Escalade, Inc. reported that consolidated net sales rose 10% to $54,655,000 in the second quarter, bringing year to date sales to $89,905,000, a 14% gain, as compared to year ago comparable periods. Net income declined 13% for the quarter to $1,953,000, however, year to date net income is up 13% to $2,551,000 or twenty cents per share as compared to seventeen cents for last year's first half.
Escalade Sports' net sales of sporting good products rose 16% to $30,619,000 for the quarter reflecting the inclusion of the Bear Archery acquisition for the full quarter and the return to more normal shipping patterns due to improved inventory management by our customers. The increased sales and continued improvement in factory operating expenses drove a 7.5% increase in net income for the quarter.
For the first half, net sales are up 23% to $46,309,000 and net income is up 82% compared to the same period last year. The first half has been the beneficiary of one time sales gains that will not occur in the second half; however, ESCA still expects to show an increase for the full year. Subsequent to the quarter, ESCA signed a definitive agreement to acquire a non sporting goods product line that meets its strategic objective of fully utilizing the capacity of its blow molding and weight filling facility in Olney, IL. This is expected to add between one and two million dollars to net sales on an annual basis and will be accretive to earnings beginning in 2005.
The company continuing to evaluate acquisitions in the sporting goods industry now. ESCA said they should be in a position to begin looking for opportunities in the office products industry in the last half of 2005.
