Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 01, 2022 | Oct. 21, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000033488 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 01, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-6966 | |
Entity Registrant Name | ESCALADE, INCORPORATED | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 13-2739290 | |
Entity Address, Address Line One | 817 Maxwell Ave | |
Entity Address, City or Town | Evansville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47711 | |
City Area Code | 812 | |
Local Phone Number | 467-1358 | |
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | ESCA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,590,407 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Oct. 01, 2022 | Dec. 25, 2021 | Oct. 02, 2021 |
Current Assets: | |||
Cash and cash equivalents | $ 4,000 | $ 4,374 | $ 6,492 |
Receivables, less allowance of $729; $457; and $636; respectively | 65,258 | 65,991 | 68,849 |
Inventories | 134,957 | 92,382 | 91,755 |
Prepaid expenses | 4,143 | 7,569 | 6,527 |
Prepaid income tax | 1,075 | 739 | |
TOTAL CURRENT ASSETS | 209,433 | 171,055 | 173,623 |
Property, plant and equipment, net | 27,618 | 24,936 | 24,000 |
Operating lease right-of-use assets | 9,074 | 2,210 | 2,500 |
Intangible assets, net | 34,712 | 20,778 | 21,207 |
Goodwill | 39,226 | 32,695 | 32,695 |
Other assets | 261 | 124 | 131 |
TOTAL ASSETS | 320,324 | 251,798 | 254,156 |
Current Liabilities: | |||
Current portion of long-term debt | 7,143 | 7,143 | 7,143 |
Trade accounts payable | 22,684 | 15,847 | 25,071 |
Accrued liabilities | 19,060 | 24,385 | 18,100 |
Income tax payable | 0 | 0 | 124 |
Current operating lease liabilities | 816 | 818 | 990 |
TOTAL CURRENT LIABILITIES | 49,703 | 48,193 | 51,428 |
Other Liabilities: | |||
Long‑term debt | 99,568 | 50,396 | 51,874 |
Deferred income tax liability | 4,759 | 4,759 | 4,193 |
Operating lease liabilities | 8,557 | 1,387 | 1,493 |
Other liabilities | 448 | 448 | 448 |
TOTAL LIABILITIES | 163,035 | 105,183 | 109,436 |
Stockholders' Equity: | |||
Authorized 30,000,000 shares; no par value, issued and outstanding – 13,590,407; 13,493,332; and 13,557,879; shares respectively | 13,590 | 13,493 | 13,558 |
Retained earnings | 143,699 | 133,122 | 131,162 |
TOTAL STOCKHOLDERS' EQUITY | 157,289 | 146,615 | 144,720 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 320,324 | $ 251,798 | $ 254,156 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Current Period Unaudited)-parentheticals (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Oct. 01, 2022 | Dec. 25, 2021 | Oct. 02, 2021 |
Receivables, allowance | $ 729 | $ 457 | $ 636 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 | 0 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 |
Common Stock, No Par Value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common Stock, Shares, Issued (in shares) | 13,590,407 | 13,493,332 | 13,557,879 |
Common stock, shares outstanding (in shares) | 13,590,407 | 13,493,332 | 13,557,879 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Net sales | $ 74,904 | $ 81,298 | $ 241,621 | $ 240,168 |
Costs and Expenses | ||||
Cost of products sold | 61,273 | 62,992 | 184,147 | 179,355 |
Selling, administrative and general expenses | 8,769 | 10,202 | 33,975 | 33,888 |
Amortization | 642 | 432 | 2,067 | 1,438 |
Operating Income | 4,220 | 7,672 | 21,432 | 25,487 |
Other Income (Expense) | ||||
Interest expense | (954) | (414) | (2,462) | (1,035) |
Other income (expense) | (22) | 68 | 50 | 124 |
Income Before Income Taxes | 3,244 | 7,326 | 19,020 | 24,576 |
Provision for Income Taxes | 286 | 1,360 | 3,735 | 5,042 |
Net Income | $ 2,958 | $ 5,966 | $ 15,285 | $ 19,534 |
Earnings Per Share Data: | ||||
Basic earnings per share (in dollars per share) | $ 0.22 | $ 0.44 | $ 1.13 | $ 1.41 |
Diluted earnings per share (in dollars per share) | 0.22 | 0.43 | 1.12 | 1.40 |
Dividends declared (in dollars per share) | $ 0.15 | $ 0.14 | $ 0.45 | $ 0.42 |
Consolidated Condensed Statem_2
Consolidated Condensed Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balances (in shares) at Dec. 26, 2020 | 13,919 | ||
Balances at Dec. 26, 2020 | $ 13,919 | $ 125,237 | $ 139,156 |
Net income | 19,534 | 19,534 | |
Expense of stock options and restricted stock units | 666 | 666 | |
Dividends declared | (5,804) | (5,804) | |
Purchase of stock (in shares) | (423) | ||
Purchase of stock | $ (423) | (8,688) | (9,111) |
Exercise of stock options (in shares) | 10 | ||
Exercise of stock options | $ 10 | 134 | 144 |
Settlement of restricted stock units (in shares) | 46 | ||
Settlement of restricted stock units | $ 46 | (46) | |
Stock issued to directors as compensation (in shares) | 6 | ||
Stock issued to directors as compensation | $ 6 | 129 | 135 |
Balances (in shares) at Oct. 02, 2021 | 13,558 | ||
Balances at Oct. 02, 2021 | $ 13,558 | 131,162 | 144,720 |
Balances (in shares) at Jul. 10, 2021 | 13,779 | ||
Balances at Jul. 10, 2021 | $ 13,779 | 131,354 | 145,133 |
Net income | 5,966 | 5,966 | |
Expense of stock options and restricted stock units | 229 | 229 | |
Dividends declared | (1,917) | (1,917) | |
Purchase of stock (in shares) | (221) | ||
Purchase of stock | $ (221) | (4,470) | (4,691) |
Balances (in shares) at Oct. 02, 2021 | 13,558 | ||
Balances at Oct. 02, 2021 | $ 13,558 | 131,162 | 144,720 |
Balances (in shares) at Dec. 25, 2021 | 13,493 | ||
Balances at Dec. 25, 2021 | $ 13,493 | 133,122 | 146,615 |
Net income | 15,285 | 15,285 | |
Expense of stock options and restricted stock units | 1,453 | 1,453 | |
Dividends declared | (6,115) | (6,115) | |
Settlement of restricted stock units (in shares) | 93 | ||
Settlement of restricted stock units | $ 93 | (93) | |
Stock issued to directors as compensation (in shares) | 4 | ||
Stock issued to directors as compensation | $ 4 | 47 | 51 |
Balances (in shares) at Oct. 01, 2022 | 13,590 | ||
Balances at Oct. 01, 2022 | $ 13,590 | 143,699 | 157,289 |
Balances (in shares) at Jul. 09, 2022 | 13,590 | ||
Balances at Jul. 09, 2022 | $ 13,590 | 142,403 | 155,993 |
Net income | 2,958 | 2,958 | |
Expense of stock options and restricted stock units | 377 | 377 | |
Dividends declared | (2,039) | (2,039) | |
Balances (in shares) at Oct. 01, 2022 | 13,590 | ||
Balances at Oct. 01, 2022 | $ 13,590 | $ 143,699 | $ 157,289 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Operating Activities: | ||
Net income | $ 15,285 | $ 19,534 |
Depreciation and amortization | 5,207 | 3,935 |
Provision for doubtful accounts | 258 | (224) |
Stock-based compensation | 1,453 | 666 |
Gain on disposal of property and equipment | (22) | (27) |
Adjustments necessary to reconcile net income to net cash used by operating activities | (27,974) | (26,933) |
Net cash used by operating activities | (5,793) | (3,049) |
Investing Activities: | ||
Purchase of property and equipment | (1,792) | (8,281) |
Proceeds from sale of property and equipment | 40 | 43 |
Acquisitions | (35,757) | |
Net cash used by investing activities | (37,509) | (8,238) |
Financing Activities: | ||
Proceeds from issuance of long-term debt | 180,355 | 192,792 |
Payments on long-term debt | (131,183) | (163,849) |
Proceeds from exercise of stock options | 144 | |
Purchase of stock | (9,111) | |
Director stock compensation | 51 | 135 |
Deferred financing fees | (180) | (33) |
Cash dividends paid | (6,115) | (5,804) |
Net cash provided by financing activities | 42,928 | 14,274 |
Net increase (decrease) in cash and cash equivalents | (374) | 2,987 |
Cash and cash equivalents, beginning of period | 4,374 | 3,505 |
Cash and cash equivalents, end of period | $ 4,000 | $ 6,492 |
Note A - Summary of Significant
Note A - Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
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 |
Note B - Seasonal Aspects
Note B - Seasonal Aspects | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Seasonal Aspects [Text Block] | Note B ‑ Seasonal Aspects The results of operations for the three and nine month periods ended October 1, 2022 and October 2, 2021 are not necessarily indicative of the results to be expected for the full year. |
Note C - Inventories
Note C - Inventories | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note C ‑ Inventories In thousands October 1, 2022 December 25, October 2, 2021 Raw materials $ 9,988 $ 9,142 $ 10,160 Work in progress 4,537 3,529 3,873 Finished goods 120,432 79,711 77,722 $ 134,957 $ 92,382 $ 91,755 |
Note D - Fair Values of Financi
Note D - Fair Values of Financial Instruments | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note D – Fair Values of Financial Instruments The following methods were used to estimate the fair value of all financial instruments recognized in the accompanying balance sheets at amounts other than fair values. Cash and Cash Equivalents Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity. Long-term Debt Fair values of long-term debt is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model. The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at October 1, 2022, December 25, 2021 and October 2, 2021. Fair Value Measurements Using October 1, 2022 In thousands Carrying Quoted Prices in Significant Other Significant Financial assets Cash and cash equivalents $ 4,000 $ 4,000 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 99,568 $ -- $ 99,568 $ -- Fair Value Measurements Using December 25, 2021 In thousands Carrying Amount Quoted Prices in Significant Other Significant (Level 3) Financial assets Cash and cash equivalents $ 4,374 $ 4,374 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 50,396 $ -- $ 50,396 $ -- Fair Value Measurements Using October 2, 2021 In thousands Carrying \Amount Quoted Prices in Significant Other Observable Inputs Significant Financial assets Cash and cash equivalents $ 6,492 $ 6,492 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 51,874 $ -- $ 51,874 $ -- |
Note E - Stock Compensation
Note E - Stock Compensation | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note E – Stock Compensation The fair value of stock-based compensation is recognized in accordance with the provisions of FASB ASC 718, Stock Compensation During the nine months ended October 1, 2022 and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 3,886 shares of common stock. During the nine months ended October 1, 2022, the Company awarded 20,000 restricted stock units to directors and 196,254 restricted stock units to employees. The restricted stock units awarded to directors time vest over two (one-half one-half three one-third one-third one-third For the three and nine months ended October 1, 2022, the Company recognized stock based compensation expense of $377 thousand and $1,453 thousand, respectively compared to stock based compensation expense of $229 thousand and $666 thousand for the same periods in the prior year. At October 1, 2022 and October 2, 2021, respectively, there was $1,937 thousand and $865 thousand in unrecognized stock-based compensation expense related to non-vested stock awards. |
Note F - Segment Information
Note F - Segment Information | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note F ‑ Segment Information For the Three Months Ended October 1, 2022 In thousands Sporting Corp. Total Revenues from external customers $ 74,904 $ -- $ 74,904 Operating income (loss) 4,661 (441 ) 4,220 Net income (loss) 2,387 571 2,958 As of and for the Nine Months Ended October 1, 2022 In thousands Sporting Corp. Total Revenues from external customers $ 241,621 $ -- $ 241,621 Operating income (loss) 23,026 (1,594 ) 21,432 Net income 14,665 620 15,285 Total assets $ 312,418 $ 7,906 $ 320,324 For the Three Months Ended October 2, 2021 In thousands Sporting Corp. Total Revenues from external customers $ 81,298 $ -- $ 81,298 Operating income (loss) 8,087 (415 ) 7,672 Net income 5,614 352 5,966 As of and for the Nine Months Ended October 2, 2021 In thousands Sporting Corp. Total Revenues from external customers $ 240,168 $ -- $ 240,168 Operating income (loss) 27,049 (1,562 ) 25,487 Net income 18,956 578 19,534 Total assets $ 246,777 $ 7,379 $ 254,156 |
Note G - Dividend Payment
Note G - Dividend Payment | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Dividend Payment Terms [Text Block] | Note G – Dividend Payment On September 13, 2022, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on September 6, 2022. The total amount of the dividend was approximately $2.0 million and was charged against retained earnings. On June 7, 2022, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on May 31, 2021. The total amount of the dividend was approximately $2.0 million and was charged against retained earnings. On March 21, 2022, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on March 14, 2022 (the amount was funded to the transfer agent by the Company on March 17, 2022). The total amount of the dividend was approximately $2.0 million and was charged against retained earnings. |
Note H - Earnings Per Share
Note H - Earnings Per Share | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note H ‑ Earnings Per Share The shares used in computation of the Company’s basic and diluted earnings per common share are as follows: Three Months Ended Nine Months Ended In thousands October 1, October 2, October 1, October 2, Weighted average common shares outstanding 13,590 13,706 13,565 13,821 Dilutive effect of stock options and restricted stock units 62 102 82 102 Weighted average common shares outstanding, assuming dilution 13,652 13,808 13,647 13,923 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 2022 and 2021 were zero and 11,900, respectively. |
Note I - New Accounting Standar
Note I - New Accounting Standards and Changes in Accounting Principles | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note I – New Accounting Standards and Changes in Accounting Principles There have been no recent accounting pronouncements or changes in accounting pronouncements during the three and nine months ended October 1, 2022, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021, that are of significance, or potential significance to the Company. |
Note J - Revenue From Contracts
Note J - Revenue From Contracts With Customers | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note J – Revenue from Contracts with Customers Revenue Recognition Gross-to-net sales adjustments Returns Warranties Customer Allowances Disaggregation of Revenue Three Months Ended Nine Months Ended All Amounts in Thousands October 1, October 2, October 1, October 2, Gross Sales by Channel: Mass Merchants $ 29,849 $ 41,792 $ 85,804 $ 93,298 Specialty Dealers 20,298 19,170 74,631 73,347 E-commerce 26,090 25,116 87,441 86,053 International 4,032 2,259 12,643 9,182 Other 1,188 883 3,454 2,469 Total Gross Sales 81,457 89,220 263,973 264,349 Less: Gross-to-Net Sales Adjustments Returns 892 1,283 3,740 5,531 Warranties 663 590 1,985 1,703 Customer Allowances 4,998 6,049 16,627 16,947 Total Gross-to-Net Sales Adjustments 6,553 7,922 22,352 24,181 Total Net Sales $ 74,904 $ 81,298 $ 241,621 $ 240,168 |
Note K - Leases
Note K - Leases | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note K – Leases We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our leases have remaining lease terms of 1 year to 10 years. As of October 1, 2022, 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 is as follows: Three Months Ended Nine Months Ended All Amounts in Thousands October 1, October 2, October 1, 2022 October 2, Lease Expense Operating Lease Cost $ 393 $ 433 $ 1,073 $ 1,151 Short-term Lease Cost 658 692 1,882 2,339 Variable Lease Cost 81 101 393 304 Total Operating Lease Cost $ 1,132 $ 1,226 $ 3,348 $ 3,794 Operating Lease – Operating Cash Flows $ 100 $ 434 $ 712 $ 1,050 New ROU Assets – Operating Leases $ 30 $ 1,189 $ 7,773 $ 2,329 Other information about lease amounts recognized in our consolidated financial statements is summarized as follows: Nine Months Ended All Amounts in Thousands October 1, October 2, Weighted Average Remaining Lease Term – Operating Leases (in years) 9.29 3.93 Weighted Average Discount Rate – Operating Leases 5.00 % 5.00 % Future minimum lease payments under non-cancellable leases as of October 1, 2022 were as follows: All Amounts in Thousands Year 1 $ 146 Year 2 1,364 Year 3 1,313 Year 4 1,294 Year 5 1,283 Thereafter 6,467 Total future minimum lease payments 11,867 Less imputed interest (2,494 ) Total $ 9,373 Reported as of October 1, 2022 Current operating lease liabilities 816 Long-term operating lease liabilities 8,557 Total $ 9,373 |
Note L - Commitments and Contin
Note L - Commitments and Contingencies | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note L – Commitments and Contingencies The Company is involved in litigation arising in the normal course of business. The Company does not believe that the disposition or ultimate resolution of existing claims or lawsuits will have a material adverse effect on the business or financial condition of the Company. |
Note M - Acquisition
Note M - Acquisition | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note M – Acquisition On January 21, 2022, the Company completed its acquisition of the assets constituting the Brunswick Billiards business of Life Fitness, LLC. The purchase price of the acquisition is $35.8 million. The acquisition was funded by cash and the Company’s revolving credit facility. The Company has not yet finalized its final evaluation of the fair value of certain items. The current estimates of fair value for the more significant assets acquired and liabilities assumed were receivables ($1.3 ($13.6 ($4.1 ($3.2 ($2.5 ($22.5 |
Note N - Debt
Note N - Debt | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note N – Debt On January 21, 2022, the Company entered into an Amended and Restated Credit Agreement (“Restated Credit Agreement”) with its issuing bank, JP Morgan Chase Bank, N.A. (“Chase”), and the other lenders identified in the Restated Credit Agreement (collectively, the “Lender”). Under the terms of the Restated Credit Agreement, Old National Bank has been added as a Lender. The Lenders have now made available to the Company a senior revolving credit facility with increased maximum availability of $65.0 million (the “Revolving Facility”), up from $50.0 million, plus an accordion feature that would allow borrowings up to $90.0 million under the Revolving Facility subject to certain terms and conditions. The maturity date of the revolving credit facility was extended to January 21, 2027. The Company may prepay the Revolving Facility, in whole or in part, and reborrow prior to the revolving loan maturity date. The Restated Credit Agreement further extended the maturity date for the term loan facility to January 21, 2027. On July 18, 2022, the Company entered into the First Amendment to the Restated Credit Agreement. Under the terms of the First Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $65.0 million to $75.0 million pursuant to the accordion feature in the Restated Credit Agreement. The First Amendment also adjusted the funded debt to EBITDA ratio financial covenant to 3:00 As of October 1, 2022, the outstanding principal amount of the term loan was $41.7 million and total amount drawn under the Revolving Facility was $65.0 million. |
Note O - Subsequent Events
Note O - Subsequent Events | 9 Months Ended |
Oct. 01, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note O – Subsequent Events On October 26, 2022, the Company entered into the Second Amendment ("Second Amendment”) to the Restated Credit Agreement. Under the terms of the Second Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $75.0 million to $90.0 million pursuant to the accordion feature in the Restated Credit Agreement. The Second Amendment adjusted the funded debt to EBITDA ratio financial covenant to 3:25 3:00 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 01, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | – 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 25, 2021 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 2021 filed with the Securities and Exchange Commission. |
Note C - Inventories (Tables)
Note C - Inventories (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | In thousands October 1, 2022 December 25, October 2, 2021 Raw materials $ 9,988 $ 9,142 $ 10,160 Work in progress 4,537 3,529 3,873 Finished goods 120,432 79,711 77,722 $ 134,957 $ 92,382 $ 91,755 |
Note D - Fair Values of Finan_2
Note D - Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements Using October 1, 2022 In thousands Carrying Quoted Prices in Significant Other Significant Financial assets Cash and cash equivalents $ 4,000 $ 4,000 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 99,568 $ -- $ 99,568 $ -- Fair Value Measurements Using December 25, 2021 In thousands Carrying Amount Quoted Prices in Significant Other Significant (Level 3) Financial assets Cash and cash equivalents $ 4,374 $ 4,374 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 50,396 $ -- $ 50,396 $ -- Fair Value Measurements Using October 2, 2021 In thousands Carrying \Amount Quoted Prices in Significant Other Observable Inputs Significant Financial assets Cash and cash equivalents $ 6,492 $ 6,492 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 51,874 $ -- $ 51,874 $ -- |
Note F - Segment Information (T
Note F - Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three Months Ended October 1, 2022 In thousands Sporting Corp. Total Revenues from external customers $ 74,904 $ -- $ 74,904 Operating income (loss) 4,661 (441 ) 4,220 Net income (loss) 2,387 571 2,958 As of and for the Nine Months Ended October 1, 2022 In thousands Sporting Corp. Total Revenues from external customers $ 241,621 $ -- $ 241,621 Operating income (loss) 23,026 (1,594 ) 21,432 Net income 14,665 620 15,285 Total assets $ 312,418 $ 7,906 $ 320,324 For the Three Months Ended October 2, 2021 In thousands Sporting Corp. Total Revenues from external customers $ 81,298 $ -- $ 81,298 Operating income (loss) 8,087 (415 ) 7,672 Net income 5,614 352 5,966 As of and for the Nine Months Ended October 2, 2021 In thousands Sporting Corp. Total Revenues from external customers $ 240,168 $ -- $ 240,168 Operating income (loss) 27,049 (1,562 ) 25,487 Net income 18,956 578 19,534 Total assets $ 246,777 $ 7,379 $ 254,156 |
Note H - Earnings Per Share (Ta
Note H - Earnings Per Share (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended Nine Months Ended In thousands October 1, October 2, October 1, October 2, Weighted average common shares outstanding 13,590 13,706 13,565 13,821 Dilutive effect of stock options and restricted stock units 62 102 82 102 Weighted average common shares outstanding, assuming dilution 13,652 13,808 13,647 13,923 |
Note J - Revenue From Contrac_2
Note J - Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Nine Months Ended All Amounts in Thousands October 1, October 2, October 1, October 2, Gross Sales by Channel: Mass Merchants $ 29,849 $ 41,792 $ 85,804 $ 93,298 Specialty Dealers 20,298 19,170 74,631 73,347 E-commerce 26,090 25,116 87,441 86,053 International 4,032 2,259 12,643 9,182 Other 1,188 883 3,454 2,469 Total Gross Sales 81,457 89,220 263,973 264,349 Less: Gross-to-Net Sales Adjustments Returns 892 1,283 3,740 5,531 Warranties 663 590 1,985 1,703 Customer Allowances 4,998 6,049 16,627 16,947 Total Gross-to-Net Sales Adjustments 6,553 7,922 22,352 24,181 Total Net Sales $ 74,904 $ 81,298 $ 241,621 $ 240,168 |
Note K - Leases (Tables)
Note K - Leases (Tables) | 9 Months Ended |
Oct. 01, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended Nine Months Ended All Amounts in Thousands October 1, October 2, October 1, 2022 October 2, Lease Expense Operating Lease Cost $ 393 $ 433 $ 1,073 $ 1,151 Short-term Lease Cost 658 692 1,882 2,339 Variable Lease Cost 81 101 393 304 Total Operating Lease Cost $ 1,132 $ 1,226 $ 3,348 $ 3,794 Operating Lease – Operating Cash Flows $ 100 $ 434 $ 712 $ 1,050 New ROU Assets – Operating Leases $ 30 $ 1,189 $ 7,773 $ 2,329 Nine Months Ended All Amounts in Thousands October 1, October 2, Weighted Average Remaining Lease Term – Operating Leases (in years) 9.29 3.93 Weighted Average Discount Rate – Operating Leases 5.00 % 5.00 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | All Amounts in Thousands Year 1 $ 146 Year 2 1,364 Year 3 1,313 Year 4 1,294 Year 5 1,283 Thereafter 6,467 Total future minimum lease payments 11,867 Less imputed interest (2,494 ) Total $ 9,373 Reported as of October 1, 2022 Current operating lease liabilities 816 Long-term operating lease liabilities 8,557 Total $ 9,373 |
Note C - Inventories - Inventor
Note C - Inventories - Inventories (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Dec. 25, 2021 | Oct. 02, 2021 |
Raw materials | $ 9,988 | $ 9,142 | $ 10,160 |
Work in progress | 4,537 | 3,529 | 3,873 |
Finished goods | 120,432 | 79,711 | 77,722 |
Inventory, Net, Total | $ 134,957 | $ 92,382 | $ 91,755 |
Note D - Fair Values of Finan_3
Note D - Fair Values of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Oct. 02, 2022 | Oct. 01, 2022 | Dec. 25, 2021 | Oct. 02, 2021 |
Cash and cash equivalents | $ 4,000 | $ 4,374 | $ 6,492 | |
Current portion of long-term debt | 7,143 | 7,143 | 7,143 | |
Long-term debt | 99,568 | 50,396 | 51,874 | |
Fair Value, Inputs, Level 1 [Member] | ||||
Cash and cash equivalents | $ 4,000 | 4,374 | 6,492 | |
Fair Value, Inputs, Level 2 [Member] | ||||
Current portion of long-term debt | 7,143 | 7,143 | 7,143 | |
Long-term debt | $ 99,568 | $ 50,396 | $ 51,874 |
Note E - Stock Compensation (De
Note E - Stock Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Share-Based Payment Arrangement, Expense | $ 377 | $ 229 | $ 1,453 | $ 666 |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,937,000 | $ 865,000 | $ 1,937,000 | $ 865,000 |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 196,254 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | |||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 33.33% | |||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 33.33% | |||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 33.33% | |||
Restricted Stock Units (RSUs) [Member] | Director [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 20,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 2 years | |||
Restricted Stock Units (RSUs) [Member] | Director [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 50% | |||
Restricted Stock Units (RSUs) [Member] | Director [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 50% | |||
Incentive Plan 2017 [Member] | ||||
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture (in shares) | 3,886 |
Note F - Segment Information -
Note F - Segment Information - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Dec. 25, 2021 | |
Revenues from external customers | $ 74,904 | $ 81,298 | $ 241,621 | $ 240,168 | |
Operating income (loss) | 4,220 | 7,672 | 21,432 | 25,487 | |
Net income (loss) | 2,958 | 5,966 | 15,285 | 19,534 | |
Total assets | 320,324 | 254,156 | 320,324 | 254,156 | $ 251,798 |
Sporting Goods [Member] | |||||
Revenues from external customers | 74,904 | 81,298 | 241,621 | 240,168 | |
Operating income (loss) | 4,661 | 8,087 | 23,026 | 27,049 | |
Net income (loss) | 2,387 | 5,614 | 14,665 | 18,956 | |
Total assets | 312,418 | 246,777 | 312,418 | 246,777 | |
Corporate Segment [Member] | |||||
Revenues from external customers | 0 | 0 | 0 | 0 | |
Operating income (loss) | (441) | (415) | (1,594) | (1,562) | |
Net income (loss) | 571 | 352 | 620 | 578 | |
Total assets | $ 7,906 | $ 7,379 | $ 7,906 | $ 7,379 |
Note G - Dividend Payment (Deta
Note G - Dividend Payment (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 13, 2022 | Mar. 21, 2022 | Jul. 22, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | ||||
Dividends, Common Stock, Cash | $ 2,000 | $ 2,000 | $ 2,000 | $ 2,039 | $ 1,917 | $ 6,115 | $ 5,804 |
Note H - Earnings Per Share (De
Note H - Earnings Per Share (Details Textual) - shares | 9 Months Ended | |
Oct. 01, 2022 | Oct. 02, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 0 | 11,900 |
Note H - Earnings Per Share - E
Note H - Earnings Per Share - Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Weighted average common shares outstanding (in shares) | 13,590 | 13,706 | 13,565 | 13,821 |
Dilutive effect of stock options and restricted stock units (in shares) | 62 | 102 | 82 | 102 |
Weighted average common shares outstanding, assuming dilution (in shares) | 13,652 | 13,808 | 13,647 | 13,923 |
Note J - Revenue from Contrac_3
Note J - Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Total Gross Sales | $ 81,457 | $ 89,220 | $ 263,973 | $ 264,349 |
Returns | 892 | 1,283 | 3,740 | 5,531 |
Warranties | 663 | 590 | 1,985 | 1,703 |
Customer Allowances | 4,998 | 6,049 | 16,627 | 16,947 |
Total Gross-to-Net Sales Adjustments | 6,553 | 7,922 | 22,352 | 24,181 |
Total Net Sales | 74,904 | 81,298 | 241,621 | 240,168 |
Mass Merchants [Member] | ||||
Total Gross Sales | 29,849 | 41,792 | 85,804 | 93,298 |
Specialty Dealers [Member] | ||||
Total Gross Sales | 20,298 | 19,170 | 74,631 | 73,347 |
E-commerce [Member] | ||||
Total Gross Sales | 26,090 | 25,116 | 87,441 | 86,053 |
International [Member] | ||||
Total Gross Sales | 4,032 | 2,259 | 12,643 | 9,182 |
Other Channels [Member] | ||||
Total Gross Sales | $ 1,188 | $ 883 | $ 3,454 | $ 2,469 |
Note K - Leases - Lease Cost (D
Note K - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2022 | Oct. 02, 2021 | Oct. 01, 2022 | Oct. 02, 2021 | |
Operating Lease Cost | $ 393 | $ 433 | $ 1,073 | $ 1,151 |
Short-term Lease Cost | 658 | 692 | 1,882 | 2,339 |
Variable Lease Cost | 81 | 101 | 393 | 304 |
Total Operating Lease Cost | 1,132 | 1,226 | 3,348 | 3,794 |
Operating Lease – Operating Cash Flows | 100 | 434 | 712 | 1,050 |
New ROU Assets – Operating Leases | $ 30 | $ 1,189 | $ 7,773 | $ 2,329 |
Weighted Average Remaining Lease Term – Operating Leases (in years) (Year) | 9 years 3 months 14 days | 3 years 11 months 4 days | 9 years 3 months 14 days | 3 years 11 months 4 days |
Weighted Average Discount Rate – Operating Leases | 5% | 5% | 5% | 5% |
Note K - Leases - Future Minimu
Note K - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Oct. 01, 2022 | Dec. 25, 2021 | Oct. 02, 2021 |
Year 1 | $ 146 | ||
Year 2 | 1,364 | ||
Year 3 | 1,313 | ||
Year 4 | 1,294 | ||
Year 5 | 1,283 | ||
Thereafter | 6,467 | ||
Total future minimum lease payments | 11,867 | ||
Less imputed interest | 2,494 | ||
Total | 9,373 | ||
Current operating lease liabilities | 816 | $ 818 | $ 990 |
Long-term operating lease liabilities | 8,557 | $ 1,387 | $ 1,493 |
Total | $ 9,373 |
Note M - Acquisition (Details T
Note M - Acquisition (Details Textual) - Life Fitness LLC [Member] $ in Millions | 9 Months Ended |
Oct. 01, 2022 USD ($) | |
Business Combination, Consideration Transferred, Total | $ 35.8 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1.3 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 13.6 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment, Total | 4.1 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 3.2 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 2.5 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 22.5 |
Note N - Debt (Details Textual)
Note N - Debt (Details Textual) $ in Millions | 3 Months Ended | |||
Jul. 18, 2022 USD ($) | Oct. 01, 2022 USD ($) | Jan. 21, 2022 USD ($) | Dec. 25, 2021 USD ($) | |
Debt to EBITDA Ratio | 3 | 3.25 | ||
Term Loan [Member] | ||||
Long-Term Debt, Gross | $ 41.7 | |||
Restated Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75 | $ 65 | $ 50 | |
Line of Credit Facility, Maximum Borrowing Capacity, Accordion Feature | $ 90 | |||
Debt to EBITDA Ratio | 3 | |||
Amount Drawn Under the Revolving Facility, Total | $ 65 |
Note O - Subsequent Events (Det
Note O - Subsequent Events (Details Textual) $ in Millions | 3 Months Ended | |||||
Jul. 18, 2022 USD ($) | Dec. 31, 2022 | Oct. 01, 2022 | Oct. 26, 2022 USD ($) | Jan. 21, 2022 USD ($) | Dec. 25, 2021 USD ($) | |
Debt to EBITDA Ratio | 3 | 3.25 | ||||
Forecast [Member] | ||||||
Debt to EBITDA Ratio | 3.25 | |||||
Restated Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 75 | $ 65 | $ 50 | |||
Debt to EBITDA Ratio | 3 | |||||
Restated Credit Agreement [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 90 |