Escalade(ESCA)2025-05-05 10:30Financial Performance - Net sales for the three months ended March 31, 2025, were $55,479 thousand, a decrease of 3.2% compared to $57,304 thousand for the same period in 2024[11] - Operating income increased to $3,652 thousand for the three months ended March 31, 2025, up 19.3% from $3,060 thousand in the prior year[11] - Net income for the three months ended March 31, 2025, was $2,619 thousand, representing a 47.4% increase from $1,775 thousand in the same period of 2024[11] - Basic and diluted earnings per share for the three months ended March 31, 2025, were both $0.19, compared to $0.13 for the same period in 2024, reflecting a 46.2% increase[11] - Total gross sales for the three months ended March 31, 2025, were $61,508 thousand, down from $64,047 thousand in the same period in 2024, a decline of 3.9%[38] Cash and Assets - Cash and cash equivalents at the end of the period were $2,214 thousand, a significant increase from $283 thousand at the end of March 31, 2024[15] - Total assets as of March 31, 2025, were $222,074 thousand, compared to $256,347 thousand as of March 31, 2024, indicating a decrease of 13.4%[26] Costs and Expenses - The cost of products sold for the three months ended March 31, 2025, was $40,689 thousand, down 5.3% from $42,950 thousand in the same period of 2024[11] - Depreciation and amortization expenses for the three months ended March 31, 2025, were $1,239 thousand, compared to $1,373 thousand for the same period in 2024[15] - The company recognized stock-based compensation expense of $467 thousand for the three months ended March 31, 2025, compared to $429 thousand in the prior year[23] - Operating lease costs for the three months ended March 31, 2025, were $133 thousand, compared to $375 thousand for the same period in 2024, indicating a reduction of approximately 64.5%[42] Dividends - The company declared dividends of $0.15 per share for both the January and April 2025 payments, totaling approximately $2.1 million each time[27] - The company declared dividends of approximately $2.1 million for each of the quarters ended January 13, 2025, and April 14, 2025, maintaining a consistent dividend of $0.15 per common share[27] Liabilities and Loans - The Company had an outstanding principal amount of the term loan of $23.8 million as of March 31, 2025, with no amount drawn under the Revolving Facility[46] - The accrued liability amount attributable to warranties was $608 thousand as of March 31, 2025, with no changes to the accrual due to a change in estimate during the current period[35] - Contract liabilities related to returns and customer allowances were $5,629 thousand as of March 31, 2025, compared to $6,708 thousand as of December 31, 2024[37] - Total future minimum lease payments under non-cancellable leases as of March 31, 2025, were $1,113 thousand[43] Taxation - The effective tax rate for the three months ending March 31, 2025, was 23.8%, consistent with the same period last year[47] Shareholder Information - The weighted average common shares outstanding for the three months ended March 31, 2025, were 13,716 thousand, slightly down from 13,786 thousand for the same period in 2024[28] - The Company has a new minimum interest coverage ratio covenant of 3.50 to 1.00 effective September 30, 2024, replacing the previous fixed charge coverage ratio covenant[45]