Escalade Reports Fourth Quarter Sales Growth Of 14% And Full Year Up 11%

EVANSVILLE, Ind., Feb. 27, 2014 /PRNewswire/ — Escalade, Incorporated (NASDAQ:
ESCA) announced that net revenues for the fourth quarter of 2013 were 14% higher
than the same quarter last year. Net revenues for the full year 2013 were 11%
higher than last year. Sales growth was driven by the Sporting Goods segment and
was a direct result of continued product innovation and brand marketing.

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Net income for the fourth quarter of 2013 was $3.1 million, or $0.23 basic
earnings per share compared to net income of $3.9 million or $0.29 basic
earnings per share for the same quarter in 2012. Net income for the full year
2013 was $9.8 million or 11% higher than last year excluding the impact of
goodwill and intangible asset impairment in 2012. 2013 basic earnings per share
was $0.73 compared to $0.66 basic earnings per share last year excluding the
impact of goodwill and intangible asset impairment in 2012. In the third quarter
of 2012, the Company recorded goodwill and intangible asset impairments related
to the Information Security and Print finishing segment totaling $13.4 million
along with an unrelated impairment for an equity method investment in the amount
of $382 thousand.

In the Sporting Goods segment, net revenue increased 18.1% in 2013 compared to
2012 with growth coming from most sales channels in the Sporting Goods segment.
The Company continues to aggressively pursue opportunities to increase revenue
through introduction of new products, expansion of product distribution,
acquisitions, and increased investment in consumer marketing.

Net revenue in the Information Security and Print Finishing business decreased
12.3% in 2013 compared to 2012. Excluding the effect of changes in foreign
exchange rates, 2013 net revenues were down 12.5% compared with 2012. Sales are
direct to end users, including government agencies, as well as through office
products retailers, wholesalers, specialty dealers, and business partners.

“We are pleased with achieving double-digit top line revenue and earnings
growth,” stated Robert J. Keller, President and Chief Executive Officer of
Escalade, Inc. “Our full year revenue growth of 11% and net income of $0.73 per
share reflects the strong market acceptance of our innovative new products and
trusted brands. We continue to focus on making improvements in our company and
expanding our footprint in core markets.”

Escalade is a leading manufacturer and marketer of sporting goods and
information security and print finishing 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. 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 Statement of Operations

(Unaudited, In Thousands Except Per Share Data)

Three Months Ended Twelve Months Ended
—————— ——————-

December 28, December 29, December 28, December 29,
2013 2012 2013 2012
—- —- —- —-

Net Sales $46,372 $40,789 $163,677 $147,589

Costs, Expenses and Other Income

Cost of products sold 34,139 30,231 113,349 103,174

Selling, administrative and general expenses 8,804 7,663 33,450 31,370

Goodwill and intangible asset impairment charges — — — 13,384

Amortization 562 524 2,381 2,246
— — —– —–

Operating Income (Loss) 2,867 2,371 14,497 (2,585)

Interest expense 142 112 738 602

Other (income) (2,062) (1,700) (2,929) (3,031)

Equity method investment impairment — — — 382
— — — —

Income (Loss) Before Income Taxes 4,787 3,959 16,688 (538)

Provision for Income Taxes 1,737 49 6,883 4,392
—– — —– —–

Net Income (Loss) $3,050 $3,910 $9,805 $(4,930)
====== ====== ====== =======

Earnings Per Share Data

Basic earnings (loss) per share $0.23 $0.29 $0.73 $(0.37)
===== ===== ===== ======

Diluted earnings (loss) per share $0.22 $0.29 $0.72 $(0.37)
===== ===== ===== ======

Average shares outstanding 13,579 13,423 13,506 13,244

Consolidated Condensed Balance Sheets

(Unaudited, In Thousands)

December 28, 2013 December 29, 2012
—————– ——————

Assets

Current
assets $81,216 $70,965

Property,
plant &
equipment,
net 14,958 12,281

Other
assets 32,687 30,477

Goodwill 13,113 12,017
—— ——

Total $141,974 $125,740
======== ========

Liabilities and Stockholders’ Equity

Current
liabilities $43,679 $38,309

Other
liabilities 10,340 6,974

Stockholders’
equity 87,955 80,457
—— ——

Total $141,974 $125,740
======== ========

(Logo: http://photos.prnewswire.com/prnh/20130830/MM72120LOGO )

SOURCE Escalade, Incorporated

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