Dividend Payment Terms [Line Items] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.125 | ||
Dividends, Common Stock, Cash | $ 1,800 | $ 1,809 | $ 1,801 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 23, 2019 | Mar. 24, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average common shares outstanding | 14,447 | 14,383 |
Dilutive effect of stock options and restricted stock units | 28 | 24 |
Weighted average common shares outstanding, assuming dilution | 14,475 | 14,407 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 3 Months Ended | |
Mar. 23, 2019 | Mar. 24, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 89,431 | 96,481 |
New Accounting Standards and _2
New Accounting Standards and Changes in Accounting Principles (Details Textual) - USD ($) $ in Thousands | Mar. 23, 2019 | Dec. 31, 2018 | Dec. 29, 2018 | Mar. 24, 2018 |
Operating Lease, Right-of-Use Asset | $ 878 | $ 0 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 985 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 23, 2019 | Mar. 24, 2018 | |
Sales Revenues Goods Net [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 36,841 | $ 35,601 |
Sales Returns And Allowance Goods [Abstract] | ||
Returns | 1,175 | 926 |
Warranties | 373 | 307 |
Customer Allowances | 3,191 | 2,219 |
Total Gross-to-Net Sales Adjustments | 4,739 | 3,452 |
Total Net Sales | 32,102 | 32,149 |
Mass Merchants [Member] | ||
Sales Revenues Goods Net [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 11,430 | 13,089 |
Specialty Dealers [Member] | ||
Sales Revenues Goods Net [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,601 | 12,651 |
E-commerce [Member] | ||
Sales Revenues Goods Net [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,934 | 7,358 |
International [Member] | ||
Sales Revenues Goods Net [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,174 | 2,315 |
Other [Member] | ||
Sales Revenues Goods Net [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 702 | $ 188 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 23, 2019USD ($) | |
Lease Expense | |
Operating Lease Cost | $ 191 |
Short-term Lease Cost | 90 |
Variable Lease Cost | 55 |
Total Operating Lease Cost | 336 |
Operating Lease – Operating Cash Flows | 175 |
New ROU Assets – Operating Leases | $ 73 |
Weighted Average Remaining Lease Term – Operating Leases | 1 year 7 months 24 days |
Weighted Average Discount Rate – Operating Leases | 5.00% |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Thousands | Mar. 23, 2019 | Dec. 29, 2018 | Mar. 24, 2018 |
Year 1 | $ 619 | ||
Year 2 | 227 | ||
Year 3 | 59 | ||
Year 4 | 10 | ||
Year 5 | 0 | ||
Thereafter | 0 | ||
Total future minimum lease payments | 915 | ||
Less imputed interest | (32) | ||
Total | 883 | ||
Current operating lease liabilities | 595 | $ 0 | $ 0 |
Long-term operating lease liabilities | 288 | $ 0 | $ 0 |
Total | $ 883 |
Leases (Details Textual)
Leases (Details Textual) | Mar. 23, 2019 |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 7 months 24 days |
Maximum [Member] | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years |
Minimum [Member] | |
Operating Lease, Weighted Average Remaining Lease Term | 1 year |