EXHIBIT 99.1
PRESS RELEASE
ESCALADE ANNOUNCES FIRST QUARTER RESULTS
Wabash, IN (April 8, 2005) Escalade, Incorporated (NASDAQ: ESCA) announced today
that net income nearly doubled for the quarter, increasing 93% to $1,154,000 or
nine cents per share as compared to five cents in the year ago quarter due in
full to the turnaround of the office products operations. Net sales fell 13% for
the quarter to $29,782,000 due primarily to product rationalization, delays or
timing shifts of product shipments, and discontinued business with unprofitable
customers.
Escalade Sports' net sales of sporting goods products were off 7% to $14,021,000
due to a shift in the timing of basketball system purchases by our customers
that will result in future shipments closer to their actual needs. Net income
declined from a profit in the year ago quarter to a small loss this quarter. It
is not unusual for our seasonally slow first quarter to produce a small loss.
During the quarter we completed the acquisition of the assets of ChildLife,
Inc., a manufacturer of premium wood outdoor residential play systems. This
should add between five and six million dollars in revenue to the balance of
this year and gives us an entry into a new product line that we believe we can
grow and will enhance some of our current product offerings. We are still
finalizing our fall and Christmas product placement with our customers so it is
a little early to predict our full year sales revenues, however, we believe we
have strong, innovative product offerings and that our dealer base will continue
to expand.
Martin Yale's net sales of office products declined 17% for the quarter to
$15,761,000, primarily due to product rationalization and the discontinuation of
business with unprofitable customers. Additionally, a temporary supply
interruption of paper shredders resulted in both a loss of business for the
quarter and the postponement of some shipments. This has now been fully
corrected. Net income increased 293% for the quarter due to last years
aggressive worldwide cost reduction programs, U.S. facility consolidation, and
to a lesser extent by price increases that were only partially realized during
the quarter. Additionally, net income was increased by lower effective tax rates
as European profitability allowed the partial utilization of tax loss
carryforwards. Mr. Jack Costelloe, President of Martin Yale remarked that "There
are more cost reductions to be realized as we consolidate and synergize European
distribution; however, they will come at a much slower pace. Our primary focus
now needs to shift to product development and innovation that creates growth in
future years."
Mr. Bill Reed, CEO and President of Escalade stated that "During the quarter, we
paid our second annual dividend, increasing it 25% to $0.15 per share and
replenished our stock buyback program, boosting it back to the $3,000,000 level.
We are continuing to look for other means of enhancing shareholder value
including reviewing acquisition opportunities."
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.
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CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited, In Thousands Except Per Share Amounts)
3 Months Ended 12 Months Ended
------------------------------ ------------------------------
19 March 2005 20 March 2004 19 March 2005 20 March 2004
------------- ------------- ------------- -------------
NET SALES .................................... $ 29,782 $ 34,060 $ 216,431 $ 221,758
OPERATING EXPENSES
Cost of goods sold ................... 20,859 24,518 154,732 159,223
Selling and administrative ........... 7,175 8,050 42,195 40,558
Restructuring ........................ -- -- 2,366 --
Impairment of goodwill ............... -- -- 1,312 --
------------- ------------- ------------- -------------
OPERATING INCOME ............................. 1,748 1,492 15,826 21,977
OTHER INCOME (EXPENSE)
Interest expense ..................... (286) (365) (1,692) (2,200)
Other income (expense) ............... 245 (18) 281 2,543
------------- ------------- ------------- -------------
INCOME BEFORE INCOME TAXES ................... 1,707 1,109 14,415 22,320
PROVISION FOR INCOME TAXES ................... 553 511 6,032 6,880
------------- ------------- ------------- -------------
NET INCOME ................................... $ 1,154 $ 598 $ 8,383 $ 15,440
============= ============= ============= =============
PER SHARE DATA
Basic earnings per share ............. $ 0.09 $ 0.05 $ 0.64 $ 1.20
============= ============= ============= =============
Diluted earnings per share ........... $ 0.09 $ 0.05 $ 0.63 $ 1.18
============= ============= ============= =============
Average shares outstanding ........... 13,058 12,910 13,031 12,911
CONSOLIDATED CONDENSED BALANCE SHEET
(Unaudited, In Thousands)
19 March 2005 20 March 2004 25 December 2004
------------- ------------- -------------
ASSETS
Current assets ....................................... $ 77,910 $ 71,911 $ 83,402
Property, Plant & Equipment - net .................... 15,773 17,024 16,498
Other assets ......................................... 17,140 17,670 17,311
Goodwill ............................................. 17,793 18,707 17,888
------------- ------------- -------------
Total ............................................ $ 128,616 $ 125,312 $ 135,099
============= ============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities .................................. $ 27,865 $ 37,681 $ 47,606
Other liabilities .................................... 32,151 27,428 17,515
Stockholders' equity ................................. 68,600 60,203 69,978
------------- ------------- -------------
Total ............................................ $ 128,616 $ 125,312 $ 135,099
============= ============= =============
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.
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