Escalade(US:ESCA)2025-10-30 10:01Financial 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]