Mon, May 5, 10:31 AM (18 days ago)
**Escalade, Incorporated (ESCA) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $55,479,000, a 3.2% decrease from Q1 2024 ($57,304,000). This decline was primarily due to softer demand for basketball and table tennis products, partially offset by increased demand for archery and safety products. - **Profit Margins:** Gross margin improved to 26.7% in Q1 2025 from 25.0% in Q1 2024, driven by lower fixed costs and decreased inventory storage and handling costs. Operating income was $3,652,000, up from $3,060,000 in Q1 2024. - **Net Income:** Net income for Q1 2025 was $2,619,000, an increase from $1,775,000 in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $3,791,000 in Q1 2025, compared to $7,000 in Q1 2024. The company invested $543,000 in property and equipment and had net cash used in financing activities of $5,228,000. **Key Metrics and Trends:** - **Debt:** Total debt at the end of Q1 2025 was $23,810,000, a decrease from $25,595,000 at the end of 2024. The company was in compliance with its debt covenants as of March 31, 2025. - **Dividends:** The company paid quarterly dividends of $0.15 per common share in January and April 2025, totaling approximately $2.1 million each. - **Share Repurchases:** The company repurchased 92,076 shares in Q1 2025 at an average price of $14.87 per share, totaling $1,381,000. **Future Operations and Uncertainties:** - **Strategic Focus:** Escalade is focused on growing its Sporting Goods business through organic growth, strategic acquisitions, and new product development. - **Market Risks:** The company faces uncertainties related to tariffs, trade restrictions, economic conditions, and competitive pressures. These factors could impact profitability and sales. - **Operational Risks:** The company is subject to risks related to supply chain disruptions, changes in consumer buying habits, and the financial health of its customers. **Conclusion:** Escalade, Incorporated reported improved profitability and cash flow in Q1 2025 despite a decrease in revenue. The company's strategic focus on growth and cost management, along with compliance with debt covenants, positions it for future operations. However, market and operational uncertainties remain, which could impact financial performance.