Core Insights - Escalade, Inc. reported third quarter 2025 results with net sales of $67.8 million, net income of $5.6 million, and diluted earnings per share of $0.40, showing a slight increase in sales compared to the previous year [2][8]. Financial Performance - Total net sales increased by 0.1% year-over-year, driven by growth in archery, table tennis, billiards, and safety categories, while basketball sales declined due to softer market demand and strategic exits from certain categories [3][4]. - Gross margin improved to 28.1%, up 334 basis points from the prior year, attributed to lower fixed costs and reduced inventory storage and handling costs, despite facing $4.3 million in tariff-related costs [4][9]. - EBITDA decreased by $1.3 million to $8.6 million compared to $9.9 million in the prior year, influenced by a non-recurring gain on asset sales in the previous period [4][19]. Cash Flow and Debt Management - Operating activities generated a cash flow of ($0.1) million, a significant decline from $10.5 million in the same quarter of 2024, reflecting a seasonal buildup in working capital ahead of the holiday season [5]. - Total debt decreased by 31.4% to $20.2 million from $29.5 million year-over-year, with a net debt to trailing twelve-month EBITDA ratio of 0.7x [5][8]. Dividend and Shareholder Returns - The company declared a quarterly dividend of $0.15 per share, scheduled for payment on January 12, 2026, to shareholders of record on January 5, 2026 [6][8]. Management Commentary - Management expressed confidence in the results, highlighting strong demand in core categories and market share gains, particularly in safety and archery, despite a challenging macroeconomic environment [7][9]. - The company is focused on a balanced promotional strategy for the holiday season, aiming to maximize sell-through while maintaining improved gross margin performance [9]. Strategic Developments - Escalade completed the acquisition of Gold Tip, enhancing its archery product portfolio and positioning for further market share gains in the archery category [9].

Core Viewpoint - Escalade, Inc. has appointed Patrick J. Griffin as the Interim President and CEO, replacing Armin Boehm, who has resigned from the company [1][2]. Group 1: Leadership Changes - Patrick J. Griffin, age 56, has been with Escalade since 2002, serving in various roles including Director and Vice President of Corporate Development and Investor Relations since August 2012 [2]. - Walter P. Glazer, Jr., Chairman of the Board, expressed gratitude for Armin Boehm's service and confidence in Griffin's leadership capabilities [3]. Group 2: Company Strategy and Vision - Griffin emphasized the company's commitment to progress and adaptability in dynamic markets, focusing on sustainable growth and superior shareholder value through ongoing investments in brands, businesses, and people [4]. - The company aims to strengthen its foundation for long-term success while maintaining a strong corporate culture [4]. Group 3: Company Overview - Founded in 1922 and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods and recreational equipment [5]. - The company’s notable brands include Goalrilla™, STIGA®, Bear® Archery, Brunswick Billiards®, Accudart®, ONIX®, Lifeline®, and RAVE Sports®, with products available online and through major retailers [5].

Core Insights - Escalade, Inc. reported a net sales decrease of 13.1% year-over-year for Q2 2025, totaling $54.3 million, attributed to softer market demand and delayed shipments due to tariff volatility, although there were market share gains in the safety category [2][8] - The company achieved a gross margin of 24.7%, an increase of 56 basis points from the previous year, driven by lower fixed costs and reduced inventory handling costs, despite facing tariff-related costs [3][9] - EBITDA decreased to $3.9 million from $5.8 million in the prior year, reflecting lower net sales and non-recurring executive transition expenses [4][9] Financial Performance - Net income for Q2 2025 was $1.8 million, or $0.13 per diluted share, down from $2.8 million, or $0.20 per diluted share in Q2 2024 [9][18] - Operating income fell to $2.6 million compared to $4.5 million in the same quarter last year [9][18] - Cash flow from operations remained stable at $13.3 million, reflecting reduced profitability offset by working capital improvements [5] Debt and Cash Position - Total debt decreased by 49.0% to $22.0 million from $43.2 million year-over-year [6][9] - As of June 30, 2025, the company had cash and equivalents of $10.4 million and $48.5 million available on its revolving credit facility [6][9] - The net debt to trailing twelve-month EBITDA ratio improved to 0.5x from 1.7x a year earlier [6][9] Dividend and Shareholder Returns - Escalade declared a quarterly dividend of $0.15 per share, payable on October 13, 2025 [7][9] - The company repurchased approximately $0.8 million of shares during the second quarter [10] Management Commentary - The CEO highlighted the company's focus on operational efficiency and cost structure improvements, despite challenges in consumer demand and unfavorable weather impacting outdoor product sales [8][10] - The management is committed to enhancing supply chain efficiency and implementing targeted price increases to mitigate tariff impacts [10]

Company Overview - Escalade, Inc. is a leading manufacturer and distributor of sporting goods and indoor/outdoor recreation equipment, founded in 1922 and headquartered in Evansville, Indiana [3] - The company offers a diverse range of products under well-known brands such as Goalrilla™, STIGA®, Bear® Archery, Brunswick Billiards®, Accudart®, ONIX®, Lifeline®, and RAVE Sports® [3] - Escalade's mission is to connect family and friends, create lasting memories, and promote an active lifestyle [3] Financial Announcement - Escalade, Inc. will release its second quarter 2025 financial results before the market opens on August 1, 2025 [1] - A conference call to discuss the financial results will take place on the same day at 11:00 a.m. ET [1] - The conference call will include a question-and-answer session for investors [1] Investor Relations - A webcast of the conference call will be available on Escalade's Investor Relations website [2] - Contact information for investor relations is provided, including Patrick Griffin, Vice President - Corporate Development & Investor Relations [4]