Escalade Sports Continues Double-Digit Growth in Q3

The company generated net income for the quarter of $2.5 million, or $0.19 basic earnings per share compared to net loss of $(11.5) million or (86 cents) basic earnings per share for the same quarter in 2012.  For the first nine months of 2013, net income is $6.8 million or 50 cents basic earnings per share, while the first nine months of 2012 showed a net loss of $(8.8) million with (67 cents) basic earnings per share.  In the third quarter of 2012, the Company recorded a goodwill impairment of $13.2 million, other intangible impairment of $0.2 million both in the Information Security and Print Finishing segment and a $0.4 million impairment on an equity method investment.  Without the impact of goodwill and other intangible asset impairments and equity method investment impairment losses in 2012, basic earnings per share would have been $0.16 and $0.36 for the first three and nine months of 2012.

Revenues from the Sporting Goods business were up 23 percent for the quarter and 20 percent for the first nine months of 2013, compared to the same periods in the prior year.  Management expects strong sales in the Sporting Goods segment through the remainder of the year, although sales growth may be somewhat less than in previous quarters.

Revenues from the Information Security and Print Finishing business decreased 19 percent and 18 percent for the third quarter and first nine months of 2013, respectively, compared to the same periods in the prior year. Excluding the effects of changes in the currency exchange rates, revenues decreased 27 percent and 19 percent, for the third quarter and first nine months of 2013, respectively.  Contributing to the decrease in revenue is a reduction in government spending along with increased competition.  The Information Security and Print Finishing segment represents 19 percent and 26 percent of year to date revenues for 2013 and 2012, respectively.    

“We are pleased with third quarter revenue growth of 13 percent resulting in a 12 percent net income increase, excluding the effect of impairments last year.  For the first nine months of 2013, revenue has increased 10 percent, led by the Sporting Goods segment growth of 20 percent,” stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc.  “This growth in revenue and earnings is a result of strong product placement and sell through with our retailers.”