Escalade Inc. announced that net sales for the fourth quarter of 2016 were $45.8 million, or 5 percent higher compared to net sales of $43.7 million for the same quarter in 2015. Acquisitions completed in 2016 as well as new product offerings introduced into the market during 2016 are the primary drivers for the increase in sales. Continued softness within the archery category partially offset these increases.
Gross margin ratio for the fourth quarter of 2016 decreased slightly to 22 percent from 23 percent for the same period in 2015.
Selling, general and administrative expenses (SG&A) were $6.1 million for the quarter compared to $6.8 million for the same period in 2015, a decrease of $0.7 million. As a percentage of sales, SG&A for the fourth quarter of 2016 have decreased to 13 percent from 15 percent reported for the same period in 2015.
Net income for the fourth quarter of 2016 was $3.5 million, or $0.24 diluted earnings per share compared to net income of $2.9 million or $0.20 diluted earnings per share for the same quarter in 2015.
The company announced an increase in its current quarterly dividend from $0.11 to $0.115 per share that would be paid to all shareholders of record on March 13, 2017 and disbursed on March 20, 2017.
“Revenue growth of 8 percent in a year that had challenges, including retail bankruptcies and a continuation of a soft archery category, was more than offset with on-line sales growth and market share gains in the basketball category,” stated Dave Fetherman, president and chief executive officer of Escalade Inc. “We see those challenges continuing through the first quarter of 2017, yet remain confident of continued revenue growth from internally developed products and as we look for accretive acquisitions. Based on 2016 operating results, we are pleased to increase the current quarterly dividend to $0.115 per share.”
Escalade’s brands include Bear Archery, Trophy Ridge, Whisker Biscuit and Cajun Bowfishing in its archery segment; Stiga, Ping-Pong and Prince in table tennis; Goalrilla, Goaliath and Silverback in basketball goals; Woodplay and ChildLife in Play Systems; The Step and USWeight in fitness; Atomic, American Legend and Redline in game tables (hockey and soccer); Mizerak, Minnesota Fats, Lucasi, Purex, Rage and Players in billiards accessories; Unicorn, Accudart, Arachnid, Nodor and Winmau in darting and Zume Games and Pickleball Now in outdoor games.
Photo courtesy Goalrilla
