EXHIBIT 99.1
PRESS RELEASE
ESCALADE ANNOUNCES FIRST QUARTER RESULTS
Wabash, IN (April 8, 2004) Escalade, Incorporated (NASDAQ: ESCA) announced today
that the first quarter of 2004 set the company off to a record start for the
year. Net sales increased 21% to $32,250,000 and net income moved from a
breakeven to a $598,000 profit or nine cents per share.
In his message to shareholders, C. W. Reed, President and CEO offered the
following commentary on the first quarter results:
"Net sales of sporting goods increased 40% to $15,689,000 due primarily to the
inclusion of the archery acquisition completed in the second quarter of 2003,
increased demand of basketball products, and the return to more normal first
quarter purchase levels from our customers as their 2003 year end inventories
declined from the excesses held at 2002 year end. Net income at Sports moved
from a loss in the first quarter of 2003 to a level that accounts for the entire
gain in this year's consolidated first quarter results. The increased income is
due equally to the increased sales and to a successful program to substantially
reduce factory operating expenses. Escalade Sports was awarded a fifth
consecutive Sears "Partners in Progress" award for its 2003 performance. Our
outlook for Sports remains optimistic, however, we are still in the process of
finalizing product placement decisions with our customers and we are facing
significant raw material increases that must be negotiated into our selling
prices with our customers.
"Net sales of office and graphic products increased 9% to $19,561,000 primarily
due to exchange rate gains but also due to increases in sales of folding
machines in the U.S. and Europe, and increases of paper trimmers and letter
openers in Europe. Net income decreased 31% with gains in the U.S. being more
than offset with European losses. The synergies and cost reductions identified
and implemented in the U.S. operations last year were partially offset by
increased purchased prices of shredders in the first quarter due to the strong
euro, so we have not yet seen the full impact. Price increases are being
implemented during April of this year to offset this increased cost. The
increased loss in Europe is due to the extra expense associated with the late
development and delivery of new products, operating inefficiencies in Germany,
and inadequate pricing. We have identified and are implementing cost reductions
and price changes in Europe and we have an intensive ongoing identification
process that is identifying more. We continue to believe we can achieve an
incremental gain in 2004 and then emerge to realize the full synergy benefits in
2005.
"During the quarter, we paid our first annual dividend of $.24 per share. We are
continuing to evaluate acquisitions as well as other means of enhancing
shareholder value."
Escalade is a quality manufacturer and marketer of sporting goods and
office/graphic arts products sold worldwide. To obtain more information on the
Company and its products, visit our website at: www.EscaladeInc.com or contact
Terry Frandsen Vice President and CFO at 260/569-7208 or C.W. (Bill) Reed,
President and CEO at 260/569-7233.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited, In Thousands Except Per Share Amounts)
3 Months Ended 12 Months Ended
------------------------------- ---------------------------------
20 March 2004 22 March 2003 20 March 2004 22 March 2003
------------- ------------- ------------- -------------
NET SALES ........................... $ 35,250 $ 29,103 $ 227,875 $ 167,053
OPERATING EXPENSES
Cost of goods sold ............ 24,518 18,659 159,223 117,489
Selling and administrative .... 9,240 9,932 46,675 31,279
--------- --------- --------- ---------
OPERATING INCOME .................... 1,492 512 21,977 18,285
OTHER INCOME (EXPENSE)
Interest expense .............. (365) (448) (2,200) (1,277)
Other income (expense) ........ (18) (53) 2,543 52
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES .......... 1,109 11 22,320 17,062
PROVISION (BENEFIT) FOR INCOME TAXES
511 4 6,880 5,847
--------- --------- --------- ---------
NET INCOME .......................... $ 598 $ 7 $ 15,440 $ 11,213
========= ========= ========= =========
PER SHARE DATA
Basic earnings per share ...... $ 0.09 $ 0.00 $ 2.39 $ 1.72
========= ========= ========= =========
Diluted earnings per share .... $ 0.09 $ 0.00 $ 2.35 $ 1.68
========= ========= ========= =========
Average shares outstanding .... 6,455 6,511 6,460 6,505
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited, In Thousands)
20 March 2004 22 March 2003 27 December 2003
------------- ------------- ----------------
ASSETS
Current assets ................... $ 71,911 $ 64,028 $ 79,619
Property, Plant & Equipment - net 17,024 17,987 17,537
Other assets ..................... 17,670 12,468 18,318
Goodwill ......................... 18,707 13,351 18,777
-------- -------- --------
Total ......................... $125,312 $107,834 $107,834
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities .............. $ 37,681 $ 39,254 $ 53,669
Other liabilities ................ 27,428 22,274 19,116
Stockholders' equity ............. 60,203 46,306 61,466
-------- -------- --------
Total ......................... $125,312 $107,834 $107,834
======== ======== ========
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.