Escalade Inc. reported revenues for the second quarter of 2015 were up 15 percent over the same quarter in the prior year. Year to date revenues have increased 18 percent over the same period in the prior year.
The company generated net income from continuing operations for the quarter of $3.2 million, or 23 cents basic earnings per share compared to net income of $2.8 million or 20 cents basic earnings per share for the same quarter in 2014. For the first half of 2015, net income from continuing operations is $6.7 million or $0.48 basic earnings per share, while the first half of 2014 showed net income from continuing operations of $5.0 million with $0.36 basic earnings per share.
Gross margin ratio from continuing operations for the first half of 2015 was essentially unchanged from the same period in 2014 in spite of increased research and development spending on new products. Selling, general and administrative expenses (SG&A) were $14.1 million for the first half of 2015 compared to $12.0 million for the same period in 2014, an increase of $2.1 million or 18 percent. The increase in SG&A is primarily due to increased marketing efforts in new categories acquired during 2014 as well as in new products to be introduced in the future. Other income was up primarily as a result of strong results from Escalade's 50 percent ownership of Stiga. However, these results were, and may continue to be, adversely impacted by strength of the US dollar versus the Swedish Krona.
The company is focused on growing its Sporting Goods business through organic growth of existing categories, strategic acquisitions, and new category development. The company competes in a variety of categories including archery, sports and fitness products. Strong brands and on-going investment in product development provide a solid foundation for building customer loyalty and continued growth.
“We are pleased to report another quarter of strong financial results, which include a 15 percent increase in revenue driven by base business growth and acquisitions made in the prior year,” stated Robert J. Keller, president and chief executive officer of Escalade, Inc. “We are confident in our strategy to grow, both organically and through acquisitions, while maintaining a strong balance sheet and dividend to our shareholders. The company is focused on developing innovative new products for the sports and outdoor recreation equipment markets to be launched in the second half of this year and in early 2016, which will drive future sales and earnings growth.”
Headquartered in Evansville, IN, Escalade Sports is a global manufacturer and distributor of sport and outdoor recreational equipment. Escalade Sports' brands include Bear Archery and Trophy Ridge archery accessories, STIGA and Ping-Pong Table Tennis, Accudart and Unicorn darting, Onix Sports and Pickleball Now pickleball equipment, Goalrilla, Goaliath and Silverback residential in-ground basketball systems, the STEP fitness products, and Woodplay and Childlife premium playsets.
