Escalade(US:ESCA)2023-05-08 16:00Financial Performance - Net sales for the three months ended March 31, 2023, were $56,931 thousand, a decrease of 21.5% compared to $72,380 thousand for the same period in 2022[10] - Operating income dropped significantly to $149 thousand in Q1 2023 from $9,023 thousand in Q1 2022, reflecting a decline of 98.3%[10] - The net loss for the three months ended March 31, 2023, was $952 thousand, compared to a net income of $6,654 thousand in the same period last year[10] - Basic and diluted earnings per share for Q1 2023 were both $(0.07), down from $0.49 in Q1 2022[10] - Revenues from external customers for the three months ended March 31, 2023, were $56,931,000, a decrease of 21.2% compared to $72,380,000 for the same period in 2022[28] - The operating income for the three months ended March 31, 2023, was $690,000, compared to $9,535,000 for the same period in 2022, reflecting a significant decline[28] - Total gross sales for the three months ended March 31, 2023, were $62,973,000, down from $80,083,000 for the same period in 2022, representing a decline of 21.3%[40] - Gross sales from mass merchants decreased to $16.690 million from $27.030 million, a decline of 38.4% year-over-year[40] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $6,064 thousand, an increase from $3,967 thousand at the beginning of the period[14] - Cash and cash equivalents at the end of Q1 2023 were $6,064 thousand, compared to $6,392 thousand at the end of Q1 2022[14] - The company reported a net cash provided by operating activities of $4,516 thousand for Q1 2023, compared to a net cash used of $(2,872) thousand in Q1 2022[14] Dividends - The company declared dividends of $0.15 per share for both Q1 2023 and Q1 2022[10] - The company paid a quarterly dividend of $0.15 per common share on March 20, 2023, totaling approximately $2.1 million[29] - The company declared dividends of $0.15 per share, totaling approximately $2.1 million, charged against retained earnings[29] Assets and Liabilities - Total assets as of March 31, 2023, were $293,587,000, down from $307,061,000 as of March 19, 2022[28] - As of March 31, 2023, the outstanding principal amount of the term loan was $38.1 million, and the total amount drawn under the revolving facility was $57.1 million[48] - The company has a senior revolving credit facility with a maximum availability of $90 million, which was adjusted to $75 million following the sale of its Mexican subsidiary[49] - The maximum availability under the senior revolving credit facility was decreased from $90.0 million to $75.0 million upon the sale of the company's Mexican subsidiary[49] Stock and Compensation - The company issued 30,921 shares of common stock valued at $395 thousand in lieu of cash incentives for fiscal year 2022[26] - Stock-based compensation expense increased to $459 thousand in Q1 2023 from $388 thousand in Q1 2022[27] - The company recognized stock-based compensation expense of $459 thousand in Q1 2023, an increase from $388 thousand in Q1 2022[27] Inventory and Lease Obligations - Total inventories as of March 31, 2023, were $122,453 thousand, slightly up from $121,870 thousand as of December 31, 2022[19] - The company recognized total operating lease costs of $1,115,000 for the three months ended March 31, 2023, compared to $1,021,000 for the same period in 2022[42] - The company recorded an operating lease cost of $374 thousand for the three months ended March 31, 2023, compared to $338 thousand for the same period in 2022[42] - The company has a total future minimum lease payment obligation of $11.690 million as of March 31, 2023[43] - The weighted average remaining lease term for operating leases was 8.79 years as of March 31, 2023[42] Shareholder Information - The weighted average common shares outstanding for the three months ended March 31, 2023, were 13,648,000, compared to 13,509,000 for the same period in 2022[30]