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]