Escalade(US:ESCA)2023-10-25 16:00Financial Performance - Net sales for the third quarter ended September 30, 2023, were $73,358,000, a decrease of 2.07% compared to $74,904,000 for the same period in 2022[11]. - Operating income increased to $6,445,000 for the third quarter of 2023, up 52.9% from $4,220,000 in the third quarter of 2022[11]. - Net income for the three quarters ended September 30, 2023, was $6,965,000, compared to $15,285,000 for the same period in 2022, reflecting a decrease of 54.4%[11]. - Basic earnings per share for the third quarter of 2023 were $0.31, an increase from $0.22 in the third quarter of 2022[11]. - For the three quarters ended September 30, 2023, total revenues were $198,060 thousand, down from $241,621 thousand for the same period in 2022, indicating a decrease of approximately 18%[31]. - The net income for the third quarter was $4,275 thousand, up from $2,958 thousand in the same quarter of the previous year, representing a year-over-year increase of about 44%[31]. - Operating income for the three quarters ended September 30, 2023, was $12,852 thousand, down from $21,432 thousand in the same period last year, representing a decrease of 40.0%[31]. Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $919,000, down from $4,000,000 at the end of the same period in 2022[14]. - The company experienced a net decrease in cash and cash equivalents of $3,048,000 for the three quarters ended September 30, 2023[14]. - The company reported a net cash provided by operating activities of $27,706,000 for the three quarters ended September 30, 2023, compared to a net cash used of $5,742,000 for the same period in 2022[14]. - The company reported a net cash used by investing activities of $1,563 thousand for the three quarters ended September 30, 2023, compared to $37,509 thousand for the same period in 2022[14]. Dividends - The company declared dividends of $0.15 per share for the third quarter of 2023, consistent with the same period in 2022[11]. - The company paid a quarterly dividend of $0.15 per common share on September 5, 2023, totaling approximately $2.1 million[32]. - The company paid quarterly dividends of $0.15 per common share, totaling approximately $2.1 million for each of the three payments made in 2023[32][33]. Inventory and Assets - Total inventories as of September 30, 2023, were $105,267,000, a decrease of 13.6% from $121,870,000 as of December 31, 2022[20]. - The total assets as of September 30, 2023, were $283,373 thousand, a decrease from $320,324 thousand as of October 1, 2022[31]. Stock-Based Compensation - The company recognized stock-based compensation expense of $546 thousand for the third quarter, compared to $377 thousand for the same period last year, marking an increase of about 45%[30]. - The company recognized stock-based compensation expense of $1,463 thousand for the three quarters ended September 30, 2023, compared to $1,453 thousand for the same period in 2022, indicating a slight increase of 0.7%[30]. - The company issued 30,921 shares of common stock valued at $395 thousand in lieu of cash bonuses to certain officers during the three quarters ended September 30, 2023[27]. Debt and Lease Obligations - The company’s outstanding principal amount of the term loan was $34.5 million, and the total amount drawn under the Revolving Facility was $37.5 million as of September 30, 2023[52]. - The current portion of long-term debt was $7,143 thousand as of September 30, 2023, consistent with the previous year[24]. - Total future minimum lease payments as of September 30, 2023, amounted to $11,352,000, with current operating lease liabilities at $1,037,000 and long-term operating lease liabilities at $8,163,000[46]. - The total operating lease cost for the third quarter of 2023 was $893,000, down 21.1% from $1,132,000 in the third quarter of 2022[11]. - The weighted average remaining lease term for operating leases decreased to 8.29 years as of September 30, 2023, from 9.29 years in the previous year[46]. Other Financial Metrics - The company recognized total gross-to-net sales adjustments of $21,082 thousand for the three quarters ended September 30, 2023, compared to $22,352 thousand in the same period of 2022, a decrease of 5.7%[43]. - The maximum availability under the senior revolving credit facility was reduced to $85 million following the dissolution of Escalade Insurance, Inc.[51]. - The company’s EBITDA covenant was adjusted to a minimum of $22.5 million for the second and third fiscal quarters of 2023[51]. - The weighted average common shares outstanding for the third quarter ended September 30, 2023, were 13,737 thousand, compared to 13,590 thousand for the same period last year[34]. - Total gross sales for the third quarter ended September 30, 2023, were $81,238 thousand, slightly down from $81,457 thousand in the same quarter of 2022, representing a decrease of 0.3%[43]. - Total net sales for the three quarters ended September 30, 2023, were $198,060 thousand, down from $241,621 thousand for the same period in 2022, indicating a decline of 17.9%[43]. Accounting Standards - The company adopted the new accounting standard ASU 2016-13 on January 1, 2023, which did not have a material impact on its financial statements[37].