Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-6966 | |
Entity Registrant Name | ESCALADE, INCORPORATED | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 13-2739290 | |
Entity Address, Address Line One | 817 Maxwell Ave | |
Entity Address, City or Town | Evansville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47711 | |
City Area Code | 812 | |
Local Phone Number | 467-1358 | |
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | ESCA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 13,736,800 | |
Entity Central Index Key | 0000033488 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 |
Current Assets: | |||
Cash and cash equivalents | $ 919 | $ 3,967 | $ 4,000 |
Receivables, less allowance of $367; $492; and $729; respectively | 63,378 | 57,419 | 65,258 |
Inventories | 105,267 | 121,870 | 134,957 |
Prepaid expenses | 4,303 | 4,942 | 4,143 |
Prepaid income tax | 2,080 | 0 | 1,075 |
TOTAL CURRENT ASSETS | 175,947 | 188,198 | 209,433 |
Property, plant and equipment, net | 23,949 | 24,751 | 27,618 |
Assets held for sale | 2,823 | 2,823 | 0 |
Operating lease right-of-use assets | 8,645 | 9,100 | 9,074 |
Intangible assets, net | 29,260 | 31,120 | 34,712 |
Goodwill | 42,326 | 42,326 | 39,226 |
Other assets | 423 | 400 | 261 |
TOTAL ASSETS | 283,373 | 298,718 | 320,324 |
Current Liabilities: | |||
Current portion of long-term debt | 7,143 | 7,143 | 7,143 |
Trade accounts payable | 24,050 | 9,414 | 22,684 |
Accrued liabilities | 11,991 | 21,320 | 19,060 |
Income tax payable | 0 | 71 | 0 |
Current operating lease liabilities | 1,037 | 993 | 816 |
TOTAL CURRENT LIABILITIES | 44,221 | 38,941 | 49,703 |
Other Liabilities: | |||
Long‑term debt | 64,896 | 87,738 | 99,568 |
Deferred income tax liability | 4,516 | 4,516 | 4,759 |
Operating lease liabilities | 8,163 | 8,641 | 8,557 |
Other liabilities | 407 | 407 | 448 |
TOTAL LIABILITIES | 122,203 | 140,243 | 163,035 |
Stockholders' Equity: | |||
Authorized 30,000,000 shares; no par value, issued and outstanding – 13,736,800; 13,594,407; and 13,590,407; shares respectively | 13,737 | 13,594 | 13,590 |
Retained earnings | 147,433 | 144,881 | 143,699 |
TOTAL STOCKHOLDERS' EQUITY | 161,170 | 158,475 | 157,289 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 283,373 | $ 298,718 | $ 320,324 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 |
Receivables, allowance | $ 367 | $ 492 | $ 729 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred Stock, No Par Value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 | 0 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | 30,000,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Common Stock, Shares, Issued (in shares) | 13,736,800 | 13,594,407 | 13,590,407 |
Common stock, shares outstanding (in shares) | 13,736,800 | 13,594,407 | 13,590,407 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Net sales | $ 73,358 | $ 74,904 | $ 198,060 | $ 241,621 |
Costs and Expenses | ||||
Cost of products sold | 55,222 | 61,273 | 152,225 | 184,147 |
Selling, administrative and general expenses | 11,071 | 8,769 | 31,123 | 33,975 |
Amortization | 620 | 642 | 1,860 | 2,067 |
Operating Income | 6,445 | 4,220 | 12,852 | 21,432 |
Other Income (Expense) | ||||
Interest expense | (1,325) | (954) | (4,280) | (2,462) |
Other income (expense) | 5 | (22) | 30 | 50 |
Income Before Income Taxes | 5,125 | 3,244 | 8,602 | 19,020 |
Provision for Income Taxes | 850 | 286 | 1,637 | 3,735 |
Net Income | $ 4,275 | $ 2,958 | $ 6,965 | $ 15,285 |
Earnings (Loss) Per Share Data: | ||||
Basic earnings per share (in dollars per share) | $ 0.31 | $ 0.22 | $ 0.51 | $ 1.13 |
Diluted earnings per share (in dollars per share) | 0.31 | 0.22 | 0.50 | 1.12 |
Dividends declared (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 |
Consolidated Condensed Statem_2
Consolidated Condensed Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balances (in shares) at Dec. 25, 2021 | 13,493 | ||
Balances at Dec. 25, 2021 | $ 13,493 | $ 133,122 | $ 146,615 |
Net income | 15,285 | 15,285 | |
Expense of restricted stock units | 1,453 | 1,453 | |
Dividends declared | (6,115) | (6,115) | |
Settlement of restricted stock units (in shares) | 93 | ||
Settlement of restricted stock units | $ 93 | (93) | 0 |
Stock issued to directors as compensation (in shares) | 4 | ||
Stock issued to directors as compensation | $ 4 | 47 | 51 |
Balances (in shares) at Oct. 01, 2022 | 13,590 | ||
Balances at Oct. 01, 2022 | $ 13,590 | 143,699 | 157,289 |
Balances (in shares) at Jul. 09, 2022 | 13,590 | ||
Balances at Jul. 09, 2022 | $ 13,590 | 142,403 | 155,993 |
Net income | 2,958 | 2,958 | |
Expense of restricted stock units | 377 | 377 | |
Dividends declared | (2,039) | (2,039) | |
Balances (in shares) at Oct. 01, 2022 | 13,590 | ||
Balances at Oct. 01, 2022 | $ 13,590 | 143,699 | 157,289 |
Balances (in shares) at Dec. 31, 2022 | 13,594 | ||
Balances at Dec. 31, 2022 | $ 13,594 | 144,881 | 158,475 |
Net income | 6,965 | 6,965 | |
Expense of restricted stock units | 1,463 | 1,463 | |
Dividends declared | (6,180) | (6,180) | |
Settlement of restricted stock units (in shares) | 108 | ||
Settlement of restricted stock units | $ 108 | (108) | 0 |
Stock issued to directors as compensation (in shares) | 4 | ||
Stock issued to directors as compensation | $ 4 | 48 | 52 |
Issuance of common stock for service (in shares) | 31 | ||
Issuance of common stock for service | $ 31 | 364 | 395 |
Balances (in shares) at Sep. 30, 2023 | 13,737 | ||
Balances at Sep. 30, 2023 | $ 13,737 | 147,433 | 161,170 |
Balances (in shares) at Jun. 30, 2023 | 13,737 | ||
Balances at Jun. 30, 2023 | $ 13,737 | 144,672 | 158,409 |
Net income | 4,275 | 4,275 | |
Expense of restricted stock units | 546 | 546 | |
Dividends declared | (2,060) | (2,060) | |
Balances (in shares) at Sep. 30, 2023 | 13,737 | ||
Balances at Sep. 30, 2023 | $ 13,737 | $ 147,433 | $ 161,170 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Operating Activities: | ||
Net income | $ 6,965 | $ 15,285 |
Depreciation and amortization | 4,221 | 5,207 |
Provision for doubtful accounts | 171 | 258 |
Stock-based compensation | 1,463 | 1,453 |
(Gain) loss on disposal of property and equipment | 4 | (22) |
Adjustments necessary to reconcile net income to net cash provided by operating activities | 14,435 | (27,974) |
Net cash provided (used) by operating activities | 27,706 | (5,742) |
Investing Activities: | ||
Purchase of property and equipment | (1,568) | (1,792) |
Proceeds from sale of property and equipment | 5 | 40 |
Acquisitions | 0 | (35,757) |
Net cash used by investing activities | (1,563) | (37,509) |
Financing Activities: | ||
Proceeds from issuance of long-term debt | 76,062 | 180,355 |
Payments on long-term debt | (98,904) | (131,183) |
Deferred financing fees | (169) | (180) |
Cash dividends paid | (6,180) | (6,115) |
Net cash provided (used) by financing activities | (29,191) | 42,877 |
Net decrease in cash and cash equivalents | (3,048) | (374) |
Cash and cash equivalents, beginning of period | 3,967 | 4,374 |
Cash and cash equivalents, end of period | 919 | 4,000 |
Officer [Member] | ||
Operating Activities: | ||
Stock compensation | 395 | 0 |
Director [Member] | ||
Operating Activities: | ||
Stock compensation | $ 52 | $ 51 |
Note A - Summary of Significant
Note A - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note A – Summary of Significant Accounting Policies Presentation of Consolidated Condensed Financial Statements On August 10, 2022, Escalade’s Board of Directors approved a change in its fiscal year end from the last Saturday in December of each year to December 31 of each year. Escalade’s fiscal quarters will end on March 31, June 30, and September 30. The fiscal year change is effective beginning with Escalade’s 2023 fiscal calendar, which began on January 1, 2023. Consistent with SEC guidance, no transition report is required in connection with the change in Escalade’s fiscal year end. Reclassifications |
Note B - Seasonal Aspects
Note B - Seasonal Aspects | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Seasonal Aspects [Text Block] | Note B ‑ Seasonal Aspects The results of operations for the third quarter and three quarter periods ended September 30, 2023 and October 1, 2022 are not necessarily indicative of the results to be expected for the full year. |
Note C - Inventories
Note C - Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note C ‑ Inventories In thousands September 30, 2023 December 31, 2022 October 1, 2022 Raw materials $ 5,048 $ 7,789 $ 9,988 Work in progress 2,874 3,478 4,537 Finished goods 97,345 110,603 120,432 $ 105,267 $ 121,870 $ 134,957 |
Note D - Fair Values of Financi
Note D - Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note D – Fair Values of Financial Instruments The following methods were used to estimate the fair value of all financial instruments recognized in the accompanying balance sheets at amounts other than fair values. Cash and Cash Equivalents Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity. Long-term Debt Fair values of long-term debt is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model. The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at September 30, 2023, December 31, 2022 and October 1, 2022. Fair Value Measurements Using September 30, 2023 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 919 $ 919 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 64,896 $ -- $ 64,896 $ -- Fair Value Measurements Using December 31, 2022 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 3,967 $ 3,967 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 87,738 $ -- $ 87,738 $ -- Fair Value Measurements Using October 1, 2022 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 4,000 $ 4,000 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 99,568 $ -- $ 99,568 $ -- |
Note E - Stock Compensation
Note E - Stock Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | Note E – Stock Compensation The fair value of stock-based compensation is recognized in accordance with the provisions of FASB ASC 718, Stock Compensation During the three quarters ended September 30, 2023, and pursuant to the 2017 Incentive Plan, the Company issued 30,921 shares of common stock with a fair market value of $395 thousand in lieu of accrued and unpaid annual cash incentives for fiscal year 2022 to certain officers. During the three quarters ended September 30, 2023 and pursuant to the 2017 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 4,441 shares of common stock. During the three quarters ended September 30, 2023, the Company awarded 21,200 restricted stock units to directors and 145,563 restricted stock units to employees. The restricted stock units awarded to directors time vest over two years (one-half one year from grant date and one-half two years from grant date) provided that the director is still a director of the Company at the vest date. Director restricted stock units are subject to forfeiture, except for termination of services as a result of retirement, death or disability, if on the vesting date the director no longer holds a position with the Company. The 2023 restricted stock units awarded to employees time vest over three years (one-third one year from grant, one-third two years from grant and one-third three years from grant) provided that the employee is still employed by the Company on the vesting date. For the third quarter and three quarters ended September 30, 2023, the Company recognized stock based compensation expense of $546 thousand and $1,463 thousand, respectively compared to stock based compensation expense of $377 thousand and $1,453 thousand for the same periods in the prior year. At September 30, 2023 and October 1, 2022, respectively, there was $1,979 thousand and $1,937 thousand in unrecognized stock-based compensation expense related to non-vested stock awards. |
Note F - Segment Information
Note F - Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note F ‑ Segment Information For the Third Quarter Ended September 30, 2023 In thousands Sporting Goods Corp. Total Revenues from external customers $ 73,358 $ -- $ 73,358 Operating income (loss) 6,958 (513 ) 6,445 Net income 4,089 186 4,275 As of and for the Three Quarters Ended September 30, 2023 In thousands Sporting Goods Corp. Total Revenues from external customers $ 198,060 $ -- $ 198,060 Operating income (loss) 14,485 (1,633 ) 12,852 Net income (loss) 7,422 (457 ) 6,965 Total assets $ 279,805 $ 3,568 $ 283,373 For the Third Quarter Ended October 1, 2022 In thousands Sporting Goods Corp. Total Revenues from external customers $ 74,904 $ -- $ 74,904 Operating income (loss) 4,661 (441 ) 4,220 Net income 2,387 571 2,958 As of and for the Three Quarters Ended October 1, 2022 In thousands Sporting Goods Corp. Total Revenues from external customers $ 241,621 $ -- $ 241,621 Operating income (loss) 23,026 (1,594 ) 21,432 Net income 14,665 620 15,285 Total assets $ 312,418 $ 7,906 $ 320,324 |
Note G - Dividend Payment
Note G - Dividend Payment | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Dividend Payment Terms [Text Block] | Note G – Dividend Payment On September 5, 2023, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on August 29, 2023. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings. On June 19, 2023, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on June 12, 2023. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings. On March 20, 2023, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on March 13, 2023. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings. |
Note H - Earnings Per Share
Note H - Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note H ‑ Earnings Per Share The shares used in computation of the Company’s basic and diluted earnings per common share are as follows: Third Quarter Ended Three Quarters Ended In thousands September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Weighted average common shares outstanding 13,737 13,590 13,706 13,565 Dilutive effect of stock options and restricted stock units 150 62 140 82 Weighted average common shares outstanding, assuming dilution 13,887 13,652 13,846 13,647 |
Note I - New Accounting Standar
Note I - New Accounting Standards and Changes in Accounting Principles | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Note I – New Accounting Standards and Changes in Accounting Principles With the exception of that discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the third quarter and three quarters ended September 30, 2023, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, that are of significance, or potential significance to the Company. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The Company adopted this standard on January 1, 2023. The adoption of this standard did not have a material impact on the financial statements of the Company. |
Note J - Revenue From Contracts
Note J - Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note J – Revenue from Contracts with Customers Revenue Recognition Gross-to-net sales adjustments Returns Warranties Customer Allowances Disaggregation of Revenue Third Quarter Ended Three Quarters Ended All Amounts in Thousands September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Gross Sales by Channel: Mass Merchants $ 35,931 $ 29,849 $ 72,101 $ 85,804 Specialty Dealers 19,669 20,298 65,134 74,631 E-commerce 21,785 26,090 69,512 87,441 International 2,961 4,032 9,189 12,643 Other 892 1,188 3,206 3,454 Total Gross Sales 81,238 81,457 219,142 263,973 Less: Gross-to-Net Sales Adjustments Returns 2,493 892 6,039 3,740 Warranties 358 663 988 1,985 Customer Allowances 5,029 4,998 14,055 16,627 Total Gross-to-Net Sales Adjustments 7,880 6,553 21,082 22,352 Total Net Sales $ 73,358 $ 74,904 $ 198,060 $ 241,621 |
Note K - Leases
Note K - Leases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note K – Leases We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our leases have remaining lease terms of 1 year to 9 years. As of September 30, 2023, the Company has not entered into any lease arrangements classified as a finance lease. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and operating lease liabilities on our consolidated balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. The Company also elected the package of practical expedients which applies to leases that commenced before the adoption date. ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information is as follows: Third Quarter Ended Three Quarters Ended All Amounts in Thousands September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Lease Expense Operating Lease Cost $ 388 $ 393 $ 1,137 $ 1,073 Short-term Lease Cost 388 658 1,611 1,882 Variable Lease Cost 117 81 415 393 Total Operating Lease Cost $ 893 $ 1,132 $ 3,163 $ 3,348 Operating Lease – Operating Cash Flows $ 266 $ 100 $ 759 $ 712 New ROU Assets – Operating Leases $ 242 $ 30 $ 325 $ 7,773 Other information about lease amounts recognized in our consolidated financial statements is summarized as follows: Three Quarters Ended All Amounts in Thousands September 30, 2023 October 1, 2022 Weighted Average Remaining Lease Term – Operating Leases (in years) 8.29 9.29 Weighted Average Discount Rate – Operating Leases 5.21 % 5.00 % Future minimum lease payments under non-cancellable leases as of September 30, 2023 were as follows: All Amounts in Thousands Year 1 $ 381 Year 2 1,480 Year 3 1,445 Year 4 1,401 Year 5 1,314 Thereafter 5,331 Total future minimum lease payments 11,352 Less imputed interest (2,152 ) Total $ 9,200 Reported as of September 30, 2023 Current operating lease liabilities 1,037 Long-term operating lease liabilities 8,163 Total $ 9,200 |
Note L - Commitments and Contin
Note L - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note L – Commitments and Contingencies The Company is involved in litigation arising in the normal course of business. The Company does not believe that the disposition or ultimate resolution of existing claims or lawsuits will have a material adverse effect on the business or financial condition of the Company. |
Note M - Debt
Note M - Debt | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note M – Debt On January 21, 2022, the Company entered into an Amended and Restated Credit Agreement (“Restated Credit Agreement”) with its issuing bank, JP Morgan Chase Bank, N.A. (“Chase”), and the other lenders identified in the Restated Credit Agreement (collectively, the “Lender”). Under the terms of the Restated Credit Agreement, Old National Bank has been added as a Lender. The Lenders made available to the Company a senior revolving credit facility with increased maximum availability of $65.0 million (the “Revolving Facility”), up from $50.0 million, plus an accordion feature that would allow borrowings up to $90.0 million under the Revolving Facility subject to certain terms and conditions. The maturity date of the revolving credit facility was extended to January 21, 2027. The Company may prepay the Revolving Facility, in whole or in part, and reborrow prior to the revolving loan maturity date. The Restated Credit Agreement further extended the maturity date for the term loan facility to January 21, 2027. On July 18, 2022, the Company entered into the First Amendment to the Restated Credit Agreement. Under the terms of the First Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $65.0 million to $75.0 million pursuant to the accordion feature in the Restated Credit Agreement. The First Amendment also adjusted the funded debt to EBITDA ratio financial covenant to 3:00 On October 26, 2022, the Company entered into the Second Amendment ("Second Amendment”) to the Restated Credit Agreement. Under the terms of the Second Amendment, the Lender increased the maximum availability under the senior revolving credit facility from $75.0 million to $90.0 million pursuant to the accordion feature in the Restated Credit Agreement. The Second Amendment adjusted the funded debt to EBITDA ratio financial covenant to 3:25 3:00 On May 8, 2023, the Company entered into the Third Amendment (the “Third Amendment”) to the Restated Credit Agreement. The Third Amendment adjusted the funded debt to EBITDA ratio financial covenant to 4:25 3:00 2:75 1:10 1:25 As of September 30, 2023, the outstanding principal amount of the term loan was $34.5 million and total amount drawn under the Revolving Facility was $37.5 million. |
Note C - Inventories (Tables)
Note C - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | In thousands September 30, 2023 December 31, 2022 October 1, 2022 Raw materials $ 5,048 $ 7,789 $ 9,988 Work in progress 2,874 3,478 4,537 Finished goods 97,345 110,603 120,432 $ 105,267 $ 121,870 $ 134,957 |
Note D - Fair Values of Finan_2
Note D - Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements Using September 30, 2023 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 919 $ 919 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 64,896 $ -- $ 64,896 $ -- Fair Value Measurements Using December 31, 2022 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 3,967 $ 3,967 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 87,738 $ -- $ 87,738 $ -- Fair Value Measurements Using October 1, 2022 In thousands Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 4,000 $ 4,000 $ -- $ -- Financial liabilities Current portion of long-term debt $ 7,143 $ -- $ 7,143 $ -- Long-term debt $ 99,568 $ -- $ 99,568 $ -- |
Note F - Segment Information (T
Note F - Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Third Quarter Ended September 30, 2023 In thousands Sporting Goods Corp. Total Revenues from external customers $ 73,358 $ -- $ 73,358 Operating income (loss) 6,958 (513 ) 6,445 Net income 4,089 186 4,275 As of and for the Three Quarters Ended September 30, 2023 In thousands Sporting Goods Corp. Total Revenues from external customers $ 198,060 $ -- $ 198,060 Operating income (loss) 14,485 (1,633 ) 12,852 Net income (loss) 7,422 (457 ) 6,965 Total assets $ 279,805 $ 3,568 $ 283,373 For the Third Quarter Ended October 1, 2022 In thousands Sporting Goods Corp. Total Revenues from external customers $ 74,904 $ -- $ 74,904 Operating income (loss) 4,661 (441 ) 4,220 Net income 2,387 571 2,958 As of and for the Three Quarters Ended October 1, 2022 In thousands Sporting Goods Corp. Total Revenues from external customers $ 241,621 $ -- $ 241,621 Operating income (loss) 23,026 (1,594 ) 21,432 Net income 14,665 620 15,285 Total assets $ 312,418 $ 7,906 $ 320,324 |
Note H - Earnings Per Share (Ta
Note H - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Third Quarter Ended Three Quarters Ended In thousands September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Weighted average common shares outstanding 13,737 13,590 13,706 13,565 Dilutive effect of stock options and restricted stock units 150 62 140 82 Weighted average common shares outstanding, assuming dilution 13,887 13,652 13,846 13,647 |
Note J - Revenue From Contrac_2
Note J - Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Third Quarter Ended Three Quarters Ended All Amounts in Thousands September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Gross Sales by Channel: Mass Merchants $ 35,931 $ 29,849 $ 72,101 $ 85,804 Specialty Dealers 19,669 20,298 65,134 74,631 E-commerce 21,785 26,090 69,512 87,441 International 2,961 4,032 9,189 12,643 Other 892 1,188 3,206 3,454 Total Gross Sales 81,238 81,457 219,142 263,973 Less: Gross-to-Net Sales Adjustments Returns 2,493 892 6,039 3,740 Warranties 358 663 988 1,985 Customer Allowances 5,029 4,998 14,055 16,627 Total Gross-to-Net Sales Adjustments 7,880 6,553 21,082 22,352 Total Net Sales $ 73,358 $ 74,904 $ 198,060 $ 241,621 |
Note K - Leases (Tables)
Note K - Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Third Quarter Ended Three Quarters Ended All Amounts in Thousands September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022 Lease Expense Operating Lease Cost $ 388 $ 393 $ 1,137 $ 1,073 Short-term Lease Cost 388 658 1,611 1,882 Variable Lease Cost 117 81 415 393 Total Operating Lease Cost $ 893 $ 1,132 $ 3,163 $ 3,348 Operating Lease – Operating Cash Flows $ 266 $ 100 $ 759 $ 712 New ROU Assets – Operating Leases $ 242 $ 30 $ 325 $ 7,773 Three Quarters Ended All Amounts in Thousands September 30, 2023 October 1, 2022 Weighted Average Remaining Lease Term – Operating Leases (in years) 8.29 9.29 Weighted Average Discount Rate – Operating Leases 5.21 % 5.00 % |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | All Amounts in Thousands Year 1 $ 381 Year 2 1,480 Year 3 1,445 Year 4 1,401 Year 5 1,314 Thereafter 5,331 Total future minimum lease payments 11,352 Less imputed interest (2,152 ) Total $ 9,200 Reported as of September 30, 2023 Current operating lease liabilities 1,037 Long-term operating lease liabilities 8,163 Total $ 9,200 |
Note C - Inventories - Inventor
Note C - Inventories - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 |
Raw materials | $ 5,048 | $ 7,789 | $ 9,988 |
Work in progress | 2,874 | 3,478 | 4,537 |
Finished goods | 97,345 | 110,603 | 120,432 |
Inventory, Net | $ 105,267 | $ 121,870 | $ 134,957 |
Note D - Fair Values of Finan_3
Note D - Fair Values of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 |
Cash and cash equivalents | $ 919 | $ 3,967 | $ 4,000 |
Current portion of long-term debt | 7,143 | 7,143 | 7,143 |
Long-term debt | 64,896 | 87,738 | 99,568 |
Fair Value, Inputs, Level 1 [Member] | |||
Cash and cash equivalents | 919 | 3,967 | 4,000 |
Fair Value, Inputs, Level 2 [Member] | |||
Current portion of long-term debt | 7,143 | 7,143 | 7,143 |
Long-term debt | $ 64,896 | $ 87,738 | $ 99,568 |
Note E - Stock Compensation (De
Note E - Stock Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture | $ 52 | $ 51 | ||
Share-Based Payment Arrangement, Expense | $ 546 | $ 377 | 1,463 | 1,453 |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1,979 | $ 1,937 | $ 1,979 | $ 1,937 |
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 145,563 | |||
Director [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 21,200 | |||
Incentive Plan 2017 [Member] | ||||
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture | 30,921 | |||
Shares Issued, Value, Share-Based Payment Arrangement, before Forfeiture | $ 395 | |||
Incentive Plan 2017 [Member] | Director [Member] | ||||
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture | 4,441 |
Note F - Segment Information -
Note F - Segment Information - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Revenues from external customers | $ 73,358 | $ 74,904 | $ 198,060 | $ 241,621 | |
Operating income (loss) | 6,445 | 4,220 | 12,852 | 21,432 | |
Net income (loss) | 4,275 | 2,958 | 6,965 | 15,285 | |
Total assets | 283,373 | 320,324 | 283,373 | 320,324 | $ 298,718 |
Sporting Goods [Member] | |||||
Revenues from external customers | 73,358 | 74,904 | 198,060 | 241,621 | |
Operating income (loss) | 6,958 | 4,661 | 14,485 | 23,026 | |
Net income (loss) | 4,089 | 2,387 | 7,422 | 14,665 | |
Total assets | 279,805 | 312,418 | 279,805 | 312,418 | |
Corporate Segment [Member] | |||||
Operating income (loss) | (513) | (441) | (1,633) | (1,594) | |
Net income (loss) | 186 | 571 | (457) | 620 | |
Total assets | $ 3,568 | $ 7,906 | $ 3,568 | $ 7,906 |
Note G - Dividend Payment (Deta
Note G - Dividend Payment (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 05, 2023 | Jun. 19, 2023 | Mar. 20, 2023 | Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.15 | $ 0.15 | $ 0.15 | ||||
Dividends, Common Stock, Cash | $ 2,100 | $ 2,100 | $ 2,100 | $ 2,060 | $ 2,039 | $ 6,180 | $ 6,115 |
Note H - Earnings Per Share - E
Note H - Earnings Per Share - Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Weighted average common shares outstanding (in shares) | 13,737 | 13,590 | 13,706 | 13,565 |
Dilutive effect of stock options and restricted stock units (in shares) | 150 | 62 | 140 | 82 |
Weighted average common shares outstanding, assuming dilution (in shares) | 13,887 | 13,652 | 13,846 | 13,647 |
Note J - Revenue From Contrac_3
Note J - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Total Gross Sales | $ 81,238 | $ 81,457 | $ 219,142 | $ 263,973 |
Returns | 2,493 | 892 | 6,039 | 3,740 |
Warranties | 358 | 663 | 988 | 1,985 |
Customer Allowances | 5,029 | 4,998 | 14,055 | 16,627 |
Total Gross-to-Net Sales Adjustments | 7,880 | 6,553 | 21,082 | 22,352 |
Total Net Sales | 73,358 | 74,904 | 198,060 | 241,621 |
Mass Merchants [Member] | ||||
Total Gross Sales | 35,931 | 29,849 | 72,101 | 85,804 |
Specialty Dealers [Member] | ||||
Total Gross Sales | 19,669 | 20,298 | 65,134 | 74,631 |
E-commerce [Member] | ||||
Total Gross Sales | 21,785 | 26,090 | 69,512 | 87,441 |
International [Member] | ||||
Total Gross Sales | 2,961 | 4,032 | 9,189 | 12,643 |
Other Channels [Member] | ||||
Total Gross Sales | $ 892 | $ 1,188 | $ 3,206 | $ 3,454 |
Note K - Leases (Details Textua
Note K - Leases (Details Textual) | Sep. 30, 2023 |
Minimum [Member] | |
Lessee, Operating Lease, Remaining Lease Term | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term | 9 years |
Note K - Leases - Lease Cost (D
Note K - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Weighted Average Remaining Lease Term – Operating Leases (in years) (Year) | 8 years 3 months 14 days | 9 years 3 months 14 days | 8 years 3 months 14 days | 9 years 3 months 14 days |
Operating Lease Cost | $ 388 | $ 393 | $ 1,137 | $ 1,073 |
Weighted Average Discount Rate – Operating Leases | 5.21% | 5% | 5.21% | 5% |
Short-term Lease Cost | $ 388 | $ 658 | $ 1,611 | $ 1,882 |
Variable Lease Cost | 117 | 81 | 415 | 393 |
Total Operating Lease Cost | 893 | 1,132 | 3,163 | 3,348 |
Operating Lease – Operating Cash Flows | 266 | 100 | 759 | 712 |
New ROU Assets – Operating Leases (non-cash) | $ 242 | $ 30 | $ 325 | $ 7,773 |
Note K - Leases - Future Minimu
Note K - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Oct. 01, 2022 |
Year 1 | $ 381 | ||
Year 2 | 1,480 | ||
Year 3 | 1,445 | ||
Year 4 | 1,401 | ||
Year 5 | 1,314 | ||
Thereafter | 5,331 | ||
Total future minimum lease payments | 11,352 | ||
Less imputed interest | (2,152) | ||
Total | 9,200 | ||
Current operating lease liabilities | 1,037 | $ 993 | $ 816 |
Long-term operating lease liabilities | 8,163 | $ 8,641 | $ 8,557 |
Total | $ 9,200 |
Note M - Debt (Details Textual)
Note M - Debt (Details Textual) - Revolving Credit Facility [Member] - Restated Credit Agreement [Member] $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||
Jul. 18, 2022 USD ($) | Dec. 31, 2023 | Sep. 30, 2023 USD ($) | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2024 | Sep. 01, 2023 USD ($) | May 08, 2023 USD ($) | Oct. 26, 2022 USD ($) | Jan. 21, 2022 USD ($) | Dec. 25, 2021 USD ($) | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 75 | $ 85 | $ 75 | $ 90 | $ 65 | $ 50 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity, Accordion Feature | $ 90 | |||||||||||
Debt to EBITDA Ratio | 3 | 2.75 | 3 | 4.25 | 3 | 3.25 | ||||||
EBITDA Add-backs for Disposition Expenses | 2 | |||||||||||
EBITDA Add-backs for Unusual or Non Recurring Expenses | $ 2 | |||||||||||
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | 1.10 | 1.25 | ||||||||||
Debt Instrument, Covenant, Minimum EBITDA | $ 22.5 | |||||||||||
Long-Term Debt, Gross | 34.5 | |||||||||||
Amount Drawn Under the Revolving Facility, Total | $ 37.5 |