Escalade, Inc. reported it’s 8th consecutive quarter of profitability as solid revenue gains in it’s Sporting Goods segment drove the Evansville, IN-based company to 11.1% top line growth.

 

Escalade, which manufactures and sells a variety of sporting goods including table tennis equipment, pool and game tables, basketball hoops, darts & accessories and archery and bow hunting equipment, reported sporting goods sales improved 13.2% versus the year-ago period on business driven by an increase in consumer spending, new product development, expanded product placement and new customer bases.


Total sales for the quarter improved 11.1% to $28.0 million from $25.2 million a year ago, which management attributed to “expanded product placement resulting from product innovation and brand marketing.” Earnings for the quarter were $1.2 million, pr 9 cents per diluted share, versus earnings of $802,000, or 6 cents per diluted share, in the year-ago period.


Management noted that the company believes improved sales in the Sporting Goods segment will continue throughout the year, although improvement will likely be at a slower pace than represented in the first quarter.


In related news, Escalade also announced that it has amended its existing credit agreement with its issuing bank, JPMorgan Chase Bank, N.A. As amended, the credit agreement now provides Escalade with a senior revolving credit facility in the maximum principal amount of up to $22.0 million with an extended maturity date of July 31, 2013 and a term loan in the principal amount of $8.5 million with a maturity date of May 31, 2015.


The amendment also reduced the interest rates payable by Escalade under the revolving credit facility, increased the amount of capital expenditures allowed under the Credit Agreement, and provides for certain qualifying acquisitions without the lender's consent for aggregate consideration up to $5.0 million.