Escalade Reports Fourth Quarter and Full Year 2024 Results

Core Viewpoint - Escalade, Inc. reported a decline in net sales and net income for the fourth quarter of 2024 compared to the same period in 2023, primarily due to softer consumer demand across most product categories, although some categories like archery and fitness showed improved demand [2][9]. Fourth Quarter 2024 Results - Net income for Q4 2024 was $2.7 million, or$0.19 per diluted share, down from $2.9 million, or$0.21 per diluted share in Q4 2023 [2][9]. - Total net sales decreased by 2.4% year-over-year to $63.9 million, with a gross margin of 24.9$4.5 million, while EBITDA decreased by 7.6% to $5.9 million [4][9]. Full Year 2024 Results - For the full year 2024, net sales decreased by 4.6$251.5 million, while net income increased to $13.0 million, or$0.93 per diluted share, compared to $9.8 million, or$0.71 per diluted share in 2023 [9]. - Gross margin improved by 130 basis points to 24.7%, and operating income rose by 12.3% to $20.0 million [9]. Cash Flow and Debt Management - The company generated$12.3 million in cash flow from operations in Q4 2024, down from $20.6 million in the prior year [4][9]. - Escalade reduced its debt by$3.9 million during Q4 2024, resulting in a net debt to trailing twelve-month EBITDA ratio of 0.8x, down from 2.2x at the end of 2023 [5][10]. Shareholder Returns - The Board of Directors authorized a share repurchase program of up to $20.0 million, with no expiration date [6]. - A quarterly dividend of$0.15 per share was declared, payable on April 14, 2025 [7]. Management Commentary - The CEO highlighted operational discipline, cost rationalization, and efficiency improvements as key factors in maintaining margins and cash flow generation [8][10]. - The company aims to invest in innovation and new product development to drive growth and market share during the current economic cycle [10].