Business
Escalade Reports Second Quarter 2019 Results
EVANSVILLE, Ind., Aug. 7, 2019 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) - "Expanded distribution within major customers and a return to normal
About this update from Escalade, Incorporated
[{"type":"text","content":"EVANSVILLE, Ind., Aug. 7, 2019 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) - \"Expanded distribution within major customers and a return to normal weather patterns resulted in revenue growth of 14.3%. Sales increases in our Outdoor categories more than offset underperformance in other categories. Our Basketball brands Goalrilla™, Goalsetter®, Goaliath® and Silverback®, along with Outdoor Games brands Victory Tailgate® and Triumph™, led to the increased revenue,\" stated Dave Fetherman, President and CEO. \"We continue to execute on our transformational strategy to support the continuing shift in consumer buying trends as our E-Commerce revenue grew 91% in the quarter and made up 39% of our overall revenue compared to 24% in prior year. While our recently acquired Victory Tailgate business contributed to the increase, I'm pleased that we are seeing excellent growth across all E-commerce platforms.\" \n\n \nNet sales for the second quarter of 2019 were $55.6 million compared to net sales of $48.7 million for the same quarter in 2018. \nGross margin ratio for the second quarter of 2019 was 23.3%, compared to 23.6% for the same period in the prior year. Gross profit for the second quarter of 2019 was $13.0 million compared to gross profit of $11.5 million for the same quarter in 2018. The slight decline in gross margin ratio was due to increased customer allowances and product mix.\nSelling, general and administrative expenses (SG&A) were $10.0 million for the quarter compared to $9.1 million for the same period in the prior year, an increase of $0.9 million or 10.1%. The increase in SG&A was due to operating costs associated with Victory Tailgate, which was acquired during the fourth quarter of 2018. SG&A, as a percent of sales, for the second quarter of 2019 decreased to 18.0% from 18.7% reported for the same period prior year. \nOperating income for the second quarter of 2019 was $2.5 million compared to operating income of $2.0 million for the same period in the prior year. \nThe Company recognized a $13.0 million gain in other income during the second quarter of 2018 on the sale of our 50% owned equity method investment, Stiga, a Swedish entity. \nNet income for the second quarter of 2019 was $1.9 million, or $0.13 diluted earnings per share compared to net income of $12.1 million, or $0.84 diluted earning...