Escalade(US:ESCA)2024-04-25 10:06Financial Performance - Net sales for the three months ended March 31, 2024, increased to $57,304 thousand, up from $56,931 thousand in the same period of 2023, representing a growth of 0.65%[10] - Operating income significantly improved to $3,060 thousand for Q1 2024, compared to only $149 thousand in Q1 2023, marking a substantial increase of 1,953.69%[10] - Net income for the three months ended March 31, 2024, was $1,775 thousand, a turnaround from a net loss of $952 thousand in the same period of 2023[10] - Basic and diluted earnings per share for Q1 2024 were both $0.13, compared to a loss of $0.07 per share in Q1 2023[10] Assets and Cash Flow - Total assets as of March 31, 2024, were $256,347 thousand, a decrease from $293,587 thousand as of March 31, 2023[27] - Cash and cash equivalents at the end of Q1 2024 were $283 thousand, down from $6,064 thousand at the end of Q1 2023[14] - The company reported a net cash provided by operating activities of $7 thousand for Q1 2024, a significant decline from $4,516 thousand in Q1 2023[14] Dividends - The company declared dividends of $0.15 per share for both Q1 2024 and Q1 2023[10] - The Company paid a quarterly dividend of $0.15 per common share, totaling approximately $2.1 million on January 12, 2024[28] Cost of Goods Sold and Inventory - The cost of products sold decreased to $42,950 thousand in Q1 2024 from $45,879 thousand in Q1 2023, reflecting a reduction of 6.36%[10] - Inventory levels as of March 31, 2024, totaled $95,991 thousand, an increase from $92,462 thousand as of December 31, 2023[21] Gross Sales and Adjustments - Total gross sales for the three months ended March 31, 2024, were $64.047 million, an increase from $62.973 million in the same period of 2023[37] - The Company recognized total gross-to-net sales adjustments of $6.743 million for the three months ended March 31, 2024, compared to $6.042 million in the same period of 2023[37] Debt and Credit Facilities - The Company has a senior revolving credit facility with a maximum availability of $85.0 million as of March 31, 2024[46] - As of March 31, 2024, the outstanding principal amount of the term loan was $31.0 million, and the total amount drawn under the Revolving Facility was $22.5 million[47] Lease Obligations - The weighted average remaining lease term for operating leases was 7.89 years as of March 31, 2024[40] - The Company recorded operating lease costs of $375,000 for the three months ended March 31, 2024, compared to $374,000 for the same period in 2023[40] - Future minimum lease payments under non-cancellable leases total $10,602,000 as of March 31, 2024[41] Litigation - The company is involved in litigation but does not expect any material adverse effects on its business or financial condition[42] - The company does not believe that existing litigation will have a material adverse effect on its business or financial condition[42] Stock-Based Compensation - The company recognized stock-based compensation expense of $429 thousand in Q1 2024, slightly down from $459 thousand in Q1 2023[25]