Business
Escalade Reports Fourth Quarter and Full Year 2022 Results
EVANSVILLE, Ind., Feb. 22, 2023 /PRNewswire/ -- Escalade, Inc. (NASDAQ: ESCA, or the "Company"), a leading manufacturer and distributor of sporting goods and
About this update from Escalade, Incorporated
[{"type":"text","content":"EVANSVILLE, Ind., Feb. 22, 2023 /PRNewswire/ -- Escalade, Inc. (NASDAQ: ESCA, or the \"Company\"), a leading manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, today announced fourth quarter and full year results for 2022.\n\n \n \n \n \n \n \n\n \nFOURTH QUARTER 2022 (As compared to the fourth quarter 2021)\nNet Sales decreased 1.8% to $72.1 millionOrganic sales, excluding acquisition contributions, declined 14.4%Gross margin increased 19 basis points, to 22.4%Operating income decreased 23.8% to $4.9 millionNet income of $2.7 million, or $0.20 per diluted share vs. $4.9 million, or $0.36 per share for Q4 2021EBITDA decreased 21.5% to $5.8 millionAnnounced $0.15 per share cash dividend to shareholders of record on March 13, 2023FULL YEAR 2022 (As compared to full year 2021)\nNet Sales were up to prior year at $313.8 millionOrganic sales, excluding acquisition contributions, declined 9.8%Gross margin declined 112 basis points, to 23.5%Operating income decreased 17.5% to $26.3 millionNet income of $18.0 million, or $1.31 per diluted share vs. $24.4 million, or $1.76 per diluted share for 2021EBITDA decreased 12.0% to $32.5 millionFor the three months ended December 31, 2022, Escalade reported net income of $2.7 million, or $0.20 per diluted share.\nSales declined due to softening consumer demand and excess inventories in the retail channel. During the fourth quarter, increases in indoor games and pickleball sales, together with contribution from the Brunswick Billiards® acquisition completed January 21, 2022 were more than offset by lower sales in outdoor categories including archery, basketball, games, water sports, and playground.\nThe Company reported fourth quarter gross margin of 22.4%, an increase of 19 basis points when compared with the prior-year period, despite increased logistics expenses primarily associated with ongoing inventory handling and storage.\nSelling, general, and administrative expense as percentage of net sales increased to 15.0% in the fourth quarter 2022, versus 12.9% in the prior-year period, due to the addition of Brunswick Billiards.\nEarnings before interest, taxes, depreciation, and amortization (\"EBITDA\") declined 21.5% to $5.8 million in the fourth quarter 2022, versus $7.3 million in the prior-year period. Full-year 2022 EBITDA decreased 12.0% to $32.5 mil...