ESCALADE, INCORPORATED ANNOUNCES SECOND QUARTER EARNINGS 

SECOND QUARTER ENDED JULY 12, 2003

Evansville, IN (August 1, 2003) -- Escalade, Incorporated (NASDAQ: ESCA) announced that, Compared to 2002, net sales in the second quarter increased 55% to $49.8 million and for the first half increased 59% to $78.9 million.  Net income for the quarter and the first half was 35 cents, compared to 2002 a decline of 5 cents and 4 cents, respectively, due primarily to the one time gain of a building sale in the second quarter of 2002.

Sporting goods sales increased 13% to $26.4 million due mainly to the inclusion of one month’s sales of the recently acquired North American Archery Group (now known as Bear Archery) and a full quarter of Murrey billiard sales.  High year-end retail inventories resulted in lower purchases of some product categories, almost totally masking gains in the fitness and basketball product lines. Operating income, helped by Bear Archery, increased slightly, but was more than offset by increased interest and amortization expense.  Now that the excess retail inventories are depleted, we believe that improved product placement will result in increased sales and income at Escalade Sports for our upcoming peak selling season and will minimize the effect of costs such as amortization and interest expense, even excluding the additional sales and income we expect from Bear.

Sales of office and graphic art products increased 164% to $23.4 million due entirely to the inclusion of Schleicher International AG’s net sales, which were helped by favorable exchange rates and solid market share gains.  After excluding the building sale in 2002, Martin Yale’s net income declined 10% due to the inclusion of a slight loss at Schleicher (which is a substantial improvement over 2002), softer domestic sales, and higher interest expense due to the Schleicher acquisition.  During the quarter, Martin Yale completed its tender offer for Schleicher, acquiring just over 97% of all shares, and has now started a process that should result in ownership of 100% of the shares by the end of August 2003. Once wholly owned, we will convert Schleicher to a private company and we can then explore synergistic opportunities.  The two companies have begun a sales co-operation that has already resulted in increased sales abroad and will result in increased domestic sales later this year. 

During the quarter, we discontinued the exploration of the new Hardwood Creek photo frame and gift line.  The net result was a $47,000 gain for the quarter after selling the trademark and adjusting for inventory write-offs and expenses.

Escalade, Inc. increased its ownership in Sweden Table Tennis AB to 50% during the quarter.  Including Escalade International, we now have two sporting goods joint ventures in Europe that have turned around and are in their second year of profitability.  These two companies contributed 3 cents per share to our earnings this quarter.

During the quarter, we acquired an additional 121,080 shares of our stock bringing year to date purchases to 126,080 shares at an average cost of $14.59 per share, leaving $1,161,000 of the $3,000,000 previously authorized capital available for repurchase of our shares through the open market or negotiated transactions as a means of continued enhancement of 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 John Wilson, VP and CFO at 812/467-1265 or C.W. (Bill) Reed, President and CEO at 260/569-7233.

Unaudited, In Thousands, Except Per Share Data

 

 

 

THREE MONTHS ENDED

 

SIX MONTHS ENDED

TWELVE MONTHS ENDED

 

July 12, 2003

July 13, 2002

July 12, 2003

July 13, 2002

July 12, 2003

July 13, 2002

 

 

 

 

 

 

 

Net Sales

$  49,837

$  32,202

$ 78,940

$  49,707

$  184,688

$  152,305

Cost of Goods Sold

    31,160

    21,579

   49,819

   33,913

    127,070

    109,325

Selling, and Administrative Costs

    14,389

     6,635

   24,321

   11,617

     39,033

     23,761

Operating Income

     4,288

     3,988

     4,800

     4,177

     18,585

     19,219

Interest Expense

       (652)

       (246)

    (1,100)

      (367)

      (1,683)

     (1,003)

Other Income (Expense)

          11

        326

        (40)

       151

        (260)

         (62)

Amortization of Goodwill

           --

           --

           --

           --

            --

        (332)

Income Before Taxes and Minority Interest

 

     3,647

 

      4,068

 

     3,660

 

     3,961

 

     16,642

 

     17,822

Provision for Income Taxes

    (1,399)

     (1,465)

    (1,403)

    (1,426)

     (5,782)

     (6,360)

Minority Interest Holders Share in Subsidiary Net Loss

 

           6

 

           --

 

           4

 

           --

 

            4

 

           --

Net Income

$   2,254

$    2,603

$   2,261

$    2,535

$  10,864

$  11,462

 

 

 

 

 

 

 

Basic Earnings Per Share

$0.35

$0.40

$0.35

$0.39

$1.67

$1.78

Diluted Earnings Per Share

$0.34

$0.39

$0.34

$0.38

$1.64

$1.73

Average Shares Outstanding

6,500

6,495

6,505

6,467

6,506

6,446
 

 

July 12, 2003

July 13, 2002

December 28, 2002

 

 

 

 

Current Assets

    $   81,140

   $  52,379

        $  59,417

Fixed Assets

         18,558

       10,017

             9,060

Other Assets

         15,700

       12,323

           14,960

Goodwill

         17,791

       13,351

           13,351

Total Assets

   $  133,189

   $  88,070

       $  96,788

 

 

 

 

Current Liabilities

   $   52,049

   $  31,211

       $  32,376

Other Liabilities

        34,310

       19,516

           18,537

Stockholder’s Equity

        46,830

       37,343

           45,875

Total Assets

   $  133,189

   $  88,070

       $  96,788
 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.
 

Home | Escalade® Sports | Martin Yale® | Overview | Press Releases | Investor Relations |  Disclaimer | Search

Copyright © 2003 Escalade Inc.