Escalade, Inc. reported fourth-quarter sales were slightly below year-ago levels due to supply chain disruptions; however, sales were well above sales levels from the fourth quarter of 2019.

The company posted quarterly revenue of $73.4 million, a decrease of 1.8 percent over the prior year. Quarterly diluted earnings per share were $0.36, which is flat vs. Q4 2020, and an increase of 100 percent vs. Q4 2019.

“Our fourth-quarter sales decline of 1.8 percent reflects supply chain challenges rather than a softening of demand for our portfolio of brands,” said Walter P. Glazer, Jr., president and CEO. “Demand was particularly strong in archery and pickleball driven by category growth and market share gains. Indoor game sales were hampered by a shortage of timely supply. Once again, higher supply chain, raw material, and inventory carrying costs squeezed gross margins. While net income declined 4.2 percent, EPS was flat due to a lower share base.”

“For the full year, sales increased 14.6 percent versus 2020 and 73.7 percent versus 2019. Net income declined 5.9 percent versus 2020 and increased 236.2 percent versus 2019,” continued Glazer. “Diluted EPS for the year was $1.76 versus $1.82, a decline of 3.3 percent. Given the extraordinary challenges with the supply chain, inflation and labor shortages, our teams did an outstanding job delivering fun and innovative products to our retail partners and consumers. While we expect continued cost pressures and challenging supply chain conditions in the foreseeable future, we continue to invest and innovate for the long term. Our recent acquisition of Brunswick Billiards is the latest example of our strategy to invest in leading brands that complement and enhance our existing businesses. We expect Brunswick Billiards to be accretive to earnings in the latter half of 2022.”

Fourth Quarter Results

  • Net sales for the fourth quarter of 2021 were $73.4 million compared to net sales of $74.8 million for the same quarter in 2020, a decrease of $1.3 million or 1.8 percent;
  • Gross margin for the fourth quarter of 2021 was 22.2 percent, compared to 23.9 percent for the same period in the prior year. Gross profit for the fourth quarter of 2021 was $16.3 million compared to gross profit of $17.9 million for the same quarter in 2020;
  • Selling, general and administrative expenses (SG&A) were $9.5 million for the quarter compared to $10.5 million for the same period in the prior year, a decrease of $1.0 million or 10.3 percent. SG&A, as a percent of sales, for the fourth quarter of 2021 decreased to 12.9 percent from 14.1 percent reported for the same period prior year;
  • Operating income for the fourth quarter of 2021 was $6.4 million compared to operating income of $6.9 million for the same period in the prior year;
  • Net income for the fourth quarter of 2021 was $4.9 million, or $0.36 diluted earnings per share compared to net income of $5.1 million, or $0.36 diluted earnings per share for the same quarter in 2020; and
  • The company announced a quarterly dividend of $0.15 per share to be paid to all shareholders of record on March 14, 2022 and disbursed on March 21, 2022.

Full-Year Results

  • Full-year net sales for 2021 were $313.6 million compared to $273.6 million in 2020, an increase of $40.0 million, or 14.6 percent;
  • Gross margin for full-year 2021 decreased to 24.6 percent from 27.3 percent. Margins were unfavorably impacted by raw material costs, currency exchange rates, inventory handling costs, and higher transportation costs. Gross profit for 2021 was $77.1 million compared to gross profit of $74.8 million in 2020, an increase of $2.3 million, or 3.1 percent;
  • SG&A expenses for full-year 2021 were $43.4 million compared to $40.3 million in 2020, an increase of $3.1 million, or 7.6 percent. As a percent of sales, SG&A decreased to 13.8 percent from 14.7 percent in 2020;
  • Operating income for full-year 2021 was $31.9 million compared to $33.0 million in 2020, a decrease of $1.1 million, or 3.4 percent; and
  • Full-year net income for 2021 was $24.4 million, or $1.76 diluted earnings per share compared to net income of $25.9 million, or $1.82 diluted earnings per share for 2020.

Founded in 1922 and headquartered in Evansville, IN, Escalade’s brands include Bear Archery, Stiga, Accudart, Rave Sports, Victory Tailgate, Onix Pickleball, Goalrilla, Lifeline, Woodplay, and American Heritage Billiards.

Photo courtesy Stiga