EXHIBIT 99.1
PRESS RELEASE
ESCALADE, INCORPORATED ANNOUNCES THIRD QUARTER EARNINGS
THIRD QUARTER ENDED OCTOBER 4, 2003
Evansville, IN (October 24, 2003) -- Escalade, Incorporated (NASDAQ:
ESCA) announced that the company produced record sales and earnings for the
quarter. Net Sales increased 42% to $73,660,000 and net income increased 48% to
$6,125,000 or 95(cent) per share versus 64(cent) for the same quarter last year.
This brings net sales to $152,600,000 for the first three quarters of this year,
a 50% increase as compared to the prior year while net income moved up 25% to
$8,385,000 or $1.29 per share as compared to $1.03 for the same period last
year.
Net sales at Escalade Sports increased 22% for the quarter to
$54,280,000 pushing year to date net sales to $91,870,000, a 17% increase. The
recent Bear Archery acquisition contributed a little less than half of the
quarter's increase with the balance attributable to increased product placement
and comparison to a weak 2002 third quarter where product deliveries were
delayed due to the West Coast Longshoreman's lockout. Net income at Sports was
up 37% for the quarter bringing net income 33% ahead on a year to date
comparison. Our product placement is strong, our customers are optimistic, and
our orders are outpacing last year resulting in our outlook for the final
quarter to be one of optimism. We now have some of the best brand names in our
categories and are focused on further developing product and strategies to build
on their value.
The Martin Yale group, which now includes Schleicher, posted net sales
of $19,381,000 a 170% increase over the year ago quarter due entirely to the
inclusion of Schleicher. Net sales year to date are $60,730,000, 165% ahead due
once again entirely to the inclusion of Schleicher, which is benefiting from
increased demand of high security shredders and a stepped up telemarketing
effort. Net income for the group was up 82% for the quarter primarily due to the
recognition of a gain on the extinguishment of a portion of the European debt,
which will reduce the group's future interest expense. However, net income still
trails the prior year 3% due to higher interest costs associated with the
Schleicher acquisition and lower domestic sales of the Martin Yale branded
products. Subsequent to the end of the third quarter, Martin Yale completed
registration for 100% ownership of Schleicher's shares and is now in the
relatively simple process of converting Schleicher to a private company. We are
also in the process of consolidating the organizations with Dr. E. Leopold Dieck
of Schleicher assuming the Presidency of the group, further restructuring the
Schleicher European debt, and continuing the sales and product development
co-operation that has already secured future increases in product placement
domestically and abroad.
Sweden Table Tennis AB and Escalade International, our two European
joint ventures contributed 5(cent) per share to our third quarter earnings as
both companies continued to grow in sales and profitability.
During the quarter, we repurchased 10,000 of our shares for $160,000,
leaving $1,000,000 available from the previously authorized $3,000,000 to
purchase shares. We continue to evaluate opportunities and means of enhancing
shareholder value.
Escalade is a diversified holding company leveraging more than 75 years of
operating experience to deliver outstanding products, value and customer
relations through wholly owned subsidiaries. For more information on Escalade,
Inc., please visit our website at www.EscaladeInc.com or contact Terry Frandsen,
VP and CFO at 260/569-7208 or C.W. (Bill) Reed, President and CEO at
260/569-7233.
Unaudited, In Thousands, Except Per Share Data
TWELVE MONTHS
THREE MONTHS ENDED NINE MONTHS ENDED ENDED
October 4, October 5, October 4, October 5, October 4, October 5,
2003 2002 2003 2002 2003 2002
Net Sales $ 73,660 $ 51,859 $ 152,600 $ 101,566 $ 206,490 $ 149,741
Cost of Goods Sold 53,552 36,686 103,371 70,599 143,936 106,279
Selling, and Administrative Costs 11,619 8,015 35,941 19,632 42,637 24,458
--------- --------- --------- --------- --------- ---------
Operating Income 8,489 7,158 13,288 11,335 19,917 19,004
Interest Expense (700) (303) (1,800) (670) (2,080) (932)
Other Income (Expense) 1,124 (371) 1,084 (220) 1,235 (147)
Amortization of Goodwill -- -- -- -- -- (104)
--------- --------- --------- --------- --------- ---------
Income Before Taxes 8,913 6,484 12,572 10,445 19,072 17,821
Provision for Income Taxes (2,788) (2,335) (4,187) (3,761) (6,232) (6,250)
--------- --------- --------- --------- --------- ---------
Net Income $ 6,125 $ 4,149 $ 8,385 $ 6,684 $ 12,840 $ 11,571
========= ========= ========= ========= ========= =========
Basic Earnings Per Share $ 0.95 $ 0.64 $ 1.29 $ 1.03 $ 1.98 $ 1.79
Diluted Earnings Per Share $ 0.93 $ 0.62 $ 1.26 $ 1.00 $ 1.93 $ 1.74
Average Shares Outstanding 6,427 6,509 6,481 6,479 6,488 6,466
October 4, 2003 October 5, 2002 December 28, 2002
Current Assets $110,414 $ 73,909 $ 59,417
Fixed Assets 17,578 8,776 9,060
Other Assets 16,593 14,331 14,960
Goodwill 17,946 13,351 13,351
-------- -------- --------
Total Assets $162,531 $110,367 $ 96,788
======== ======== ========
Current Liabilities $ 77,047 $ 49,464 $ 32,376
Other Liabilities 32,215 19,515 18,537
Stockholder's Equity 53,269 41,388 45,875
-------- -------- --------
Total Assets $162,531 $110,367 $ 96,788
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FORWARD LOOKING STATEMENTS
This report contains forward-looking statements relating to present or
future trends or factors that are subject to risks and uncertainties. These
risks, include, but are not limited to, the impact of competitive products and
pricing, product demand and market acceptance, Escalade's ability to
successfully integrate the operations of acquired assets and businesses, new
product development, the continuation and development of key customer and
supplier relationships, Escalade's ability to control costs, general economic
conditions, fluctuations in operating results, changes in the securities markets
and other risks detailed from time to time in Escalade's filings with the
Securities and Exchange Commission. Escalade's future financial performance
could differ materially from the expectations of management contained herein.
Escalade undertakes no obligation to update these forward-looking statements
after the date of this report.