Net income for the full year 2014 was $11.8 million or 20% higher than the prior year. Diluted earnings per share in 2014 were $0.84 compared to $0.72 diluted earnings per share in the prior year. Loss from discontinued operations in 2014 includes loss from operations of $0.6 million, loss on disposal of assets of $9.6 million, income from reclassification of accumulated other comprehensive income of $2.6 million and a tax benefit of $6.1 million.
The Company was able to utilize previously reserved net operating loss and capital loss carryovers to realize a tax benefit on the disposal of $6.1 million. Net loss for the full year 2014 from discontinued operations is $1.5 million or $0.11 diluted earnings per share compared to net loss of $2.8 million or $0.20 diluted earnings per share in the prior year.
Revenue from continuing operations increased 7% for the fourth quarter of 2014 and 4% for the full year of 2014, compared with the same periods in the prior year. Gross margin ratio was essentially unchanged from the prior year due to increased research and development spending on new products.
The Company is solely focused on growing its Sporting Goods business through organic growth of existing categories, strategic acquisitions, and new product development now that the Information Security and Print Finishing segment has been divested. The Company competes in a variety of categories including archery, team and individual sports and games. Strong brands and on-going investment in product development provide a solid foundation for building customer loyalty and continued growth.
"We completed 2014 with sales up 7% in the fourth quarter, indicative of our customers' improved results experienced through the holiday period," stated Robert J. Keller, President and Chief Executive Officer of Escalade, Inc. "Heading into 2015, we are fully focused on achieving long term growth in our Sporting Goods business through increased strategic investments in product line expansion and new category entry."
Escalade is a leading manufacturer and marketer of sporting goods products sold worldwide. To obtain more information on the Company and its products, visit our website at: www.EscaladeInc.com or contact Patrick Griffin, Vice President of Corporate Development & Investor Relations at 812/467-4449.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements relating to present or future trends or factors that are subject to risks and uncertainties. These risks include, but are not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, Escalade's ability to achieve its business objectives, especially with respect to its Sporting Goods business on which it has chosen to focus, Escalade's ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and the divestiture of its Information Security and Print Finishing segment, the continuation and development of key customer and supplier relationships, Escalade's ability to control costs, general economic conditions, fluctuation in operating results, changes in foreign currency exchange rates, changes in the securities market, Escalade's ability to obtain financing and to maintain compliance with the terms of such financing and other risks detailed from time to time in Escalade's filings with the Securities and Exchange Commission. Escalade's future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.
Escalade, Incorporated and Subsidiaries
Consolidated Condensed Statement of Operations(Unaudited, In Thousands Except Per Share Data) | |||||||
|
Three Months Ended
|
Twelve Months Ended
| ||||||
|
December 27,
2014
|
December 28,
2013
|
December 27,
2014
|
December 28,
2013
| ||||
|
Net Sales
|
$ 40,643
|
$ 38,164
|
$ 137,975
|
$ 132,991
| |||
|
Costs, Expenses and Other Income
|
|||||||
|
Cost of products sold
|
29,810
|
29,060
|
96,912
|
92,991
| |||
|
Selling, administrative and general expenses
|
6,073
|
5,851
|
22,938
|
21,453
| |||
|
Amortization
|
727
|
562
|
2,621
|
2,363
| |||
|
Operating Income
|
4,033
|
2,691
|
15,504
|
16,184
| |||
|
Interest expense
|
123
|
82
|
447
|
404
| |||
|
Other expense (income)
|
(2,411)
|
(2,069)
|
(4,726)
|
(2,934)
| |||
|
Income Before Income Taxes from Continuing Operations
|
6,321
|
4,678
|
19,783
|
18,714
| |||
|
Provision for Income Taxes from Continuing Operations
|
1,844
|
1,550
|
6,438
|
6,119
| |||
|
Net Income from Continuing Operations
|
4,477
|
3,128
|
13,345
|
12,595
| |||
|
Discontinued Operations
|
|||||||
|
Income (loss) from operations
|
(216)
|
109
|
(611)
|
(2,026)
| |||
|
Loss on classification as held for sale
|
--
|
--
|
(12,945)
|
--
| |||
|
Gain (loss) on disposal
(includes $2,565 of accumulated other comprehensive income
reclassification from foreign currency translation adjustment)
|
(209)
|
--
|
5,929
|
--
| |||
|
Provision (benefit) for Income Taxes
|
22
|
187
|
(6,099)
|
764
| |||
|
Net Loss from Discontinued Operations
|
(447)
|
(78)
|
(1,528)
|
(2,790)
| |||
|
Net Income
|
$ 4,030
|
$ 3,050
|
$ 11,817
|
$ 9,805
| |||
|
Basic Earnings Per Share Data:
|
|||||||
|
Income from continuing operations
|
$ 0.32
|
$ 0.23
|
$ 0.96
|
$ 0.93
| |||
|
Loss from discontinued operations
|
(0.03)
|
--
|
(0.11)
|
(0.20)
| |||
|
Net Income
|
$ 0.29
|
$ 0.23
|
$ 0.85
|
$ 0.73
| |||
|
Diluted Earnings Per Share Data:
|
|||||||
|
Income from continuing operations
|
$ 0.32
|
$ 0.23
|
$ 0.95
|
$ 0.92
| |||
|
Loss from discontinued operations
|
(0.03)
|
(0.01)
|
(0.11)
|
(0.20)
| |||
|
Net Income
|
$ 0.29
|
$ 0.22
|
$ 0.84
|
$ 0.72
| |||
|
Average shares outstanding
|
13,958
|
13,579
|
13,853
|
13,506
| |||
|
Consolidated Condensed Balance Sheets(Unaudited, In Thousands)
| |||
|
December 27,
2014
|
December 28,
2013
| ||
|
Assets
|
|||
|
Current assets excluding assets held for sale
|
$ 68,851
|
$ 64,655
| |
|
Property, plant & equipment, net
|
11,596
|
10,635
| |
|
Other assets
|
32,559
|
30,540
| |
|
Goodwill
|
14,875
|
13,113
| |
|
Assets held for sale
|
--
|
23,031
| |
|
Total
|
$ 127,881
|
$ 141,974
| |
|
Liabilities and Stockholders' Equity
|
|||
|
Current liabilities excluding liabilities held for sale
|
$ 31,746
|
$ 36,839
| |
|
Other liabilities
|
6,356
|
10,340
| |
|
Liabilities held for sale
|
--
|
6,840
| |
|
Stockholders' equity
|
89,779
|
87,955
| |
|
Total
|
$ 127,881
|
$ 141,974
| |
SOURCE Escalade, Incorporated through PRNewswire by press release ©
http://www.EscaladeInc.com
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