Escalade, Incorporated reported its financial results for the three and nine months ended September 30, 2024, showing a decline in net sales but improvements in profitability metrics compared to the previous fiscal period. For Q3 2024, net sales were $67.7 million, down 7.7% from $73.4 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $187.6 million, a decrease of 5.3% from $198.1 million in the same period last year. The decline in sales was attributed to soft consumer demand and inventory destocking, despite growth in specific categories such as archery, safety, and basketball.
Operating income for Q3 2024 increased to $8.8 million, compared to an operating loss of $0.8 million in Q3 2023. For the nine-month period, operating income rose to $18.0 million from an operating loss of $2.5 million in the prior year. Net income for Q3 2024 was $5.7 million, up from $4.3 million in Q3 2023, while net income for the nine months ended September 30, 2024, reached $10.3 million, significantly higher than $7.0 million in the previous year. Basic earnings per share for Q3 2024 were $0.41, compared to $0.31 in Q3 2023.
The company recognized a gain of $3.9 million from the sale of its Mexico facility, which contributed positively to operating income. Total debt as of September 30, 2024, was $29.5 million, a decrease of $21.4 million from December 31, 2023. The effective tax rate for the nine months ended September 30, 2024, was 23.9%, up from 19.0% in the previous year, primarily due to the recognition of a gain on the sale of stock and the dissolution of the company’s captive insurance.
Escalade's strategic focus remains on growth in the sporting goods sector through organic growth, acquisitions, and new product development. The company has emphasized building customer loyalty and enhancing product lines, with a particular focus on integrating acquired product lines into its existing structure. The company awarded 143,700 restricted stock units during the nine months ended September 30, 2024, as part of its employee compensation strategy.
In terms of cash flow, net cash provided by operating activities for the nine months ended September 30, 2024, was $23.8 million, down from $27.7 million in the previous year. The company also paid quarterly dividends of $0.15 per common share, totaling approximately $2.1 million each quarter. The company remains compliant with its debt covenants and expects sufficient cash flows to meet operational and growth needs.
About ESCALADE INC
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