March 2012 | February 2013 | February 2014 | February 2015

President's Message to Shareholders

February 25, 2015

We will remember 2014 as an important year in the transformation of Escalade. The divesture of the Information Security and Print Finishing segment, which was completed in October 2014, represents an important milestone in focusing the Company solely on the Sports Goods business. We also completed two important acquisitions, including Cue & Case Sales, Inc., the leader in specialty dealer sales to the billiard market.

We finished the year with revenue from continuing operations up 7% in the fourth quarter and up 4% on a full year basis. Net income grew 20% for the full year to $0.84 per share. As a result of the sale of the Information Security and Print Finishing segment, we were able to utilize previously reserved net operating loss and capital loss carryovers to realize a $6.1 million tax benefit. We are committed to a disciplined approach to cash management, enabling investments in strategic growth areas and continuation of dividends to our shareholders.

In 2015, we will continue to invest in new products and category expansion to increase our position in the sports and outdoor markets. We have built a solid foundation with our flagship brands, including Bear Archery, Goalrilla, and Stiga, forming a strong platform to launch innovative products which raise the bar in their respective categories. Products, such as the React sight for compound bows, have established a new standard for performance and quality in the industry.

The Escalade team is a remarkable organization, forged together through a common bond of passion for sports and outdoor pursuits and a dedication to serve our customers with unmatched product innovation and brands they can trust. Our people are our greatest asset, and we are confident that this team will lead us into an exciting future for Escalade.

Signed

Robert J. Keller
President & CEO
Escalade, Inc.



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