Escalade Inc. (ESCA, Financial) filed Quarterly Report for the period ended 2009-07-11.
Escalade Incorporated is a diversified company engaged in the manufacture and sale of sporting goods products and office and graphic arts products. The company offers a broad and complete product selection that is built oninnovation and cutting edge product design. These diverse products include table tennis tables and equipment; pool tables and equipment; other game tables which include table soccer table hockey and multi games; basketball systems; and archery Equipment. Escalade Inc. has a market cap of $16.41 million; its shares were traded at around $1.3005 with and P/S ratio of 0.11.
The effective tax rate for the first half of 2009 for domestic operations was 37% compared with 38% for the same period last year. As a result of net losses in certain foreign countries where a tax benefit is not expected to be realized, the Company is reporting a provision for income tax as of the end of the second quarter of $150 thousand on pre-tax income of $77 thousand.
The Companys common stock may not remain in compliance with NASDAQ rules for continued listing on the NASDAQ Global Market and could be at risk of being delisted. Over the past eight months, the Companys common stock has not always maintained a minimum $1.00 per share bid price for the prior 30 consecutive business days as required by NASDAQ Marketplace Rule 5450(a)(1). Additionally, the Companys common stock is currently at risk of not complying with NASDAQ Marketplace Rule 5450(b)(1) relating to continued listing on the NASDAQ Global Market. In accordance with Marketplace Rule 5450(b)(1), companies must, among other requirements, maintain a market value of publicly held shares of at least $5,000,000. Although the bid price for the Companys stock has been $1.00 or greater within the last 30 business days and the market value of the Companys publicly held shares currently exceeds $5,000,000, the Company cannot provide any assurance it will be able to meet these requirements in the future.
The Company has one stock repurchase program which was established in February 2003 by the Board of Directors and which authorized management to expend up to $3,000,000 to repurchase shares on the open market as well as in private negotiated transactions. The repurchase plan has no termination date. There have been no share repurchases that were not part of a publicly announced program. In February 2008, the Board of Directors increased the remaining amount on this plan to its original level of $3,000,000.
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Escalade Incorporated is a diversified company engaged in the manufacture and sale of sporting goods products and office and graphic arts products. The company offers a broad and complete product selection that is built oninnovation and cutting edge product design. These diverse products include table tennis tables and equipment; pool tables and equipment; other game tables which include table soccer table hockey and multi games; basketball systems; and archery Equipment. Escalade Inc. has a market cap of $16.41 million; its shares were traded at around $1.3005 with and P/S ratio of 0.11.
Highlight of Business Operations:
The Companys operating income for the second quarter and first half of fiscal 2009 was $1,374 thousand and $746 thousand, respectively, compared to operating losses of $(789) thousand and $(1,845) thousand for the same periods last year. Net revenues for the second quarter and first half of fiscal 2009 declined 22.2% and 19.2%, respectively, compared to same periods last year; however, the Company has achieved improved gross margins and lower selling, administrative and general expenses mainly due to facility consolidation in the Sporting Goods segment and Company-wide cost cutting measures implemented last year which have dramatically improved Company profits.The effective tax rate for the first half of 2009 for domestic operations was 37% compared with 38% for the same period last year. As a result of net losses in certain foreign countries where a tax benefit is not expected to be realized, the Company is reporting a provision for income tax as of the end of the second quarter of $150 thousand on pre-tax income of $77 thousand.
The Companys common stock may not remain in compliance with NASDAQ rules for continued listing on the NASDAQ Global Market and could be at risk of being delisted. Over the past eight months, the Companys common stock has not always maintained a minimum $1.00 per share bid price for the prior 30 consecutive business days as required by NASDAQ Marketplace Rule 5450(a)(1). Additionally, the Companys common stock is currently at risk of not complying with NASDAQ Marketplace Rule 5450(b)(1) relating to continued listing on the NASDAQ Global Market. In accordance with Marketplace Rule 5450(b)(1), companies must, among other requirements, maintain a market value of publicly held shares of at least $5,000,000. Although the bid price for the Companys stock has been $1.00 or greater within the last 30 business days and the market value of the Companys publicly held shares currently exceeds $5,000,000, the Company cannot provide any assurance it will be able to meet these requirements in the future.
The Company has one stock repurchase program which was established in February 2003 by the Board of Directors and which authorized management to expend up to $3,000,000 to repurchase shares on the open market as well as in private negotiated transactions. The repurchase plan has no termination date. There have been no share repurchases that were not part of a publicly announced program. In February 2008, the Board of Directors increased the remaining amount on this plan to its original level of $3,000,000.
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