Escalade Reports Fourth Quarter and Full Year 2015 Results

EVANSVILLE, Ind., Feb. 23, 2016

EVANSVILLE, Ind., Feb. 23, 2016 /PRNewswire/ -- Escalade, Incorporated (NASDAQ: ESCA) announced that revenues for the fourth quarter of 2015 were up 8% over the same quarter in the prior year. Year to date revenues have increased 13% over the same period in the prior year due to organic growth and acquisitions. The Company reported net income from continuing operations for the fourth quarter of 2015 of $2.9 million, or $0.20 diluted earnings per share compared to net income from continuing operations of $4.5 million, or $0.32 diluted earnings per share for the same quarter in 2014. Full year 2015 net income from continuing operations was $11.6 million compared to prior year's net income from continuing operation of $13.3 million. 

Gross margin ratio for full year 2015 fell from 30% to 28% due to decreased sales and margins in archery. We expect the archery market to remain challenging through at least the first half of 2016. Selling, general and administrative expenses (SG&A) were $27.8 million for full year 2015 compared to $22.9 million for the same period in 2014, an increase of $4.8 million or 21%. The increase in SG&A is primarily due to continued marketing efforts in new categories acquired, investments in new products to be introduced in 2016 and severance related charges. We expect additional marketing and selling expenses in the first half of 2016 as we introduce new products, including BearX crossbows and GoTek portable basketball goals, which should be in full market distribution mid-year 2016.

Net income for the full year 2015 was $11.6 million or 2% lower than the prior year.  Diluted earnings per share in 2015 were $0.82 compared to $0.84 diluted earnings per share in the prior year.  Net income for 2015 was adversely impacted by foreign currency exchange rates associated with our 50% ownership of Stiga, headquartered in Sweden.

"Our fourth quarter and full year 2015 results continued to show revenue growth," stated Dave Fetherman, President and Chief Executive Officer of Escalade, Inc. "Operating income in 2015 declined as a function of a soft Archery category, costs associated with two acquisitions and our continued investments in product development. We anticipate the acquisitions made in the second half of 2015, the Goalsetter premium brand basketball goals and Onix pickleball equipment and accessories, to be accretive in 2016.  In January 2016, we entered into new categories with our line of BearX crossbows and GoTek portable basketball goals, both should have a positive impact on the second half of 2016. We also acquired Triumph Sports USA, Inc., a brand known for its innovative indoor and outdoor games, which we also expect to be accretive in 2016."

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.

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