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EXHIBIT 99.1
PRESS RELEASE
ESCALADE, INCORPORATED ANNOUNCES RECORD FOURTH QUARTER EARNINGS
FOURTH QUARTER AND YEAR ENDED DECEMBER 27, 2003
Wabash, IN (February 13, 2004) -- Escalade, Incorporated (NASDAQ: ESCA)
announced that net sales in the fourth quarter increased 28% over the same
period last year to $69,128,000 while net income rose 45% to $6,465,000
resulting in $1.01 per share versus $0.68 per share for the same quarter last
year. Net sales for the year increased 43% to $221,728,000 and net income rose
33% to $14,850,000. Earnings per share for the year were $2.29 per share versus
$1.72 per share last year.
Annual net sales at Escalade Sports increased 10% over the prior year to
$139,285,000, but for the fourth quarter net sales declined 1.5% compared to the
previous year. However, net income for the fourth quarter increased 3.1% over
the prior year, resulting in an increase of 15% for the full year. The
comparative decline in net sales for the quarter is due to the shift in sales
from the third to fourth quarter of 2002 as a result of the shipment delays
caused by the West Coast Longshoreman's lockout in 2002. The majority of the
sales increase for the year is attributed to the Bear Archery acquisition,
however, the sales of core products also increased, particularly basketball,
game tables, and pre-acquisition archery products. Sell through of our sporting
goods products by our customers was very good and end of year inventories at our
customers are down to normal levels compared to the high year-end customer
inventory levels a year ago. Customer inventories are an important indicator of
future sales levels and year-end inventory levels at customers are particularly
important when it comes to the first half of the next year, a seasonally slow
period in our segment of the sporting goods industry.
For the quarter, net sales of Office Products increased 277% to $21,713,000 and
net income increased 213 % over the same period last year. For the full year,
net sales increased 187% to $82,443,000 and net income rose 37% as compared to
2002. The increase in net sales is due entirely to the acquisition of
Schleicher, a manufacturer and distributor of data shredding equipment,
headquartered in Germany. The increase in net income is due to savings from the
refinancing of Schleicher's debt in Europe, improvements in earnings from
pre-acquisition operations such as the elimination of the Hardwood Creek
project, and a slight improvement in Schleicher's European operations.
During the quarter, Schleicher voluntarily de-listed from the German stock
exchange and converted to a private company. The collective group now does
business as Martin Yale Industries, Inc. in North America and Martin Yale
International GmbH in the rest of the world. We have identified several areas of
synergy and will implement these at various points throughout 2004. We
anticipate a modest incremental gain from these changes in 2004 and the full
benefit in 2005. We believe we can further increase sales in Europe of U.S.
products and sales in the U.S. of European products, however, some of this could
be enhanced or diminished by the dollar / euro exchange rate.
Our European joint ventures, Stiga and Escalade International continued to
provide improved contributions as they collectively provided $0.04 per share for
the quarter and $0.13 for the full year.
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.
In Thousands, Except Per Share Data
THREE MONTHS ENDED TWELVE MONTHS ENDED
(Unaudited) (Audited)
December 27, December 28, December 27, December 28,
2003 2002 2003 2002
Net Sales $ 69,128 $ 53,889 $ 221,728 $ 155,455
Cost of Goods Sold 50,994 40,565 154,365 111,164
Selling, and Administrative Costs 10,426 6,696 46,367 26,328
---------- ---------- ---------- ----------
Operating Income 7,708 6,628 20,996 17,963
Interest Expense (482) (281) (2,282) (951)
Other Income (Expense) 1,425 150 2,509 (70)
---------- ---------- ---------- ----------
Income Before Taxes 8,651 6,497 21,223 16,942
Provision for Income Taxes (2,186) (2,043) (6,373) (5,804)
---------- ---------- ---------- ----------
Net Income $ 6,465 $ 4,454 $ 14,850 $ 11,138
========= ========== ========= =========
Basic Earnings Per Share $1.01 $0.68 $2.29 $1.72
Diluted Earnings Per Share $0.98 $0.68 $2.25 $1.66
Average Shares Outstanding 6,425 6,509 6,484 6,486
December 27, 2003 December 28, 2002
(Audited) (Audited)
Current Assets $ 79,619 $ 59,417
Fixed Assets 17,537 9,060
Other Assets 18,318 14,960
Goodwill 18,777 13,351
---------- ---------
Total Assets $ 134,251 $ 96,788
========== =========
Current Liabilities $ 53,669 $ 32,376
Other Liabilities 19,116 18,537
Stockholder's Equity 61,466 45,875
---------- ---------
Total Assets $ 134,251 $ 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.