ESCA Escalade Inc

INDEX

 

 

		Page No.
Part I.	Financial Information:
Item 1 -	Financial Statements:
	Consolidated Condensed Balance Sheets as of June 30, 2024, December 31, 2023, and June 30, 2023	3
	Consolidated Condensed Statements of Operations for the Three Months and Six Months Ended June 30, 2024 and June 30, 2023	4
	Consolidated Condensed Statements of Stockholders’ Equity for the Three Months and Six Months Ended June 30, 2024 and June 30, 2023	5
	Consolidated Condensed Statements of Cash Flows for the Six Months Ended June 30, 2024 and June 30, 2023	6
	Notes to Consolidated Condensed Financial Statements	7
Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3 -	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4 -	Controls and Procedures	17
Part II.	Other Information
Item 1A -	Risk Factors	18
Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 6 -	Exhibits	20
	Signature	20

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. FINANCIAL STATEMENTS

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

 

 

See notes to Consolidated Condensed Financial Statements.

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

 

 

See notes to Consolidated Condensed Financial Statements.

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

 

 

 

 

See notes to Consolidated Condensed Financial Statements.

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

See notes to Consolidated Condensed Financial Statements.

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

 

Note A – Summary of Significant Accounting Policies

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Presentation of Consolidated Condensed Financial Statements – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 31, 2023 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2023 filed with the Securities and Exchange Commission.

 

Correction of Immaterial Errors

During the year ended December 31, 2023, management became aware of an error in reporting of common stock value within the consolidated balance sheet and statement of stockholders’ equity. Common stock previously was reported with a $1.00 stated value even though, per the Company’s Articles of Incorporation, the common stock has no par value. Additionally, components of equity that should have been reflected within common stock were improperly reported within retained earnings. We have reviewed historical activity reflected in common stock and retained earnings and have identified adjustments to be made to correct the immaterial reporting error. The consolidated balance sheet and consolidated statement of stockholders’ equity have been corrected and have been updated for prior years within this Form 10-Q.

 

We assessed the materiality of this error on prior periods' financial statements in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 99, Materiality, codified in Accounting Standards Codification (ASC) 250, Presentation of Financial Statements. We concluded that the error was not material to any prior annual or interim period and therefore, amendments of previously filed reports are not required. In accordance with ASC 250, we have corrected the reporting for all prior periods presented by revising the consolidated financial statements appearing herein. Periods not presented herein will be revised, as applicable, in future filings. The revisions had no impact on total assets, total liabilities, total shareholders' equity, net income or the cash flow statement.

 

The impact of this revision on our consolidated balance sheet and consolidated statement of stockholders’ equity as of June 30, 2023 was as follows:

 

		As Previously Reported				Correction				As Corrected
In Thousands
Common Stock		$	13,737			$	(10,348	)		$	3,389
Retained Earnings			144,672				10,348				155,020
Total Stockholders’ Equity		$	158,409				-			$	158,409

 

Note B ‑ Seasonal Aspects

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The results of operations for the three and six months ended June 30, 2024 and June 30, 2023 are not necessarily indicative of the results to be expected for the full year.

 

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Note C ‑ Inventories

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In thousands		June 30, 2024				December 31, 2023				June 30, 2023
Raw materials		$	3,629			$	4,050			$	6,537
Work in progress			2,576				2,308				2,910
Finished goods			80,366				86,104				102,229
		$	86,571			$	92,462			$	111,676

 

 

Note D – Fair Values of Financial Instruments

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Accounting Standard Codification (“ASC”) 820, “Fair Value Measurement and Disclosures,” outlines a valuation framework and creates a fair value hierarchy for assets and liabilities as follows:

 

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Level 1: Observable inputs such as quoted prices in active markets;

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Level 2: Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

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Level 3: Unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.

 

Due to their short-term nature, the fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated their carrying values at June 30, 2024, December 31, 2023 and June 30, 2023. The Company believes the carrying value of borrowings under our senior secured revolving credit facility, due to variable rate interest, adequately reflects the fair value of these instruments.

 

The Company discloses the fair value of its term loan using Level 2 inputs, which are estimated using treasury rates for a similar instrument, as follows:

 

		June 30, 2024								December 31, 2023								June 30, 2023
In thousands		Carrying Value				Fair Value				Carrying Value				Fair Value				Carrying Value				Fair Value
Term Loan Facility		$	29,167			$	26,390			$	32,738			$	29,439			$	36,310			$	31,984

 

 

Note E – Stock Compensation

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The fair value of stock-based compensation is recognized in accordance with the provisions of FASB ASC 718, Stock Compensation.

 

During the six months ended June 30, 2024, the Company awarded 12,900 restricted stock units to directors and 130,800 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 2024 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 continues to serve as an employee, director or consultant of the Company on the vesting date.

 

For the three and six months ended June 30, 2024, the Company recognized stock based compensation expense of $497 thousand and $926 thousand, respectively compared to stock based compensation expense of $458 thousand and $917 thousand for the same periods in the prior year. At June 30, 2024 and June 30, 2023, respectively, there was $2,341 thousand and $2,525 thousand in unrecognized stock-based compensation expense related to non-vested stock awards. The unrecognized compensation expense of unvested restricted stock awards net yet recognized as of June 30, 2024 are expected to be recognized over the weighted average period of 1.6 years.

 

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Note F ‑ Segment Information

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		For the Three Months Ended June 30, 2024
In thousands		Sporting Goods				Corp.				Total
Revenues from external customers		$	62,526			$	-			$	62,526
Operating income (loss)			5,106				(649	)			4,457
Net income (loss)			3,176				(332	)			2,844

 

		As of and for the Six Months Ended June 30, 2024
In thousands		Sporting Goods				Corp.				Total
Revenues from external customers		$	119,830			$	-			$	119,830
Operating income (loss)			9,206				(1,689	)			7,517
Net income (loss)			5,618				(999	)			4,619
Total assets		$	240,639			$	2,427			$	243,066

 

 

		For the Three Months Ended June 30, 2023
In thousands		Sporting Goods				Corp.				Total
Revenues from external customers		$	67,771			$	-			$	67,771
Operating income (loss)			6,837				(579	)			6,258
Net income (loss)			3,817				(175	)			3,642

 

		As of and for the Six Months Ended June 30, 2023
In thousands		Sporting Goods				Corp.				Total
Revenues from external customers		$	124,702			$	-			$	124,702
Operating income (loss)			7,527				(1,120	)			6,407
Net income (loss)			3,333				(643	)			2,690
Total assets		$	278,734			$	2,351			$	281,085

 

 

Note G – Dividend Payment

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On January 12, 2024, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on January 5, 2024. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

 

On April 22, 2024, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on April 15, 2024. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

 

On July 15, 2024, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on July 8, 2024. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

 

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Note H ‑ Earnings Per Share

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The shares used in computation of the Company’s basic and diluted earnings per common share are as follows:

 

		Three Months Ended								Six Months Ended
In thousands		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Weighted average common shares outstanding			13,871				13,733				13,828				13,691
Dilutive effect of stock options and restricted stock units			183				109				195				102
Weighted average common shares outstanding, assuming dilution			14,054				13,842				14,023				13,793

 

 

Note I – New Accounting Standards and Changes in Accounting Principles

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With the exception of that discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the three and six months ended June 30, 2024, 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, 2023, that are of significance, or potential significance to the Company.

 

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reporting requirements under Topic 280. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024.

 

 

Note J – Revenue from Contracts with Customers

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Revenue Recognition – Revenue is recognized when a contract exists with a customer that specifies the goods to be provided at an agreed upon sales price and when the performance obligations under the terms of the contract are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Sales are made on normal and customary short-term credit terms or upon delivery of point-of-sale transactions. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts. These costs are recorded in selling, general and administrative expenses in the accompanying consolidated statements of operations. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue.

 

The Company enters into contractual arrangements with customers in the form of customer orders that specify goods, quantity, pricing, and associated order terms. The Company does not have long-term contracts that are satisfied over time. Due to the nature of the contracts, no significant judgment exists in relation to the identification of the customer contract, satisfaction of the performance obligations, or transaction price.

 

Gross-to-net sales adjustments – We recognize revenue net of various sales adjustments to arrive at net sales as reported on the statement of operations. These adjustments are referred to as gross-to-net sales adjustments and primarily fall into one of three categories: returns, warranties and customer allowances.

 

Returns – The Company records an accrued liability and reduction in sales for estimated product returns based upon historical experience. An accrued liability and reduction in sales is also recorded for approved return authorizations that have been communicated by the customer.

 

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Warranties – Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year. The accrued liability amount attributable to warranties was $610 thousand as of June 30, 2024. There were no changes to the accrual due to a change in estimate during the current period.

 

Customer Allowances – Customer allowances are common practice in the industries in which the Company operates. These agreements are typically in the form of advertising subsidies, volume rebates and catalog allowances and are accounted for as a reduction to gross sales. The Company reviews such allowances on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available.

 

Contract Balances – Amounts relating to returns and customer allowances create contract liabilities, which were $4,662 thousand, $5,325 thousand and $5,866 thousand as of June 30, 2024, December 31, 2023, and December 31, 2022.

 

Disaggregation of Revenue – We generate revenue from the sale of widely recognized sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products. These products are sold through multiple sales channels that include: mass merchants, specialty dealers, key on-line retailers (“E-commerce”) and international. The following table depicts the disaggregation of revenue according to sales channel:

 

		Three Months Ended								Six Months Ended
All Amounts in Thousands		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Gross Sales by Channel:
Mass Merchants		$	19,127			$	19,480			$	40,152			$	36,170
Specialty Dealers			21,278				23,850				42,273				45,465
E-commerce			25,442				27,135				43,805				47,727
International			3,668				3,187				6,524				6,228
Other			994				1,279				1,802				2,314
Total Gross Sales			70,509				74,931				134,556				137,904
Less: Gross-to-Net Sales Adjustments
Returns			1,965				2,034				3,801				3,546
Warranties			410				190				855				630
Customer Allowances			5,608				4,936				10,070				9,026
Total Gross-to-Net Sales Adjustments			7,983				7,160				14,726				13,202
Total Net Sales		$	62,526			$	67,771			$	119,830			$	124,702

 

 

Note K – Leases

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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 8 years. As of June 30, 2024, 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 sheets. 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. By electing the package of practical expedients, the Company did not need to reassess the following; whether any existing contracts are or contain leases, the lease classification for any existing leases and initial direct costs for any existing leases.

 

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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 and recognized in the presentation of the ROU assets and operating lease liabilities 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:

 

		Three Months Ended								Six Months Ended
All Amounts in Thousands		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Lease Expense
Operating Lease Cost		$	376			$	375			$	751			$	749
Short-term Lease Cost			382				611				739				1,223
Variable Lease Cost			143				169				308				298
Total Operating Lease Cost		$	901			$	1,155			$	1,798			$	2,270
Operating Lease – Operating Cash Flows		$	260			$	248			$	515			$	493
New ROU Assets – Operating Leases		$	52			$	83			$	52			$	83

 

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:

 

		Six Months Ended
All Amounts in Thousands		June 30, 2024				June 30, 2023
Weighted Average Remaining Lease Term – Operating Leases (in years)			7.67				8.57
Weighted Average Discount Rate – Operating Leases			5.19	%			5.09	%

 

Future minimum lease payments under non-cancellable leases as of June 30, 2024 were as follows:

 

All Amounts in Thousands
Remainder of Year 1		$	750
Year 2			1,460
Year 3			1,416
Year 4			1,327
Year 5			1,077
Thereafter			4,257
Total future minimum lease payments			10,287
Less imputed interest			(1,812	)
Total		$	8,475
Reported as of June 30, 2024
Current operating lease liabilities			1,077
Long-term operating lease liabilities			7,398
Total		$	8,475

 

 

Note L – Commitments and Contingencies

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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.

 

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Note M – Debt

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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 have now 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 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022.

 

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 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022 and 3:00 to 1:00 as of the end of the Company’s first fiscal quarter of 2023. The Second Amendment also modified the EBITDA definition to permit add-backs of a) up to $2.0 million for disposition related expenses; and b) up to $2.0 million for unusual or non-recurring expenses which are incurred prior to the end of fiscal year 2023 and which are subject to the approval of the Administrative Agent.

 

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 to 1:00 as of the end of the Company’s second fiscal quarter of 2023, 3:00 to 1:00 as of the end of the Company’s third fiscal quarter of 2023, and 2:75 to 1:00 as of the end of the Company’s fourth fiscal quarter of 2023 and thereafter. The Third Amendment adjusted the fixed charge coverage ratio covenant to 1:10 to 1:00 commencing as of the Company’s fourth fiscal quarter of 2023 and 1:25 to 1:00 as of the end of the Company’s first fiscal quarter of 2024 and thereafter. For the Company’s second and third fiscal quarters in 2023, the Third Amendment suspended the fixed charge coverage ratio covenant and added a minimum EBITDA covenant of $22.5 million as of the end of each such fiscal quarter. Under the terms of the Third Amendment, the Company and the Lender also agreed to decrease the maximum availability under the senior revolving credit facility from $90.0 million to $75.0 million, upon the consummation of the sale of the Company’s Mexican subsidiary and the dissolution of Escalade Insurance, Inc. The proceeds from such sale and dissolution, respectively, will be used to partially prepay the amounts outstanding under the revolving credit facility. As reflected in the Fourth Amendment to the Restated Credit Agreement effective September 1, 2023, the maximum availability of the senior revolving credit facility was reduced to $85.0 million following the dissolution of Escalade Insurance, Inc. The Company was in compliance with the debt covenants set forth in the Restated Credit Agreement as of June 30, 2024.

 

As of June 30, 2024, the outstanding principal amount of the term loan was $29.2 million and total amount drawn under the Revolving Facility was $14.0 million.

 

Note N – Provision for Taxes

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The effective tax rate for the three months ending June 30, 2024 was 23.8% compared to 22.3% for the same three month period last year. The effective tax rate for the first six months ending June 30, 2024 was 23.8% compared to 22.6% for the same period last year.

 

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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward-Looking Statements

 

This report contains forward-looking statements relating to present or future trends or factors that are subject to risks and uncertainties. These risks include, but are not limited to: Escalade’s ability to achieve its business objectives; Escalade’s ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and of divestitures or discontinuances of certain operations, assets, brands, and products; the continuation and development of key customer, supplier, licensing and other business relationships; Escalade’s ability to develop and implement our own direct to consumer e-commerce distribution channel; the impact of competitive products and pricing; product demand and market acceptance; new product development; Escalade’s ability to successfully negotiate the shifting retail environment and changes in consumer buying habits; the financial health of our customers; disruptions or delays in our business operations, including without limitation disruptions or delays in our supply chain, arising from political unrest, war, terrorism, labor strikes, natural disasters, public health crises such as the coronavirus pandemic, and other events and circumstances beyond our control; the impact of management’s conclusion, in consultation with the Audit Committee, that material weaknesses existed in the Company’s internal control procedures over financial reporting; the evaluation and implementation of remediation efforts designed and implemented to enhance the Company’s control environment, which remediation efforts are ongoing; the potential identification of one or more additional material weaknesses in the Company’s internal control of which the Company is not currently aware or that have not yet been detected; the Company’s inability or failure to fully remediate material weaknesses in our internal control procedures over financial reporting or any other material weaknesses in the future could result in material misstatements in our financial statements; Escalade’s ability to control costs, including managing inventory levels; Escalade’s ability to successfully implement actions to lessen the potential impacts of tariffs and other trade restrictions applicable to our products and raw materials, including impacts on the costs of producing our goods, importing products and materials into our markets for sale, and on the pricing of our products; general economic conditions, including inflationary pressures; fluctuation in operating results; changes in foreign currency exchange rates; changes in the securities markets; continued listing of the Company’s common stock on the NASDAQ Global Market; the Company’s inclusion or exclusion from certain market indices; Escalade’s ability to obtain financing, to maintain compliance with the terms of such financing and to manage debt levels; the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology; the potential impact of actual or perceived defects in, or safety of, our products, including any impact of product recalls or legal or regulatory claims, proceedings or investigations involving our products; risks related to data security or privacy breaches; the potential impact of regulatory claims, proceedings or investigations involving our products; potential residual impacts of the COVID-19 global pandemic on Escalade’s financial condition and results of operations; and other risks detailed from time to time in Escalade’s filings with the Securities and Exchange Commission. Escalade’s future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.

 

Overview

 

Escalade, Incorporated (Escalade, the Company, we, us or our) is focused on growing its Sporting Goods business through organic growth of existing categories, strategic acquisitions, and new product development. The Sporting Goods business competes in a variety of categories including basketball goals, archery, billiards, indoor and outdoor game recreation and fitness products. Strong brands and on-going investment in product development provide a solid foundation for building customer loyalty and continued growth.

 

Within the sporting goods industry, the Company has successfully built a robust market presence in several niche markets. This strategy is heavily dependent on expanding our customer base, barriers to entry, strong brands, excellent customer service and a commitment to innovation. A key strategic advantage is the Company’s established relationships with major customers that allow the Company to bring new products to market in a cost effective manner while maintaining a diversified portfolio of products to meet the demands of consumers. In addition to strategic customer relations, the Company has substantial manufacturing and import experience that enable it to be a low cost supplier.

 

To enhance growth opportunities, the Company has focused on promoting new product innovation and development and brand marketing. In addition, the Company has embarked on a strategy of acquiring companies or product lines that complement or expand the Company's existing product lines or provide expansion into new or emerging categories in sporting goods. A key objective is the acquisition of product lines with barriers to entry that the Company can take to market through its established distribution channels or through new market channels. Significant synergies are achieved through assimilation of acquired product lines into the existing Company structure.

 

 

Management believes that key indicators in measuring the success of these strategies are revenue growth, earnings growth, new product introductions, and the expansion of channels of distribution.

 

As the most significant impacts of the COVID-19 pandemic appear to have waned, consumer demand for the Company’s products has slowed but remains above pre-COVID-19 demand. General economic conditions, inflation, recessionary fears, rising interest rates, changes in the housing market and declining consumer confidence also may impact the Company adversely. Management cannot predict the full impact of these factors on the Company. Due to the above circumstances and as described generally in this Form 10-Q, the Company’s results of operations for the period ended June 30, 2024 are not necessarily indicative of the results to be expected for fiscal year 2024.

 

Results of Operations

 

The following schedule sets forth certain consolidated statement of operations data as a percentage of net revenue:

 

		Three Months Ended								Six Months Ended
		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Net revenue			100.0	%			100.0	%			100.0	%			100.0	%
Cost of products sold			75.8	%			75.4	%			75.4	%			77.8	%
Gross margin			24.2	%			24.6	%			24.6	%			22.2	%
Selling, administrative and general expenses			16.1	%			14.5	%			17.3	%			16.1	%
Amortization			1.0	%			0.9	%			1.0	%			1.0	%
Operating income			7.1	%			9.2	%			6.3	%			5.1	%

 

Revenue and Gross Margin

 

Total net sales declined 7.7% on a year-over-year basis in the second quarter, due to softening consumer demand and channel inventory destocking, particularly in our indoor/outdoor games categories, partly offset by growth in our Stiga table tennis, Bear Archery, and Brunswick Billiards brands. Mass merchant, specialty dealer and third-party e-commerce channel sales were all soft during the quarter, partly offset by 15% growth in international sales and 28% growth in our owned e-commerce sales.

 

For the first six months of 2024, total net sales declined 3.9% compared to the first half of 2023 again due to softening consumer demand and channel destocking, partly offset by growth in our table tennis, basketball, and archery categories.

 

Gross margin decreased to 24.2% for the second quarter of 2024 compared to 24.6% for the same period in 2023 primarily driven by lower fixed cost absorption, increased customer program spending, and severance related expenses associated with the Company’s ongoing asset optimization initiative.

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses (SG&A) were $10.1 million for the second quarter of 2024 compared to $9.8 million for the same period in the prior year, an increase of $0.3 million or 3.0%. SG&A as a percent of sales is 16.1% for the second quarter of 2024 compared with 14.5% for the same period in the prior year.

 

For the first six months of 2024, SG&A were $20.8 million compared to $20.1 million for the same period in the prior year, an increase of $0.7 million, or 3.6%. SG&A as a percent of sales is 17.3% for the first six months of 2024 compared with 16.1% for the same period in the prior year.

 

Provision for Income Taxes

 

The effective tax rate for the first six months of 2024 was 23.8% compared to 22.6% for the same period last year.

 

 

Financial Condition and Liquidity

 

Total debt as of June 30, 2024 was $43.2 million, a decrease of $7.7 million from December 31, 2023. The following schedule summarizes the Company’s total debt:

 

In thousands		June 30, 2024				December 31, 2023				June 30, 2023
Current portion of long-term debt		$	7,143			$	7,143			$	7,143
Long term debt			36,024				43,753				76,809
Total Debt		$	43,167			$	50,896			$	83,952

 

As a percentage of stockholders’ equity, total debt was 26.0%, 30.9% and 53.0% at June 30, 2024, December 31, 2023, and June 30, 2023 respectively.

 

On January 21, 2022, the Company and its wholly owned subsidiary, Indian Industries, Inc. (“Indian”), entered into an Amended and Restated Credit Agreement (the “2022 Restated Credit Agreement”) with its issuing bank, JPMorgan Chase Bank, N.A. (“Chase”), and the other lenders identified in the Restated Credit Agreement (collectively, the “Lenders”). The 2022 Restated Credit Agreement amended and restated the Amended and Restated Credit Agreement dated as of January 21, 2019, as amended, in its entirety, and continues the existing Company’s credit facilities which have been in place since April 30, 2009. The Company’s indebtedness under the 2022 Restated Credit Agreement continues to be collateralized by liens on all of the present and future equity of each of the Company’s domestic subsidiaries and substantially all of the assets of the Company (excluding real estate). Under the terms of the 2022 Restated Credit Agreement, Old National Bank was added as a Lender. The Lenders made available to Escalade and Indian 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 2022 Restated Credit Agreement further extended the maturity date for the existing $50.0 million term loan facility to January 21, 2027.

 

In addition to the increased borrowing amount and extended maturity date, the 2022 Restated Credit Agreement provided a $7.5 million swingline commitment by Chase, replaced LIBOR with the replacement benchmark secured overnight financing rate, and adjusted certain financial covenants relating to the fixed charge coverage ratio.

 

On July 18, 2022, the Company entered into the First Amendment to the 2022 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 2022 Restated Credit Agreement. The First Amendment also adjusted the funded debt to EBITDA ratio financial covenant to 3:00 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022.

 

On October 26, 2022, the Company entered into the Second Amendment ("Second Amendment”) to the 2022 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 2022 Restated Credit Agreement. The Second Amendment adjusted the funded debt to EBITDA ratio financial covenant to 3:25 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022 and 3:00 to 1:00 as of the end of the Company’s first fiscal quarter of 2023. The Second Amendment also modified the EBITDA definition to permit add-backs of a) up to $2.0 million for disposition related expenses; and b) up to $2.0 million for unusual or non-recurring expenses which are incurred prior to the end of fiscal year 2023 and which are subject to the approval of the Administrative Agent.

 

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 to 1:00 as of the end of the Company’s second fiscal quarter of 2023, 3:00 to 1:00 as of the end of the Company’s third fiscal quarter of 2023, and 2:75 to 1:00 as of the end of the Company’s fourth fiscal quarter of 2023 and thereafter. The Third Amendment adjusted the fixed charge coverage ratio covenant to 1:10 to 1:00 commencing as of the Company’s fourth fiscal quarter of 2023 and 1:25 to 1:00 as of the end of the Company’s first fiscal quarter of 2024 and thereafter. For the Company’s second and third fiscal quarters in 2023, the Third Amendment suspended the fixed charge coverage ratio covenant and added a minimum EBITDA covenant of $22.5 million as of the end of each such fiscal quarter. Under the terms of the Third Amendment, the Company and the Lender also agreed to decrease the maximum availability under the senior revolving credit facility from $90.0 million to $75.0 million, upon the consummation of the sale of the Company’s Mexican subsidiary and the dissolution of Escalade Insurance, Inc. The proceeds from such sale and dissolution, respectively, will be used to partially prepay the amounts outstanding under the revolving credit facility. As reflected in the Fourth Amendment to the Restated Credit Agreement effective September 1, 2023, the maximum availability of the senior revolving credit facility was reduced to $85.0 million following the dissolution of Escalade Insurance, Inc. The Company was in compliance with the debt covenants set forth in the Restated Credit Agreement as of June 30, 2024.

 

 

As of June 30, 2024, the outstanding principal amount of the term loan was $29.2 million and total amount drawn under the Revolving Facility was $14.0 million.

 

The Company funds working capital requirements and shareholder dividends through operating cash flows and revolving credit agreements with its Lenders. The Company expects that cash generated from its 2024 operations and its access to adequate levels of revolving credit will provide it with sufficient cash flows for its operations and to meet growth needs.

 

Item 3.         QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not Required.

 

Item 4.         CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Escalade maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of “disclosure controls and procedures” in Rules 13a-15(e) and 15d-15(e). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, could provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 

In connection with the preparation of the Company’s financial statements for the fiscal year ended December 31, 2023, the Company evaluated the effectiveness of the Company’s disclosure controls and procedures and identified material weaknesses in the Company’s internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company’s annual or interim financial statements will not be prevented or detected on a timely basis.

 

The Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2024. The Company did not design and maintain effective disclosure controls and procedures because of the following material weaknesses in internal control over financial reporting:

 

●

Information technology general controls particularly as such controls related to user access, program change management, and ineffective complementary user-organization controls, which limited management’s ability to rely on technology dependent controls relevant to the preparation of the Company’s consolidated financial statements.

●

Controls over the period end close process, including the review and approval process of journal entries, account reconciliations, segregation of duties conflicts, and consolidation of intercompany entries.

●

Documentation and design of controls related to various key financial statement accounts and assertions.

●

The risk assessment, control activities, information and communication, and monitoring components of the Company’s internal control framework such that internal control weaknesses were not detected, communicated, addressed with mitigating control activities, or remediated.

 

These material weaknesses did not result in a misstatement of the Company’s financial statements; however, they could have resulted in misstatements of interim or annual consolidated financial statements and disclosures that would result in a material misstatement that would not be prevented or detected.

 

 

Notwithstanding such material weaknesses, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s consolidated financial statements included in the Quarterly Report are fairly stated in all material respects in accordance with generally accepted accounting principles in the United States of America for each of the periods presented.

 

Remediation Plan and Status

 

The Company’s management and the Company’s Audit Committee are committed to achieving and maintaining a strong internal control environment. Management, with the Audit Committee’s oversight, is actively engaged in the planning for, and implementation of, remediation efforts to address the above described material weaknesses.

 

In response to the material weaknesses discussed above, we plan to continue efforts already underway to remediate internal control over financial reporting, including the following:

 

●

We have engaged with a third-party resource to support our internal control testing and remediation efforts, and we intend to bring in additional resources to oversee remediation efforts.

 

●

We have hired an Internal Auditor, a senior level position.

 

●

We are in the process of conducting a risk assessment over our internal control environment, and we are reviewing and prioritizing individual control deficiencies for remediation, including those which aggregated to the above material weaknesses.

 

●

We are in the process of documenting and executing remediation action items, including expansion of mitigating controls where appropriate.

 

●

We are exploring tools to enhance and centralize general information technology components.

 

Management and our Audit Committee will monitor these specific remedial measures and the effectiveness of our overall control environment. The identified material weaknesses in internal control over financial reporting will only be considered remediated when the relevant controls have operated effectively for a sufficient period of time for management to conclude that they have been remediated. We can provide no assurance as to when the remediation of these material weaknesses will be completed to provide for an effective control environment.

 

Changes in Internal Control over Financial Reporting

 

Management of the Company has evaluated, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, changes in the Company’s internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the second quarter of 2024.

 

There have been no changes to the Company’s internal control over financial reporting that occurred since the beginning of the Company’s first quarter of 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

PART II. OTHER INFORMATION

 

Item 1. LEGAL PROCEEDINGS.

 

None.

 

Item 1A. RISK FACTORS.

 

In addition to the other information set forth in this report, you should carefully consider the risks and uncertainties disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. These risks and uncertainties could materially and adversely affect our business, consolidated financial condition, results of operations, or cash flows. Our operations could also be affected by additional risks or uncertainties that are not presently known to us or that we currently do not consider material to our business. As of the date of this filing, there have been no material changes in our risk factors from those disclosed in the above-referenced Form 10-K, which risk factors are incorporated herein by reference.

 

 

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

c) Issuer Purchases of Equity Securities

 

Period

(a) Total Number of Shares (or Units) Purchased

(b) Average Price Paid per Share (or Unit)

(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs

(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs

Share purchases prior to 3/31/2024 under the current repurchase program.

2,153,132

$13.38

2,153,132

$4,153,252

Second quarter purchases:

4/1/2024-4/30/2024

None

None

No Change

No Change

5/1/2024-5/31/2024

None

None

No Change

No Change

6/1/2024-6/30/2024

None

None

No Change

No Change

Total share purchases under the current program

2,153,132

$13.38

2,153,132

$4,153,252

 

The Company has one stock repurchase program which was established in February 2003 by the Board of Directors and which initially authorized management to expend up to $3,000,000 to repurchase shares on the open market as well as in private negotiated transactions. In February 2005, February 2006, August 2007 and February 2008 the Board of Directors increased the remaining balance on this plan to its original level of $3,000,000. In September 2019, the Board of Directors increased the stock repurchase program from $3,000,000 to $5,000,000. In December 2020, the Board of Directors increased the stock repurchase program to $15,000,000. From its inception date through June 30, 2024, the Company has repurchased 2,153,132 shares of its common stock under this repurchase program for an aggregate price of $28,812,686. The repurchase program has no termination date and there have been no share repurchases that were not part of a publicly announced program.

 

Item 3. DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

Item 4. MINE SAFETY DISCLOSURES.

 

Not applicable.

 

Item 5. OTHER INFORMATION.

 

None.

 

19

---

 

 

Item 6. EXHIBITS

 

Number	Description
3.1	Articles of Incorporation of Escalade, Incorporated. Incorporated by reference from the Company’s 2007 First Quarter Report on Form 10-Q.
3.2	Amended By-laws of Escalade, Incorporated, as amended August 10, 2022. Incorporated by reference from the Company’s 2022 Third Quarter Report on Form 10-Q.
31.1	Chief Executive Officer Rule 13a-14(a)/15d-14(a) Certification.
31.2	Chief Financial Officer Rule 13a-14(a)/15d-14(a) Certification.
32.1	Chief Executive Officer Section 1350 Certification.
32.2	Chief Financial Officer Section 1350 Certification.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
104	Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

ESCALADE, INCORPORATED

 

 

 

Date:         July 25, 2024

/s/ Stephen R. Wawrin Vice President and Chief Financial Officer (On behalf of the registrant and in his capacities as Principal Financial Officer and Principal Accounting Officer)

 

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

 

I, Walter P. Glazer, Jr., certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q of Escalade, Incorporated;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-15(f)) for the registrant and we have:

 

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

 

Date: July 25, 2024

/s/ Walter P. Glazer, Jr. Chief Executive Officer

 

Exhibit 31.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

 

I, Stephen R. Wawrin, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q of Escalade, Incorporated;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-15(f)) for the registrant and we have:

 

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

 

Date: July 25, 2024

/s/ Stephen R. Wawrin Vice President and Chief Financial Officer (On behalf of the registrant and in his capacities as Principal Financial Officer and Principal Accounting Officer)

 

Exhibit 32.1

 

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly Report of Escalade, Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Walter P. Glazer, Jr., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

/s/ Walter P. Glazer, Jr.

Chief Executive Officer

July 25, 2024

 

Exhibit 32.2

 

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly Report of Escalade, Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen R. Wawrin, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

/s/ Stephen R. Wawrin

Vice President and Chief Financial Officer

(On behalf of the registrant and in his

capacities as Principal Financial Officer

and Principal Accounting Officer)

July 25, 2024

 

v3.24.2

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Jul. 22, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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)		13,877,302
Entity Central Index Key	0000033488
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

v3.24.2

Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Current Assets:
Cash and cash equivalents	$ 362	$ 16	$ 577
Receivables, less allowance of $489; $652; and $355; respectively	47,829	49,985	54,975
Inventories	86,571	92,462	111,676
Prepaid expenses	2,461	4,280	3,925
Prepaid income tax	1,829	88	1,518
TOTAL CURRENT ASSETS	139,052	146,831	172,671
Property, plant and equipment, net	23,441	23,786	24,261
Assets held for sale	2,459	2,653	2,823
Operating lease right-of-use assets	7,905	8,378	8,669
Intangible assets, net	27,456	28,640	29,880
Goodwill	42,326	42,326	42,326
Other assets	427	391	455
TOTAL ASSETS	243,066	253,005	281,085
Current Liabilities:
Current portion of long-term debt	7,143	7,143	7,143
Trade accounts payable	12,798	9,797	14,680
Accrued liabilities	9,222	15,283	9,897
Current operating lease liabilities	1,077	1,041	1,002
TOTAL CURRENT LIABILITIES	30,240	33,264	32,722
Long‑term debt	36,024	43,753	76,809
Deferred income tax liability	3,125	3,125	4,516
Operating lease liabilities	7,398	7,897	8,222
Other liabilities	297	387	407
TOTAL LIABILITIES	77,084	88,426	122,676
Stockholders' Equity:
Authorized 30,000,000 shares; no par value, issued and outstanding – 13,877,302; 13,736,800; and 13,736,800; shares respectively	5,406	4,480	3,389
Retained earnings	160,576	160,099	155,020
TOTAL STOCKHOLDERS' EQUITY	165,982	164,579	158,409
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 243,066	$ 253,005	$ 281,085

v3.24.2

Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Receivables, allowance	$ 489	$ 652	$ 355
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, No Par Value (in dollars per share)	$ 0	$ 0	$ 0
Common Stock, Shares, Outstanding (in shares)	13,877,302	13,736,800	13,736,800
Common Stock, Shares, Issued (in shares)	13,877,302	13,736,800	13,736,800

v3.24.2

Consolidated Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net sales	$ 62,526	$ 67,771	$ 119,830	$ 124,702
Costs and Expenses
Cost of products sold	47,415	51,124	90,365	97,003
Selling, administrative and general expenses	10,063	9,769	20,764	20,052
Amortization	591	620	1,184	1,240
Operating Income	4,457	6,258	7,517	6,407
Interest expense	(730)	(1,580)	(1,465)	(2,955)
Other income	3	7	6	25
Income Before Income Taxes	3,730	4,685	6,058	3,477
Provision for Income Taxes	886	1,043	1,439	787
Net Income	$ 2,844	$ 3,642	$ 4,619	$ 2,690
Basic earnings per share (in dollars per share)	$ 0.21	$ 0.27	$ 0.33	$ 0.2
Diluted earnings per share (in dollars per share)	0.2	0.26	0.33	0.2
Dividends declared (in dollars per share)	$ 0.15	$ 0.15	$ 0.3	$ 0.3

v3.24.2

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. 31, 2022	13,594
Balances at Dec. 31, 2022	$ 2,025	$ 156,450	$ 158,475
Net income		2,690	2,690
Expense of restricted stock units	$ 917	0	917
Settlement of restricted stock units (in shares)	108
Settlement of restricted stock units	$ 0	0	0
Dividends declared		(4,120)	(4,120)
Issuance of common stock for service (in shares)	35
Issuance of common stock for service	$ 447	0	447
Balances (in shares) at Jun. 30, 2023	13,737
Balances at Jun. 30, 2023	$ 3,389	155,020	158,409
Balances (in shares) at Mar. 31, 2023	13,730
Balances at Mar. 31, 2023	$ 2,879	153,439	156,318
Net income		3,642	3,642
Expense of restricted stock units	$ 458	0	458
Settlement of restricted stock units (in shares)	3
Settlement of restricted stock units	$ 0	0	0
Dividends declared		(2,061)	(2,061)
Issuance of common stock for service (in shares)	4
Issuance of common stock for service	$ 52	0	52
Balances (in shares) at Jun. 30, 2023	13,737
Balances at Jun. 30, 2023	$ 3,389	155,020	158,409
Balances (in shares) at Dec. 31, 2023	13,737
Balances at Dec. 31, 2023	$ 4,480	160,099	164,579
Net income		4,619	4,619
Expense of restricted stock units	$ 926		926
Settlement of restricted stock units (in shares)	140
Settlement of restricted stock units	$ 0		0
Dividends declared		(4,142)	(4,142)
Balances (in shares) at Jun. 30, 2024	13,877
Balances at Jun. 30, 2024	$ 5,406	160,576	165,982
Balances (in shares) at Mar. 31, 2024	13,862
Balances at Mar. 31, 2024	$ 4,909	159,811	164,720
Net income		2,844	2,844
Expense of restricted stock units	$ 497	0	497
Settlement of restricted stock units (in shares)	15
Settlement of restricted stock units	$ 0	0	0
Dividends declared		(2,079)	(2,079)
Balances (in shares) at Jun. 30, 2024	13,877
Balances at Jun. 30, 2024	$ 5,406	$ 160,576	$ 165,982

v3.24.2

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating Activities:
Net income	$ 4,619	$ 2,690
Depreciation and amortization	2,751	2,798
Allowance for credit losses	325	35
Stock-based compensation	926	917
Loss on disposal of assets	54	0
Common stock issued in lieu of bonus to officers	0	52
Changes in assets and liabilities	4,624	6,009
Net cash provided by operating activities	13,299	12,896
Investing Activities:
Purchase of property and equipment	(1,174)	(1,068)
Proceeds from sale of property and equipment	92	0
Net cash used by investing activities	(1,082)	(1,068)
Financing Activities:
Proceeds from issuance of long-term debt	67,161	62,196
Payments on long-term debt	(74,890)	(73,125)
Deferred financing fees	0	(169)
Cash dividends paid	(4,142)	(4,120)
Net cash used by financing activities	(11,871)	(15,218)
Net increase (decrease) in cash and cash equivalents	346	(3,390)
Cash and cash equivalents, beginning of period	16	3,967
Cash and cash equivalents, end of period	362	577
Officer [Member]
Operating Activities:
Common stock issued in lieu of bonus to officers	$ 0	$ 395

v3.24.2

Note A - Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
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 – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 31, 2023 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2023 filed with the Securities and Exchange Commission.   Correction of Immaterial Errors During the year ended December 31, 2023, management became aware of an error in reporting of common stock value within the consolidated balance sheet and statement of stockholders’ equity. Common stock previously was reported with a $1.00 stated value even though, per the Company’s Articles of Incorporation, the common stock has no par value. Additionally, components of equity that should have been reflected within common stock were improperly reported within retained earnings. We have reviewed historical activity reflected in common stock and retained earnings and have identified adjustments to be made to correct the immaterial reporting error. The consolidated balance sheet and consolidated statement of stockholders’ equity have been corrected and have been updated for prior years within this Form 10-Q.   We assessed the materiality of this error on prior periods' financial statements in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 99, Materiality, codified in Accounting Standards Codification (ASC) 250, Presentation of Financial Statements. We concluded that the error was not material to any prior annual or interim period and therefore, amendments of previously filed reports are not required. In accordance with ASC 250, we have corrected the reporting for all prior periods presented by revising the consolidated financial statements appearing herein. Periods not presented herein will be revised, as applicable, in future filings. The revisions had no impact on total assets, total liabilities, total shareholders' equity, net income or the cash flow statement.   The impact of this revision on our consolidated balance sheet and consolidated statement of stockholders’ equity as of June 30, 2023 was as follows:       As Previously Reported     Correction     As Corrected   In Thousands                         Common Stock   $ 13,737     $ (10,348 )   $ 3,389   Retained Earnings     144,672       10,348       155,020   Total Stockholders’ Equity   $ 158,409       -     $ 158,409

v3.24.2

Note B - Seasonal Aspects	6 Months Ended
	Jun. 30, 2024
Notes to Financial Statements
Seasonal Aspects [Text Block]	Note B ‑ Seasonal Aspects   The results of operations for the three and six months ended June 30, 2024 and June 30, 2023 are not necessarily indicative of the results to be expected for the full year.

v3.24.2

Note C - Inventories	6 Months Ended
	Jun. 30, 2024
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note C ‑ Inventories   In thousands   June 30, 2024     December 31, 2023     June 30, 2023                             Raw materials   $ 3,629     $ 4,050     $ 6,537   Work in progress     2,576       2,308       2,910   Finished goods     80,366       86,104       102,229       $ 86,571     $ 92,462     $ 111,676

v3.24.2

Note D - Fair Values of Financial Instruments	6 Months Ended
	Jun. 30, 2024
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note D – Fair Values of Financial Instruments   Accounting Standard Codification (“ASC”) 820, “Fair Value Measurement and Disclosures,” outlines a valuation framework and creates a fair value hierarchy for assets and liabilities as follows:     - Level 1: Observable inputs such as quoted prices in active markets;   - Level 2: Inputs other than quoted prices in active markets that are either directly or indirectly observable; and   - Level 3: Unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.   Due to their short-term nature, the fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated their carrying values at June 30, 2024, December 31, 2023 and June 30, 2023. The Company believes the carrying value of borrowings under our senior secured revolving credit facility, due to variable rate interest, adequately reflects the fair value of these instruments.   The Company discloses the fair value of its term loan using Level 2 inputs, which are estimated using treasury rates for a similar instrument, as follows:       June 30, 2024     December 31, 2023     June 30, 2023   In thousands   Carrying Value     Fair Value     Carrying Value     Fair Value     Carrying Value     Fair Value                                                     Term Loan Facility   $ 29,167     $ 26,390     $ 32,738     $ 29,439     $ 36,310     $ 31,984

v3.24.2

Note E - Stock Compensation	6 Months Ended
	Jun. 30, 2024
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 six months ended June 30, 2024, the Company awarded 12,900 restricted stock units to directors and 130,800 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 2024 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 continues to serve as an employee, director or consultant of the Company on the vesting date.   For the three and six months ended June 30, 2024, the Company recognized stock based compensation expense of $497 thousand and $926 thousand, respectively compared to stock based compensation expense of $458 thousand and $917 thousand for the same periods in the prior year. At June 30, 2024 and June 30, 2023, respectively, there was $2,341 thousand and $2,525 thousand in unrecognized stock-based compensation expense related to non-vested stock awards. The unrecognized compensation expense of unvested restricted stock awards net yet recognized as of June 30, 2024 are expected to be recognized over the weighted average period of 1.6 years.

v3.24.2

Note F - Segment Information	6 Months Ended
	Jun. 30, 2024
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note F ‑ Segment Information       For the Three Months Ended June 30, 2024   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 62,526     $ -     $ 62,526   Operating income (loss)     5,106       (649 )     4,457   Net income (loss)     3,176       (332 )     2,844         As of and for the Six Months Ended June 30, 2024   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 119,830     $ -     $ 119,830   Operating income (loss)     9,206       (1,689 )     7,517   Net income (loss)     5,618       (999 )     4,619   Total assets   $ 240,639     $ 2,427     $ 243,066           For the Three Months Ended June 30, 2023   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 67,771     $ -     $ 67,771   Operating income (loss)     6,837       (579 )     6,258   Net income (loss)     3,817       (175 )     3,642         As of and for the Six Months Ended June 30, 2023   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 124,702     $ -     $ 124,702   Operating income (loss)     7,527       (1,120 )     6,407   Net income (loss)     3,333       (643 )     2,690   Total assets   $ 278,734     $ 2,351     $ 281,085

v3.24.2

Note G - Dividend Payment	6 Months Ended
	Jun. 30, 2024
Notes to Financial Statements
Dividend Payment Terms [Text Block]	Note G – Dividend Payment   On January 12, 2024, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on January 5, 2024. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.   On April 22, 2024, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on April 15, 2024. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.   On July 15, 2024, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on July 8, 2024. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

v3.24.2

Note H - Earnings Per Share	6 Months Ended
	Jun. 30, 2024
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:       Three Months Ended     Six Months Ended   In thousands   June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023                                     Weighted average common shares outstanding     13,871       13,733       13,828       13,691   Dilutive effect of stock options and restricted stock units     183       109       195       102   Weighted average common shares outstanding, assuming dilution     14,054       13,842       14,023       13,793

v3.24.2

Note I - New Accounting Standards and Changes in Accounting Principles	6 Months Ended
	Jun. 30, 2024
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 three and six months ended June 30, 2024, 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, 2023, that are of significance, or potential significance to the Company.   In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reporting requirements under Topic 280. ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within the segment measure of profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. ASU 2023-07 will be applied retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024.

v3.24.2

Note J - Revenue From Contracts With Customers	6 Months Ended
	Jun. 30, 2024
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	Note J – Revenue from Contracts with Customers   Revenue Recognition – Revenue is recognized when a contract exists with a customer that specifies the goods to be provided at an agreed upon sales price and when the performance obligations under the terms of the contract are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Sales are made on normal and customary short-term credit terms or upon delivery of point-of-sale transactions. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts. These costs are recorded in selling, general and administrative expenses in the accompanying consolidated statements of operations. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue.   The Company enters into contractual arrangements with customers in the form of customer orders that specify goods, quantity, pricing, and associated order terms. The Company does not have long-term contracts that are satisfied over time. Due to the nature of the contracts, no significant judgment exists in relation to the identification of the customer contract, satisfaction of the performance obligations, or transaction price.   Gross-to-net sales adjustments – We recognize revenue net of various sales adjustments to arrive at net sales as reported on the statement of operations. These adjustments are referred to as gross-to-net sales adjustments and primarily fall into one of three categories: returns, warranties and customer allowances.   Returns – The Company records an accrued liability and reduction in sales for estimated product returns based upon historical experience. An accrued liability and reduction in sales is also recorded for approved return authorizations that have been communicated by the customer.     Warranties – Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year. The accrued liability amount attributable to warranties was $610 thousand as of June 30, 2024. There were no changes to the accrual due to a change in estimate during the current period.   Customer Allowances – Customer allowances are common practice in the industries in which the Company operates. These agreements are typically in the form of advertising subsidies, volume rebates and catalog allowances and are accounted for as a reduction to gross sales. The Company reviews such allowances on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available.   Contract Balances – Amounts relating to returns and customer allowances create contract liabilities, which were $4,662 thousand, $5,325 thousand and $5,866 thousand as of June 30, 2024, December 31, 2023, and December 31, 2022.   Disaggregation of Revenue – We generate revenue from the sale of widely recognized sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products. These products are sold through multiple sales channels that include: mass merchants, specialty dealers, key on-line retailers (“E-commerce”) and international. The following table depicts the disaggregation of revenue according to sales channel:       Three Months Ended     Six Months Ended   All Amounts in Thousands   June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023                                     Gross Sales by Channel:                                 Mass Merchants   $ 19,127     $ 19,480     $ 40,152     $ 36,170   Specialty Dealers     21,278       23,850       42,273       45,465   E-commerce     25,442       27,135       43,805       47,727   International     3,668       3,187       6,524       6,228   Other     994       1,279       1,802       2,314   Total Gross Sales     70,509       74,931       134,556       137,904                                     Less: Gross-to-Net Sales Adjustments                                 Returns     1,965       2,034       3,801       3,546   Warranties     410       190       855       630   Customer Allowances     5,608       4,936       10,070       9,026   Total Gross-to-Net Sales Adjustments     7,983       7,160       14,726       13,202   Total Net Sales   $ 62,526     $ 67,771     $ 119,830     $ 124,702

v3.24.2

Note K - Leases	6 Months Ended
	Jun. 30, 2024
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 8 years. As of June 30, 2024, 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 sheets. 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. By electing the package of practical expedients, the Company did not need to reassess the following; whether any existing contracts are or contain leases, the lease classification for any existing leases and initial direct costs for any existing leases.     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 and recognized in the presentation of the ROU assets and operating lease liabilities 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:       Three Months Ended     Six Months Ended   All Amounts in Thousands   June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023                                     Lease Expense                                 Operating Lease Cost   $ 376     $ 375     $ 751     $ 749   Short-term Lease Cost     382       611       739       1,223   Variable Lease Cost     143       169       308       298   Total Operating Lease Cost   $ 901     $ 1,155     $ 1,798     $ 2,270                                     Operating Lease – Operating Cash Flows   $ 260     $ 248     $ 515     $ 493   New ROU Assets – Operating Leases   $ 52     $ 83     $ 52     $ 83     Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:       Six Months Ended   All Amounts in Thousands   June 30, 2024     June 30, 2023                     Weighted Average Remaining Lease Term – Operating Leases (in years)     7.67       8.57   Weighted Average Discount Rate – Operating Leases     5.19 %     5.09 %   Future minimum lease payments under non-cancellable leases as of June 30, 2024 were as follows:   All Amounts in Thousands                   Remainder of Year 1   $ 750   Year 2     1,460   Year 3     1,416   Year 4     1,327   Year 5     1,077   Thereafter     4,257   Total future minimum lease payments     10,287   Less imputed interest     (1,812 ) Total   $ 8,475             Reported as of June 30, 2024         Current operating lease liabilities     1,077   Long-term operating lease liabilities     7,398   Total   $ 8,475

v3.24.2

Note L - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
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.

v3.24.2

Note M - Debt	6 Months Ended
	Jun. 30, 2024
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 have now 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 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022.   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 to 1:00 as of the end of the Company’s third and fourth fiscal quarters of 2022 and 3:00 to 1:00 as of the end of the Company’s first fiscal quarter of 2023. The Second Amendment also modified the EBITDA definition to permit add-backs of a) up to $2.0 million for disposition related expenses; and b) up to $2.0 million for unusual or non-recurring expenses which are incurred prior to the end of fiscal year 2023 and which are subject to the approval of the Administrative Agent.   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 to 1:00 as of the end of the Company’s second fiscal quarter of 2023, 3:00 to 1:00 as of the end of the Company’s third fiscal quarter of 2023, and 2:75 to 1:00 as of the end of the Company’s fourth fiscal quarter of 2023 and thereafter. The Third Amendment adjusted the fixed charge coverage ratio covenant to 1:10 to 1:00 commencing as of the Company’s fourth fiscal quarter of 2023 and 1:25 to 1:00 as of the end of the Company’s first fiscal quarter of 2024 and thereafter. For the Company’s second and third fiscal quarters in 2023, the Third Amendment suspended the fixed charge coverage ratio covenant and added a minimum EBITDA covenant of $22.5 million as of the end of each such fiscal quarter. Under the terms of the Third Amendment, the Company and the Lender also agreed to decrease the maximum availability under the senior revolving credit facility from $90.0 million to $75.0 million, upon the consummation of the sale of the Company’s Mexican subsidiary and the dissolution of Escalade Insurance, Inc. The proceeds from such sale and dissolution, respectively, will be used to partially prepay the amounts outstanding under the revolving credit facility. As reflected in the Fourth Amendment to the Restated Credit Agreement effective September 1, 2023, the maximum availability of the senior revolving credit facility was reduced to $85.0 million following the dissolution of Escalade Insurance, Inc. The Company was in compliance with the debt covenants set forth in the Restated Credit Agreement as of June 30, 2024.   As of June 30, 2024, the outstanding principal amount of the term loan was $29.2 million and total amount drawn under the Revolving Facility was $14.0 million.

v3.24.2

Note N - Provision for Taxes	6 Months Ended
	Jun. 30, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note N – Provision for Taxes   The effective tax rate for the three months ending June 30, 2024 was 23.8% compared to 22.3% for the same three month period last year. The effective tax rate for the first six months ending June 30, 2024 was 23.8% compared to 22.6% for the same period last year.

v3.24.2

Insider Trading Arrangements	6 Months Ended
	Jun. 30, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	Item 5. OTHER INFORMATION.   None.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

v3.24.2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Presentation of Consolidated Condensed Financial Statements – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 31, 2023 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2023 filed with the Securities and Exchange Commission.
Reclassification, Comparability Adjustment [Policy Text Block]	Correction of Immaterial Errors During the year ended December 31, 2023, management became aware of an error in reporting of common stock value within the consolidated balance sheet and statement of stockholders’ equity. Common stock previously was reported with a $1.00 stated value even though, per the Company’s Articles of Incorporation, the common stock has no par value. Additionally, components of equity that should have been reflected within common stock were improperly reported within retained earnings. We have reviewed historical activity reflected in common stock and retained earnings and have identified adjustments to be made to correct the immaterial reporting error. The consolidated balance sheet and consolidated statement of stockholders’ equity have been corrected and have been updated for prior years within this Form 10-Q.   We assessed the materiality of this error on prior periods' financial statements in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 99, Materiality, codified in Accounting Standards Codification (ASC) 250, Presentation of Financial Statements. We concluded that the error was not material to any prior annual or interim period and therefore, amendments of previously filed reports are not required. In accordance with ASC 250, we have corrected the reporting for all prior periods presented by revising the consolidated financial statements appearing herein. Periods not presented herein will be revised, as applicable, in future filings. The revisions had no impact on total assets, total liabilities, total shareholders' equity, net income or the cash flow statement.   The impact of this revision on our consolidated balance sheet and consolidated statement of stockholders’ equity as of June 30, 2023 was as follows:       As Previously Reported     Correction     As Corrected   In Thousands                         Common Stock   $ 13,737     $ (10,348 )   $ 3,389   Retained Earnings     144,672       10,348       155,020   Total Stockholders’ Equity   $ 158,409       -     $ 158,409

v3.24.2

Note A - Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2024
Notes Tables
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	As Previously Reported     Correction     As Corrected   In Thousands                         Common Stock   $ 13,737     $ (10,348 )   $ 3,389   Retained Earnings     144,672       10,348       155,020   Total Stockholders’ Equity   $ 158,409       -     $ 158,409

v3.24.2

Note C - Inventories (Tables)	6 Months Ended
	Jun. 30, 2024
Notes Tables
Schedule of Inventory, Current [Table Text Block]	In thousands   June 30, 2024     December 31, 2023     June 30, 2023                             Raw materials   $ 3,629     $ 4,050     $ 6,537   Work in progress     2,576       2,308       2,910   Finished goods     80,366       86,104       102,229       $ 86,571     $ 92,462     $ 111,676

v3.24.2

Note D - Fair Values of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2024
Notes Tables
Fair Value, by Balance Sheet Grouping [Table Text Block]	June 30, 2024     December 31, 2023     June 30, 2023   In thousands   Carrying Value     Fair Value     Carrying Value     Fair Value     Carrying Value     Fair Value                                                     Term Loan Facility   $ 29,167     $ 26,390     $ 32,738     $ 29,439     $ 36,310     $ 31,984

v3.24.2

Note F - Segment Information (Tables)	6 Months Ended
	Jun. 30, 2024
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	For the Three Months Ended June 30, 2024   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 62,526     $ -     $ 62,526   Operating income (loss)     5,106       (649 )     4,457   Net income (loss)     3,176       (332 )     2,844       As of and for the Six Months Ended June 30, 2024   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 119,830     $ -     $ 119,830   Operating income (loss)     9,206       (1,689 )     7,517   Net income (loss)     5,618       (999 )     4,619   Total assets   $ 240,639     $ 2,427     $ 243,066       For the Three Months Ended June 30, 2023   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 67,771     $ -     $ 67,771   Operating income (loss)     6,837       (579 )     6,258   Net income (loss)     3,817       (175 )     3,642       As of and for the Six Months Ended June 30, 2023   In thousands   Sporting Goods     Corp.     Total                             Revenues from external customers   $ 124,702     $ -     $ 124,702   Operating income (loss)     7,527       (1,120 )     6,407   Net income (loss)     3,333       (643 )     2,690   Total assets   $ 278,734     $ 2,351     $ 281,085

v3.24.2

Note H - Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Notes Tables
Schedule of Weighted Average Number of Shares [Table Text Block]	Three Months Ended     Six Months Ended   In thousands   June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023                                     Weighted average common shares outstanding     13,871       13,733       13,828       13,691   Dilutive effect of stock options and restricted stock units     183       109       195       102   Weighted average common shares outstanding, assuming dilution     14,054       13,842       14,023       13,793

v3.24.2

Note J - Revenue From Contracts With Customers (Tables)	6 Months Ended
	Jun. 30, 2024
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended     Six Months Ended   All Amounts in Thousands   June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023                                     Gross Sales by Channel:                                 Mass Merchants   $ 19,127     $ 19,480     $ 40,152     $ 36,170   Specialty Dealers     21,278       23,850       42,273       45,465   E-commerce     25,442       27,135       43,805       47,727   International     3,668       3,187       6,524       6,228   Other     994       1,279       1,802       2,314   Total Gross Sales     70,509       74,931       134,556       137,904                                     Less: Gross-to-Net Sales Adjustments                                 Returns     1,965       2,034       3,801       3,546   Warranties     410       190       855       630   Customer Allowances     5,608       4,936       10,070       9,026   Total Gross-to-Net Sales Adjustments     7,983       7,160       14,726       13,202   Total Net Sales   $ 62,526     $ 67,771     $ 119,830     $ 124,702

v3.24.2

Note K - Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Notes Tables
Lease, Cost [Table Text Block]	Three Months Ended     Six Months Ended   All Amounts in Thousands   June 30, 2024     June 30, 2023     June 30, 2024     June 30, 2023                                     Lease Expense                                 Operating Lease Cost   $ 376     $ 375     $ 751     $ 749   Short-term Lease Cost     382       611       739       1,223   Variable Lease Cost     143       169       308       298   Total Operating Lease Cost   $ 901     $ 1,155     $ 1,798     $ 2,270                                     Operating Lease – Operating Cash Flows   $ 260     $ 248     $ 515     $ 493   New ROU Assets – Operating Leases   $ 52     $ 83     $ 52     $ 83       Six Months Ended   All Amounts in Thousands   June 30, 2024     June 30, 2023                     Weighted Average Remaining Lease Term – Operating Leases (in years)     7.67       8.57   Weighted Average Discount Rate – Operating Leases     5.19 %     5.09 %
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	All Amounts in Thousands                   Remainder of Year 1   $ 750   Year 2     1,460   Year 3     1,416   Year 4     1,327   Year 5     1,077   Thereafter     4,257   Total future minimum lease payments     10,287   Less imputed interest     (1,812 ) Total   $ 8,475             Reported as of June 30, 2024         Current operating lease liabilities     1,077   Long-term operating lease liabilities     7,398   Total   $ 8,475

v3.24.2

Note A - Summary of Significant Accounting Policies (Details Textual)	Dec. 31, 2023 $ / shares
Previously Reported [Member]
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 1

v3.24.2

Note A - Summary of Significant Accounting Policies - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Common Stock	$ 5,406		$ 4,480	$ 3,389
Retained Earnings	160,576		160,099	155,020
TOTAL STOCKHOLDERS' EQUITY	$ 165,982	$ 164,720	$ 164,579	158,409	$ 156,318	$ 158,475
Previously Reported [Member]
Common Stock				13,737
Retained Earnings				144,672
TOTAL STOCKHOLDERS' EQUITY				158,409
Revision of Prior Period, Error Correction, Adjustment [Member]
Common Stock				(10,348)
Retained Earnings				10,348
TOTAL STOCKHOLDERS' EQUITY				$ 0

v3.24.2

Note C - Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Raw materials	$ 3,629	$ 4,050	$ 6,537
Work in progress	2,576	2,308	2,910
Finished goods	80,366	86,104	102,229
Inventory, Net	$ 86,571	$ 92,462	$ 111,676

v3.24.2

Note D - Fair Values of Financial Instruments - Fair Value of Financial Instruments (Details) - Fair Value, Inputs, Level 2 [Member] - Term Loan [Member] - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Term Loan Facility, Carrying Value	$ 29,167	$ 32,738	$ 36,310
Term Loan Facility, Fair Value	$ 26,390	$ 29,439	$ 31,984

v3.24.2

Note E - Stock Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended	4 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement, Expense	$ 926	$ 917	$ 497	$ 458
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 2,341	$ 2,525	$ 2,341	$ 2,525
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition			1 year 7 months 6 days
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares)			130,800
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)			3 years
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage			33.33%
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | Share-Based Payment Arrangement, Tranche Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage			33.33%
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Employee [Member] | Share-Based Payment Arrangement, Tranche Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage			33.33%
Restricted Stock Units (RSUs) [Member] | Directors [Member]
Stock Issued During Period, Shares, Restricted Stock Award, Gross (in shares)			12,900
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)			2 years
Restricted Stock Units (RSUs) [Member] | Directors [Member] | Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage			50.00%
Restricted Stock Units (RSUs) [Member] | Directors [Member] | Share-Based Payment Arrangement, Tranche Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage			50.00%

v3.24.2

Note F - Segment Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Revenues from external customers	$ 62,526	$ 67,771	$ 119,830	$ 124,702
Operating income (loss)	4,457	6,258	7,517	6,407
Net income (loss)	2,844	3,642	4,619	2,690
Total assets	243,066	281,085	243,066	281,085	$ 253,005
Sporting Goods [Member]
Revenues from external customers	62,526	67,771	119,830	124,702
Operating income (loss)	5,106	6,837	9,206	7,527
Net income (loss)	3,176	3,817	5,618	3,333
Total assets	240,639	278,734	240,639	278,734
Corporate Segment [Member]
Revenues from external customers	0	0	0	0
Operating income (loss)	(649)	(579)	(1,689)	(1,120)
Net income (loss)	(332)	(175)	(999)	(643)
Total assets	$ 2,427	$ 2,351	$ 2,427	$ 2,351

v3.24.2

Note G - Dividend Payment (Details Textual) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended
	Jul. 15, 2024	Apr. 22, 2024	Jan. 12, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Common Stock, Dividends, Per Share, Cash Paid		$ 0.15	$ 0.15
Dividends, Common Stock, Cash		$ 2,100	$ 2,100	$ 2,079	$ 2,061	$ 4,142	$ 4,120
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.15
Dividends, Common Stock, Cash	$ 2,100

v3.24.2

Note H - Earnings Per Share - Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Weighted average common shares outstanding (in shares)	13,871	13,733	13,828	13,691
Dilutive effect of stock options and restricted stock units (in shares)	183	109	195	102
Weighted average common shares outstanding, assuming dilution (in shares)	14,054	13,842	14,023	13,793

v3.24.2

Note J - Revenue From Contracts With Customers (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Standard Product Warranty Accrual	$ 610
Contract with Customer, Liability	$ 4,662	$ 5,325	$ 5,866

v3.24.2

Note J - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Total Gross Sales	$ 70,509	$ 74,931	$ 134,556	$ 137,904
Returns	1,965	2,034	3,801	3,546
Warranties	410	190	855	630
Customer Allowances	5,608	4,936	10,070	9,026
Total Gross-to-Net Sales Adjustments	7,983	7,160	14,726	13,202
Total Net Sales	62,526	67,771	119,830	124,702
Mass Merchants [Member]
Total Gross Sales	19,127	19,480	40,152	36,170
Specialty Dealers [Member]
Total Gross Sales	21,278	23,850	42,273	45,465
E-commerce [Member]
Total Gross Sales	25,442	27,135	43,805	47,727
International [Member]
Total Gross Sales	3,668	3,187	6,524	6,228
Other Channels [Member]
Total Gross Sales	$ 994	$ 1,279	$ 1,802	$ 2,314

v3.24.2

Note K - Leases (Details Textual)	Jun. 30, 2024
Minimum [Member]
Lessee, Operating Lease, Remaining Lease Term	1 year
Maximum [Member]
Lessee, Operating Lease, Remaining Lease Term	8 years

v3.24.2

Note K - Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Weighted Average Remaining Lease Term – Operating Leases (in years) (Year)	7 years 8 months 1 day	8 years 6 months 25 days	7 years 8 months 1 day	8 years 6 months 25 days
Operating Lease Cost	$ 376	$ 375	$ 751	$ 749
Weighted Average Discount Rate – Operating Leases	5.19%	5.09%	5.19%	5.09%
Short-term Lease Cost	$ 382	$ 611	$ 739	$ 1,223
Variable Lease Cost	143	169	308	298
Total Operating Lease Cost	901	1,155	1,798	2,270
Operating Lease – Operating Cash Flows	260	248	515	493
New ROU Assets – Operating Leases (non-cash)	$ 52	$ 83	$ 52	$ 83

v3.24.2

Note K - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Remainder of Year 1	$ 750
Year 2	1,460
Year 3	1,416
Year 4	1,327
Year 5	1,077
Thereafter	4,257
Total future minimum lease payments	10,287
Less imputed interest	(1,812)
Total	8,475
Current operating lease liabilities	1,077	$ 1,041	$ 1,002
Long-term operating lease liabilities	7,398	$ 7,897	$ 8,222
Total	$ 8,475

v3.24.2

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	Jun. 30, 2024 USD ($)	Jan. 01, 2024	Sep. 01, 2023 USD ($)	May 08, 2023 USD ($)	Oct. 26, 2022 USD ($)	Jan. 21, 2022 USD ($)	Dec. 25, 2021 USD ($)
Line of Credit Facility, Maximum Borrowing Capacity	$ 75.0								$ 85.0	$ 75.0	$ 90.0	$ 65.0	$ 50.0
Line of Credit Facility, Maximum Borrowing Capacity, Accordion Feature												$ 90.0
Debt to EBITDA Ratio	3	2.75	3	4.25	3	3.25
EBITDA Add-backs for Disposition Expenses											2.0
EBITDA Add-backs for Unusual or Non Recurring Expenses											$ 2.0
Debt Instrument, Covenant, Fixed Charge Coverage Ratio		1.1						1.25
Debt Instrument, Covenant, Minimum EBITDA			$ 22.5
Long-Term Debt, Gross							$ 29.2
Amount Drawn Under the Revolving Facility, Total							$ 14.0

v3.24.2

Note N - Provision for Taxes (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Effective Income Tax Rate Reconciliation, Percent	23.80%	22.30%	23.80%	22.60%

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