Escalade Announces Fourth Quarter and Full Year 2025 Results Conference Call Date [Accessibility Statement] Skip NavigationEVANSVILLE, Ind., Feb. 20, 2026 /PRNewswire/ -- Escalade, Inc. (NASDAQ: ESCA, or the "Company"), a leading manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, today announced that it will issue its fourth quarter and full year 2025 results before the market opens on Friday, February 27, 2026. A conference call will be held that day at 11:00 a.m. ET ...

Core Insights - The company reported Q3 2025 net sales of $67.8 million, net income of $5.6 million, and earnings per share of $0.40, with a gross margin increase to 28.1% from 24.8% year-over-year [1] - Management changes were announced, with Patrick J. Griffin appointed as interim president and CEO, emphasizing stability in strategic direction and operations [1] Performance Overview - On November 15, 2025, the stock price experienced a significant increase of 5.23%, reaching $13.27, with a trading volume of 15,615 shares, and institutional ratings were all buy recommendations [2] Future Developments - Market attention is expected to focus on the upcoming quarterly earnings report for Q4 2025 or Q1 2026, as well as the progress of management's strategic execution [3] - The macro environment, including geopolitical and trade tensions, may indirectly impact demand in the leisure and entertainment industry [3]

Core Viewpoint - Escalade Inc (ESCA) is set to report its earnings next month, indicating a timely opportunity to reassess the investment thesis after more than six months since the last update [1] Company Overview - Escalade Inc is a company that may appeal to long-term investors, particularly those with a 5-10 year investment horizon [1] - The investment strategy typically involves a mix of growth, value, and dividend-paying stocks, with a stronger focus on value [1] Investment Strategy - The company’s investment approach emphasizes simplicity, suggesting that a well-rounded portfolio can be achieved without excessive complexity [1] - There is an occasional strategy of selling options, indicating a willingness to engage in more advanced investment techniques [1]

Core Insights - Escalade, Inc. has announced the acquisition of AllCornhole, a leading supplier of cornhole bags and equipment, enhancing its position in the competitive cornhole market [1][2] - The acquisition aligns with Escalade's strategic goal to expand its presence in the tournament-level cornhole market and complements its existing Victory Tailgate brand and partnership with the American Cornhole League (ACL) [2][5] - The growth of cornhole as a recognized sport, with professional athletes competing for significant prize money, presents a substantial opportunity for Escalade to leverage AllCornhole's brand and technology [3][4] Company Overview - Escalade, Inc. was founded in 1922 and is headquartered in Evansville, Indiana, specializing in the design, manufacture, and sale of sporting goods and recreation equipment [6] - The company aims to connect families and friends through its diverse product offerings, which include brands like Goalrilla, STIGA, Bear Archery, and Brunswick Billiards [6] Industry Context - The American Cornhole League (ACL) serves as the governing body for professional and recreational cornhole, promoting standards for technology and equipment in the sport [7] - The collaboration between Escalade and AllCornhole is expected to enhance the quality of equipment available to players at all levels, supporting the rapid growth of the sport [4][5]

Financial Performance - Net sales for the three months ended September 30, 2025, were $67,786, compared to $67,738 for the same period in 2024, reflecting a slight increase of 0.07%[10] - For the nine months ended September 30, 2025, net sales were $177,598, down 5.3% from $187,568 in the same period of 2024[10] - Operating income for the three months ended September 30, 2025, was $7,301, a decrease of 8.4% from $7,974 in the same period of 2024[10] - Net income for the nine months ended September 30, 2025, was $9,998, down 2.8% from $10,286 in the same period of 2024[10] - Basic earnings per share for the three months ended September 30, 2025, were $0.40, compared to $0.41 for the same period in 2024, a decrease of 2.4%[10] - The net income for the three months ended September 30, 2025, was $5,554 thousand, compared to $5,667 thousand for the same period in 2024, reflecting a decrease of approximately 2%[29][33] - For the nine months ended September 30, 2025, total revenues were $177,598 thousand, down from $187,568 thousand in the same period of 2024, indicating a decline of about 5.3%[30] - The company reported an operating income of $13,574 thousand for the nine months ended September 30, 2025, compared to $15,491 thousand for the same period in 2024, a decrease of 12.36%[30] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $3,509, compared to $426 at the end of September 30, 2024, indicating a significant increase[13] - The company reported a net cash provided by operating activities of $16,118 for the nine months ended September 30, 2025, down from $23,759 in the same period of 2024[13] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $16,118 thousand, down from $23,759 thousand in 2024, a decline of 32.2%[13] Dividends - The company declared dividends of $0.15 per share for both the three months ended September 30, 2025, and 2024[10] - The Company paid quarterly dividends of $0.15 per common share totaling approximately $2.1 million each on January 13, April 14, July 14, and October 13, 2025[31][32] - The company declared dividends totaling $6,207 thousand for the nine months ended September 30, 2025, slightly down from $6,224 thousand in 2024, a decrease of 0.3%[13] Assets and Liabilities - Total assets as of September 30, 2025, were $232,460 thousand, unchanged from the previous year[29] - The outstanding principal amount of the term loan was $20.2 million as of September 30, 2025, with no amount drawn under the Revolving Facility[52] - Total future minimum lease payments as of September 30, 2025, were $1.535 million, with current operating lease liabilities reported at $496,000[49] - The weighted average remaining lease term for operating leases decreased to 3.08 years from 7.47 years year-over-year[48] Stock-Based Compensation - The Company recognized stock-based compensation expenses of $1,468 thousand for the nine months ended September 30, 2025, compared to $1,429 thousand for the same period in the prior year[25] - As of September 30, 2025, the Company had $2.3 million in unrecognized stock-based compensation expense related to non-vested stock awards, expected to be recognized over a weighted average period of 2.1 years[26] - The company issued 105,181 restricted stock units to employees during the nine months ended September 30, 2025, as part of its stock compensation strategy[24] Impairment and Risks - The fair value of the reporting unit exceeded its carrying value by approximately 6%, indicating potential risk of impairment in future periods[18] - The fair value of the reporting unit exceeded its carrying value by approximately 6% as of September 1, 2025, indicating potential goodwill impairment risk in future periods[18] Other Financial Metrics - The effective tax rate for the three months ending September 30, 2025, was 22.0%, compared to 23.9% for the same period last year[53] - The effective tax rate for the first nine months ending September 30, 2025, was 23.2%, compared to 23.9% for the same period last year[53] - The company reported a depreciation and amortization expense of $3,767 thousand for the nine months ended September 30, 2025[30] Acquisitions - The company acquired Gold Tip assets for $1.5 million during the three months ended September 30, 2025, which will be amortized over 20 years[55] - The company acquired assets for $1,800 thousand during the nine months ended September 30, 2025, marking a new investment strategy[13] Management Changes - Patrick J. Griffin was appointed as Interim President and CEO effective October 29, 2025, following the resignation of Armin Boehm[57]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $5.6 million or $0.40 per diluted share on net sales of $67.8 million [13] - Gross margins improved to 28.1% from 24.8% in the prior year, a 344 basis point increase attributed to lower operational costs [13][14] - Selling, general, and administrative expenses decreased by 4.1% to $11.2 million compared to the prior year [14] - Total cash used from operations was $1 million, a decline from $10.5 million in the prior year, primarily due to increased working capital usage [15] Business Line Data and Key Metrics Changes - The company experienced strong demand across most product categories, particularly in archery and safety, contributing to market share gains [6][19] - New product launches in archery, including over 30 products, received positive consumer responses [10] - The acquisition of Gold Tip is expected to enhance category leadership and broaden product offerings in archery [11] Market Data and Key Metrics Changes - Consumer spending is anticipated to remain cautious, leading to softer holiday sales compared to previous years [8] - There is a noted shift in consumer spending patterns, with strong demand for premium products while lower-priced products are seeing reduced demand [8] Company Strategy and Development Direction - The company remains focused on long-term strategies of product innovation and brand development to strengthen market leadership [9] - Strategic partnerships in various sports categories are being pursued to enhance visibility and consumer engagement [10] - The company is committed to maintaining a disciplined approach to capital allocation, prioritizing debt reduction, dividends, and opportunistic share repurchases [11][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged heightened consumer uncertainty and ongoing tariff-related costs but expressed confidence in the company's strategic direction [4][6] - The leadership transition is not expected to disrupt operations or strategic goals, with a commitment to delivering exceptional consumer experiences [3][4] - Management anticipates a lower impact from tariffs in Q4 compared to Q3, contingent on ongoing negotiations [23] Other Important Information - The company is actively engaging in community outreach initiatives, emphasizing support for healthy, active lifestyles [12] - The leadership team is focused on ensuring a seamless transition during the management change [3] Q&A Session Summary Question: Insights on strong market gains despite sluggish environment - Management highlighted success in categories like safety and games, indicating market share gains despite price increases [17][19] Question: Performance of the Pickleball category - Management confirmed maintaining market share in Pickleball and ongoing investment in new products, viewing it as a long-term growth area [20][21] Question: Impact of tariffs going into Q4 - Management expects a lower tariff impact in Q4 compared to Q3, with ongoing monitoring of trade negotiations [23] Question: Management transition and CEO search - The board is focused on finding a permanent CEO aligned with the company's growth mindset and culture [29] Question: Capital allocation priorities with low debt levels - Management indicated a balanced approach to capital allocation, including cash reserves, acquisitions, dividends, and share buybacks [31]

Core Insights - Escalade, Inc. reported third quarter 2025 results with net sales of $67.8 million, net income of $5.6 million, and diluted earnings per share of $0.40, showing a slight increase in sales compared to the previous year [2][8]. Financial Performance - Total net sales increased by 0.1% year-over-year, driven by growth in archery, table tennis, billiards, and safety categories, while basketball sales declined due to softer market demand and strategic exits from certain categories [3][4]. - Gross margin improved to 28.1%, up 334 basis points from the prior year, attributed to lower fixed costs and reduced inventory storage and handling costs, despite facing $4.3 million in tariff-related costs [4][9]. - EBITDA decreased by $1.3 million to $8.6 million compared to $9.9 million in the prior year, influenced by a non-recurring gain on asset sales in the previous period [4][19]. Cash Flow and Debt Management - Operating activities generated a cash flow of ($0.1) million, a significant decline from $10.5 million in the same quarter of 2024, reflecting a seasonal buildup in working capital ahead of the holiday season [5]. - Total debt decreased by 31.4% to $20.2 million from $29.5 million year-over-year, with a net debt to trailing twelve-month EBITDA ratio of 0.7x [5][8]. Dividend and Shareholder Returns - The company declared a quarterly dividend of $0.15 per share, scheduled for payment on January 12, 2026, to shareholders of record on January 5, 2026 [6][8]. Management Commentary - Management expressed confidence in the results, highlighting strong demand in core categories and market share gains, particularly in safety and archery, despite a challenging macroeconomic environment [7][9]. - The company is focused on a balanced promotional strategy for the holiday season, aiming to maximize sell-through while maintaining improved gross margin performance [9]. Strategic Developments - Escalade completed the acquisition of Gold Tip, enhancing its archery product portfolio and positioning for further market share gains in the archery category [9].

Financial Performance - Escalade reported net sales of $67.8 million for Q3 2025, a slight increase of 0.1% compared to $67.7 million in Q3 2024[3][10] - EBITDA decreased to $8.6 million, down from $9.9 million in Q3 2024, primarily due to a non-recurring gain of $3.9 million recognized in the prior year[6][10] - Net income for the nine months ended September 30, 2025, was $9,998,000, a decrease of 2.8% from $10,286,000 for the same period in 2024[25] - EBITDA (Non-GAAP) for the nine months ended September 30, 2025, was $17,444,000, down from $20,195,000 in 2024, reflecting a decrease of 13%[27] Cash Flow and Liquidity - Operating cash flow was negative at ($0.1) million, a decline from $10.5 million generated in Q3 2024, reflecting a seasonal buildup in working capital[7][10] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $16,118,000, down from $23,759,000 in 2024, indicating a decline of 32%[25] - Cash and cash equivalents at the end of the period were $3,509,000, compared to $426,000 at the end of the same period in 2024, showing a significant increase[25] - Cash dividends paid during the nine months ended September 30, 2025, were $6,207,000, slightly down from $6,224,000 in 2024[25] Debt and Liabilities - Total debt decreased by 31.4% to $20.2 million from $29.5 million in Q3 2024, with a net debt to trailing twelve-month EBITDA ratio of 0.7x[8][10] - Total liabilities as of September 30, 2025, were $60,133,000, compared to $57,333,000 as of December 31, 2024, marking an increase of 4.8%[23] Assets - Total assets as of September 30, 2025, were $232,460,000, compared to $226,330,000 as of December 31, 2024, reflecting an increase of 2%[23] - Current assets increased to $141,277,000 as of September 30, 2025, from $133,824,000 as of December 31, 2024, representing a growth of 5%[23] Strategic Initiatives - The company completed the acquisition of Gold Tip, enhancing its archery product portfolio and positioning for market share gains[11] - Escalade experienced increased demand in core categories such as safety, table tennis, archery, and billiards, while facing softer demand in basketball[4][11] - The company anticipates cautious consumer behavior during the holiday season and is implementing a balanced promotional strategy[11] - Escalade's management emphasized a focus on disciplined capital allocation and profitable growth moving forward[11] Dividends - Escalade announced a quarterly dividend of $0.15 per share, payable on January 12, 2026[9][10] Other Costs - The company issued $124,000 in common stock in lieu of bonuses to officers during the nine months ended September 30, 2025[25] - The company incurred $1,800,000 in acquisition costs during the nine months ended September 30, 2025[25] Gross Margin - Gross margin improved to 28.1%, up 334 basis points from 24.8% in the prior year, driven by lower fixed costs and decreased inventory handling costs[5][10]

Core Viewpoint - Escalade, Inc. has appointed Patrick J. Griffin as the Interim President and CEO, replacing Armin Boehm, who has resigned from the company [1][2]. Group 1: Leadership Changes - Patrick J. Griffin, age 56, has been with Escalade since 2002, serving in various roles including Director and Vice President of Corporate Development and Investor Relations since August 2012 [2]. - Walter P. Glazer, Jr., Chairman of the Board, expressed gratitude for Armin Boehm's service and confidence in Griffin's leadership capabilities [3]. Group 2: Company Strategy and Vision - Griffin emphasized the company's commitment to progress and adaptability in dynamic markets, focusing on sustainable growth and superior shareholder value through ongoing investments in brands, businesses, and people [4]. - The company aims to strengthen its foundation for long-term success while maintaining a strong corporate culture [4]. Group 3: Company Overview - Founded in 1922 and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods and recreational equipment [5]. - The company’s notable brands include Goalrilla™, STIGA®, Bear® Archery, Brunswick Billiards®, Accudart®, ONIX®, Lifeline®, and RAVE Sports®, with products available online and through major retailers [5].

Core Insights - Escalade, Inc. will release its third quarter 2025 financial results on October 30, 2025, before market opening [1] - A conference call to discuss the results will take place at 11:00 a.m. ET on the same day [1] Company Overview - Escalade, Inc. is a leading manufacturer and distributor of sporting goods and recreational equipment, founded in 1922 and headquartered in Evansville, Indiana [3] - The company offers a variety of brands including Brunswick Billiards®, STIGA®, Accudart®, RAVE Sports®, and others, focusing on creating lasting memories for families and friends [3] Investor Relations - A live webcast of the conference call will be available on Escalade's Investor Relations website [2] - Contact information for investor relations is provided, including a phone number for inquiries [4]