Escalade Inc. reported revenues for the second quarter rose 15.2 percent to $43.8 million. Earnings improved 16.4 percent to $3.2 million, or 23 cents a share, from $2.8 million before charges a year ago.
The net loss in the year-ago period was $8.1 million, or 53 cents a share, after including losses and charges related to sale of its Information Security business on October 2014 as well as its Print Finishing business on June 2014.
The sale was part of a strategic plan to focus solely on its Sporting Goods segment, which includes a variety of categories including archery, sports and fitness products.
Gross margins were reduced to 30.1 percent from 30.4 percent a year ago in spite of increased research and development spending on new products.
SG&A expenses increased 19.2 percent to $8.2 million due to increased marketing efforts in new categories acquired during 2014 as well as in new products to be introduced in the future. SG&A expenses as a percent of sales rose to 18.7 percent from 18.1 percent.
Recent acquisitions include Onix Sports, the maker of paddles, balls, sportswear and accessories for the sport of pickleball, in late July; Cue & Case Sales, a leader in specialty billiard accessories, in October 2014; and DMI Sports, which makes indoor games and accessories for darts, table tennis, game tables and billiards.
Its other brands include Stiga and Ping-Pong table tennis, Accudart and Unicorn darting; Goalrilla, Goaliath and Silverback sports training equipment and basketball goal systems; and Bear Archery, Trophy Ridge and Cajun Bowfishing hunting products.
Robert Keller, president and CEO, said the gains were driven by base business growth and acquisitions made in the prior year.
“We are confident in our strategy to grow, both organically and through acquisitions, while maintaining a strong balance sheet and dividend to our shareholders,” said Keller. “The company is focused on developing innovative new products for the sports and outdoor recreation equipment markets to be launched in the second half of this year and in early 2016, which will drive future sales and earnings growth.”
