Escalade Inc. reported earnings rose 16.1 percent on higher gross margins and robust e-commerce growth.
“Revenue within the e-commerce channel increased 31.6 percent and offset declines tied to brick and mortar stores. Archery and Indoor Games categories had positive comps in the quarter, which helped to increase gross margins 150 bps to 28.0 percent. We continue to closely manage our SG&A, which helped operating income grow by $1.0 million,” stated Dave Fetherman, president and chief executive officer of Escalade, Inc. “Inventories are up to support our 2019 Archery product offering, which has been very well received in the market. Our strong balance sheet will continue to allow us to grow through acquisitions and internal development.”
Net sales for the third quarter of 2018 were $44.0 million compared to net sales of $42.9 million for the same quarter in 2017.
Gross margin ratio for the third quarter of 2018 increased to 28.0 percent, compared to 26.5 percent for the same period in the prior year. Gross profit for the third quarter of 2018 was $12.3 million compared to gross profit of $11.4 million for the same quarter in 2017.
Selling, general and administrative expenses (SG&A) were flat for the quarter compared to the same period in the prior year at $6.9 million.
Operating income for the third quarter of 2018 was $5.1 million compared to operating income of $4.1 million for the same period in the prior year.
Other income was down for the third quarter of 2018 compared to the same period in the prior year due to equity in earnings of Stiga. During the second quarter of 2018, the company sold its 50 percent ownership in Stiga, recognizing a $13.0 million gain.
Net income for the third quarter of 2018 was $3.6 million, or $0.25 diluted earnings per share compared to net income of $3.1 million, or $0.22 diluted earnings per share for the same quarter in 2017.
The company announced a quarterly dividend of $0.125 per share to be paid to all shareholders of record on December 10, 2018 and disbursed on December 17, 2018.
Headquartered in Evansville, IN, Escalade Sports’ brands include Bear Archery and Trophy Ridge archery accessories; STIGA and Ping-Pong table tennis, Accudart and Unicorn darting, Onix pickleball equipment; Triumph Sports indoor and outdoor games, Goalrilla and Goalsetter residential in-ground basketball systems, Goaliath and Silverback residential in-ground and portable basketball goals; the STEP fitness products, Lifeline personal fitness, Woodplay premium playsets, Vuly Trampolines and Cue&Case specialty billiard accessories.
