Escalade(ESCA) - 2019 Q4 - Annual Report

Financial Performance - Net revenue for the Sporting Goods segment increased by 2.7% in 2019 compared to 2018, reaching $180.5 million[116] - Operating income for the Sporting Goods segment decreased to$8.6 million in 2019, down from $14.0 million in 2018, representing a decline of 38.5$31.6 million in 2019, compared to $29.8 million in 2018[112] Tax and Liquidity - The effective tax rate for 2019 was 18.8$10.5 million in 2019, down from $24.2 million in 2018[119] Capital Expenditures and Investments - The Company estimates capital expenditures for 2020 to be approximately$2.9 million[122] - The proportionate share of net income from a minority equity investment was $0.1 million in 2018 and$1.6 million in 2017[140] - Total cash dividends received from the equity investment amounted to $2,323 thousand in 2018 and$2,168 thousand in 2017[140] - The company completed the sale of its 50% interest for $33.7 million on May 17, 2018, resulting in a gain on sale of$13.0 million[140] Strategic Focus - The Company is focused on strategic acquisitions and new product development to enhance growth opportunities in the Sporting Goods segment[106] - The company has had licensing rights for Stiga-branded products since 1995, with a new license agreement effective January 1, 2019[140] Asset Management - The company evaluates the recoverability of long-lived assets whenever events indicate that the carrying amount may not be recoverable[139] - The company uses a combination of market and income approaches to establish fair value for goodwill impairment testing[136] - The qualitative impairment assessment indicated that it was not "more likely than not" that the fair value of the reporting unit was less than the carrying value as of December 28, 2019[137] Cost Management - The company attempts to pass on increased costs through price increases and is working on reducing expenses and improving manufacturing technologies[141]