Escalade, Inc. posted quarterly revenue of $81.3 million, an increase of 4.1 percent over the prior year. Quarterly diluted earnings per share were $0.43, a decline of 39.5 percent versus Q3 2020, and an increase of 140 percent versus Q3 2019.
“Third quarter results reflect continued demand for our products, offset by sharply higher transportation expenses, raw material costs, currency exchange rates, increased wage pressure, and inventory handling costs. Combined, these expenses negatively impacted earnings per share by more than 20 cents in the quarter and 40 cents per share for the nine months. Global supply chain issues have intensified and the costs to keep goods flowing to our customers have soared. The company is taking action on several fronts to address the margin compression and long lead times. In addition to raising prices where necessary, we are redesigning products to reduce costs while maintaining quality, moving some production from Asia to our North American facilities and adding warehouse capacity to store additional buffer inventory. Despite these challenges, we are continuing to invest in our brands to support long-term growth.” said Walter P. Glazer, Jr., interim president and CEO, Escalade, Inc.
“Year to date sales are up 20.8 percent and net income decreased 6.3 percent due to the aforementioned cost pressures and, to a lesser extent, our sales mix,” continued Glazer. “With the critical holiday selling season ahead of us, our teams are well prepared to serve our retail partners and meet consumer demand. We have invested heavily to make sure we have ample inventory despite the supply chain issues.”
Net sales for the third quarter of 2021 were $81.3 million compared to net sales of $78.1 million for the same quarter in 2020, an increase of $3.2 million or 4.1 percent.
Gross margin ratio for the third quarter of 2021 was 22.5 percent, compared to 30.1 percent for the same period in the prior year. Gross profit for the third quarter of 2021 was $18.3 million compared to gross profit of $23.5 million for the same quarter in 2020.
Selling, general and administrative expenses (SG&A) were $10.2 million for the quarter compared to $10.4 million for the same period in the prior year, a decrease of $0.2 million or 1.7 percent. SG&A, as a percent of sales, for the third quarter of 2021 decreased to 12.6 percent from 13.3 percent reported for the same period prior year.
Operating income for the third quarter of 2021 was $7.7 million compared to operating income of $12.8 million for the same period in the prior year.
Net income for the third quarter of 2021 was $6.0 million, or $0.43 diluted earnings per share compared to net income of $10.2 million, or $0.71 diluted earnings per share for the same quarter in 2020.
Escalade Sports’ brands include Bear Archery, Bear X, Trophy Ridge, Rocket, SIK, and Cajun Bowfishing archery equipment; STIGA and Ping-Pong table tennis; Accudart and Unicorn darting; Rave Sports water recreation products; Atomic, Victory Tailgate, Triumph Sports, Viva Sol, and Zume Games recreational games; Dura and Onix pickleball equipment; Goalrilla, goal setter residential in-ground basketball systems, Goaliath and Silverback residential in-ground and portable basketball goals; Lifeline and Step fitness products; Woodplay playsets; American Heritage Billiards; and Cue&Case.
Photo courtesy Escalade, Inc.
