10-Q 1 escalade_1q06.txt FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 25, 2006 Commission File Number 0-6966 ESCALADE, INCORPORATED ------------------------------------------------------ (Exact name of registrant as specified in its charter) Indiana 13-2739290 ------------------------ ------------ (State of incorporation) (I.R.S. EIN) 251 Wedcor Avenue, Wabash, Indiana 46992 ---------------------------------------- (Address of principal executive office) 260-569-7208 ------------------------------- (Registrant's Telephone Number) Securities registered pursuant to Section 12(b) of the Act NONE Securities registered pursuant to section 12(g) of the Act Common Stock, No Par Value -------------------------- (Title of Class) 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 is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. Large accelerated filer [ ] Accelerated filer [X] Non-accelerated filer [ ] Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12 b-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 April 12, 2006 -------------------- ----------------------------- Common, no par value 13,028,940 1 INDEX Page No. Part I. Financial Information: Item 1 - Financial Statements: Consolidated Condensed Balance Sheets as of March 25, 2006, March 19, 2005, and December 31, 2005 3 Consolidated Condensed Statements of Income for the Three Months Ended March 25, 2006 and March 19, 2005 4 Consolidated Condensed Statements of Comprehensive Income for the Three Months Ended March 25, 2006 and March 19, 2005 4 Consolidated Condensed Statements of Cash Flows for the Three Months Ended March 25, 2006 and March 19, 2005 5 Notes to Consolidated Condensed Financial Statements 6 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Item 3 - Quantitative and Qualitative Disclosures about Market Risk 10 Item 4 - Controls and Procedures 11 Part II. Other Information Item 2 - Issuer Purchases of Equity Securities 12 Item 6 - Exhibits 12 Signatures 13 2
PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS ESCALADE, INCORPORATED AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (All amounts in thousands except share information) March 25, March 19, December 31, 2006 2005 2005 (Unaudited) (Unaudited) (Audited) ------------ ------------ ------------ ASSETS Current Assets: Cash and cash equivalents $ 2,094 $ 4,872 $ 3,017 Receivables, less allowance of $2,229; $2,220; and $1,544; respectively 26,394 31,873 31,744 Inventories 36,584 36,051 33,049 Prepaid expenses 1,524 2,960 1,559 Deferred income tax benefit 1,719 2,154 1,818 ------------ ------------ ------------ TOTAL CURRENT ASSETS 68,315 77,910 71,187 Property, plant and equipment, net 21,080 15,773 20,307 Intangible assets 6,541 7,789 6,634 Goodwill 21,759 17,793 17,157 Investments 7,767 6,364 7,786 Interest rate swap 247 (302) 181 Other assets 1,606 2,987 2,044 ------------ ------------ ------------ $ 127,315 $ 128,314 $ 125,296 ============ ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable $ 5 $ -- $ -- Current portion of long-term debt 906 354 1,066 Trade accounts payable 5,109 5,513 3,518 Accrued liabilities 18,969 21,205 24,429 Income tax payable 994 793 1,854 ------------ ------------ ------------ TOTAL CURRENT LIABILITIES 25,983 27,865 30,867 Other Liabilities: Long-term debt 26,016 30,589 18,487 Deferred compensation 1,378 1,260 1,349 ------------ ------------ ------------ TOTAL LIABILITIES 53,377 59,714 50,703 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 - 13,028,940; 13,072,982; and 12,946,869; shares respectively 13,029 13,073 12,947 Retained Earnings 59,717 51,560 60,696 Accumulated other comprehensive income 1,192 3,967 950 ------------ ------------ ------------ 73,938 68,600 74,593 ------------ ------------ ------------ $ 127,315 $ 128,314 $ 125,296 ============ ============ ============
See notes to Consolidated Condensed Financial Statements. 3
ESCALADE, INCORPORATED AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF INCOME (All amounts in thousands, except per share amounts)(Unaudited) Three Months Ended --------------------------- March 25, March 19, 2006 2005 ------------ ------------ Net Sales $ 32,800 $ 29,782 Costs, expenses and other income: Cost of products sold 22,048 20,859 Selling, general and administrative expenses 8,405 7,175 ------------ ------------ Operating income 2,347 1,748 Interest expense, net (254) (286) Other income (expense) (65) 245 ------------ ------------ Income before income taxes 2,028 1,707 Provision for income taxes 664 553 ------------ ------------ Net income $ 1,364 $ 1,154 ============ ============ Per Share Data: Basic earnings per share $ 0.11 $ 0.09 Diluted earnings per share $ 0.10 $ 0.09 Cash dividend paid $ 0.20 $ 0.15 CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Net income $ 1,364 $ 1,154 Unrealized gain (loss) on securities, net of tax of $(97) and $15, respectively 146 (22) Foreign currency translation adjustment, net of tax of $(35) and $412, respectively 53 (618) Unrealized gain on interest rate swap agreement net of tax of $(29) and $(36), respectively 43 54 ------------ ------------ Comprehensive income $ 1,606 $ 568 ============ ============
See notes to Consolidated Condensed Financial Statements. 4
ESCALADE, INCORPORATED AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (All amounts in thousands) (Unaudited) Three Months Ended --------------------------- March 25, March 19, 2006 2005 ------------ ------------ Operating Activities: Net income $ 1,364 $ 1,154 Depreciation and amortization 933 1,184 Employee stock-based compensation 130 -- Adjustments necessary to reconcile net income to net cash provided by operating activities (125) 1,802 ------------ ------------ Net cash provided by operating activities 2,302 4,140 ------------ ------------ Investing Activities: Purchase of property and equipment (1,263) (266) Acquisition of assets (7,436) (3,272) Investment in affiliate -- (237) ------------ ------------ Net cash used by investing activities (8,699) (3,775) ------------ ------------ Financing Activities: Net increase in notes payable 7,928 3,608 Proceeds from exercise of stock options 440 123 Purchase of common stock (227) (109) Dividends paid (2,606) (1,961) ------------ ------------ Net cash provided by financing activities 5,535 1,661 ------------ ------------ Effect of exchange rate changes on cash (61) (204) ------------ ------------ Net (decrease) increase in cash and cash equivalents (923) 1,822 Cash and cash equivalents, beginning of period 3,017 3,050 ------------ ------------ Cash and cash equivalents, end of period $ 2,094 $ 4,872 ============ ============
See notes to Consolidated Condensed Financial Statements. 5 ESCALADE, INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) Note A - Basis of Presentation -------------------------------------------------------------------------------- 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 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 condensed consolidated balance sheet of the Company as of December 31, 2005 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 have been condensed or omitted. These condensed consolidated 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 2005 filed with the Securities and Exchange Commission. Note B - Seasonal Aspects -------------------------------------------------------------------------------- The results of operations for the three-month periods ended March 25, 2006 and March 19, 2005 are not necessarily indicative of the results to be expected for the full year. Note C - Inventories -------------------------------------------------------------------------------- March 25, March 19, December 31, (All amounts in thousands) 2006 2005 2005 ------------ ------------ ------------ Raw materials $ 8,754 $ 8,570 $ 7,128 Work in progress 6,452 6,128 5,358 Finished goods 21,378 21,353 20,563 ------------ ------------ ------------ $ 36,584 $ 36,051 $ 33,049 ============ ============ ============ Note D - Income Taxes -------------------------------------------------------------------------------- The provision for income taxes was computed based on financial statement income. Note E - Restructuring Costs -------------------------------------------------------------------------------- In 2004 the Company initiated a facility consolidation plan and involuntary employee terminations in the Office Products segment in order to reduce costs and increase the competitiveness of the Company. Under these plans no additional costs were incurred during the quarter ended March 25, 2006. Liabilities under these plans are as follows:
Balance at Balance at December 31, Non-Cash Cash March 25, (All amounts in thousands) 2005 Charges Payments 2006 ------------ ------------ ------------ ------------ Severance and benefit costs $ 199 $ -- $ 51 $ 148 Facility closure costs -- -- -- -- ------------ ------------ ------------ ------------ $ 199 $ -- $ 51 $ 148 ============ ============ ============ ============
6 Note F - Dividend Payment -------------------------------------------------------------------------------- On March 24, 2006, the Company paid a dividend of $0.20 per common share to all shareholders of record on March 17, 2006. The total amount of the dividend was approximately $2.6 million and was charged against retained earnings. Note G - Earnings Per Share -------------------------------------------------------------------------------- The shares used in computation of the Company's basic and diluted earnings per common share are as follows: 3 Months Ended --------------------------- March 25, March 19, All amounts in thousands 2006 2005 ------------------------------------------------------------------------ Weighted average common shares outstanding 12,979 13,058 Dilutive effect of stock options 59 174 ------------ ------------ Weighted average common shares outstanding, assuming dilution 13,038 13,232 ============ ============ Number of anti-dilutive stock options 621 178 Note H - Employee Stock Option Plan -------------------------------------------------------------------------------- The Company has two stock-based compensation plans. Prior to the start of the current fiscal year, the Company accounted for these plans under the recognition and measurement principles of APB Opinion No. 25, Accounting for Stock issued to Employees, and related interpretations. Beginning with the current fiscal year, the Company expenses the fair value of options to employee compensation expense in accordance with SFAS 123R Share-Based Payment (SFAS 123R). During the three months ended March 25, 2006, the Company recorded compensation expense of $130 thousand. The following table illustrates the effect on net income and earnings per share had the Company applied the fair value provisions of FASB Statement No. 123, Accounting for Stock-Based Compensation, to stock-based employee compensation for the three months ended March 19, 2005. March 19, (In Thousands Except Per Share Amounts) 2005 ------------------------------------------------------------------------ Net income, as reported $ 1,154 Less: Total stock-based employee compensation cost determined under the fair value based method, net of income taxes (279) ------------ Pro forma net income $ 875 ============ Earnings per share Basic--as reported $ 0.09 ============ Basic--pro forma $ 0.07 ============ Diluted--as reported $ 0.09 ============ Diluted--pro forma $ 0.07 ============ Note I - Acquisition -------------------------------------------------------------------------------- On February 27, 2006, the Company purchased substantially all of the assets of Family Industries, Inc., which manufactures and sells premium quality residential play sets made from stained redwood. These play sets are sold under the Woodplay brand name, primarily through specialty dealers. The total purchase price of $7.1 million included accounts receivable and inventory valued at $2.9 million, the assumption of certain liabilities, and goodwill totaling $4.4 7 million. The Company financed the acquisition using its revolving credit lines. Combined with the acquisition of the ChildLife product line in the first quarter of fiscal 2005, this acquisition enhances the Company's product offerings in the residential play set market. Note J - Segment Information --------------------------------------------------------------------------------
As of and for the Three Months Ended March 25, 2006 --------------------------------------------------------- Sporting Office In thousands Goods Products Corp. Total ------------------------------------------------------------------------------------------------- Revenues from external customers $ 19,884 $ 12,916 $ -- $ 32,800 Operating income(loss) 525 2,414 (592) 2,347 Net income (loss) 50 1,584 (270) 1,364 Total assets $ 74,150 $ 42,305 $ 10,860 $ 127,315 As of and for the Three Months Ended March 19, 2005 --------------------------------------------------------- Sporting Office In thousands Goods Products Corp. Total ------------------------------------------------------------------------------------------------- Revenues from external customers $ 14,021 $ 15,761 $ -- $ 29,782 Operating income(loss) 43 2,129 (424) 1,748 Net income (loss) (111) 1,341 (76) 1,154 Total assets $ 58,979 $ 54,817 $ 14,518 $ 128,314
Item 1A. Not Required. 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, the continuation and development of key customer and supplier relationships, Escalade's ability to control costs, general economic conditions, fluctuation in operating results, changes in the securities market 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" or "Company") manufactures and distributes products for two industries: Sporting Goods and Office Products. Within these industries the Company has successfully built a commanding market presence in niche markets. This strategy is heavily dependent on brand recognition and excellent customer service. Management believes the key indicators in measuring the success of this strategy are revenue and earnings growth. A key strategic advantage is the Company's established relationships with major customers that allow the Company to bring new products to the market in a very cost effective manner while maintaining a diversified product line and wide customer base. In addition to strategic customer relations, the Company has over 75 years of manufacturing experience that enable it to be a low cost supplier. 8 RESULTS OF OPERATIONS Consolidated net sales and net income increased 10% and 18%, respectively, for the first quarter of 2006, compared to the same quarter last year. The increase in profitability is principally due to increased sales in the Sporting Goods business segment and improved gross margins in both the Sporting Goods and Office Products business segments. The following schedule sets forth certain consolidated statement of income data as a percentage of net revenue: Three months ended March 25, March 19, 2006 2005 ------------------------------------------------------------------- NET REVENUE 100.0% 100.0% Cost of products sold 67.2% 70.0% ------------ ------------ GROSS MARGIN 32.8% 30.0% Selling, administrative and general expenses 25.6% 24.1% ------------ ------------ OPERATING INCOME 7.2% 5.9% ============ ============ CONSOLIDATED REVENUE AND GROSS MARGIN Compared to the same quarter last year, revenues in the Sporting Goods business were 41.8% higher in 2006, while the Office Products business was down 18.0%. Sporting Goods sales in the first quarter were up primarily due to increased sales to sporting goods chains as a direct result of the introduction of glass backboards for the Company's premier in-ground basketball systems. Sales into the mass market channel, which includes large mass market retailers and sporting goods chain stores, were up 45% for the quarter compared to the same period last year with basketball sales comprising 76% of this increase. Sales in the specialty market, which includes dealers and specialty retailers, were up 28% primarily due to higher sales of playground systems which accounted for 77% of the increase. Product placement for the 2006 fall and Christmas programs is still being negotiated with our retail customers. Based on preliminary results, the Company expects to have increased placement in 2006 and Management is optimistic that this will result in higher sales in the mass market channel. The Company continues to focus on diversifying its customer base and product offerings by focusing on the specialty channel. The recent acquisition of the Woodplay product line, a premium residential playground system made of wood, is part of that strategy. Approximately 38% of the decline in Office Product sales relates to products and customers rationalized in 2005 because they were non-core, low margin or unprofitable. In addition, changes in foreign exchange rates negatively impacted office product sales and account for approximately 24% of the sales decline. The balance of the decline is related to the Company's data shredder sales which are down 21% compared to the same period last year primarily due to stiff price competition. During the first quarter of 2006, the Company introduced a new line of data shredders that Management believes will increase sales and profitability through competitive pricing and product cost reduction. However, Management is not optimistic that this will offset the declines related to rationalized products and foreign currency changes. Accordingly, Management anticipates that Office Product sales in 2006 will be lower than 2005, but profitability will be higher barring any further sales declines or adverse foreign exchange movements. Management's strategy of rationalizing unprofitable products and customers in the Office Products business segment resulted in improved gross margin ratios during the current quarter compared to last year. Product mix changes in the Sporting Goods business, a higher percentage of basketball and playground system sales, also contributed to the higher gross margin. Management believes that the gross margin ratios achieved in the first quarter can be maintained through the balance of fiscal 2006. 9 CONSOLIDATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Consolidated selling, general and administrative expenses in the first quarter increased 17% compared to the same quarter last year. Approximately half of this increase is attributed to new basketball display units associated with the glass backboards introduced in 2006. Display units are usually replaced every three years, or whenever a major product is introduced. Another large component of the increase in selling, general and administrative expenses is associated with one-time relocation costs related to the Company's new manufacturing plant in Reynosa, Mexico. Management expects these costs to be recouped in the form of lower manufacturing costs during the second half of 2006. The Company has identified a number of cost reduction opportunities in each of its business segments and is actively implementing these. However, these cost reductions will come slowly and are not expected to materially impact fiscal 2006. FINANCIAL CONDITION AND LIQUIDITY The Company continues to exhibit very strong financial health. Current assets are down from the same period last year reflecting the Company's continued emphasis on accounts receivable collection efforts and inventory control. Total debt increased in the first quarter of 2006 to accommodate the acquisition of the Woodplay product line from Family Industries, Inc. The following schedule summarizes the Company's total debt: March 25, March 19, December 31, In thousands 2006 2005 2005 ----------------------------------------------------------------------------- Notes payable short-term $ 5 $ -- $ -- Current portion long-term debt 906 354 1,066 Long term debt 26,016 30,589 18,487 ------------ ------------ ------------ Total debt $ 26,927 $ 30,943 $ 19,553 ============ ============ ============ As a percentage of stockholders' equity, total debt decreased from 45.1% at March 19, 2005, to 36.4% at March 25, 2006. During the first quarter of 2006, operations generated $2.3 million in cash which was used to fund, in part, the payment of a cash dividend to shareholders of approximately $2.6 million and purchase equipment; primarily for the new manufacturing facility in Reynosa, Mexico which has now been completed and commenced operations in the second quarter of 2006. The Company's working capital requirements are primarily funded from operating cash flows and revolving credit agreements with its banks. The Company's relationship with its primary lending bank remains strong and the Company expects to have access to the same level of revolving credit that was available in 2005. In addition, the Company believes it can quickly reach agreement to increase available credit should the need arise. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company is exposed to financial market risks, including changes in currency exchange rates, interest rates and marketable equity security prices. To mitigate these risks, the Company utilizes derivative financial instruments, among other strategies. At the present time, the only derivative financial instrument used by the company is an interest rate swap. The Company does not use derivative financial instruments for speculative purposes. A substantial majority of revenue, expense and capital purchasing activities are transacted in U.S. dollars. However, the Company's foreign subsidiaries enter into transactions in other currencies, primarily the Euro. 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 programs reduce, but do not entirely eliminate, the impact of currency exchange rate changes. Presently the Company does not employ currency exchange hedging financial instruments, but has adjusted transaction and cash flows to mitigate adverse currency fluctuations. 10 Historical trends in currency exchanges indicate that it is reasonably possible that adverse changes in exchange rates of 20% for the Euro could be experienced in the near term. Such adverse changes would not have resulted in a material impact on income before taxes for the three months ended March 25, 2006. A substantial portion of the Company's debt is based on U.S. prime and LIBOR interest rates. In an effort to lock-in current low rates and mitigate the risk of unfavorable interest rate fluctuations the Company has entered an interest rate swap agreement. This agreement effectively converted a portion of its variable rate debt into fixed rate debt. An adverse movement of equity market prices would have an impact on the Company's long-term marketable equity securities that are included in other assets on the consolidated balance sheet. At March 25, 2006 the aggregate carrying value of long-term marketable equity securities was $3.4 million. Due to the unpredictable nature of the equity market the Company has not employed any hedge programs relative to these investments. 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 Rule 13a-14(c). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can 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 the Company's 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 first quarter of 2006. 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 2006 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. PART II. OTHER INFORMATION Item 1. Not Required. Item 2. (c) ISSUER PURCHASES OF EQUITY SECURITIES 11
--------------------------------- ----------- --------------- ------------------ --------------- (d) Maximum Number (or Approximate (c) Total Number Dollar Value) of (a) Total of Shares (or Shares (or Units) Number of Units) Purchased as that May Yet Be Shares (b) Average Part of Publicly Purchased Under (or Units) Price Paid per Announced Plans the Plans Period Purchased Share (or Unit) or Programs or Programs --------------------------------- ----------- --------------- ------------------ --------------- Shares purchases prior to 12/31/2005 under the current repurchase program. 449,964 $ 9.38 449,964 $ 3,000,000 --------------------------------- ----------- --------------- ------------------ --------------- First quarter purchases: --------------------------------- ----------- --------------- ------------------ --------------- 01/01/2006 - 01/28/2006 None None None None --------------------------------- ----------- --------------- ------------------ --------------- 01/29/2006 - 02/25/2006 None None None None --------------------------------- ----------- --------------- ------------------ --------------- 02/26/2006 - 03/25/2006 None None None None --------------------------------- ----------- --------------- ------------------ --------------- Total share purchases under the current program 449,964 $ 9.38 449,964 $ 3,000,000 --------------------------------- ----------- --------------- ------------------ ---------------
The Company has one stock repurchase program which was established in February 2003 by the Board of Directors and which authorized management to expend up to $3,000,000 to repurchase shares on the open market as well as in private negotiated transactions. The repurchase plan has no termination date. There have been no share repurchases that were not part of a publicly announced program. In February 2006, the Board of Directors increased the remaining amount on this plan to its original level of $3,000,000. Item 3,4 and 5 Not Required. Item 6. Exhibits (a) Exhibits Number Description ------ ----------- 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. 12 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: April 12, 2006 /s/ C. W. (BILL) REED -------------- ----------------------------------------- C. W. (Bill) Reed President and Chief Executive Officer Date: April 12, 2006 /s/ TERRY D. FRANDSEN -------------- ----------------------------------------- Terry D. Frandsen Vice President and Chief Financial Officer 13