Escalade, Incorporated reports record fourth quarter net sales of $53,889,000 and total net sales of $155,455,000, also a new high. Net income for the quarter declined 9% over the prior year resulting in full year net income of $11,138,000, virtually identical to last year’s $11,139,000.
Escalade Sport’s fourth quarter net sales increased 14% to $48,130,000 bringing year to date net sales to $126,745,000, a 7% gain over last year, primarily the result of earlier 2002 acquisitions. Net income increased 29% for the quarter and 25% for the year. Sporting goods shipments were somewhat throttled by delays due to the West Coast Longshoreman’s lockout and softer than forecasted sales by the company’s retail customers. This resulted in higher inventories for the company and its customers at the end of 2002, which may have an impact on the company’s seasonally slow first and second quarter 2003 shipments. Shipments from the Step and Murrey acquisitions may offset this somewhat. The company is continuing to focus on the integration of recent acquisitions and the development of new products for the Mosconi, Mizerak, and Murrey billiards brand names. Preliminary customer product placements indicate that 2003 may be another growth year for sporting goods with continuing market share gains.
Martin Yale’s sales of office and graphic arts products declined 5% for the quarter to $5,759,000 bringing year to date net sales to $28,710,000, a 4% decrease. Net income declined 66% for the quarter resulting in a 14% decrease for the year. The fourth quarter net income decrease was the result of inventory adjustments due to lower overhead costs and discontinued product, higher customer program costs, increased health care expense, and an additional $349,000 spent on the new photo frame and desk accessory line. The total expense for this new line was $873,000 for the year.
During the first quarter of 2003, Martin Yale increased its ownership of Schleicher International AG, a German manufacturer and distributor of paper shredders to 63%. Martin Yale is currently engaged in a tender offer to acquire all remaining Schleicher shares. The company believes it can increase sales and reduce costs by focusing on the complementing strengths of each company.
The company is continuing to review acquisitions as a means to increase shareholder value.
Escalade, Incorporated (Audited, In Thousands, Except Per Share Figures)
4th Quarter Ended Twelve Months Ended Dec. 28, Dec. 29, Dec. 28, Dec. 29, 2002 2001 2002 2001 Net Sales $53,889 $48,175 $155,455 $148,853 Cost of Goods Sold 40,565 35,680 111,164 106,921 Selling & Admin. Expense 6,696 4,826 26,328 21,850 Operating Income 6,628 7,669 17,963 20,082 Interest Expense (281) (262) (951) (1,359) Goodwill - (104) - (862) Other Income (Expense) 150 73 (70) (430) Income Before Taxes 6,497 7,376 16,942 17,431 Provision for Taxes 2,043 2,489 5,804 6,292 Net Income 4,454 4,887 11,138 11,139