ESCALADE ANNOUNCES 1ST QUARTER EARNINGS

Wabash, IN (April 08, 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.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(Unaudited, In Thousands Except Per Share Amounts)

CONSOLIDATED CONDENSED BALANCE SHEET

(Unaudited, In Thousands)

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.