Escalade, Inc.’s revenues for the third quarter dropped 32.8% to $40.8 million from $60.7 million in the prior year. ESCA posted a net loss of $1.4 million, or 11 cents per share, compared to net income of $3.1 million, or 24 cents, in the prior year.
For the first nine months of 2008, revenue dropped 20.0% to $115.8 million, compared to $144.7 million in the prior year. A net loss of $2.9 million, or 23 cents per share, was recorded for the first nine months of 2008, compared to net income of $6.7 million, or 51 cents per share in the prior year.
Escalade said that customers have reduced inventories and consequently bought less of the company’s products in response to the weakened U.S. economy and lower sell through on game room products.
Sales to Sears Holdings were down 71% in the first nine months of 2008 and are expected to decline further in the fourth quarter of 2008. The company has ceased to supply table tennis and billiard tables to Sears Holdings. Sales to specialty retailers and dealers were down 19.4% in the third quarter and were down 8.5 % in the first nine months of 2008.
Escalade’s sports brands include: Goalrilla, Goaliath, Silverback, Stiga, Mizerak, Murrey Billiards, Mosconi Billiards, The Black Widow, ChildLife Harvard Game, Murrey Game, Accudart, Bear Archery, Fred Bear, Jennings Archery, The Step and US Weight.
