Escalade(US:ESCA)2025-05-05 10:01Financial Performance - Escalade reported net sales of $55.5 million for Q1 2025, a decrease of 3.2% compared to $57.3 million in Q1 2024[3][8] - Net income for Q1 2025 was $2.6 million, or $0.19 diluted earnings per share, representing an increase of 46.2% from $1.8 million, or $0.13 diluted earnings per share in Q1 2024[4][8] - EBITDA increased to $4.9 million in Q1 2025, up 11.0% from $4.4 million in the prior-year period[5][8] - Net income for Q1 2025 increased to $2,619,000, up 47.5% from $1,775,000 in Q1 2024[22] - EBITDA for Q1 2025 was $4,922,000, an increase of 10.9% compared to $4,436,000 in Q1 2024[24] Cash Flow and Assets - Cash flow from operations was $3.8 million, a significant increase of $3.8 million compared to the same quarter last year[6] - Cash and cash equivalents at the end of Q1 2025 were $2,214,000, down from $4,194,000 at the end of Q4 2024, representing a decrease of 47.3%[22] - Net cash provided by operating activities for Q1 2025 was $3,791,000, significantly higher than $7,000 in Q1 2024[22] - Total current assets decreased to $131,108,000 in Q1 2025 from $133,824,000 in Q4 2024, a decline of 2.0%[20] Debt and Equity - Total debt decreased to $23.8 million at the end of Q1 2025, down from $53.5 million at the end of Q1 2024[6] - Long-term debt decreased to $16,667,000 in Q1 2025 from $18,452,000 in Q4 2024, a decrease of 9.6%[20] - Total liabilities decreased to $53,309,000 in Q1 2025 from $57,333,000 in Q4 2024, a reduction of 7.0%[20] - Total stockholders' equity remained relatively stable at $168,765,000 in Q1 2025 compared to $168,997,000 in Q4 2024[20] Dividends and Shareholder Returns - Escalade announced a quarterly dividend of $0.15 per share, payable on July 14, 2025[7] - The company paid cash dividends of $2,061,000 in Q1 2025, slightly down from $2,063,000 in Q1 2024[22] Operational Insights - Gross margin improved to 26.7%, an increase of 161 basis points year-over-year, driven by lower fixed costs and reduced inventory handling costs[4][9] - The company experienced increased demand in archery and safety products, partially offsetting declines in basketball and table tennis[3][9] - Escalade is focused on product innovation and capital allocation to enhance long-term shareholder value[9] - The company is evaluating options to mitigate the impact of new tariffs and potential supply chain disruptions[9] Other Financial Metrics - The company reported a loss on disposal of assets amounting to $3,000 in Q1 2025, compared to $67,000 in Q1 2024[22]