Escalade Reports First Quarter 2016 Results

EVANSVILLE, Ind., April 15, 2016

Gross margin ratio for the first quarter of 2016 remained flat at 32% compared to the same quarter in 2015.  Selling, general and administrative expenses (SG&A) were $7.8 million for the first quarter of 2016 compared to $5.9 million for the same period in 2015, an increase of $1.9 million, which is primarily due to one-time costs associated with bad debt expenses incurred related to Sports Authority's bankruptcy filing and increased marketing efforts and selling expenses for new portable basketball systems introduced in the first quarter of 2016 that will benefit future periods.

Other income for the first quarter of 2016 was adversely impacted from the operating results of the Company's 50% ownership in STIGA, a Swedish entity.

"The first quarter results were impacted by the additional expenses incurred for bad debt related to Sports Authority's bankruptcy filing announced in early March," stated Dave Fetherman, President and Chief Executive Officer of Escalade, Inc. "We continue to experience a decline in operating income due to the soft Archery category, but anticipate offsetting this decline with the introduction of our BearX crossbows, which began shipping in the second quarter. We have successfully introduced a new line of portable basketball systems, building on our strong Goalrilla, Goalsetter and Silverback brands and lead position within the in-ground basketball category. We expect these systems to be fully launched in the market by the end of the third quarter. Both of these new product categories are expected to have a positive impact on the second half of 2016. Our growth strategy of strategic acquisitions and internally developed product remains a focus for the Company, and we will continue executing on that strategy."

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 812/467-4449.

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 of non-core assets and businesses, the continuation and development of key customer and supplier relationships, 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 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.