Business
Escalade Reports First Quarter 2023 Results
EVANSVILLE, Ind., May 09, 2023 (GLOBE NEWSWIRE) -- Escalade, Inc. (NASDAQ: ESCA, or the “Company”), a leading manufacturer and distributor of sporting goods
About this update from Escalade, Incorporated
[{"type":"text","content":"EVANSVILLE, Ind., May 09, 2023 (GLOBE NEWSWIRE) -- Escalade, Inc. (NASDAQ: ESCA, or the “Company”), a leading manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, today announced results for the first quarter 2023. FIRST QUARTER 2023 HIGHLIGHTS(As compared to the first quarter 2022) Net sales were $56.9 million, a decline of 21.3%Operating income was $0.1 million, 98.3% below 2022EBITDA totaled $1.6 million, a decrease of 85.2%Net loss of $1.0 million, or $0.07 loss per diluted share vs. $0.49 income per share for Q1 2022Cash provided by operations of $4.5 million vs. cash used of $2.9 million for Q1 2022 For the three months ended March 31, 2023, Escalade posted net sales of $56.9 million, net loss of $1.0 million and diluted loss per share of $0.07. Sales declined 21.3% on a year-over-year basis, given a combination of changing post-pandemic consumer demand, excess inventories in the retail channel and unfavorable weather conditions in the quarter which delayed the start of the spring business. The Company reported first quarter gross margin of 19.4%, a decline of 840 basis points versus the prior-year period, primarily driven by less favorable product mix, ongoing additional inventory storage and handling costs, and lower operating leverage with the lower sales level. Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) declined 85.2% to $1.6 million in the first quarter 2023, versus $10.5 million in the prior-year period. Net loss for the first quarter of 2023 was $1.0 million, or $0.07 diluted loss per share compared to net income of $6.7 million, or $0.49 diluted earnings per share for the same quarter in 2022. Cash provided by operations for the first quarter of 2023 was $4.5 million compared to cash used of $2.9 million for the same quarter in 2022. As of March 31, 2023, the Company had total cash and equivalents of $6.1 million, together with $32.9 million of availability on its senior secured revolving credit facility maturing in 2027. At the end of the first quarter 2023, net debt (total debt less cash) was 3.8x trailing twelve-month EBITDA. Escalade announced a quarterly dividend of $0.15 per share to be paid to all shareholders of record on June 12, 2023 and disbursed on June 19, 2023. Effective January 1, 2023, Escalade transitioned to a conventional twelve...