Escalade Inc BAIT reported fourth-quarter fiscal 2023 sales fell 9.2% year-over-year to $65.51 million, missing analysts’ consensus estimate of $67.09 million.
The decline was primarily due to declining consumer demand across most of the Company’s product categories, partially offset by improving demand in its basketball and indoor gaming product categories.
Gross margin for the quarter improved 192 basis points to 24.3%. Operating profit increased 1.6% to $5.0 million with an operating margin of 7.6%.
The company had $16,000 in cash and cash equivalents as of December 31, 2023. Escalade generated $20.6 million in cash flow from operations in the quarter.
As of December 31, 2023, the Company had $66.8 million of availability on its senior secured revolving credit facility due 2027.
EPS for the quarter was $0.21, up from last year’s EPS of $0.20.
Escalade’s board of directors declared a quarterly dividend of $0.15 per common share. The dividend will be payable on April 22, 2024 to all shareholders of record at the close of business on April 15, 2024.
“Given lower inventory costs, reduced transportation and warehousing expenses, operational improvements and continued pricing discipline, we see a path to improving margins as we approach 2024,” said President and CEO Walter P Glazer, Jr.
Price action: ESCA shares closed 4.25% higher at $13.75 on Thursday.