Business
Escalade Reports Second Quarter 2023 and Year to Date 2023 Results
EVANSVILLE, Ind., July 27, 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., July 27, 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 second quarter and year to date results for 2023. SECOND QUARTER 2023 (As compared to the second quarter 2022) Net sales were $67.8 million, a decline of 28.2%Operating income was $6.3 million, 23.6% below 2022EBITDA totaled $7.7 million, a decline of 25.9%Net income of $3.6 million, or $0.26 per diluted share, a decline of $2.0 millionCash provided by operations of $8.4 million, an increase of $5.9 million TWO QUARTERS ENDED JUNE 30, 2023 (As compared to the first half 2022) Net sales decreased 25.2% to $124.7 millionGross margin declined 410 basis points, to 22.2%Operating income decreased 62.8% to $6.4 millionNet income of $2.7 million, or $0.20 per diluted share vs. $12.3 million, or $0.91 per diluted share for 2022Cash provided by operations of $12.9 million vs. cash used of $0.3 million For the second quarter ended June 30, 2023, Escalade reported net income of $3.6 million, or $0.26 per diluted share, versus net income of $5.7 million, or $0.42 per diluted share for the second quarter in 2022. Total net sales declined 28.2% on a year-over-year basis in the second quarter, due to a combination of reduced post-pandemic consumer demand across most product categories, together with 21 fewer days in the Company’s new reporting calendar, when compared to the year-ago period. Excluding the impact of the change in the Company’s reporting calendar, sales declined 9.5% on a year-over-year basis. For the two quarters ended June 30, 2023, Escalade reported net income of $2.7 million, or $0.20 per diluted share, versus $12.3 million, or $0.91 per diluted share for the first half of 2022. Total net sales declined 25.2% on a year-over-year basis in the first half of 2023 due mainly to reduced post-pandemic demand, particularly in our archery, basketball, and indoor/outdoor games categories as well as excess inventory levels in the retail channel. Escalade reported second quarter gross margin of 24.6%, a decline of 50 basis points versus the prior-year quarter, primarily driven by higher-cost inventory, elevated inventory storage and handling costs, and lower operating leverage on a comparably lower revenue base partially of...