Escalade Sports 2003 Earnings Up 15% on 10% Sales Gain

Escalade, Incorporated announced that net sales in the fourth quarter increased 28% over the same period last year to $69.1 million while net income rose 45% to $6.5 million resulting in $1.01 per share versus $0.68 per share for the same quarter last year. Net sales for the year increased 43% to $221.7 million and net income rose 33% to $14.9 million. Earnings per share for the year were $2.29 per share versus $1.72 per share last year.

Annual net sales at Escalade Sports increased 10% over the prior year to $139.3 million, but for the fourth quarter net sales declined 1.5% compared to the previous year. However, net income for the fourth quarter increased 3.1% over the prior year, resulting in an increase of 15% for the full year. The comparative decline in net sales for the quarter is due to the shift in sales from the third to fourth quarter of 2002 as a result of the shipment delays caused by the West Coast Longshoreman's lockout in 2002.

The majority of the sales increase for the year is attributed to the Bear Archery acquisition, however, the sales of core products also increased, particularly basketball, game tables, and pre-acquisition archery products. Sell through of our sporting goods products by our customers was very good and end of year inventories at our customers are down to normal levels compared to the high year-end customer inventory levels a year ago. Customer inventories are an important indicator of future sales levels and year-end inventory levels at customers are particularly important when it comes to the first half of the next year, a seasonally slow period in our segment of the sporting goods industry.

    In Thousands, Except Per Share Data

                                    THREE MONTHS ENDED    TWELVE MONTHS ENDED
                                        (Unaudited)             (Audited)
                        December 27,  December 28,  December 27,  December 28,
                            2003          2002          2003          2002

    Net Sales             $69,128       $53,889      $221,728      $155,455
    Cost of Goods Sold     50,994        40,565       154,365       111,164
    Selling, and
     Administrative Costs  10,426         6,696        46,367        26,328
    Operating Income        7,708         6,628        20,996        17,963
    Interest Expense         (482)         (281)       (2,282)         (951)
    Other Income (Expense)  1,425           150         2,509           (70)
    Income Before Taxes     8,651         6,497        21,223        16,942
    Provision for
     Income Taxes          (2,186)       (2,043)       (6,373)       (5,804)
    Net Income             $6,465        $4,454       $14,850       $11,138

    Basic Earnings
     Per Share              $1.01         $0.68         $2.29         $1.72
    Diluted Earnings
     Per Share              $0.98         $0.68         $2.25         $1.66