Escalade(US:ESCA)2024-04-25 10:01Financial Performance - Escalade reported net sales of $57.3 million for Q1 2024, a year-over-year increase of 0.7% compared to $56.9 million in Q1 2023[3] - EBITDA for Q1 2024 was $4.4 million, up $2.8 million from $1.6 million in Q1 2023[4] - Net income for Q1 2024 was $1.8 million, or $0.13 diluted earnings per share, compared to a net loss of $1.0 million, or $0.07 diluted loss per share, in Q1 2023[5] - Net income for Q1 2024 was $1,775,000, a significant improvement compared to a net loss of $952,000 in Q1 2023[21] - EBITDA for Q1 2024 reached $4,436,000, up from $1,563,000 in Q1 2023, indicating a year-over-year increase of 184%[21] Cost and Margin Improvements - Gross margin improved to 25.0%, an increase of 560 basis points from the prior year, driven by a favorable product mix and reduced inventory costs[4] - Management anticipates continued opportunities for margin improvement in 2024 despite a cautious outlook on consumer demand for discretionary recreational goods[8] Debt and Liabilities - Total debt decreased to $53.5 million from $95.2 million at the end of Q1 2023, reflecting inventory investments for the spring selling season[5] - Total liabilities decreased to $91,627,000 in Q1 2024 from $137,269,000 in Q1 2023, representing a reduction of 33.3%[19] - The company ended Q1 2024 with a net debt to trailing twelve-month EBITDA ratio of 2.0x, within the targeted range of 1.5x to 2.5x[8] - Long-term debt increased to $46,383,000 in Q1 2024 from $43,753,000 in Q4 2023, reflecting a rise of 6%[19] Assets and Equity - Total current assets increased to $151,497,000 in Q1 2024 from $146,831,000 in Q4 2023, reflecting a growth of 1.5%[19] - Cash and cash equivalents rose to $283,000 in Q1 2024, compared to $16,000 in Q4 2023, showing a substantial increase[19] - Total stockholders' equity remained stable at $164,720,000 in Q1 2024, compared to $164,579,000 in Q4 2023[19] Inventory and Payables - Inventories increased to $95,991,000 in Q1 2024 from $92,462,000 in Q4 2023, indicating a growth of 5.5%[19] - Trade accounts payable increased to $15,981,000 in Q1 2024 from $9,797,000 in Q4 2023, marking a rise of 62.8%[19] Dividends and Operations - Escalade announced a quarterly dividend of $0.15 per share, payable on July 15, 2024[6] - Escalade plans to divest its Mexico operations to drive efficiencies in fixed costs[8] Sales and Marketing - Direct-to-consumer website sales increased by 28% in Q1 2024, supported by effective marketing and new product development[8]