Escalade(ESCA) - 2024 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended June 30, 2024, were $62,526 thousand, a decrease of 7.4$67,771 thousand for the same period in 2023[22] - Operating income for the three months ended June 30, 2024, was $4,457 thousand, down 28.7$6,258 thousand in the prior year[22] - Net income for the three months ended June 30, 2024, was $2,844 thousand, a decrease of 21.9$3,642 thousand for the same period in 2023[22] - Basic earnings per share for the three months ended June 30, 2024, were $0.21, compared to$0.27 for the same period in 2023, reflecting a decline of 22.2%[22] - Revenues from external customers for the three months ended June 30, 2024, were $67,771 thousand, an increase from$62,526 thousand for the same period last year, representing an increase of approximately 3.98%[36] - Operating income for the six months ended June 30, 2024, was $9,206 thousand, compared to$7,517 thousand for the same period last year, reflecting a growth of approximately 22.5%[58] - Net income for the three months ended June 30, 2024, was $3,817 thousand, up from$3,176 thousand in the same period last year, indicating an increase of about 20.2%[36] Assets and Liabilities - Total current assets as of June 30, 2024, were $139,052 thousand, down 5.8$146,831 thousand as of December 31, 2023[21] - Total liabilities decreased to $77,084 thousand as of June 30, 2024, from$88,426 thousand as of December 31, 2023, representing a reduction of 12.5%[21] - Long-term debt as of June 30, 2024, was $36,024 thousand, down 17.7$43,753 thousand as of December 31, 2023[21] - Total assets as of June 30, 2024, were $240,639 thousand, a decrease from$243,066 thousand as of December 31, 2023[58] - Total debt as of June 30, 2024, was $43.2 million, a decrease of$7.7 million from December 31, 2023, with total debt as a percentage of stockholders' equity at 26.0%[83] Dividends - The company declared dividends of $0.15 per share for the three months ended June 30, 2024, consistent with the same period in 2023[22] - The company paid a quarterly dividend of$0.15 per common share, totaling approximately $2.1 million on April 22, 2024[37] - The Company paid a quarterly dividend of$0.15 per common share on January 12, 2024, totaling approximately 2.1 million[60] Expenses - Selling, general and administrative expenses (SG&A) rose to 10.1 million in Q2 2024, an increase of 3.0% compared to 9.8 million in the same period last year, with SG&A as a percentage of sales increasing to 16.1%[81] - Selling, general, and administrative expenses (SG&A) for the first six months of 2024 were 20.8 million, an increase of 3.6% from $20.1 million in the prior year[108] Cash and Credit Facilities - Cash and cash equivalents decreased to$362 thousand as of June 30, 2024, from $577 thousand as of June 30, 2023[21] - The company has a senior revolving credit facility with a maximum availability of$65 million, increased from $50 million, with a maturity date extended to January 21, 2027[47] - The maximum availability under the senior revolving credit facility was increased from$65.0 million to $75.0 million as per the First Amendment to the Restated Credit Agreement[100][111] Operational Insights - The company’s revenues are generated from various sales channels, including mass merchants, specialty dealers, and e-commerce[44] - Total net sales decreased by 7.7$28.8 million under its stock repurchase program[122] - Total number of shares purchased under the current repurchase program is 2,153,132 at an average price of $13.38 per share[134] - The maximum number of shares that may yet be purchased under the plans or programs is valued at$4,153,252[134] - No share purchases were made in the second quarter from April to June 2024[134] Internal Controls - Management is actively engaged in remediation efforts to address material weaknesses in internal control over financial reporting[128]