Escalade, Inc., which owns a wide variety of gaming, sports training equipment and hunting products, reported net income from continuing operations for the fourth quarter of 2014 was $4.5 million, or 32 cents a share, compared to net income of $3.1 million or 23 cents, for the same quarter in 2013. Revenue from continuing operations increased 7 percent for the fourth
quarter of 2014 and 4 percent for the full year of 2014, compared with
the same periods in the prior year. Gross margin ratio was essentially
unchanged from the prior year due to increased research and development
spending on new products.
Full year 2014 net income from continuing operations was $13.3 million, or 6 percent higher than the prior year's net income from continuing operation of $12.6 million.
Net income for the full year 2014 was $11.8 million or 20 percent higher than the prior year. Diluted earnings per share in 2014 were $0.84 compared to $0.72 diluted earnings per share in the prior year. Loss from discontinued operations in 2014 includes loss from operations of $0.6 million, loss on disposal of assets of $9.6 million, income from reclassification of accumulated other comprehensive income of $2.6 million and a tax benefit of $6.1 million. The company was able to utilize previously reserved net operating loss and capital loss carryovers to realize a tax benefit on the disposal of $6.1 million. Net loss for the full year 2014 from discontinued operations is $1.5 million or $0.11 diluted earnings per share compared to net loss of $2.8 million or $0.20 diluted earnings per share in the prior year.
The company is solely focused on growing its Sporting Goods business through organic growth of existing categories, strategic acquisitions, and new product development now that the Information Security and Print Finishing segment has been divested. The company competes in a variety of categories including archery, team and individual sports and games. Strong brands and on-going investment in product development provide a solid foundation for building customer loyalty and continued growth.
“We completed 2014 with sales up 7 percent in the fourth quarter, indicative of our customers' improved results experienced through the holiday period,” stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. “Heading into 2015, we are fully focused on achieving long term growth in our Sporting Goods business through increased strategic investments in product line expansion and new category entry.”
Escalade's 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.
