Escalade Inc. will restate its financial results for 2004 and 2005 and adjust quarterly reports for 2006 after the company found errors in how income tax and employee benefit costs were calculated. Escalade said it had overstated the impact of taxes and employee benefits on its earnings reports for those periods, and as a result, net earnings will increase by approximately $900,000, or 8 cents per share, in 2005 and approximately $300,000, or 3 cents per share, in 2004. No projected adjustments were given for 2006.
Consistent with prior expectations, Escalade said it expects revenues for fiscal 2006 will be higher than that achieved in fiscal 2005, but profitability will be lower.
Escalade also increased its quarterly dividend by 10% to 22 cents share from 20 cents previously. Daniel Messmer, president and CEO, said the dividend hike “reflects the continued strong cash flow of the business. Management believes that 2007 profits will generate sufficient cash flows to pay dividends and meet operating capital requirements.”
