Escalade Experiences Second Quarter and Yr to Date 2022 Outcomes | MarketScreener

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Escalade Experiences Second Quarter and Yr to Date 2022 Outcomes | MarketScreener










EVANSVILLE, Ind., Aug. 4, 2022 /PRNewswire/ — Escalade, Inc. (NASDAQ: ESCA, or the “Firm”), a number one producer and distributor of sporting items and indoor/out of doors leisure tools, at the moment introduced second quarter and yr so far outcomes for 2022.

SECOND QUARTER 2022(As in comparison with the second quarter 2021)
Internet Gross sales decreased 5.4% to $94.3 millionOrganic gross sales, excluding acquisition contributions, declined 13.0percentGross margin was flat at 25.2% and gross revenue decreased 5.4percentOperating revenue decreased 23.4% to $8.2 millionNet revenue of $5.7 million, or $0.42 per diluted share vs. $8.1 million, or $0.58 per share for Q2 2021EBITDA decreased 15.7% to $10.3 millionAnnounced $0.15 per share money dividend to shareholders of report on September 6, 2022SIX MONTHS ENDED JULY 9, 2022 (As in comparison with the primary half 2021)
Internet Gross sales elevated 4.9% to $166.7 millionOrganic gross sales, excluding acquisition contributions, declined 3.6percentGross margin declined 46 foundation factors, to 26.3percentOperating revenue decreased 3.4% to $17.2 millionNet revenue of $12.3 million, or $0.91 per diluted share vs. $13.6 million, or $0.97 per diluted share for 2021EBITDA elevated 1.5% to $20.9 millionFor the three months ended July 9, 2022, Escalade reported web revenue of $5.7 million, or $0.42 per diluted share, on web gross sales of $94.3 million. The Firm reported gross margin of 25.2%, according to the prior-year interval, regardless of continued challenges associated to the worldwide provide chain, uncooked supplies value inflation, and labor constraints.
Promoting, common, and administrative expense as share of web gross sales elevated to fifteen.6% within the second quarter 2022, versus 13.9% within the prior-year interval, as a result of decrease gross sales quantity and bills associated to the acquisition and integration of Brunswick Billiards. SG&A bills for the legacy enterprise models have been down yr over yr on an absolute foundation.
Earnings earlier than curiosity, taxes, depreciation, and amortization (“EBITDA”) declined 15.7% to $10.3 million within the second quarter 2022, versus $12.3 million within the prior-year interval. For the six months year-to-date EBITDA elevated 1.5% to $20.9 million vs $20.6 million in 2021.
As of July 9, 2022, the Firm had whole money and equivalents of $6.2 million, along with $7.3 million of availability on its senior secured revolving credit score facility maturing in 2027. On the finish of the second quarter 2022, web debt (whole debt much less money) was 2.55x trailing twelve-month EBITDA.
Through the second quarter robust natural demand for indoor video games and pickleball, along with contribution from the Brunswick Billiards® acquisition accomplished January 21, 2022, have been greater than offset by the timing of shipments inside the basketball class, together with decrease demand inside the health and out of doors classes, together with archery and water sports activities.
Escalade introduced a quarterly dividend of $0.15 per share to be paid to all shareholders of report on September 6, 2022 and disbursed on September 13, 2022.
MANAGEMENT COMMENTARY
“Through the second quarter, we continued to construct main positions throughout our area of interest sports activities, video games, and out of doors classes, whereas leveraging the advantages afforded by our hybrid manufacturing and sourcing capabilities, decentralized construction and lean working mannequin,” acknowledged Walter P. Glazer, Jr., President and CEO of Escalade.  
“Though rising rates of interest, inflationary headwinds and geopolitical uncertainty have dampened broader client sentiment and demand at present, our various portfolio of premium manufacturers and base of customers who worth high quality, efficiency, and an lively way of life, ought to help our development plans over the long term,” continued Glazer. 
“Second quarter gross sales declined on a year-over-year foundation as a result of softness in choose out of doors classes, along with the beforehand introduced pull-forward of basketball income from the second to the primary quarter of 2022,” continued Glazer. “Importantly, gross revenue margin held according to the prior-year interval, as we efficiently navigated rising materials, transport and labor prices.”
“The mixing of our just lately accomplished acquisition of Brunswick Billiards® has progressed forward of plan and, as beforehand disclosed, is anticipated to be accretive to earnings within the second half of 2022,” continued Glazer. “We imagine this acquisition will enable for significant cross-selling synergies throughout our billiards and indoor recreation markets, classes that proceed to outperform within the present market setting.”  
 “Subsequent to the quarter finish, we exercised a portion of our accordion availability, increasing our senior revolving credit score facility by $10 million,” continued Glazer. “We have now an extra $15 million that we may train sooner or later, additional rising our credit score line.”
“We have demonstrated a dedication to efficient capital allocation and disciplined stability sheet administration, an method that contributes to long-term worth creation,” continued Glazer. “Trying forward, our near-term capital allocation priorities embrace a focused discount in web leverage, investments in natural development initiatives, and the constant fee of a quarterly money dividend,” concluded Glazer.
CONFERENCE CALL
A convention name will likely be held Thursday, August 4, 2022, at 11:00 a.m. ET to overview the Firm’s monetary outcomes, focus on latest occasions and conduct a question-and-answer session.
A webcast of the convention name and accompanying presentation supplies will likely be accessible within the Investor Relations part of Escalade’s web site at www.escaladeinc.com.  To hearken to a reside broadcast, go to the positioning a minimum of quarter-hour previous to the scheduled begin time as a way to register, obtain, and set up any crucial audio software program.
To take part within the reside teleconference:
Home Dwell:
877-300-8521
Worldwide Dwell:
412-317-6026
To hearken to a replay of the teleconference, which subsequently will likely be accessible via August 18, 2022:
Home Replay:
844-512-2921
Worldwide Replay:
412-317-6671
Convention ID:
10169236
USE OF NON-GAAP FINANCIAL MEASURES
Along with disclosing monetary statements in accordance with U.S. usually accepted accounting rules (“GAAP”), this launch comprises the non-GAAP monetary measure often called “EBITDA.” A reconciliation of this non-GAAP monetary measure is contained on the finish of this press launch. EBITDA is a non-GAAP monetary measure that Escalade makes use of to facilitate comparisons of working efficiency throughout intervals. Escalade believes the disclosure of EBITDA gives helpful info to buyers concerning its monetary situation and outcomes of operations. Non-GAAP measures ought to be seen as a complement to and never an alternative to the Firm’s U.S. GAAP measures of efficiency and the monetary outcomes calculated in accordance with U.S. GAAP and reconciliations from these outcomes ought to be fastidiously evaluated. Non-GAAP measures have limitations as an analytical instrument and shouldn’t be thought of in isolation or in lieu of an evaluation of the Firm’s outcomes as reported underneath U.S. GAAP and ought to be evaluated solely on a supplementary foundation.
ABOUT ESCALADE, INC
Based in 1922, and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting items, health, and indoor/out of doors recreation tools.  Our mission is to attach household and mates creating lasting recollections. Leaders in our respective classes, Escalade’s manufacturers embrace Brunswick Billiards®; STIGA® desk tennis; Accudart®; RAVE Sports activities® water recreation; Victory Tailgate® customized video games; Onix® pickleball; Goalrilla™ basketball; Lifeline® health; Woodplay® playsets; and Bear® Archery. Escalade’s merchandise can be found on-line and at main retailers nationwide. For extra details about Escalade’s many manufacturers, historical past, financials, and governance please go to www.escaladeinc.com.
INVESTOR RELATIONS CONTACT
Patrick GriffinVice President – Company Improvement & Investor Relations812-467-1358
FORWARD-LOOKING STATEMENTS 
This report comprises forward-looking statements referring to current or future traits or components which might be topic to dangers and uncertainties. These dangers embrace, however will not be restricted to: particular and general impacts of the COVID-19 international pandemic on Escalade’s monetary situation and outcomes of operations; the impression of aggressive merchandise and pricing; product demand and market acceptance; new product improvement; Escalade’s skill to attain its enterprise goals, particularly with respect to its Sporting Items enterprise on which it has chosen to focus; Escalade’s skill to efficiently obtain the anticipated outcomes of strategic transactions, together with the mixing of the operations of acquired property and companies and of divestitures or discontinuances of sure operations, property, manufacturers, and merchandise; the continuation and improvement of key buyer, provider, licensing and different enterprise relationships; Escalade’s skill to develop and implement our personal direct to client e-commerce distribution channel; Escalade’s skill to efficiently negotiate the shifting retail setting and adjustments in client shopping for habits; the monetary well being of our prospects; disruptions or delays in our enterprise operations, together with with out limitation disruptions or delays in our provide chain, arising from political unrest, battle, labor strikes, pure disasters, public well being crises such because the coronavirus pandemic, and different occasions and circumstances past our management; Escalade’s skill to regulate prices; Escalade’s skill to efficiently implement actions to reduce the potential impacts of tariffs and different commerce restrictions relevant to our merchandise and uncooked supplies, together with impacts on the prices of manufacturing our items, importing merchandise and supplies into our markets on the market, and on the pricing of our merchandise; common financial situations; fluctuation in working outcomes; adjustments in international foreign money alternate charges; adjustments within the securities markets; continued itemizing of the Firm’s frequent inventory on the NASDAQ International Market; the Firm’s inclusion or exclusion from sure market indices; Escalade’s skill to acquire financing and to take care of compliance with the phrases of such financing; the provision, integration and efficient operation of knowledge programs and different know-how, the potential impression of precise or perceived defects in, or security of, our merchandise, together with any impression of product recollects or authorized or regulatory claims, proceedings or investigations involving our merchandise; and the potential interruption of such programs or know-how; dangers associated to knowledge safety of privateness breaches; and different dangers detailed sometimes in Escalade’s filings with the Securities and Alternate Fee. Escalade’s future monetary efficiency may differ materially from the expectations of administration contained herein. Escalade undertakes no obligation to launch revisions to those forward-looking statements after the date of this report.
 
Escalade, Integrated and SubsidiariesConsolidated Statements of Operations(Unaudited, In 1000’s Besides Per Share Knowledge)
Three Months Ended
Six Months Ended
All Quantities in 1000’s Besides Per Share Knowledge
July 9,2022
July 10,2021
July 9, 2022
July 10,2021
Internet gross sales
$94,337
$99,679
$166,717
$158,870
Prices and Bills
Price of merchandise bought
70,613
74,606
122,874
116,363
Promoting, administrative and common bills
14,680
13,810
25,206
23,686
Amortization
855
577
1,425
1,006
Working Earnings
8,189
10,686
17,212
17,815
Different Earnings (Expense)
Curiosity expense
(948)
(387)
(1,508)
(621)
Different revenue
29
21
72
56
Earnings Earlier than Earnings Taxes
7,270
10,320
15,776
17,250
Provision for Earnings Taxes
1,597
2,194
3,449
3,682
Internet Earnings
$ 5,673
$8,126
$12,327
$13,568
Earnings Per Share Knowledge:
Fundamental earnings per share
$  0.42
$  0.59
$  0.91
$  0.98
Diluted earnings per share
$  0.42
$  0.58
$  0.91
$  0.97
Dividends declared
$  0.15
$  0.14
$  0.30
$  0.28
 
Consolidated Steadiness Sheets(Unaudited, In 1000’s)
All Quantities in 1000’s Besides Share Data
July 9, 2022
December 25,2021
July 10, 2021
(Unaudited)
(Audited)
(Unaudited)
ASSETS
Present Belongings:
Money and money equivalents
$ 6,195
$ 4,374
$10,641
Receivables, much less allowance of $726; $457; and $717; respectively
60,011
65,991
52,248
Inventories
130,246
92,382
86,612
Pay as you go bills
7,263
7,569
4,775
Pay as you go revenue tax
621
739

TOTAL CURRENT ASSETS
204,336
171,055
154,276
Property, plant and tools, web
28,344
24,936
20,792
Working lease right-of-use property
9,318
2,210
2,079
Intangible property, web
35,353
20,778
21,638
Goodwill
39,226
32,695
32,695
Different property
275
124
137
TOTAL ASSETS
$316,852
$251,798
$231,617
LIABILITIES AND STOCKHOLDERS’ EQUITY
Present Liabilities:
Present portion of long-term debt
$ 7,143
$ 7,143
$ 7,143
Commerce accounts payable
24,650
15,847
14,705
Accrued liabilities
20,483
24,385
14,875
Earnings tax payable


180
Present working lease liabilities
676
818
1,526
TOTAL CURRENT LIABILITIES
52,952
48,193
38,429
Different Liabilities:
Lengthy‑time period debt
94,040
50,396
42,857
Deferred revenue tax legal responsibility
4,759
4,759
4,193
Working lease liabilities
8,660
1,387
557
Different liabilities
448
448
448
                TOTAL LIABILITIES
160,859
105,183
86,484
Stockholders’ Fairness:
Most popular inventory:
Approved 1,000,000 shares; no par worth, none issued
Frequent inventory:
Approved 30,000,000 shares; no par worth, issued and excellent –     13,590,407; 13,493,332; and 13,779,489; shares respectively
 
13,590
 
13,493
 
13,779
Retained earnings
142,403
133,122
131,354
TOTAL STOCKHOLDERS’ EQUITY
155,993
146,615
145,133
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$316,852
$251,798
$231,617
 
Reconciliation of GAAP Internet Earnings to Non-GAAP EBITDA(Unaudited, In 1000’s)
Three Months Ended
Six Months Ended
All Quantities in 1000’s
July 9,2022
July 10, 2021
July 9, 2022
July 10,2021
Internet Earnings (GAAP)
$ 5,673
$8,126
$12,327
$13,568
Curiosity expense
948
387
1,508
621
Earnings tax expense
1,597
2,194
3,449
3,682
Depreciation and amortization
2,130
1,575
3,603
2,709
EBITDA (Non-GAAP)
$10,348
$12,282
$20,887
$20,580
 

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SOURCE Escalade, Integrated

PRNewswire 2022

All information about ESCALADE, INCORPORATED
08/04TRANSCRIPT : Escalade, Integrated, Q2 2022 Earnings Name, Aug 04, 2022CI
08/04ESCALADE INCORPORATED : Experiences Second Quarter and Yr to Date 2022 Outcomes – Type 8-KPU
08/04ESCALADE INCORPORATED : Quarterly Report for Quarter Ending July 9, 2022 (Type 10-Q)PU
08/04ESCALADE : Q2 Earnings SnapshotAQ
08/04Earnings Flash (ESCA) ESCALADE INCORPORATED Posts Q2 Income $94.3MMT
08/04Earnings Flash (ESCA) ESCALADE INCORPORATED Experiences Q2 EPS $0.42MT
08/04ESCALADE INC MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
O..AQ
08/04ESCALADE INC : Outcomes of Operations and Monetary Situation, Different Occasions, Monetary Stat..AQ
08/04Escalade, Integrated Broadcasts Quarterly Dividend, Payable on September 13, 2022CI
08/04Escalade, Integrated Experiences Earnings Outcomes for the Second Quarter and Six Months E..CI




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