-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LjZXscP460WWDXO3jZTT4SeXCDoMi3c6vDmtLT/wb8qkNXTEJOW45d2yjVwU7H++ nAUDcoQOdhVG8yRD0X3D1Q== 0001019056-05-000194.txt : 20050211 0001019056-05-000194.hdr.sgml : 20050211 20050211093955 ACCESSION NUMBER: 0001019056-05-000194 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050211 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050211 DATE AS OF CHANGE: 20050211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ESCALADE INC CENTRAL INDEX KEY: 0000033488 STANDARD INDUSTRIAL CLASSIFICATION: [3949] IRS NUMBER: 132739290 STATE OF INCORPORATION: IN FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-06966 FILM NUMBER: 05595290 BUSINESS ADDRESS: STREET 1: 817 MAXWELL AVE STREET 2: P O BOX 899 CITY: EVANSVILLE STATE: IN ZIP: 47717 BUSINESS PHONE: 8124671200 MAIL ADDRESS: STREET 1: PO BOX 889 CITY: EVANSVILLE STATE: IN ZIP: 47706 FORMER COMPANY: FORMER CONFORMED NAME: MARTIN YALE BUSINESS MACHINES CORP DATE OF NAME CHANGE: 19820310 FORMER COMPANY: FORMER CONFORMED NAME: MARTIN YALE INDUSTRIES INC DATE OF NAME CHANGE: 19720306 FORMER COMPANY: FORMER CONFORMED NAME: WILLIAMS MANUFACTURING CO DATE OF NAME CHANGE: 19710504 8-K 1 escalade_8k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) February 11, 2005 ------------------------- ESCALADE, INCORPRATED - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Indiana - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 0-6996 13-2739290 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 251 Wedcor Avenue, Wabash, Indiana 46992 46992 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (260) 569-7208 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Section 2 - Financial Information Item 2.02 Results of Operations and Financial Condition. On February 11, 2005, Escalade, Incorporated ("Escalade") issued the press release attached hereto as Exhibit 99.1 announcing financial information regarding Escalade's completed fourth quarter and 2004 fiscal year. The information hereunder shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. Section 9 - Financial Statements and Exhibits Item 9.01 Financial Statements and Exhibits (c) Exhibits EXHIBIT NUMBER DESCRIPTION 99.1 Press release dated February 11, 2005 SIGNATURES Pursuant to the requirements of the Securities Act of 1934, Escalade, Incorporated has duly caused this report to be signed on its behalf in Wabash, Indiana by the undersigned hereunto duly authorized. Date: February 11, 2005 ESCALADE, INCORPORATED By: /s/ TERRY D. FRANDSEN ------------------------------------ Vice President and Chief Financial Officer 2 EX-99.1 2 ex99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 PRESS RELEASE ESCALADE ANNOUNCES FOURTH QUARTER AND FISCAL 2004 RESULTS Wabash, IN (February 11, 2005) Escalade, Incorporated (NASDAQ: ESCA) announced today that Fourth quarter net sales declined 15% to $57,588,000 due primarily to a shift in timing in sporting goods sales, however, full year net sales increased to a record $220,709,000, a 2% gain over the comparable year ago period. Fourth quarter net income declined 85% to $946,000 due to $5,206,000 of non-cash expenses recorded to recognize excess inventory, investment write downs, and additional restructuring charges including severance and legal fees, all within the Martin Yale Group's office products operations. Full year net income declined 47% to $7,827,000 or sixty cents per share. Both the quarter and the full year results were significantly affected by higher effective tax rates and costs associated with compliance with Sarbanes-Oxley legislation. During the year, bank debt was reduced nearly $10,000,000 after using cash of $1,721,000 for dividends and stock repurchases; reflecting cash flow well above net income. As in the past, the highly seasonal nature of the sporting goods business makes quarter to quarter comparisons difficult. Escalade Sports' net sales of sporting goods products declined 19% to $37,316,000 for the quarter, however, full year net sales increased to $141,644,000, a 5% gain over the prior year's comparable period. Net income was down 13% for the quarter, but up 11% for the year. Substantial progress continues to be made in our ongoing operations cost reduction program. Our customers' inventories are at relatively overall normal levels so the first half of 2005 may not see gains similar to 2004 when their inventory levels were lower, however, our improved product offerings and expanding customer base make us cautiously optimistic that 2005 will be another good year for sporting goods. Escalade Sports was once again awarded the coveted Sears Partners in Progress Award for the sixth straight year for its stellar 2004 performance. Martin Yale's net sales of office products dipped 6% for the quarter to $20,272,000 resulting in full year net sales of $79,065,000 a decline of 3% against the comparable year ago period. Net income declined 182% for the quarter resulting in a loss due to the one time pretax charges of $5,206,000 discussed above. This coupled with the $2,724,000 of restructuring charges and goodwill impairment loss recorded in the third quarter put the full year net income down 136%, also a loss. The entire decline in profitability is within the European operations as the U.S. net income increased during the quarter and for the full year. The product rationalization that has occurred throughout the year will make it difficult to achieve a sales increase in 2005, however, the results of the cost cutting, restructuring, and consolidation efforts should put us in a more competitive position and provide substantial improved profitability for 2005. Our European (50% owned) sporting goods joint ventures, Stiga and Escalade International continued to contribute to earnings, collectively providing $.06 per share for the full year. We are continuing to evaluate acquisition opportunities in the sporting goods industry, along with other means of enhancing shareholder value. Escalade is a quality manufacturer and marketer of sporting goods and office/graphic arts products sold worldwide. To obtain more information on the Company and its products, visit our website at: www.EscaladeInc.com or contact Terry Frandsen Vice President and CFO at 260/569-7208 or C.W. (Bill) Reed, President and CEO at 260/569-7233. 3 ESCALADE, INCORPORATED AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited, In Thousands Except Per Share Amounts)
3 Months Ended 12 Months Ended ---------------------------- ---------------------------- 25 Dec 2004 27 Dec 2003 25 Dec 2004 27 Dec 2003 ------------ ------------ ------------ ------------ NET SALES ................................... $ 57,588 $ 67,341 $ 220,709 $ 216,268 OPERATING EXPENSES Cost of goods sold .................... 40,010 50,994 158,391 154,365 Selling and administrative ............ 12,656 8,639 43,070 40,907 Restructuring Costs ................... 954 -- 2,366 -- Goodwill impairment loss .............. -- -- 1,312 -- ------------ ------------ ------------ ------------ OPERATING INCOME ............................ 3,968 7,708 15,570 20,996 OTHER INCOME (EXPENSE) Interest expense ...................... (345) (482) (1,772) (2,282) Other income (expense) ................ (527) 1,425 19 2,509 ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES .................. 3,096 8,651 13,817 21,223 PROVISION (BENEFIT) FOR INCOME TAXES ........ 2,150 2,186 5,990 6,373 ------------ ------------ ------------ ------------ NET INCOME .................................. $ 946 $ 6,465 $ 7,827 $ 14,850 ============ ============ ============ ============ PER SHARE DATA Basic earnings per share .............. $ 0.07 $ 0.50 $ 0.60 $ 1.15 ============ ============ ============ ============ Diluted earnings per share ............ $ 0.07 $ 0.49 $ 0.59 $ 1.13 ============ ============ ============ ============ Average shares outstanding ............ 13,031 12,850 12,980 12,937
CONSOLIDATED CONDENSED BALANCE SHEET (Unaudited, In Thousands) 25 December 2004 27 December 2003 ---------------- ---------------- ASSETS Current assets .................... $ 83,402 $ 79,619 Property, Plant & Equipment - net.. 16,498 17,537 Other assets ...................... 17,311 18,504 Goodwill .......................... 17,888 18,777 ---------------- ---------------- Total .......................... $ 135,099 $ 134,437 ================ ================ Current liabilities ............... $ 47,606 $ 54,962 Other liabilities ................. 17,515 18,192 Stockholders' equity .............. 69,978 61,283 ---------------- ---------------- Total .......................... $ 135,099 $ 134,437 ================ ================ 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, Escalade's ability to successfully integrate the operations of acquired assets and businesses, new product development, the continuation and development of key customer and supplier relationships, Escalade's ability to control costs, general economic conditions, fluctuations in operating results, changes in the securities markets 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 update these forward-looking statements after the date of this report. 4 -----END PRIVACY-ENHANCED MESSAGE-----