Escalade Inc. posted quarterly revenue of $59.2 million in the first quarter ended March 20, an increase of 58.7 percent over the prior year, and a record for its first fiscal quarter, representing its fifth consecutive quarter of record sales.
Quarterly diluted earnings per share were 39 cents, an increase of 178.6 percent from the prior year.
“First quarter results were quite good, reflecting continued strong demand for our categories, market share gains, margin improvement due to increased factory utilization, and SG&A leverage. Through extraordinary efforts by our teams, we were able to mitigate some of the negative impacts from supply chain and logistics issues, sharply higher raw material costs, and negative currency exchange rates. While these cost headwinds are continuing, they are not unique to Escalade, and we are taking every measure to protect the profit margins, which allow us to reinvest in the business, to support our retail partners, and serve our consumers with innovative products that bring families and friends together,” said Walter P. Glazer, Jr., Interim President and CEO, Escalade, Inc.
“Late last year, we made a significant inventory commitment to ensure supply for our retail partners,” continued Glazer. “While we are carrying much higher than normal inventory, current supply chain issues and delays may work in our favor over the coming months.”
Net sales for the first quarter of 2021 were $59.2 million compared to net sales of $37.3 million for the same quarter in 2020, increasing $21.9 million or 58.7 percent. The increase in sales was driven by growth in nearly all its product categories, led by archery and outdoor.
Gross margin ratio for the first quarter of 2021 was 29.5 percent, compared to 27.4 percent for the same period in the prior year. The improvement in gross margin was primarily due to product mix and operating efficiencies. Gross profit for the first quarter of 2021 was $17.4 million compared to gross profit of $10.2 million for the same quarter in 2020.
Selling, general and administrative expenses (SG&A) were $9.9 million for the quarter compared to $7.5 million for the same period in the prior year, an increase of $2.4 million or 32.4 percent. SG&A, as a percent of sales, for the first quarter of 2021 decreased to 16.7 percent from 20.0 percent reported for the same period the prior year.
Operating income for the first quarter of 2021 was $7.1 million compared to operating income of $2.4 million for the same period in the prior year.
Net income for the first quarter of 2021 was $5.4 million, or $0.39 diluted earnings per share, compared to net income of $2.0 million, or $0.14 diluted earnings per share for the same quarter in 2020.
The company announced a quarterly dividend of $0.14 per share to be paid to all shareholders of record on June 1, 2021, and disbursed on June 8, 2021.
Escalade’s 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; Atomic, Victory Tailgate, Triumph Sports, Viva Sol, Zume Games recreational games; Dura and Onix pickleball equipment; Goalrilla, Goalsetter 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 billiards and game room assortment and Cue&Case specialty billiard accessories.
Photo courtesy Escalade Sports
