Escalade(ESCA) - 2023 Q4 - Annual Results

Financial Performance - Net sales for Q4 2023 decreased by 9.2% to $65.5 million compared to Q4 2022[3] - Operating income for Q4 2023 increased by 1.6% to $5.0 million compared to the prior year[7] - EBITDA for Q4 2023 totaled $6.4 million, an increase of 11.1% year-over-year[5] - Full year 2023 net income was $9.8 million, or $0.71 per diluted share, down from $18.0 million, or $1.31 per diluted share in 2022[7] - Net income for Q4 2023 was $2,864,000, compared to $2,704,000 in Q4 2022, representing an increase of about 5.9%[23] - Non-GAAP EBITDA for the four quarters ended December 31, 2023, was $23,513,000, down from $32,457,000 in the previous year, a decrease of approximately 27.6%[23] Cash Flow and Debt Management - Cash flow from operations in Q4 2023 was $20.6 million, up 43.9% from $14.3 million in Q4 2022[5] - The company reduced its net debt by $21.1 million in Q4 2023, resulting in a net debt to trailing twelve-month EBITDA ratio of 2.2x[6] - Long-term debt significantly reduced from $87,738,000 in 2022 to $43,753,000 in 2023, a decrease of approximately 50.2%[21] - The current portion of long-term debt remained stable at $7,143,000 for both years[21] Inventory and Working Capital - The company reduced total inventories by nearly $13 million in Q4 2023, improving working capital efficiency[9] - Current liabilities decreased from $38,941,000 in 2022 to $33,264,000 in 2023, a reduction of about 14.6%[21] Asset Management - Total assets decreased from $298,718,000 in 2022 to $253,005,000 in 2023, a decline of approximately 15.3%[21] - The company’s cash and cash equivalents decreased significantly from $3,967,000 in 2022 to $16,000 in 2023, a decline of approximately 99.6%[21] - Retained earnings increased from $156,450,000 in 2022 to $160,099,000 in 2023, reflecting a growth of about 2.1%[21] Dividends and Future Outlook - A quarterly dividend of $0.15 per share has been declared, payable on April 22, 2024[8] - The company is optimistic about growth opportunities in its direct-to-consumer channel and product innovation despite softer consumer demand[9] Operational Metrics - The company reported a total of 365 fiscal days in 2023, compared to 371 days in 2022, indicating a reduction in operational days[25] - Trade accounts payable increased slightly from $9,414,000 in 2022 to $9,797,000 in 2023, an increase of about 4.1%[21] Margin Improvement - Gross margin improved by 192 basis points to 24.3% in Q4 2023, driven by price discipline and a favorable sales mix[4]