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)     July 30, 2010

ESCALADE, INCORPORATED

(Exact Name of Registrant as Specified in Its Charter)

Indiana

(State or Other Jurisdiction of Incorporation)

0-6966	13-2739290
(Commission File Number)	(IRS Employer Identification No.)

817 MaxwellAvenue, Evansville, Indiana	47711
(Address of Principal Executive Offices)	(Zip Code)

(812) 467-4449

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(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):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o 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 July 30, 2010, Escalade, Incorporated ("Escalade") issued the press release attached hereto as Exhibit 99.1 announcing financial information regarding  Escalade's second quarter results for 2010.

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.

Item 9.01 Financial Statements and Exhibits

(c)           Exhibits

Exhibit	Description
99.1	Press release dated July 30, 2010

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Escalade, Incorporated has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:  July 30, 2010	ESCALADE, INCORPORATED
	By: /s/ DEBORAH J. MEINERT
	Deborah J. Meinert, Vice President and Chief Financial Officer

2

EX-99.1

EXHIBIT 99.1

PRESS RELEASE

ESCALADE REPORTS $0.15 EARNING PER SHARE IN Q2

Evansville, IN (July 30, 2010) Escalade, Incorporated (NASDAQ: ESCA) announced that revenues for the second quarter of 2010 were slightly higher than the same quarter last year and that profitability was significantly improved.  Increased profitability is a direct result of improved margins, operational improvements and reduced interest costs.  Net income for the quarter is $1.9 million or $0.15 per share compared to net income of $0.4 million or $0.03 per share for the same period last year.  For the first half of 2010, net income is $2.7 million or $0.21 per share compared to a net loss of $.1 million or $(0.01) per share.

Revenues from the Sporting Goods business were up 9% in both the first and second quarters compared to the same quarters last year.  Increases in consumer spending and new product distribution are driving sales increases.  Management believes improved sales in the Sporting Goods segment will continue through the remainder of the year.

Compared to last year, revenues from the Office Products business declined 17% and 15% for the second quarter and first half of 2010, respectively.  Excluding the effects of changes in the currency exchange rates, revenues declined 15.4% and 15.9%, for the second quarter and first half of 2010, respectively.  Financial uncertainty in several key markets in Europe, particularly Spain, Germany and the UK, has negatively impacted customer sentiment and slowed recovery.  In addition, many European governments have enacted significant budget cuts which could further impact sales.  North America experienced similar decreases in both government and commercial sales channels.  The Company will continue with new product launches to help achieve future growth; however, Management expects the challen ging sales environment in the Office Product segment to continue through the remainder of 2010.

The overall gross margin ratios for the second quarter and first half of 2010 were 33.3% and 33.6%, respectively, compared to 31.0% and 31.2%, respectively, for same periods last year. Management expects gross margins for the remainder of 2010 to exceed prior year.

Compared to the same periods last year, consolidated selling, general and administrative (“SG&A”) costs decreased 7.8% in the second quarter and 10.9% in the first half of 2010.  The Company continues to identify and implement cost savings initiatives while increasing strategic investments in product development and brand marketing.

“We are pleased to announce our fifth consecutive quarterly profit, including EPS of $0.15 for the second quarter, 2010,” said Robert J. Keller, President and Chief Executive Officer of Escalade, Inc.  “We are committed to our strategy of product innovation, brand marketing, and expense management to ensure all business segments are achieving sustainable top line sales growth and profitability into the future.”

Escalade is a leading 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 Deborah Meinert, Vice President and CFO 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, 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, fluctuation in operating results, 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.
60; 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.

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited, In Thousands Except Per Share Amounts)

	Three Months Ended						Six Months Ended						Twelve Months Ended
	10 July 2010			11 July 2009			10 July 2010			11 July 2009			10 July 2010			11 July 2009
NET SALES	$	35,737		$	35,641		$	60,906		$	60,599		$	116,306		$	134,323
OPERATING  EXPENSES
Cost of goods sold		23,828			24,579			40,444			41,675			81,020			99,795
Selling and administrative		8,068			8,748			14,929			16,771			27,643			35,034
Long-lived asset impairment		—			—			—			—			—			2,623
Amortization		391			940			674			1,407			1,532			2,174
OPERATING INCOME (LOSS)		3,450			1,374			4,859			746			6,111			(5,303	)
OTHER INCOME (EXPENSE)
Interest expense		(422	)		(658	)		(782	)		(900	)		(1,546	)		(1,778	)
Other income (expense)		53			47			311			231			2,351			(235	)
INCOME (LOSS) BEFORE INCOME TAXES		3,081			763			4,388			77			6,916			(7,316	)
PROVISION (BENEFIT) FOR INCOME TAXES		1,219			397			1,724			150			(2,522	)		(1,299	)
NET INCOME (LOSS)	$	1,862		$	366		$	2,664		$	(73	)	$	4,394		$	(6,017	)
PER SHARE DATA
Basic earnings (loss) per share	$	0.15		$	0.03		$	0.21		$	(0.01	)	$	0.35		$	(0.48	)
Diluted earnings (loss) per share	$	0.14		$	0.03		$	0.20		$	(0.01	)	$	0.33		$	(0.46	)
Average shares outstanding		12,711			12,624			12,700			12,620			12,676			12,618

CONSOLIDATED CONDENSED BALANCE SHEET

(Unaudited, In Thousands)

	10 July 2010		11 July 2009		26 December 2009
ASSETS
Current assets	$	53,308	$	65,591	$	52,936
Property, Plant & Equipment – net		20,042		19,488		21,493
Other assets		25,552		28,764		26,594
Goodwill		25,098		25,750		26,215
Total	$	124,000	$	139,593	$	127,238
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	32,559	$	57,954	$	43,248
Other liabilities		8,000		1,236		1,226
Stockholders’ equity		83,441		80,403		82,764
Total	$	124,000	$	139,593	$	127,238