Escalade, Inc. reported a net loss of $7.5 million for 2008, a loss that was significantly impacted by nonrecurring charges of $5.6 million, including impairment adjustments, plant closing costs and severance charges related to the company's downsizing efforts.
Sporting Goods division revenues for the quarter and year ended December 27, 2008 declined 5% and 24%, respectively, compared to the same periods last year. The reduction in product sales to Sears Holdings accounted for 88% of the year-over-year decline, while reductions in inventory levels by retailers due to the economy represented the balance of the revenue shortfall. The company expects the declining economic trend to continue through 2009.
Net sales for the year declined 19.9% compared to the same period last year due to lower sales in both the Sporting Goods (-24%) and Office Products (-9%) businesses. The 2008 operating loss was $8.1 million compared to operating income of $13.1 million last year.
Total ESCA fourth quarter revenues decreased 20% to $32.9 million from $40.9 million in the prior year. The fourth quarter net loss was $4.6 million versus net income in 2007 of $2.6 million in the year-ago period.
