Escalade Reports Second Quarter 2017 Results

- Revenue growth up 8%, on net sales of $52.4 million

- Operating income up 11%

- Company declared quarterly dividend of $0.115 per share

EVANSVILLE, Ind., July 31, 2017 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) - "Our second quarter overcame new product pipeline fills from prior year and saw growth in our fitness and basketball product categories, resulting in revenue growth of 8%" stated Dave Fetherman, President and Chief Executive Officer of Escalade. Inc. "Gross margin for the quarter was negatively impacted by our archery category, as we transition our crossbow product line to remain focused on providing a compelling product to the consumer. We are optimistic about the second half of the year. As retailers continue to focus on supplier consolidation within the categories in which we compete, we should be given more opportunities to increase our business during the remainder of this year and into 2018. We are well positioned with our e-commerce partners to meet the shift in consumer buying habits to purchase online."

Net sales for the second quarter of 2017 were $52.4 million compared to net sales of $48.5 million for the same quarter in 2016, an increase of $3.9 million or 8%.

Gross margin ratio for the second quarter of 2017 decreased to 25%, compared to 26% for the same period in the prior year.

Selling, general and administrative expenses (SG&A) were $9.3 million for the quarter compared to $8.9 million for the same period in the prior year, an increase of $0.4 million or 4%. SG&A, as a percent of sales, remained flat in the current year compared to the same period prior year. 

Other income for the second quarter of 2017 was adversely impacted from the operating results of the Company's 50% ownership in STIGA, a Swedish entity.

Net income for the second quarter of 2017 was flat compared to the same period in 2016 at $2.1 million, or $0.15 diluted earnings per share.

The Company announced a quarterly dividend of $0.115 per share would be paid to all shareholders of record on September 11, 2017 and disbursed on September 18, 2017.

Escalade is a leading manufacturer and marketer of sporting goods products sold worldwide. To obtain more information on the Company and its products, visit our website at: www.EscaladeInc.com or contact Patrick Griffin, Vice President of Corporate Development & Investor Relations at 812/467-4449.

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, new product development, Escalade's ability to achieve its business objectives, especially with respect to its Sporting Goods business on which it has chosen to focus, Escalade's ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and of divestitures of non-core assets and businesses, the continuation and development of key customer, supplier, licensing and other business relationships, the ability to successfully negotiate the shifting retail environment and changes in consumer buying habits, disruptions or delays in our supply chain, Escalade's ability to control costs, general economic conditions, fluctuation in operating results, changes in foreign currency exchange rates, changes in the securities market, Escalade's ability to obtain financing and to maintain compliance with the terms of such financing 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 release revisions to these forward-looking statements after the date of this report.