Escalade Inc., a maker of a wide range of sporting goods, reported operating income improved significantly on improved gross margins and a 16.2 percent revenue gain.

“Our first-quarter results reflect the benefits of the operational and organizational changes we made during 2019 which enabled us to achieve operational leverage during the quarter and helped drive significant operating income improvement,” said Dave Fetherman, President and CEO of Escalade, Inc. “The 16.2 percent revenue growth was driven by our outdoor categories – basketball, pickleball, and Victory Tailgate. These categories, along with table tennis and billiard accessories, helped to drive the margin improvement. We made progress in reducing inventory and improving turns during the quarter. These efforts resulted in a significant improvement in EPS for our shareholders. We ended the quarter with a strong balance sheet, with available cash and full availability under our $50 million revolving facility with our long-term banking partner, JPMorgan Chase. With the emerging COVID-19 pandemic, we are focused on safeguarding and protecting our employees. Due to shelter in place mandates issued across the country, our e-commerce channel is experiencing increased demand for our fitness and home recreation products. As I turn over the reins to Scott Sincerbeaux, our incoming President and CEO, I want to thank all the employees that make up Escalade for your dedication, commitment and friendship over the years.”

Net sales for the first quarter of 2020 were $37.3 million compared to net sales of $32.1 million for the same quarter in 2019, an increase of $5.2 million or 16.2 percent. The increase in sales was primarily driven by growth in its outdoor categories, including basketball, pickleball and Victory Tailgate.

Gross margin ratio for the first quarter of 2020 was 27.4 percent, compared to 26.4 percent for the same period in the prior year. The improvement in gross margin was primarily due to product mix and operational improvements the company has performed over the last year. Gross profit for the first quarter of 2020 was $10.2 million compared to gross profit of $8.5 million for the same quarter in 2019.

Selling, general and administrative expenses (SG&A) were $7.5 million for the quarter compared to $7.7 million for the same period in the prior year, a decrease of $0.2 million or 3.7 percent. The reduction in SG&A was as a result of organizational changes and operating efficiencies put in place during 2019. SG&A, as a percent of sales, for the first quarter of 2020 decreased to 20.0 percent from 24.1 percent reported for the same period the prior year.

Operating income for the first quarter of 2020 was $2.4 million compared to operating income of $0.4 million for the same period in the prior year.

Net income for the first quarter of 2020 was $2.0 million, or $0.14 diluted earnings per share compared to net income of 0.3 million, or $0.02 diluted earnings per share for the same quarter in 2019.

The company announced a quarterly dividend of $0.125 per share to be paid to all shareholders of record on June 1, 2020, and disbursed on June 8, 2020.

Headquartered in Evansville, IN, Escalade Sports’ brands include Bear Archery, Bear X, Trophy Ridge, Rocket, SIK, and Cajun Bowfishing archery equipment, STIGA and Ping-Pong table tennis, Accudart and Unicorn darting; Atomic, Victory Tailgate, Triumph Sports, Viva Sol, Zume recreational games Onix pickleball equipment, Goalrilla, Goalsetter residential in-ground basketball systems, Goaliath and Silverback residential in-ground and portable basketball goals, Lifeline and the STEP fitness products, Woodplay premium playsets, Vuly trampolines, and Cue&Case billiard accessories.

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