Escalade(US:ESCA)2025-10-30 20:04Financial Performance - Net sales for the three months ended September 30, 2025, were $67,786, compared to $67,738 for the same period in 2024, reflecting a slight increase of 0.07%[10] - For the nine months ended September 30, 2025, net sales were $177,598, down 5.3% from $187,568 in the same period of 2024[10] - Operating income for the three months ended September 30, 2025, was $7,301, a decrease of 8.4% from $7,974 in the same period of 2024[10] - Net income for the nine months ended September 30, 2025, was $9,998, down 2.8% from $10,286 in the same period of 2024[10] - Basic earnings per share for the three months ended September 30, 2025, were $0.40, compared to $0.41 for the same period in 2024, a decrease of 2.4%[10] - The net income for the three months ended September 30, 2025, was $5,554 thousand, compared to $5,667 thousand for the same period in 2024, reflecting a decrease of approximately 2%[29][33] - For the nine months ended September 30, 2025, total revenues were $177,598 thousand, down from $187,568 thousand in the same period of 2024, indicating a decline of about 5.3%[30] - The company reported an operating income of $13,574 thousand for the nine months ended September 30, 2025, compared to $15,491 thousand for the same period in 2024, a decrease of 12.36%[30] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $3,509, compared to $426 at the end of September 30, 2024, indicating a significant increase[13] - The company reported a net cash provided by operating activities of $16,118 for the nine months ended September 30, 2025, down from $23,759 in the same period of 2024[13] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $16,118 thousand, down from $23,759 thousand in 2024, a decline of 32.2%[13] Dividends - The company declared dividends of $0.15 per share for both the three months ended September 30, 2025, and 2024[10] - The Company paid quarterly dividends of $0.15 per common share totaling approximately $2.1 million each on January 13, April 14, July 14, and October 13, 2025[31][32] - The company declared dividends totaling $6,207 thousand for the nine months ended September 30, 2025, slightly down from $6,224 thousand in 2024, a decrease of 0.3%[13] Assets and Liabilities - Total assets as of September 30, 2025, were $232,460 thousand, unchanged from the previous year[29] - The outstanding principal amount of the term loan was $20.2 million as of September 30, 2025, with no amount drawn under the Revolving Facility[52] - Total future minimum lease payments as of September 30, 2025, were $1.535 million, with current operating lease liabilities reported at $496,000[49] - The weighted average remaining lease term for operating leases decreased to 3.08 years from 7.47 years year-over-year[48] Stock-Based Compensation - The Company recognized stock-based compensation expenses of $1,468 thousand for the nine months ended September 30, 2025, compared to $1,429 thousand for the same period in the prior year[25] - As of September 30, 2025, the Company had $2.3 million in unrecognized stock-based compensation expense related to non-vested stock awards, expected to be recognized over a weighted average period of 2.1 years[26] - The company issued 105,181 restricted stock units to employees during the nine months ended September 30, 2025, as part of its stock compensation strategy[24] Impairment and Risks - The fair value of the reporting unit exceeded its carrying value by approximately 6%, indicating potential risk of impairment in future periods[18] - The fair value of the reporting unit exceeded its carrying value by approximately 6% as of September 1, 2025, indicating potential goodwill impairment risk in future periods[18] Other Financial Metrics - The effective tax rate for the three months ending September 30, 2025, was 22.0%, compared to 23.9% for the same period last year[53] - The effective tax rate for the first nine months ending September 30, 2025, was 23.2%, compared to 23.9% for the same period last year[53] - The company reported a depreciation and amortization expense of $3,767 thousand for the nine months ended September 30, 2025[30] Acquisitions - The company acquired Gold Tip assets for $1.5 million during the three months ended September 30, 2025, which will be amortized over 20 years[55] - The company acquired assets for $1,800 thousand during the nine months ended September 30, 2025, marking a new investment strategy[13] Management Changes - Patrick J. Griffin was appointed as Interim President and CEO effective October 29, 2025, following the resignation of Armin Boehm[57]