Escalade, Inc.'s main priority was increasing profitability to reverse last year's decline that resulted from restructuring operations and asset write-downs. As a result, profits were up even though sales were down. ESCA net income grew to $3.1 million in the fourth quarter, a 226% increase as compared to the $946,000 posted in the year-ago quarter. Full year net income rose 53% to $11.9 million from $7.8 million, or 91 cents per share versus 60 cents per share last year. Fourth quarter net sales of $44.7 million were “disappointing” and “below expectations,” posting a 20.6% decrease from sales of $56.3 million for the year-ago quarter. Full year net sales of $185.6 million were down 15% from $217.7 million in the prior year.

Fourth quarter net sales at Escalade Sports declined 23% to $28.7 million, pulling full year net sales down 15% to $121.0 million. Sales to Sears accounted for most of the decline, however, some of the company’s game room products gave way to strong consumer purchases of electronic products in the Christmas season. Net income declined 51% for the quarter and 31% for the year due “almost entirely” to the sales decline, but was also affected by year-end inventory clearance accruals.