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." 

Net 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.

Gross 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.

Selling, 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.

Operating 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.

The 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.

Net 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 earnings per share for the same quarter in 2018. Excluding the one-time gain recognized on the sale of our 50% investment in Stiga, net income for the second quarter of 2018 was $1.4 million, or $0.10 diluted earnings per share.

The Company announced a quarterly dividend of $0.125 per share to be paid to all shareholders of record on September 9, 2019 and disbursed on September 16, 2019.

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 812/467-1358.

ABOUT ESCALADE SPORTS

Headquartered in Evansville, IN, Escalade Sports is a global manufacturer and distributor of sports and outdoor recreational equipment.  Leaders in their respective categories, Escalade Sports' brands include Bear® Archery, Bear X™, Trophy Ridge®, Rocket®, SIK™ and Cajun Bowfishing™ archery equipment; STIGA® and Ping-Pong® table tennis; Accudart® and Unicorn® darting; Atomic®, Victory Tailgate®, Triumph™ Sports, Viva Sol®, Zume Games® recreational games; Onix® pickleball equipment; Goalrilla™, Goalsetter® residential in-ground basketball systems, Goaliath® and Silverback® residential in-ground and portable basketball goals; Lifeline® and the STEP® fitness products; Woodplay® premium playsets; Vuly™ trampolines; and Cue&Case® - a leader in specialty billiard accessories. Escalade Sports' products are available at sporting goods dealers and independent retailers nationwide.  For more information on Escalade Sports, its brands, instruction manuals, retailers, warranty, replacement parts or customer service, please call 1-888-784-4288 or visit www.escaladesports.com.

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 of divestitures or discontinuances of certain operations, assets, brands, and products, the continuation and development of key customer, supplier, licensing and other business relationships, the ability to successfully negotiate the shifting retail environment and changes in consumer buying habits, the financial health of our customers, disruptions or delays in our supply chain, 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, the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology, risks related to data security of privacy breaches, 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.

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SOURCE Escalade, Incorporated