Escalade, Inc. announced that net sales for the quarter third increased 42% to $73,660,000 and net income increased 48% to $6,125,000 or 95 cents per share versus 64 cents for the same quarter last year.
This brings net sales to $152,600,000 for the first three quarters of this year, a 50% increase as compared to the prior year while net income moved up 25% to $8,385,000 or $1.29 per share as compared to $1.03 for the same period last year.
Net sales at Escalade Sports increased 22% for the quarter to $54,280,000 pushing year to date net sales to $91,870,000, a 17% increase. The recent Bear Archery acquisition contributed a little less than half of the quarter's increase with the balance attributable to increased product placement and comparison to a weak 2002 third quarter where product deliveries were delayed due to the West Coast Longshoreman's lockout. Net income at Sports was up 37% for the quarter bringing net income 33% ahead on a year to date comparison. Our product placement is strong, our customers are optimistic, and our orders are outpacing last year resulting in our outlook for the final quarter to be one of optimism. We now have some of the best brand names in our categories and are focused on further developing product and strategies to build on their value.
The Martin Yale group, which now includes Schleicher, posted net sales of $19,381,000 a 170% increase over the year ago quarter due entirely to the inclusion of Schleicher. Net sales year to date are $60,730,000, 165% ahead due once again entirely to the inclusion of Schleicher, which is benefiting from increased demand of high security shredders and a stepped up telemarketing effort. Net income for the group was up 82% for the quarter primarily due to the recognition of a gain on the extinguishment of a portion of the European debt, which will reduce the group's future interest expense. However, net income still trails the prior year 3% due to higher interest costs associated with the Schleicher acquisition and lower domestic sales of the Martin Yale branded products. Subsequent to the end of the third quarter, Martin Yale completed registration for 100% ownership of Schleicher's shares and is now in the relatively simple process of converting Schleicher to a private company. We are also in the process of consolidating the organizations with Dr. E. Leopold Dieck of Schleicher assuming the Presidency of the group, further restructuring the Schleicher European debt, and continuing the sales and product development co-operation that has already secured future increases in product placement domestically and abroad.
Sweden Table Tennis AB and Escalade International, our two European joint ventures contributed 5″ per share to our third quarter earnings as both companies continued to grow in sales and profitability.
During the quarter, we repurchased 10,000 of our shares for $160,000, leaving $1,000,000 available from the previously authorized $3,000,000 to purchase shares. We continue to evaluate opportunities and means of enhancing shareholder value.
Unaudited, In Thousands, Except Per Share Data
TWELVE MONTHS
THREE MONTHS ENDED NINE MONTHS ENDED ENDED
Oct. 4, Oct. 5, Oct. 4, Oct. 5, Oct. 4, Oct. 5
2003 2002 2003 2002 2003 2002
Net Sales $73,660 $51,859 $152,600 $101,566 $206,490 $149,741
Cost of Goods
Sold 53,552 36,686 103,371 70,599 143,936 106,279
Selling, and
Administrative
Costs 11,619 8,015 35,941 19,632 42,637 24,458
Operating Income 8,489 7,158 13,288 11,335 19,917 19,004
Interest Expense (700) (303) (1,800) (670) (2,080) (932)
Other Income
(Expense) 1,124 (371) 1,084 (220) 1,235 (147)
Amortization of
Goodwill -- -- -- -- -- (104)
Income Before Taxes 8,913 6,484 12,572 10,445 19,072 17,821
Provision for
Income Taxes (2,788) (2,335) (4,187) (3,761) (6,232) (6,250)
Net Income $6,125 $4,149 $8,385 $6,684 $12,840 $11,571
Basic Earnings
Per Share $0.95 $0.64 $1.29 $1.03 $1.98 $1.79
Diluted Earnings
Per Share $0.93 $0.62 $1.26 $1.00 $1.93 $1.74
