10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended October 1, 2016 or

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _____ to _____

Commission File Number 0-6966

ESCALADE, INCORPORATED

(Exact name of registrant as specified in its charter)

Indiana
(State of incorporation) 13-2739290
(I.R.S. EIN)

817 Maxwell Ave, Evansville, Indiana
(Address of principal executive office) 47711
(Zip Code)

812-467-4449

(Registrant’s Telephone Number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer x
Non-accelerated filer ¨    (Do not check if a smaller reporting company)	Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at October 26, 2016
Common, no par value	14,301,959

INDEX

		Page No.
Part I.	Financial Information:
Item 1 -	Financial Statements:
	Consolidated Condensed Balance Sheets as of October 1, 2016, December 26, 2015, and October 3, 2015	3
	Consolidated Condensed Statements of Operations for the Three Months and Nine Months Ended October 1, 2016 and October 3, 2015	4
	Consolidated Condensed Statements of Comprehensive Income for the Three Months and Nine Months Ended October 1, 2016 and October 3, 2015	5
	Consolidated Condensed Statements of Cash Flows for the Nine Months Ended October 1, 2016 and October 3, 2015	6
	Notes to Consolidated Condensed Financial Statements	7
Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3 -	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4 -	Controls and Procedures	15
Part II.	Other Information
Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 6 -	Exhibits	17
	Signature	17

2

PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

All Amounts in Thousands Except Share Information	October 1, 2016			December 26, 2015			October 3, 2015
	(Unaudited)			(Audited)			(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	4,306		$	1,982		$	2,701
Receivables, less allowance of $554; $1,086; and $885; respectively		37,034			38,984			31,407
Inventories		42,936			25,862			40,337
Prepaid expenses		2,492			2,534			2,134
Deferred income tax benefit		1,553			1,543			949
Prepaid income tax		952			1,910			1,699
Other current assets		395			—			—
TOTAL CURRENT ASSETS		89,668			72,815			79,227
Property, plant and equipment, net		13,665			14,363			13,848
Intangible assets, net		21,221			16,868			17,517
Goodwill		21,456			20,047			20,142
Investments		19,268			19,644			18,799
Other assets		—			—			5
TOTAL ASSETS	$	165,278		$	143,737		$	149,538
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Notes payable	$	30,686		$	19,776		$	27,963
Current portion of long-term debt		1,405			1,810			1,810
Trade accounts payable		9,726			2,547			6,630
Accrued liabilities		10,342			14,174			12,430
TOTAL CURRENT LIABILITIES		52,159			38,307			48,833
Other Liabilities:
Long-term debt		5,313			1,750			1,750
Deferred income tax liability		7,166			7,200			5,031
TOTAL LIABILITIES		64,638			47,257			55,614
Stockholders’ Equity:
Preferred stock:
Authorized 1,000,000 shares; no par value, none issued
Common stock:
Authorized 30,000,000 shares; no par value, issued and outstanding – 14,301,959; 14,179,844; and 14,125,935; shares respectively		14,302			14,180			14,126
Retained earnings		89,582			85,478			83,064
Accumulated other comprehensive loss		(3,244	)		(3,178	)		(3,266	)
TOTAL STOCKHOLDERS’ EQUITY		100,640			96,480			93,924
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	165,278		$	143,737		$	149,538

See notes to Consolidated Condensed Financial Statements.

3

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended						Nine Months Ended
All Amounts in Thousands Except Per Share Data	October 1, 2016			October 3, 2015			October 1, 2016			October 3, 2015
Net sales	$	38,793		$	34,584		$	121,824		$	111,798
Costs and Expenses
Cost of products sold		28,505			25,156			87,793			78,336
Selling, administrative and general expenses		4,583			6,905			21,256			21,018
Amortization		376			650			1,963			2,127
Operating Income		5,329			1,873			10,812			10,317
Other Income (Expense)
Interest expense		(211	)		(108	)		(631	)		(340	)
Equity in earnings of affiliates		573			1,069			749			2,080
Other income		35			39			168			276
Income Before Income Taxes		5,726			2,873			11,098			12,333
Provision for Income Taxes		1,483			845			3,068			3,586
Net Income	$	4,243		$	2,028		$	8,030		$	8,747
Earnings Per Share Data:
Basic earnings per share	$	0.30		$	0.14		$	0.56		$	0.62
Diluted earnings per share	$	0.30		$	0.14		$	0.56		$	0.61
Dividends declared	$	0.11		$	0.11		$	0.33		$	0.32

See notes to Consolidated Condensed Financial Statements.

4

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended				Nine Months Ended
All Amounts in Thousands	October 1, 2016		October 3, 2015		October 1, 2016			October 3, 2015
Net Income	$	4,243	$	2,028	$	8,030		$	8,747
Foreign currency translation adjustment		3		168		(66	)		(1,302	)
Comprehensive Income	$	4,246	$	2,196	$	7,964		$	7,445

All amounts are net of tax

See notes to Consolidated Condensed Financial Statements.

5

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Months Ended
All Amounts in Thousands	October 1, 2016			October 3, 2015
Operating Activities:
Net income	$	8,030		$	8,747
Depreciation and amortization		4,482			3,812
Loss (gain) on disposal of property and equipment		(2,112	)		1
Stock-based compensation		230			440
Dividends received from equity method investments		1,060			928
Adjustments necessary to reconcile net income to net cash provided by operating activities		(9,778	)		(8,147	)
Net cash provided by operating activities		1,912			5,781
Investing Activities:
Purchase of property and equipment		(2,206	)		(3,900	)
Acquisitions		(9,659	)		(10,300	)
Proceeds from sale of property and equipment		2,523			—
Purchase of marketable securities		(395	)		—
Proceeds from disposal of short-term time deposits		—			1,450
Net cash used in investing activities		(9,737	)		(12,750	)
Financing Activities:
Net increase in notes payable		10,910			11,764
Principal payments on long-term debt		(1,644	)		(1,586	)
Proceeds from issuance of long-term debt		5,000			—
Proceeds from exercise of stock options		531			733
Deferred financing fees		(83	)		—
Cash dividends paid		(4,709	)		(4,511	)
Director stock compensation		144			38
Net cash provided by financing activities		10,149			6,438
Net increase (decrease) in cash and cash equivalents		2,324			(531	)
Cash and cash equivalents, beginning of period		1,982			3,232
Cash and cash equivalents, end of period	$	4,306		$	2,701
Supplemental Cash Flows Information
Dividends payable	$	—		$	3
Non-Cash Transactions
Note payable for deferred purchase price obligation	$	—		$	200

See notes to Consolidated Condensed Financial Statements.

6

ESCALADE, INCORPORATED AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

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 26, 2015 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 2015 filed with the Securities and Exchange Commission.

Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings.

Note B – Seasonal Aspects

The results of operations for the three and nine month periods ended October 1, 2016 and October 3, 2015 are not necessarily indicative of the results to be expected for the full year.

Note C – Inventories

In thousands	October 1, 2016		December 26, 2015		October 3, 2015
Raw materials	$	5,467	$	3,621	$	4,943
Work in progress		5,093		4,297		5,168
Finished goods		32,376		17,944		30,226
	$	42,936	$	25,862	$	40,337

Note D – Equity Interest Investments

The Company has a 50% interest in a joint venture, Stiga Sports AB (Stiga). The joint venture is accounted for under the equity method of accounting. Stiga, located in Sweden, is a global sporting goods company producing table tennis equipment, snow sleds and game products. Financial information for Stiga reflected in the table below has been translated from local currency to U.S. dollars using exchange rates in effect at the respective period-end for balance sheet amounts, and using average exchange rates for statement of operations amounts. Certain differences exist between U.S. GAAP and local GAAP in Sweden, and the impact of these differences is not reflected in the summarized information reflected in the table below. The most significant difference relates to the accounting for goodwill for Stiga which is amortized over eight years in Sweden but is not amortized for U.S. GAAP reporting purposes. The goodwill for Stiga was fully amortized as of December 27, 2014. The effect on Stiga’s net assets resulting from the cumulative amortization of goodwill for the periods ended October 1, 2016 and October 3, 2015 are addbacks to Stiga’s consolidated net assets of $10.4 million and $10.7 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $14.6 million offset by the related cumulative tax effect of $4.2 million as of October 1, 2016 and cumulative goodwill adjustments of $14.9 million offset by the related cumulative tax effect of $4.2 million as of October 3, 2015. The Company’s 50% portion of the statement of operations impact of other individually insignificant U.S. GAAP adjustments for the nine month periods ended October 1, 2016, and October 3, 2015 are to increase Stiga’s net income by approximately zero and $0.4 million, respectively. The Company’s 50% portion of net income for Stiga, included in equity in earnings of affiliates on the Company’s statements of operations, for the three and nine month periods ended October 1, 2016 and October 3, 2015 is as follows:

7

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Equity in earnings of affiliates	$	573	$	1,069	$	749	$	2,080

Summarized financial information for Stiga Sports AB balance sheets as of October 1, 2016, December 26, 2015, and October 3, 2015 and statements of operations for the three month and nine month periods ended October 1, 2016 and October 3, 2015 is as follows:

In thousands	October 1, 2016		December 26, 2015		October 3, 2015
Current assets	$	28,857	$	29,300	$	31,044
Non-current assets		9,908		9,908		9,533
Total assets		38,765		39,208		40,577
Current liabilities		5,604		5,096		7,777
Non-current liabilities		5,583		5,835		5,736
Total liabilities		11,187		10,931		13,513
Net assets	$	27,578	$	28,277	$	27,064

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Net sales	$	10,635	$	12,846	$	27,161	$	30,161
Gross profit		4,918		6,304		12,661		14,899
Net income		1,146		2,138		1,498		3,346

Note E – Income Taxes

The provision for income taxes was computed based on financial statement income.

Note F – Fair Values of Financial Instruments

The following methods were used to estimate the fair value of all financial instruments recognized in the accompanying balance sheets at amounts other than fair values.

Cash and Cash Equivalents

Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity.

Notes Payable and Long-term Debt

Fair values of notes payable and long-term debt approximates the carrying value and is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model.

The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at October 1, 2016, December 26, 2015 and October 3, 2015.

8

			Fair Value Measurements Using
October 1, 2016 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	4,306	$	4,306	$	—	$	—
Marketable securities	$	395	$	395	$	—	$	—
Financial liabilities
Notes payable	$	30,686	$	—	$	30,686	$	—
Current portion of  long-term debt	$	1,405	$	—	$	1,405	$	—
Long-term debt	$	5,313	$	—	$	5,313	$	—

			Fair Value Measurements Using
December 26, 2015 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	1,982	$	1,982	$	—	$	—
Financial liabilities
Notes payable	$	19,776	$	—	$	19,776	$	—
Current portion of  long-term debt	$	1,810	$	—	$	1,810	$	—
Long-term debt	$	1,750	$	—	$	1,750	$	—

			Fair Value Measurements Using
October 3, 2015 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	2,701	$	2,701	$	—	$	—
Financial liabilities
Notes payable	$	27,963	$	—	$	27,963	$	—
Current portion of  long-term debt	$	1,810	$	—	$	1,810	$	—
Long-term debt	$	1,750	$	—	$	1,750	$	—

Note G – Stock Compensation

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

9

During the nine months ended October 1, 2016 and pursuant to the 2007 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 13,112 shares of common stock. During the nine months ended October 1, 2016, the Company awarded 13,250 restricted stock units to directors and 34,000 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 2016 restricted stock units awarded to employees vest over four years (one-third two years from grant date, one-third three years from grant date and one-third four years from grant date) provided that the employee is still employed by the Company and that the performance criteria related to the market price of the Company’s stock is satisfied. The criteria is for any 30 consecutive trading days on the NASDAQ Stock Market (or such other principal securities exchange on which the Company’s shares of common stock are then traded) during the period beginning on the grant date and ending on the fourth anniversary thereof, the cumulative average Volume Weighted Average Price per share is at least 15% higher than the closing price per share on the grant date plus any incremental dividends paid above the current quarterly dividend rate of $0.11 per share by the Company during such four year period. The Company utilizes the Monte Carlo technique to determine the fair value of restricted stock units granted for awards with market conditions. In addition, the Company awarded 20,000 stock options to an employee. The stock options awarded will vest over five years (one-third three years from the grant date, one-third four years from the grant date and one-third five years from the grant date). The stock options have an exercise price 15% higher than the closing price of a share of Escalade common stock on the grant date and are subject to forfeiture if on the vesting date the employee is no longer employed. The Company utilizes the Black-Scholes option pricing model to determine the fair value of stock options granted.

For the three and nine month periods ended October 1, 2016, including expense associated with issuing certain directors stock in lieu of cash for certain director fees, the Company recognized stock based compensation expense of ($13) thousand and $374 thousand, respectively, compared to stock based compensation expense of $155 thousand and $478 thousand for the same periods in the prior year. At October 1, 2016 and October 3, 2015, respectively, there was $0.6 million and $0.8 million in unrecognized stock-based compensation expense related to non-vested stock awards.

Note H – Segment Information

	For the Three Months  Ended October 1, 2016
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	38,793	$	—	$	38,793
Operating income		4,334		995		5,329
Net income		2,502		1,741		4,243

	As of and for the Nine Months  Ended October 1, 2016
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	121,824	$	—		$	121,824
Operating income (loss)		11,324		(512	)		10,812
Net income		6,492		1,538			8,030
Total assets	$	137,747	$	27,531		$	165,278

	For the Three Months  Ended October 3, 2015
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	34,584	$	—		$	34,584
Operating income (loss)		2,875		(1,002	)		1,873
Net income		1,582		446			2,028

10

	As of and for the Nine Months  Ended October 3, 2015
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	111,798	$	—		$	111,798
Operating income (loss)		13,372		(3,055	)		10,317
Net income		8,035		712			8,747
Total assets	$	124,423	$	25,115		$	149,538

Note I – Dividend Payment

On September 19, 2016, the company paid a quarterly dividend of $0.11 per common share to all shareholders of record on September 12, 2016. The total amount of the dividend was approximately $1.6 million and was charged against retained earnings.

On June 17, 2016, the company paid a quarterly dividend of $0.11 per common share to all shareholders of record on June 10, 2016. The total amount of the dividend was approximately $1.6 million and was charged against retained earnings.

On March 21, 2016, the Company paid a quarterly dividend of $0.11 per common share to all shareholders of record on March 14, 2016 (the amount was funded to the transfer agent by the Company on March 16, 2016). The total amount of the dividend was approximately $1.6 million and was charged against retained earnings.

Note J – 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				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Weighted average common shares outstanding		14,289		14,120		14,253		14,069
Dilutive effect of stock options and restricted stock units		60		190		60		188
Weighted average common shares outstanding, assuming dilution		14,349		14,310		14,313		14,257

Stock options that are anti-dilutive as to earnings per share and unvested restricted stock units which have a market condition for vesting that has not been achieved are ignored in the computation of dilutive earnings per share. The number of stock options and restricted stock units that were excluded in 2016 and 2015 were 64,000 and 4,200, respectively.

Note K – New Accounting Standards

With the exception of that discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the three and nine month periods ended October 1, 2016, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2015, that are of significance, or potential significance to the Company.

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The amendments in this update will increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the effect, if any, on its financial statements.

11

In March 2016, FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718). The amendments in this update are intended to simplify accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures.

In August 2016, FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230). The amendments in this update address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated statement of cash flows.

Note L – Commitments and Contingencies

The Company is involved in litigation arising in the normal course of business. The Company does not believe that the disposition or ultimate resolution of existing claims or lawsuits will have a material adverse effect on the business or financial condition of the Company.

Note M – Property, Plant and Equipment

During the three month periods ended October 1, 2016, the Company sold its Wabash, Indiana land and building for a purchase price of approximately $2.1 million. The sale resulted in a gain of approximately $1.9 million, recognized within operating income, for the three and nine month periods ended October 1, 2016.

Note N – Acquisitions

On January 21, 2016, the Company acquired substantially all of the business and assets of Triumph Sports USA, Inc.’s business, a brand known for its innovative lines of indoor and outdoor games. Of the $10.0 million purchase price for the acquisition, $9.5 million was paid in cash and the remaining $0.5 million is contingent upon the attainment of certain targets. The more significant assets acquired and liabilities assumed were comprised of receivables ($1.4 million), inventory ($1.4 million), prepaid and other assets ($0.1 million), accounts payable ($0.6 million), goodwill ($1.4 million) and other intangible assets ($6.3 million).

This acquisition was not and would not have been material to the Company’s net sales, results of operations or total assets during the three and nine month periods ended October 1, 2016. Accordingly, our consolidated results from operations do not differ materially from historical performance as a result of this acquisition, and therefore, pro-forma results are not presented.

12

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, the impact of competitive products and pricing, product demand and market acceptance, new product development, Escalade’s ability to achieve its business objectives, especially with respect to its Sporting Goods business on which it has chosen to focus, 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 of non-core assets and businesses, the continuation and development of key customer and supplier relationships, disruptions or delays in our supply chain, Escalade’s ability to control costs, general economic conditions, fluctuation in operating results, changes in foreign currency exchange rates, changes in the securities market, Escalade’s ability to obtain financing and to maintain compliance with the terms of such financing 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, 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. Concentrated focus on the sporting goods industry will allow the Company to leverage its strength in these markets.

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. In the first quarter of 2016, the Company acquired substantially all of the business and assets of Triumph Sports USA, Inc.’s business, a brand known for its innovative lines of indoor and outdoor games. The Company also sometimes divests or discontinues certain operations, assets, and products that do not perform to the Company’s expectations or no longer fit with the Company’s strategic objectives.

Results of Operations

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

	Three Months Ended						Nine Months Ended
	October 1, 2016			October 3, 2015			October 1, 2016			October 3, 2015
Net revenue		100.0	%		100.0	%		100.0	%		100.0	%
Cost of products sold		73.5	%		72.7	%		72.1	%		70.1	%
Gross margin		26.5	%		27.3	%		27.9	%		29.9	%
Selling, administrative and general expenses		11.8	%		20.0	%		17.4	%		18.8	%
Amortization		1.0	%		1.9	%		1.6	%		1.9	%
Operating income		13.7	%		5.4	%		8.9	%		9.2	%

13

Revenue and Gross Margin

Revenue from the Sporting Goods business was up 12.2% for the third quarter of 2016 and up 9.0% for the first nine months of 2016. Sales increase was primarily due to acquisitions completed during 2015 and 2016 as well as new product offerings introduced into the market during 2016, but were partially offset by continued declines in the archery business.

The overall gross margin percentage decreased to 27.9% for the first nine months of 2016, compared to 29.9% for the same period in the prior year. The reduction in gross margin is a combination of decreased sales in the archery category as well as an unfavorable change in product mix.

Selling, General and Administrative Expenses

Selling, general and administrative expenses (SG&A) decreased as a percent of net sales to 17.4% for the first nine months of 2016, compared with 18.8% experienced in the same period last year. SG&A was favorably impacted by the gain recognized on the sale of our Wabash, IN facility. SG&A for 2016 was unfavorably impacted by one-time costs associated with bad debt expenses incurred related to Sports Authority’s bankruptcy filing and increased marketing efforts and selling expenses for new products introduced in 2016.

Provision for Income Taxes

The effective tax rate for the first nine months of 2016 was 27.6% compared to 29.1% for the same period last year.

Financial Condition and Liquidity

Total debt at the end of the first nine months of 2016 was $37.4 million, an increase of $14.1 million from December 26, 2015. Cash used for acquisitions was the primary driver for the increase in total debt. Notes payable increased 10% as compared with same period last year and increased 55% as compared with year end. The following schedule summarizes the Company’s total debt:

In thousands	October 1,  2016		December 26, 2015		October 3,  2015
Notes payable short-term	$	30,686	$	19,776	$	27,963
Current portion long-term debt		1,405		1,810		1,810
Long term debt		5,313		1,750		1,750
Total	$	37,404	$	23,336	$	31,523

As a percentage of stockholders’ equity, total debt was 37%, 24% and 34% at October 1, 2016, December 26, 2015, and October 3, 2015 respectively.

On January 21, 2016, the Company entered into a Second 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, the Lender has made available to the Company a senior revolving credit facility in an increased maximum amount of up to $35.0 million and a term loan in an increased principal amount of $7.5 million. The maturity date of the revolving credit facility was extended to January 21, 2019 and the maturity of the term loan facility was extended to January 21, 2021.

The Company funds working capital requirements through operating cash flows and revolving credit agreements with its bank. Based on working capital requirements, the Company expects to have access to adequate levels of revolving credit to meet growth needs.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to financial market risks, including changes in currency exchange rates and interest rates. The Company attempts to minimize these risks through regular operating and financing activities and, when considered appropriate, through the use of derivative financial instruments. During the quarter there were no derivatives in use. The Company does not purchase, hold or sell derivative financial instruments for trading or speculative purposes.

14

Interest Rates
The Company’s exposure to market-rate risk for changes in interest rates relates primarily to its revolving variable rate bank debt which is based on LIBOR interest rates. A hypothetical 1% or 100 basis point change in interest rates would not have a significant effect on our consolidated financial position or results of operation.

Foreign Currency
The Company conducts business in various countries around the world and is therefore subject to risks associated with fluctuating foreign exchange rates. The Sporting Goods foreign currency transactions are denominated primarily in Mexican Peso and Chinese Yuan. The Company has a 50% interest in a joint venture, Stiga, which is denominated in Swedish Krona.

The geographic areas outside the United States in which the Company operated are generally not considered by management to be highly inflationary. Nonetheless, the Company’s foreign operations are sensitive to fluctuations in currency exchange rates arising from, among other things, certain inter-company transactions that are denominated in currencies other than the respective functional currency. Operating results as well as assets and liabilities are also subject to the effect of foreign currency translation when the operating results, assets and liabilities of our foreign subsidiaries are translated into U.S. dollars in our consolidated financial statements.

The Company and its subsidiaries conduct substantially all their business in their respective functional currencies to avoid the effects of cross-border transactions. To protect against reductions in value and the volatility of future cash flows caused by changes in currency exchange rates, the Company carefully considers the use of transaction and balance sheet hedging programs such as matching assets and liabilities in the same currency. Such programs reduce, but do not entirely eliminate the impact of currency exchange rate changes. The Company has evaluated the use of currency exchange hedging financial instruments but has determined that it would not use such instruments under the current circumstances. Changes in currency exchange rates may be volatile and could affect the Company’s performance.

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. Also, the Company has investments in certain unconsolidated entities. As the Company does not control or manage these entities, its disclosure controls and procedures with respect to such entities are necessarily substantially more limited than those it maintains with respect to its consolidated subsidiaries.

The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

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 third quarter of 2016.

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 2016 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

15

PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS.

None.

Item 1A. RISK FACTORS.

Not required.

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
Shares purchases prior to 7/9/2016 under the current repurchase program.		982,916	$	8.84		982,916	$	2,273,939
Third quarter purchases:
7/10/2016-8/6/2016		None		None		No Change		No Change
8/7/2016-9/3/2016		None		None		No Change		No Change
9/4/2016-10/1/2016		None		None		No Change		No Change
Total share purchases under the current program		982,916	$	8.84		982,916	$	2,273,939

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. The repurchase plan has no termination date and there have been no share repurchases that were not part of a publicly announced program.

16

Item 3. DEFAULTS UPON SENIOR SECURITIES.

None.

Item 4. MINE SAFETY DISCLOSURES.

Not applicable.

Item 5. OTHER INFORMATION.

None.

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 April 22, 2014.  Incorporated by reference from the Company’s First 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	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document

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:	October 27, 2016	/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)

17

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, David L. Fetherman, 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: October 27, 2016	/s/ David L. Fetherman
	Chief Executive Officer

EX-31.2

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: October 27, 2016	/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)

EX-32.1

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 ending October 1, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David L. Fetherman, 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/ David L. Fetherman

Chief Executive Officer

October 27, 2016

EX-32.2

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 ending October 1, 2016 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)

October 27, 2016

XML

Document And Entity Information - shares	9 Months Ended
	Oct. 01, 2016	Oct. 26, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 01, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Entity Registrant Name	ESCALADE INC
Entity Central Index Key	0000033488
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	ESCA
Entity Common Stock, Shares Outstanding		14,301,959

XML

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 01, 2016	Dec. 26, 2015	Oct. 03, 2015
Current Assets:
Cash and cash equivalents	$ 4,306	$ 1,982	$ 2,701
Receivables, less allowance of $554; $1,086; and $885; respectively	37,034	38,984	31,407
Inventories	42,936	25,862	40,337
Prepaid expenses	2,492	2,534	2,134
Deferred income tax benefit	1,553	1,543	949
Prepaid income tax	952	1,910	1,699
Other current assets	395	0	0
TOTAL CURRENT ASSETS	89,668	72,815	79,227
Property, plant and equipment, net	13,665	14,363	13,848
Intangible assets, net	21,221	16,868	17,517
Goodwill	21,456	20,047	20,142
Investments	19,268	19,644	18,799
Other assets	0	0	5
TOTAL ASSETS	165,278	143,737	149,538
Current Liabilities:
Notes payable	30,686	19,776	27,963
Current portion of long-term debt	1,405	1,810	1,810
Trade accounts payable	9,726	2,547	6,630
Accrued liabilities	10,342	14,174	12,430
TOTAL CURRENT LIABILITIES	52,159	38,307	48,833
Other Liabilities:
Long-term debt	5,313	1,750	1,750
Deferred income tax liability	7,166	7,200	5,031
TOTAL LIABILITIES	64,638	47,257	55,614
Stockholders' Equity:
Preferred stock: Authorized 1,000,000 shares; no par value, none issued
Common stock: Authorized 30,000,000 shares; no par value, issued and outstanding - 14,301,959; 14,179,844; and 14,125,935; shares respectively	14,302	14,180	14,126
Retained earnings	89,582	85,478	83,064
Accumulated other comprehensive loss	(3,244)	(3,178)	(3,266)
TOTAL STOCKHOLDERS' EQUITY	100,640	96,480	93,924
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 165,278	$ 143,737	$ 149,538

XML

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 01, 2016	Dec. 26, 2015	Oct. 03, 2015
Receivables allowance (in dollars)	$ 554	$ 1,086	$ 885
Preferred stock, shares authorized	1,000,000	1,000,000	1,000,000
Preferred stock, shares issued	0	0	0
Common stock, shares authorized	30,000,000	30,000,000	30,000,000
Common stock, shares issued	14,301,959	14,179,844	14,125,935
Common stock, shares outstanding	14,301,959	14,179,844	14,125,935

XML

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Net sales	$ 38,793	$ 34,584	$ 121,824	$ 111,798
Costs and Expenses
Cost of products sold	28,505	25,156	87,793	78,336
Selling, administrative and general expenses	4,583	6,905	21,256	21,018
Amortization	376	650	1,963	2,127
Operating Income	5,329	1,873	10,812	10,317
Other Income (Expense)
Interest expense	(211)	(108)	(631)	(340)
Equity in earnings of affiliates	573	1,069	749	2,080
Other income	35	39	168	276
Income Before Income Taxes	5,726	2,873	11,098	12,333
Provision for Income Taxes	1,483	845	3,068	3,586
Net Income	$ 4,243	$ 2,028	$ 8,030	$ 8,747
Earnings Per Share Data:
Basic earnings per share (in dollars per share)	$ 0.3	$ 0.14	$ 0.56	$ 0.62
Diluted earnings per share (in dollars per share)	0.3	0.14	0.56	0.61
Dividends declared	$ 0.11	$ 0.11	$ 0.33	$ 0.32

XML

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Net Income	$ 4,243	$ 2,028	$ 8,030	$ 8,747
Foreign currency translation adjustment	3	168	(66)	(1,302)
Comprehensive Income	$ 4,246	$ 2,196	$ 7,964	$ 7,445

XML

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Operating Activities:
Net income	$ 8,030	$ 8,747
Depreciation and amortization	4,482	3,812
Loss (gain) on disposal of property and equipment	(2,112)	1
Stock-based compensation	230	440
Dividends received from equity method investments	1,060	928
Adjustments necessary to reconcile net income to net cash provided by operating activities	(9,778)	(8,147)
Net cash provided by operating activities	1,912	5,781
Investing Activities:
Purchase of property and equipment	(2,206)	(3,900)
Acquisitions	(9,659)	(10,300)
Proceeds from sale of property and equipment	2,523	0
Purchase of marketable securities	(395)	0
Proceeds from disposal of short-term time deposits	0	1,450
Net cash used in investing activities	(9,737)	(12,750)
Financing Activities:
Net increase in notes payable	10,910	11,764
Principal payments on long-term debt	(1,644)	(1,586)
Proceeds from issuance of long-term debt	5,000	0
Proceeds from exercise of stock options	531	733
Deferred financing fees	(83)	0
Cash dividends paid	(4,709)	(4,511)
Director stock compensation	144	38
Net cash provided by financing activities	10,149	6,438
Net increase (decrease) in cash and cash equivalents	2,324	(531)
Cash and cash equivalents, beginning of period	1,982	3,232
Cash and cash equivalents, end of period	4,306	2,701
Supplemental Cash Flows Information
Dividends payable	0	3
Non-Cash Transactions
Note payable for deferred purchase price obligation	$ 0	$ 200

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Summary of Significant Accounting Policies

9 Months Ended

Oct. 01, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 26, 2015 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 2015 filed with the Securities and Exchange Commission.

Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings.

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Seasonal Aspects

9 Months Ended

Oct. 01, 2016

Accounting Policies [Abstract]

Seasonal Aspects [Text Block]

Note B – Seasonal Aspects

The results of operations for the three and nine month periods ended October 1, 2016 and October 3, 2015 are not necessarily indicative of the results to be expected for the full year.

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Inventories

9 Months Ended

Oct. 01, 2016

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note C – Inventories

In thousands	October 1, 2016		December 26, 2015		October 3, 2015
Raw materials	$	5,467	$	3,621	$	4,943
Work in progress		5,093		4,297		5,168
Finished goods		32,376		17,944		30,226
	$	42,936	$	25,862	$	40,337

XML

Equity Interest Investments

9 Months Ended

Oct. 01, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

Note D – Equity Interest Investments

The Company has a 50% interest in a joint venture, Stiga Sports AB (Stiga). The joint venture is accounted for under the equity method of accounting. Stiga, located in Sweden, is a global sporting goods company producing table tennis equipment, snow sleds and game products. Financial information for Stiga reflected in the table below has been translated from local currency to U.S. dollars using exchange rates in effect at the respective period-end for balance sheet amounts, and using average exchange rates for statement of operations amounts. Certain differences exist between U.S. GAAP and local GAAP in Sweden, and the impact of these differences is not reflected in the summarized information reflected in the table below. The most significant difference relates to the accounting for goodwill for Stiga which is amortized over eight years in Sweden but is not amortized for U.S. GAAP reporting purposes. The goodwill for Stiga was fully amortized as of December 27, 2014. The effect on Stiga’s net assets resulting from the cumulative amortization of goodwill for the periods ended October 1, 2016 and October 3, 2015 are addbacks to Stiga’s consolidated net assets of $10.4 million and $10.7 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $14.6 million offset by the related cumulative tax effect of $4.2 million as of October 1, 2016 and cumulative goodwill adjustments of $14.9 million offset by the related cumulative tax effect of $4.2 million as of October 3, 2015. The Company’s 50% portion of the statement of operations impact of other individually insignificant U.S. GAAP adjustments for the nine month periods ended October 1, 2016, and October 3, 2015 are to increase Stiga’s net income by approximately zero and $0.4 million, respectively. The Company’s 50% portion of net income for Stiga, included in equity in earnings of affiliates on the Company’s statements of operations, for the three and nine month periods ended October 1, 2016 and October 3, 2015 is as follows:

 

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Equity in earnings of affiliates	$	573	$	1,069	$	749	$	2,080

Summarized financial information for Stiga Sports AB balance sheets as of October 1, 2016, December 26, 2015, and October 3, 2015 and statements of operations for the three month and nine month periods ended October 1, 2016 and October 3, 2015 is as follows:

In thousands	October 1, 2016		December 26, 2015		October 3, 2015
Current assets	$	28,857	$	29,300	$	31,044
Non-current assets		9,908		9,908		9,533
Total assets		38,765		39,208		40,577
Current liabilities		5,604		5,096		7,777
Non-current liabilities		5,583		5,835		5,736
Total liabilities		11,187		10,931		13,513
Net assets	$	27,578	$	28,277	$	27,064

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Net sales	$	10,635	$	12,846	$	27,161	$	30,161
Gross profit		4,918		6,304		12,661		14,899
Net income		1,146		2,138		1,498		3,346

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Income Taxes

9 Months Ended

Oct. 01, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note E – Income Taxes

The provision for income taxes was computed based on financial statement income.

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Fair Values of Financial Instruments

9 Months Ended

Oct. 01, 2016

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note F – Fair Values of Financial Instruments

The following methods were used to estimate the fair value of all financial instruments recognized in the accompanying balance sheets at amounts other than fair values.

Cash and Cash Equivalents

Fair values of cash and cash equivalents approximate cost due to the short period of time to maturity.

Notes Payable and Long-term Debt

Fair values of notes payable and long-term debt approximates the carrying value and is estimated based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and determined through the use of a discounted cash flow model.

The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at October 1, 2016, December 26, 2015 and October 3, 2015.

			Fair Value Measurements Using
October 1, 2016 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	4,306	$	4,306	$	—	$	—
Marketable securities	$	395	$	395	$	—	$	—
Financial liabilities
Notes payable	$	30,686	$	—	$	30,686	$	—
Current portion of long-term debt	$	1,405	$	—	$	1,405	$	—
Long-term debt	$	5,313	$	—	$	5,313	$	—

			Fair Value Measurements Using
December 26, 2015 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	1,982	$	1,982	$	—	$	—
Financial liabilities
Notes payable	$	19,776	$	—	$	19,776	$	—
Current portion of long-term debt	$	1,810	$	—	$	1,810	$	—
Long-term debt	$	1,750	$	—	$	1,750	$	—

			Fair Value Measurements Using
October 3, 2015 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	2,701	$	2,701	$	—	$	—
Financial liabilities
Notes payable	$	27,963	$	—	$	27,963	$	—
Current portion of long-term debt	$	1,810	$	—	$	1,810	$	—
Long-term debt	$	1,750	$	—	$	1,750	$	—

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Stock Compensation

9 Months Ended

Oct. 01, 2016

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note G – Stock Compensation

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

During the nine months ended October 1, 2016 and pursuant to the 2007 Incentive Plan, in lieu of cash payments of director fees, the Company awarded to certain directors 13,112 shares of common stock. During the nine months ended October 1, 2016, the Company awarded 13,250 restricted stock units to directors and 34,000 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 2016 restricted stock units awarded to employees vest over four years (one-third two years from grant date, one-third three years from grant date and one-third four years from grant date) provided that the employee is still employed by the Company and that the performance criteria related to the market price of the Company’s stock is satisfied. The criteria is for any 30 consecutive trading days on the NASDAQ Stock Market (or such other principal securities exchange on which the Company’s shares of common stock are then traded) during the period beginning on the grant date and ending on the fourth anniversary thereof, the cumulative average Volume Weighted Average Price per share is at least 15% higher than the closing price per share on the grant date plus any incremental dividends paid above the current quarterly dividend rate of $0.11 per share by the Company during such four year period. The Company utilizes the Monte Carlo technique to determine the fair value of restricted stock units granted for awards with market conditions. In addition, the Company awarded 20,000 stock options to an employee. The stock options awarded will vest over five years (one-third three years from the grant date, one-third four years from the grant date and one-third five years from the grant date). The stock options have an exercise price 15% higher than the closing price of a share of Escalade common stock on the grant date and are subject to forfeiture if on the vesting date the employee is no longer employed. The Company utilizes the Black-Scholes option pricing model to determine the fair value of stock options granted.

For the three and nine month periods ended October 1, 2016, including expense associated with issuing certain directors stock in lieu of cash for certain director fees, the Company recognized stock based compensation expense of ($13) thousand and $374 thousand, respectively, compared to stock based compensation expense of $155 thousand and $478 thousand for the same periods in the prior year. At October 1, 2016 and October 3, 2015, respectively, there was $0.6 million and $0.8 million in unrecognized stock-based compensation expense related to non-vested stock awards.

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Segment Information

9 Months Ended

Oct. 01, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note H – Segment Information

	For the Three Months Ended October 1, 2016
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	38,793	$	—	$	38,793
Operating income		4,334		995		5,329
Net income		2,502		1,741		4,243

	As of and for the Nine Months Ended October 1, 2016
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	121,824	$	—	$	121,824
Operating income (loss)		11,324		(512)		10,812
Net income		6,492		1,538		8,030
Total assets	$	137,747	$	27,531	$	165,278

	For the Three Months Ended October 3, 2015
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	34,584	$	—	$	34,584
Operating income (loss)		2,875		(1,002)		1,873
Net income		1,582		446		2,028

	As of and for the Nine Months Ended October 3, 2015
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	111,798	$	—	$	111,798
Operating income (loss)		13,372		(3,055)		10,317
Net income		8,035		712		8,747
Total assets	$	124,423	$	25,115	$	149,538

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Dividend Payment

9 Months Ended

Oct. 01, 2016

Payments of Dividends [Abstract]

Dividend Payment Terms [Text Block]

Note I – Dividend Payment

On September 19, 2016, the company paid a quarterly dividend of $0.11 per common share to all shareholders of record on September 12, 2016. The total amount of the dividend was approximately $1.6 million and was charged against retained earnings.

On June 17, 2016, the company paid a quarterly dividend of $0.11 per common share to all shareholders of record on June 10, 2016. The total amount of the dividend was approximately $1.6 million and was charged against retained earnings.

On March 21, 2016, the Company paid a quarterly dividend of $0.11 per common share to all shareholders of record on March 14, 2016 (the amount was funded to the transfer agent by the Company on March 16, 2016). The total amount of the dividend was approximately $1.6 million and was charged against retained earnings.

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Earnings Per Share

9 Months Ended

Oct. 01, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note J – 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				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Weighted average common shares outstanding		14,289		14,120		14,253		14,069
Dilutive effect of stock options and restricted stock units		60		190		60		188
Weighted average common shares outstanding, assuming dilution		14,349		14,310		14,313		14,257

Stock options that are anti-dilutive as to earnings per share and unvested restricted stock units which have a market condition for vesting that has not been achieved are ignored in the computation of dilutive earnings per share. The number of stock options and restricted stock units that were excluded in 2016 and 2015 were 64,000 and 4,200, respectively.

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New Accounting Standards

9 Months Ended

Oct. 01, 2016

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

Note K – New Accounting Standards

With the exception of that discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the three and nine month periods ended October 1, 2016, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2015, that are of significance, or potential significance to the Company.

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The amendments in this update will increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is evaluating the effect, if any, on its financial statements.

In March 2016, FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718). The amendments in this update are intended to simplify accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The Company is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures.

In August 2016, FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230). The amendments in this update address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated statement of cash flows.

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Commitments and Contingencies

9 Months Ended

Oct. 01, 2016

Commitments and Contingencies Disclosure [Abstract]

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.

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Property, Plant and Equipment

9 Months Ended

Oct. 01, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note M – Property, Plant and Equipment

During the three month periods ended October 1, 2016, the Company sold its Wabash, Indiana land and building for a purchase price of approximately $2.1 million. The sale resulted in a gain of approximately $1.9 million, recognized within operating income, for the three and nine month periods ended October 1, 2016.

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Acquisitions

9 Months Ended

Oct. 01, 2016

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note N – Acquisitions

On January 21, 2016, the Company acquired substantially all of the business and assets of Triumph Sports USA, Inc.’s business, a brand known for its innovative lines of indoor and outdoor games. Of the $10.0 million purchase price for the acquisition, $9.5 million was paid in cash and the remaining $0.5 million is contingent upon the attainment of certain targets. The more significant assets acquired and liabilities assumed were comprised of receivables ($1.4 million), inventory ($1.4 million), prepaid and other assets ($0.1 million), accounts payable ($0.6 million), goodwill ($1.4 million) and other intangible assets ($6.3 million).

This acquisition was not and would not have been material to the Company’s net sales, results of operations or total assets during the three and nine month periods ended October 1, 2016. Accordingly, our consolidated results from operations do not differ materially from historical performance as a result of this acquisition, and therefore, pro-forma results are not presented.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Oct. 01, 2016

Accounting Policies [Abstract]

Consolidation, 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 26, 2015 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 2015 filed with the Securities and Exchange Commission.

Reclassification, Policy [Policy Text Block]

Reclassifications – Certain reclassifications have been made to prior year financial statements to conform to the current year financial statement presentation. These reclassifications had no effect on net earnings.

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Inventories (Tables)

9 Months Ended

Oct. 01, 2016

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

In thousands	October 1, 2016		December 26, 2015		October 3, 2015
Raw materials	$	5,467	$	3,621	$	4,943
Work in progress		5,093		4,297		5,168
Finished goods		32,376		17,944		30,226
	$	42,936	$	25,862	$	40,337

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Equity Interest Investments (Tables)

9 Months Ended

Oct. 01, 2016

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

The Company’s 50% portion of net income for Stiga, included in equity in earnings of affiliates on the Company’s statements of operations, for the three and nine month periods ended October 1, 2016 and October 3, 2015 is as follows:

 

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Equity in earnings of affiliates	$	573	$	1,069	$	749	$	2,080

Schedule of Joint Ventures Financial Information [Table Text Block]

Summarized financial information for Stiga Sports AB balance sheets as of October 1, 2016, December 26, 2015, and October 3, 2015 and statements of operations for the three month and nine month periods ended October 1, 2016 and October 3, 2015 is as follows:

In thousands	October 1, 2016		December 26, 2015		October 3, 2015
Current assets	$	28,857	$	29,300	$	31,044
Non-current assets		9,908		9,908		9,533
Total assets		38,765		39,208		40,577
Current liabilities		5,604		5,096		7,777
Non-current liabilities		5,583		5,835		5,736
Total liabilities		11,187		10,931		13,513
Net assets	$	27,578	$	28,277	$	27,064

Schedule of Joint Ventures Income Statement Information [Table Text Block]

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Net sales	$	10,635	$	12,846	$	27,161	$	30,161
Gross profit		4,918		6,304		12,661		14,899
Net income		1,146		2,138		1,498		3,346

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Fair Values of Financial Instruments (Tables)

9 Months Ended

Oct. 01, 2016

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall in accordance with FASB ASC 825 at October 1, 2016, December 26, 2015 and October 3, 2015.

			Fair Value Measurements Using
October 1, 2016 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	4,306	$	4,306	$	—	$	—
Marketable securities	$	395	$	395	$	—	$	—
Financial liabilities
Notes payable	$	30,686	$	—	$	30,686	$	—
Current portion of long-term debt	$	1,405	$	—	$	1,405	$	—
Long-term debt	$	5,313	$	—	$	5,313	$	—

			Fair Value Measurements Using
December 26, 2015 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	1,982	$	1,982	$	—	$	—
Financial liabilities
Notes payable	$	19,776	$	—	$	19,776	$	—
Current portion of long-term debt	$	1,810	$	—	$	1,810	$	—
Long-term debt	$	1,750	$	—	$	1,750	$	—

			Fair Value Measurements Using
October 3, 2015 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	2,701	$	2,701	$	—	$	—
Financial liabilities
Notes payable	$	27,963	$	—	$	27,963	$	—
Current portion of long-term debt	$	1,810	$	—	$	1,810	$	—
Long-term debt	$	1,750	$	—	$	1,750	$	—

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Segment Information (Tables)

9 Months Ended

Oct. 01, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	For the Three Months Ended October 1, 2016
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	38,793	$	—	$	38,793
Operating income		4,334		995		5,329
Net income		2,502		1,741		4,243

	As of and for the Nine Months Ended October 1, 2016
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	121,824	$	—	$	121,824
Operating income (loss)		11,324		(512)		10,812
Net income		6,492		1,538		8,030
Total assets	$	137,747	$	27,531	$	165,278

	For the Three Months Ended October 3, 2015
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	34,584	$	—	$	34,584
Operating income (loss)		2,875		(1,002)		1,873
Net income		1,582		446		2,028

	As of and for the Nine Months Ended October 3, 2015
In thousands	Sporting Goods		Corp.		Total
Revenues from external customers	$	111,798	$	—	$	111,798
Operating income (loss)		13,372		(3,055)		10,317
Net income		8,035		712		8,747
Total assets	$	124,423	$	25,115	$	149,538

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Earnings Per Share (Tables)

9 Months Ended

Oct. 01, 2016

Earnings Per Share [Abstract]

Schedule of Weighted Average Number of Shares [Table Text Block]

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

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Weighted average common shares outstanding		14,289		14,120		14,253		14,069
Dilutive effect of stock options and restricted stock units		60		190		60		188
Weighted average common shares outstanding, assuming dilution		14,349		14,310		14,313		14,257

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Inventories (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Dec. 26, 2015	Oct. 03, 2015
Inventory [Line Items]
Raw materials	$ 5,467	$ 3,621	$ 4,943
Work in progress	5,093	4,297	5,168
Finished goods	32,376	17,944	30,226
Inventories	$ 42,936	$ 25,862	$ 40,337

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Equity Interest Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Schedule of Equity Method Investments [Line Items]
Equity in earnings of affiliates	$ 573	$ 1,069	$ 749	$ 2,080
Stiga Sports B [Member]
Schedule of Equity Method Investments [Line Items]
Equity in earnings of affiliates	$ 573	$ 1,069	$ 749	$ 2,080

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Equity Interest Investments (Details 1) - USD ($) $ in Thousands	Oct. 01, 2016	Dec. 26, 2015	Oct. 03, 2015
Schedule of Equity Method Investments [Line Items]
Current assets	$ 89,668	$ 72,815	$ 79,227
Total assets	165,278	143,737	149,538
Current liabilities	52,159	38,307	48,833
Total liabilities	64,638	47,257	55,614
Stiga Sports AB [Member]
Schedule of Equity Method Investments [Line Items]
Current assets	28,857	29,300	31,044
Non-current assets	9,908	9,908	9,533
Total assets	38,765	39,208	40,577
Current liabilities	5,604	5,096	7,777
Non-current liabilities	5,583	5,835	5,736
Total liabilities	11,187	10,931	13,513
Net assets	$ 27,578	$ 28,277	$ 27,064

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Equity Interest Investments (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Schedule of Equity Method Investments [Line Items]
Net sales	$ 38,793	$ 34,584	$ 121,824	$ 111,798
Net income	4,243	2,028	8,030	8,747
Stiga Sports AB [Member]
Schedule of Equity Method Investments [Line Items]
Net sales	10,635	12,846	27,161	30,161
Gross profit	4,918	6,304	12,661	14,899
Net income	$ 1,146	$ 2,138	$ 1,498	$ 3,346

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Equity Interest Investments (Details Textual) - Stiga Sports AB [Member] - USD ($) $ in Millions	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	50.00%
Amortization Of Goodwill	$ 10.4	$ 10.7
Goodwill, Translation Adjustments	14.6	14.9
Cumulative goodwill adjustments, tax effect	4.2	4.2
Adjustments For Net Income Impact	$ 0.0	$ 0.4
Parent [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	50.00%	50.00%

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Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Dec. 26, 2015	Oct. 03, 2015	Dec. 27, 2014
Financial assets, Carrying Amount
Cash and cash equivalents, Carrying Amount	$ 4,306	$ 1,982	$ 2,701	$ 3,232
Marketable securities, Carrying Amount	395
Financial liabilities, Carrying Amount
Notes payable, Carrying Amount	30,686	19,776	27,963
Current portion of long-term debt, Carrying Amount	1,405	1,810	1,810
Long-term debt, Carrying Amount	5,313	1,750	1,750
Fair Value, Inputs, Level 1 [Member]
Financial assets, Fair Value
Cash and cash equivalents, Fair Value	4,306	1,982	2,701
Marketable securities, Fair Value	395
Financial liabilities, Fair Value
Notes payable, Fair Value	0	0	0
Current portion of long-term debt, Fair Value	0	0	0
Long-term debt, Fair Value	0	0	0
Fair Value, Inputs, Level 2 [Member]
Financial assets, Fair Value
Cash and cash equivalents, Fair Value	0	0	0
Marketable securities, Fair Value	0
Financial liabilities, Fair Value
Notes payable, Fair Value	30,686	19,776	27,963
Current portion of long-term debt, Fair Value	1,405	1,810	1,810
Long-term debt, Fair Value	5,313	1,750	1,750
Fair Value, Inputs, Level 3 [Member]
Financial assets, Fair Value
Cash and cash equivalents, Fair Value	0	0	0
Marketable securities, Fair Value	0
Financial liabilities, Fair Value
Notes payable, Fair Value	0	0	0
Current portion of long-term debt, Fair Value	0	0	0
Long-term debt, Fair Value	$ 0	$ 0	$ 0

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Stock Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			20,000
Cumulative Average Volume Weighted Average Price Per Share			15.00%
Common Stock, Dividends, Per Share, Declared	$ 0.11	$ 0.11	$ 0.33	$ 0.32
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Gross			13,112
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Debt Instrument, Convertible, Threshold Consecutive Trading Days			30 days
Common Stock, Dividends, Per Share, Declared			$ 0.11
Restricted Stock Units (RSUs) [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			13,250
Restricted Stock Units (RSUs) [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Share-based Compensation, Gross			34,000
Non-vested stock awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ (13)	$ 155	$ 374	$ 478
Employee and Non Employee Service Share-based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized	$ 600	$ 800	$ 600	$ 800
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Option Exercise Price, Percentage of Excess Amount to Share Price			15.00%

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015	Dec. 26, 2015
Segment Reporting Information [Line Items]
Revenues from external customers	$ 38,793	$ 34,584	$ 121,824	$ 111,798
Operating income (loss)	5,329	1,873	10,812	10,317
Net income (Loss)	4,243	2,028	8,030	8,747
Total assets	165,278	149,538	165,278	149,538	$ 143,737
Sporting Goods [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	38,793	34,584	121,824	111,798
Operating income (loss)	4,334	2,875	11,324	13,372
Net income (Loss)	2,502	1,582	6,492	8,035
Total assets	137,747	124,423	137,747	124,423
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	0	0	0	0
Operating income (loss)	995	(1,002)	(512)	(3,055)
Net income (Loss)	1,741	446	1,538	712
Total assets	$ 27,531	$ 25,115	$ 27,531	$ 25,115

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Dividend Payment (Details Textual) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Sep. 19, 2016	Jun. 17, 2016	Mar. 21, 2016
Dividend Payment Terms [Line Items]
Common Stock, Dividends, Per Share, Declared (in dollars per share)	$ 0.11	$ 0.11	$ 0.11
Dividends, Common Stock, Cash (in dollars)	$ 1.6	$ 1.6	$ 1.6

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Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average common shares outstanding	14,289	14,120	14,253	14,069
Dilutive effect of stock options and restricted stock units	60	190	60	188
Weighted average common shares outstanding, assuming dilution	14,349	14,310	14,313	14,257

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Earnings Per Share (Details Textual) - shares	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	64,000	4,200

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Property, Plant and Equipment (Details Textual) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 01, 2016	Oct. 01, 2016	Oct. 03, 2015
Proceeds from Sale of Property, Plant, and Equipment, Total		$ 2,523	$ 0
Gain (Loss) On Sale Of Property Plant Equipment		2,112	$ (1)
Land and Building [Member]
Proceeds from Sale of Property, Plant, and Equipment, Total	$ 2,100
Gain (Loss) On Sale Of Property Plant Equipment	$ 1,900	$ 1,900

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Acquisitions (Details Textual) - USD ($) $ in Thousands	1 Months Ended
	Jan. 21, 2016	Oct. 01, 2016	Dec. 26, 2015	Oct. 03, 2015
Business Acquisition [Line Items]
Goodwill		$ 21,456	$ 20,047	$ 20,142
Triumph Sports USA, Inc [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	$ 1,400
Goodwill	1,400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	1,400
Business Combination, Consideration Transferred, Total	10,000
Payments to Acquire Businesses, Gross	9,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability	500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	600
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	$ 6,300