10-Q

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 quarter ended July 14, 2012 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 definition of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

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

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 August 3, 2012
Common, no par value	13,373,594

INDEX

		Page No.
Part I.	Financial Information:
Item 1 -	Financial Statements:
	Consolidated Condensed Balance Sheets as of July 14, 2012, December 31, 2011, and  July 09, 2011	3
	Consolidated Condensed Statements of Operations for the Three Months and Six Months Ended July 14, 2012 and July 09, 2011	4
	Consolidated Condensed Statements of ComprehensiveIncome (Loss) for the Three Months and Six Months Ended July 14, 2012 and July 09, 2011	4
	Consolidated Condensed Statements of Cash Flows for the Six Months Ended July 14, 2012 and July 09, 2011	5
	Notes to Consolidated Condensed Financial Statements	6
Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3 -	Quantitative and Qualitative Disclosures about Market Risk	15
Item 4 -	Controls and Procedures	15
Part II.	Other Information
Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 5 -	Other Information	17
Item 6 -	Exhibits	18
	Signatures	18

2

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(All amounts in thousands, except share information)

	July 14, 2012		December 31,  2011		July 09, 2011
	(Unaudited)		(Audited)		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	1,615	$	3,821	$	2,224
Time deposits		1,200		950		1,000
Receivables, less allowance of $822; $938; and $940; respectively		24,367		26,914		22,610
Inventories		35,074		29,035		32,727
Prepaid expenses		1,177		1,102		1,863
Deferred income tax benefit		1,556		1,478		1,309
Income tax receivable		—		846		—
TOTAL CURRENT ASSETS		64,989		64,146		61,733
Property, plant and equipment, net		12,045		11,915		19,593
Intangible assets		12,751		14,064		15,054
Goodwill		24,806		25,285		26,163
Investments		14,098		14,397		12,732
Other assets		77		308		—
	$	128,766	$	130,115	$	135,275
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable	$	12,671	$	14,947	$	13,825
Current portion of long-term debt		2,000		2,000		2,000
Trade accounts payable		4,533		3,293		4,773
Accrued liabilities		12,975		14,410		13,179
Income tax payable		1,926		—		955
TOTAL CURRENT LIABILITIES		34,105		34,650		34,732
Other Liabilities:
Long-term debt		4,000		5,000		6,000
Deferred income tax liability		2,876		2,900		2,155
TOTAL LIABILITIES		40,981		42,550		42,887
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 – 13,364,999; 12,883,948; and 12,855,936; shares respectively		13,365		12,884		12,856
Retained earnings		72,331		71,348		73,385
Accumulated other comprehensive income		2,089		3,333		6,147
		87,785		87,565		92,388
	$	128,766	$	130,115	$	135,275

See notes to Consolidated Condensed Financial Statements.

3

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

(All amounts in thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	July 14, 2012			July 09, 2011			July 14, 2012			July 09, 2011
Net sales	$	42,029		$	40,850		$	72,594		$	68,848
Costs, expenses and other income:
Cost of products sold		29,685			28,043			49,694			45,916
Selling, general and administrative expenses		8,966			9,598			16,263			17,339
Amortization		689			492			1,206			809
Operating income		2,689			2,717			5,431			4,784
Interest expense, net		(192	)		(228	)		(346	)		(412	)
Other income		240			513			412			635
Income before income taxes		2,737			3,002			5,497			5,007
Provision for income taxes		1,650			1,517			2,834			2,319
Net income	$	1,087		$	1,485		$	2,663		$	2,688
Per share data:
Basic earnings per share	$	0.08		$	0.12		$	0.20		$	0.21
Diluted earnings per share	$	0.08		$	0.11		$	0.20		$	0.20
Dividends declared	$	0.15		$	.—		$	0.15		$	.—

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME(LOSS) (UNAUDITED)

	Three Months Ended					Six Months Ended
	July 14,			July 09,		July 14,			July 09,
	2012			2011		2012			2011
Net income	$	1,087		$	1,485	$	2,663		$	2,688
Foreign currency translation adjustment		(1,824	)		333		(1,239	)		2,226
Comprehensive income (loss)	$	(737	)	$	1,818	$	1,424		$	4,914

See notes to Consolidated Condensed Financial Statements.

4

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

(All amounts in thousands)

	Six Months Ended
	July 14, 2012			July 09, 2011
Operating Activities:
Net income	$	2,663		$	2,688
Depreciation and amortization		2,305			2,344
Loss on disposal of property and equipment		—			39
Stock-based compensation		306			218
Adjustments necessary to reconcile net income to net cash used by operating activities		(116	)		(5,114	)
Net cash provided by operating activities		5,158			175
Investing Activities:
Purchase of property and equipment		(1,461	)		(984	)
Purchase of short-term time deposits		(250	)		—
Proceeds from disposal of short-term time deposits		—			250
Proceeds from sale of property and equipment		4			—
Net cash used by investing activities		(1,707	)		(734	)
Financing Activities:
Dividends paid		(2,893	)		—
Net increase (decrease) in notes payable		(2,050	)		2,294
Net increase (decrease) in overdraft facility		(226	)		478
Principal payment on long-term debt		(1,000	)		(1,500	)
Proceeds from exercise of stock options		395			87
Director stock compensation		100			138
Net cash provided (used) by financing activities		(5,674	)		1,497
Effect of exchange rate changes on cash		17			(250	)
Net increase (decrease) in cash and cash equivalents		(2,206	)		688
Cash and cash equivalents, beginning of period		3,821			1,536
Cash and cash equivalents, end of period	$	1,615		$	2,224

See notes to Consolidated Condensed Financial Statements.

5

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 annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 31, 2011 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 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 2011 filed with the Securities and Exchange Commission.

Note B - 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 C - Seasonal Aspects

The results of operations for the three and six month periods ended July 14, 2012 and July 09, 2011 are not necessarily indicative of the results to be expected for the full year.

Note D - Inventories

In thousands	July 14, 2012		December 31, 2011		July 09, 2011
Raw materials	$	8,911	$	7,865	$	9,465
Work in progress		4,230		3,751		3,940
Finished goods		21,933		17,419		19,322
	$	35,074	$	29,035	$	32,727

Note E – 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 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 effect on Stiga’s net assets resulting from the amortization of goodwill for the periods ended July 14, 2012 and July 09, 2011 are addbacks to Stiga’s consolidated financial information of $9.8 million and $9.1 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $13.7 million offset by the related cumulative tax effect of $3.9 million as of July 14, 2012 and cumulative goodwill adjustments of $12.7 million offset by the related cumulative tax effect of $3.6 million as of July 09, 2011. The statement of operations impact of these goodwill and tax adjustments and other individually insignificant U.S. GAAP adjustments for the periods ended July 14, 2012, and July 09, 2011 are to increase Stiga’s net income by approximately $1.2 million and $1.1 million, respectively. The Company’s 50% portion of net income for Stiga for the periods ended July 14, 2012 and July 09, 2011 was $0.5 million and $0.5 million, respectively, and is included in other income on the Company’s statements of operations.

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In addition, Escalade has a 50% interest in two joint ventures, Escalade International, Ltd. in the United Kingdom, and Neoteric Industries Inc. in Taiwan. Escalade International Ltd. is a sporting goods wholesaler, specializing in fitness equipment. The Company’s 50% portion of net income (loss) for Escalade International for the periods ended July 14, 2012 and July 09, 2011 was ($87,634) and $67,306 respectively, and is included in other income on the Company’s statements of operations. The income and assets of Neoteric have no impact on the Company’s financial reporting. Additional information regarding these entities is considered immaterial and has not been included in the totals listed below.

Summarized financial information for Stiga Sports AB balance sheets as of July 14, 2012, December 31, 2011, and July 09, 2011 and statements of operations for the periods ended July 14, 2012 and July 09, 2011 is as follows:

In thousands	July 14, 2012		December 31, 2011		July 09, 2011
Current assets	$	17,926	$	23,451	$	15,728
Non-current assets		8,076		9,460		11,393
Total assets		26,002		32,911		27,121
Current liabilities		5,580		10,033		5,965
Non-current liabilities		5,266		6,334		8,613
Total liabilities		10,846		16,367		14,578
Net assets	$	15,156	$	16,544	$	12,543

	Three Months Ended					Six Months Ended
	July 14, 2012			July 09, 2011		July 14, 2012			July 09, 2011
Net sales	$	8,628		$	9,147	$	12,775		$	13,618
Gross profit		4,245			5,314		6,412			7,574
Net income (loss)		(123	)		239		(220	)		45

Note F – Notes Payable

On May 4, 2012, the Company entered into the Eighth Amendment to its Credit Agreement with its issuing bank, JP Morgan Chase Bank, N.A. (Chase). The Eighth Amendment amends the Credit Agreement originally dated as of April 30, 2009. The Credit Agreement, as amended, makes available to the Company a senior revolving credit facility in the maximum principal amount of up to $22 million with a maturity date of July 31, 2013 and a term loan in the principal amount of $8.5 million with a maturity date of May 31, 2015. The term loan agreement requires the Company to make repayment of the principal balance in equal installments of $0.5 million per quarter beginning in September 2010. A portion of the credit facility not in excess of $5 million is available for the issuance of commercial or standby letters of credit to be issued by Chase. The Credit Agreement Amendment also provides a Euro 2.0 million (approximately $2.4 million) overdraft facility.

7

The Eighth Amendment modified the loan covenants relating to Capital Expenditures, stock repurchases, and issuance of common stock. Escalade now may incur Capital Expenditures of up to $7,500,000 for fiscal year 2012, and up to $4,000,000 for fiscal year 2013; repurchase shares of Escalade common stock for an aggregate amount of up to $1,000,000; and issue up to 2,500,000 shares of its common stock pursuant to the Escalade 2007 Incentive Plan, as amended at Escalade’s 2012 Annual Meeting of Stockholders to increase the total number of shares available for grant thereunder from 1,000,000 to 2,500,000 shares.

Note G – Income Taxes

The provision for income taxes was computed based on financial statement income. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, the Company has recorded the following changes in uncertain tax positions:

	Six Months Ended
In thousands	July 14, 2012		July 09, 2011
Beginning Balance	$	46	$	220
Additions for current year tax positions		—		—
Additions for prior year tax positions		—		—
Settlements		—		—
Reductions settlements		—		—
Reductions for prior year tax positions		—		—
Ending Balance	$	46	$	220

Note H – 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 and Time Deposits

Fair values of cash and cash equivalents and time deposits 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 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 July 14, 2012 and July 09, 2011.

8

			Fair Value Measurements Using
July 14, 2012 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	$	1,615	$	1,615	$	—	$	—
Time deposits	$	1,200	$	1,200	$	—	$	—
Financial liabilities
Note payable and Short-term debt	$	12,671	$	—	$	12,671	$	—
Current portion of Long-term debt	$	2,000	$	—	$	2,000	$	—
Long-term debt	$	4,000	$	—	$	4,000	$	—

			Fair Value Measurements Using
July 09, 2011 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	$	2,224	$	2,224	$	—	$	—
Time deposits	$	1,000	$	1,000	$	—	$	—
Financial liabilities
Note payable and Short-term debt	$	13,825	$	—	$	13,825	$	—
Current portion of Long-term debt	$	2,000	$	—	$	2,000	$	—
Long-term debt	$	6,000	$	—	$	6,000	$	—

The outstanding balance of the euro overdraft facility is included in Notes payable and Short-term debt. For the periods ended July 14, 2012, December 31, 2011, and July 09, 2011, the balance of the euro overdraft facility was $2.0 million, $2.2 million, and $2.1 million, respectively.

Note I – 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 six months ended July 14, 2012 and pursuant to the 2007 Incentive Plan, in lieu of director fees, the Company awarded to certain directors 26,091 shares of common stock. In addition, the Company awarded 37,500 stock options to directors and 200,000 stock options to employees. The stock options awarded to directors vest at the end of one year and have an exercise price equal to the market price on the date of grant. Director stock options 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 2012 stock options awarded to employees have a graded vesting of 25% per year over four years and are subject to forfeiture if on the vesting date the employee is no longer employed. The 2012 employee awards were conditioned upon stockholder approval of an amendment to the Escalade, Incorporated 2007 Incentive Plan and bank approval. The Plan amendment was voted upon and approved at the April 2012 Shareholder Meeting, and bank approval was obtained as part of the Eighth Amendment to the Credit Agreement. The Company utilizes the Black-Scholes option pricing model to determine the fair value of stock options granted.

For the three months and six months ended July 14, 2012, the Company recognized stock based compensation expense of $235 thousand and $406 thousand, respectively, compared to stock based compensation expense of $137 thousand and $356 thousand for the same periods last year. At July 14, 2012 and July 09, 2011, respectively, there was $1.3 million and $1.2 million in unrecognized stock-based compensation expense related to non-vested stock awards.

Note J - Segment Information

	As of and for the Three Months  Ended July 14, 2012
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	31,432	$	10,597		$	—		$	42,029
Operating income (loss)		4,189		(656	)		(844	)		2,689
Net income (loss)		2,479		(1,046	)		(346	)		1,087

	As of and for the Six Months  Ended July 14, 2012
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	53,646	$	18,948		$	—		$	72,594
Operating income (loss)		7,448		(507	)		(1,510	)		5,431
Net income (loss)		4,422		(1,108	)		(651	)		2,663
Total assets	$	72,837	$	39,099		$	16,830		$	128,766

	As of and for the Three Months  Ended July 09, 2011
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	29,743	$	11,107		$	—		$	40,850
Operating income (loss)		3,987		(312	)		(958	)		2,717
Net income (loss)		2,278		(610	)		(183	)		1,485

10

	As of and for the Six Months  Ended July 09, 2011
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	48,930	$	19,918		$	—		$	68,848
Operating income (loss)		6,323		268			(1,807	)		4,784
Net income (loss)		3,602		(373	)		(541	)		2,688
Total assets	$	73,116	$	42,261		$	19,898		$	135,275

Note K – Dividend Payment

On January 5, 2012, the Company paid a dividend of $0.07 per common share to all shareholders of record on December 22, 2011. The total amount of the dividend was approximately $906 thousand and was charged against retained earnings.

On April 16, 2012, the Company paid a dividend of $0.07 per common share to all shareholders of record on April 6, 2012. The total amount of this dividend payment was approximately $926 thousand and was charged against retained earnings.

On July 9, 2012, the Company paid a dividend of $0.08 per common share to all shareholders of record on July 2, 2012. The total amount of this dividend payment was approximately $1.1 million and was charged against retained earnings.

Note L - Earnings Per Share

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

	Three Months Ended				Six Months Ended
All amounts in thousands	July 14, 2012		July 09, 2011		July 14, 2012		July 09, 2011
Weighted average common shares outstanding		13,260		12,839		13,103		12,824
Dilutive effect of stock options and restricted stock units		188		429		180		438
Weighted average common shares outstanding, assuming dilution		13,448		13,268		13,283		13,262

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 2012 and 2011 were 456,500 and 252,024, respectively.

Note M – New Accounting Standards

There have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended July 14, 2012, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, that are of significance, or potential significance to the Company.

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Note N – 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.

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, Escalade’s ability to successfully integrate the operations of acquired assets and businesses, 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 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” or “Company”) manufactures and distributes products for two industries: Sporting Goods and Information Security and Print Finishing. Within these industries the Company has successfully built a market presence in niche markets. This strategy is heavily dependent on expanding the customer base, barriers to entry, brand recognition and excellent customer service. 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 cost effective manner while maintaining a diversified product line and wide customer base. In addition to strategic customer relations, the Company has substantial manufacturing and import experience that enable it to be a low cost supplier.

A majority of the Company’s products are in markets that are experiencing low growth rates. Where the Company enjoys a commanding market position, such as table tennis tables in the Sporting Goods segment and paper folding machines in the Information Security and Print Finishing segment, revenue growth is expected to be roughly equal to general growth/decline in the economy. However, in markets that are fragmented and where the Company is not the dominant leader, such as archery in the Sporting Goods segment and data security shredders in the Information Security and Print Finishing segment, the Company anticipates growth. To enhance growth, the Company has a strategy of promoting new product innovation and development and brand marketing. In the Information Security and Print Finishing segment, the Company’s strategic focus is increasingly upon expanding its product and service offerings to assist businesses and governments with their document and information high security needs to secure sensitive customer, employee and business information and to comply with new information privacy laws, rules and regulations. The Company continues to extend the capabilities of its line of shredders to include not only the secure destruction of paper but also the secure destruction and/or de-commissioning of medical patient information, drug prescriptions and adhesive labels, pill and syrup vials, CDs, DVDs, and other forms of magnetic, optical and solid state media. The Company is further exploring opportunities to provide secure on-site and off-site document and data destruction and disposal services to meet the specific needs of its customers.

12

In addition, the Company will continue to investigate acquisition opportunities of companies or product lines that complement or expand the Company’s existing product lines. 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. As part of its ongoing strategy development, the Company also routinely assesses product line profitability and category alignment. Management believes that key indicators in measuring the success of this strategy are revenue growth, earnings growth and the expansion of channels of distribution.

In 2012, Escalade's Board of Directors adopted a dividend policy under which the Company intends to pay quarterly cash dividends on its common stock. Escalade expects the initial annual rate to be $0.32 per share per year, or $0.08 per share quarterly. Escalade's Board of Directors will evaluate the Company's dividend policy on an ongoing basis after giving consideration to, among other things, the financial condition of and outlook for the Company and any particular cash flow and financing needs of the Company.

Results of Operations

Consolidated net sales for the second quarter of 2012 were 3% higher compared to the same quarter last year. For the year to date, net sales have increased 5% over the prior year. The Company’s operating income for the second quarter and first half of fiscal 2012 was $2.7 million and $5.4 million, respectively, compared to operating income of $2.7 million and $4.8 million for the same periods last year. The early shipment of basketball and playground products in the first quarter resulted in a shift of sales between quarters as compared to prior year. In addition, certain expenses incurred in the first quarter in the prior year and in the second quarter of the current year resulted in a shift of operating income between quarters. Year to date totals are reflective of the overall improvement in sales and operating income for the current year. The following schedule sets forth certain consolidated statement of operations data as a percentage of net revenue:

	Three Months Ended						Six Months Ended
	July 14, 2012			July 09, 2011			July 14, 2012			July 09, 2011
Net revenue		100.0	%		100.0	%		100.0	%		100.0	%
Cost of products sold		70.6	%		68.6	%		68.5	%		66.7	%
Gross margin		29.4	%		31.4	%		31.5	%		33.3	%
Selling, administrative and general expenses		21.3	%		23.5	%		22.4	%		25.2	%
Amortization		1.6	%		1.2	%		1.7	%		1.2	%
Operating income		6.5	%		6.7	%		7.4	%		6.9	%

Consolidated Revenue and Gross Margin

Revenues from the Sporting Goods business were up 5.7% for the quarter and 9.6% for the first half of 2012, compared to the same periods prior year. Management believes improved sales in the Sporting Goods segment will continue through the remainder of the year as the Company builds on new product placements and expanded brand-building activity.

Revenues from the Information Security and Print Finishing business decreased 4.6% and 4.9% for the second quarter and first half of 2012, respectively, compared to last year. Excluding the effects of changes in the currency exchange rates, revenues decreased 0.5% and 1.7%, for the second quarter and first half of 2012, respectively. Revenues in this business segment remain fairly flat to prior year and the Company expects continued challenges in the international market due partly to austerity measures taken in European and other governmental channels.

13

The overall gross margin ratios for the second quarter and first half of 2012 were 29.4% and 31.5%, respectively, compared to 31.4% and 33.3%, respectively, for same periods last year. The Company incurred certain costs related to staff reductions and one-time expenditures in the Information Security and Print Finishing segment which affected both gross margin and selling and administration expense for the quarter. The Company will continue to identify and implement cost savings initiatives, particularly in this business segment, while working to enhance product design to expand market share.

Consolidated Selling, General and Administrative Expenses

Compared to the same periods last year, consolidated selling, general and administrative (“SG&A”) costs decreased as a percent of net sales to 21.3% and 22.4% for the three and six months periods in 2012; down from 23.5% and 25.2% for the three and six months periods in 2011. As mentioned above, the Company incurred certain expenditures in the Information Security and Print Finishing segment which are not expected to be repeated in subsequent quarters. Cost saving initiatives implemented in the period will benefit future periods.

Provision for Income Taxes

The effective tax rate in the second quarter of 2012 was 60.3% compared with 50.5% for the same period last year. The effective tax rate year to date is 51.6% and 46.3% for 2012 and 2011, respectively. The increase in the current year tax rate is due mainly to losses generated in certain foreign taxing jurisdictions which do not offset gains in other foreign taxing jurisdictions.

Financial Condition and Liquidity

Total bank debt at the end of the first half of 2012 was down 14.5% or $3.2 million from the same period last year, and down 14.9% or $3.3 million from December 31, 2011. The decrease in debt over same period prior year is due mainly to strong profits in 2012. Planned increases in inventory levels have been made to better meet customer demand. The following schedule summarizes the Company’s total bank debt:

In thousands	July 14,  2012		December 31, 2011		July 09, 2011
Notes payable short-term	$	10,650	$	12,700	$	11,700
Current portion long-term debt		2,000		2,000		2,000
Bank overdraft facility		2,021		2,247		2,125
Long term debt		4,000		5,000		6,000
Total bank debt	$	18,671	$	21,947	$	21,825

As a percentage of stockholders’ equity, total bank debt was 21%, 25% and 23% at July 14, 2012, December 31, 2011, and July 09, 2011 respectively.

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.

14

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.

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 and its overdraft facility which is based on EURIBOR 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 operations.

Foreign Currency
The Company conducts business in various countries around the world and is therefore subject to risks associated with fluctuating foreign exchange rates. This revenue is generated from the operations of the Company’s subsidiaries in their respective countries and surrounding geographic areas and is primarily denominated in each subsidiary’s local functional currency. These subsidiaries incur most of their expenses (other than inter-company expenses) in their local functional currency and include the Euro, Great Britain Pound Sterling, Mexican Peso, Chinese Yuan, Swedish Krona and South African Rand.

The geographic areas outside the United States in which the Company operates 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 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.

15

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 second quarter of 2012.

There have been no changes to the Company’s internal control over financial reporting that occurred since the beginning of the Company’s second quarter of 2012 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 1A. 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 3/24/2012 under the current repurchase program.		982,916	$	8.84		982,916	$	2,273,939
Second quarter purchases:
03/25/2012–04/21/2012		None		None		No Change		No Change
04/22/2012-05/19/2012		None		None		No Change		No Change
05/20/2012-06/16/2012		None		None		No Change		No Change
06/17/2012-07/14/2012		None		None		No Change		No Change
Total share purchases under the current program		982,916	$	8.84		982,916	$	2,273,939

16

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 2008, the Board of Directors increased the remaining amount on this plan to its original level of $3,000,000. Although authorized by the Board, the Company has agreed to certain restrictions on the repurchase of shares as part of the April 30, 2009 Credit Agreement terms. The Eighth Amendment increased the limit on the share repurchases from $50,000 to $1,000,000.

Item 3. Not Required.

Item 4. Not Required.

Item 5. Other Information

As previously discussed in the Company’s Form 8-K filed with the SEC on May 1, 2012, on April 27, 2012, Escalade, Incorporated (the “Company”) held its Annual Meeting of Stockholders for which the Board of Directors solicited proxies. At the Annual Meeting, the stockholders voted on the election of directors, the appointment of the Company’s independent registered public accounting firm for the Company’s 2012 fiscal year, the re-approval of the performance criteria and goals under the Escalade, Incorporated 2007 Incentive Plan, and the approval of an amendment to the Escalade, Incorporated 2007 Incentive Plan.

In the election of directors, as described in the Company’s proxy statement relating to the Annual Meeting, the three incumbent directors whose terms were expiring were nominated for reelection for a two-year term. The four other incumbent directors are currently serving a two year term that will expire at the 2013 Annual Meeting. The results of the voting in the election of directors are as follows:

	Number of Votes
Director Nominee	For		Withheld
George Savitsky		7,668,170		1,092,672
Richard D. White		7,650,620		1,110,222
Edward E. Williams		7,326,637		1,434,205

Therefore, Messrs. Savitsky, White, and Williams were elected to the Board. There were 3,615,063 broker non-votes with respect to the election of each of the nominees.

As to the appointment of the firm, BKD, LLP to serve as the Company’s independent registered public accounting firm for the Company’s 2012 fiscal year, the Company’s stockholders ratified such appointment by a vote of 11,767,321 shares FOR, 604,321 shares AGAINST, and 4,263 shares ABSTAINED, with no broker non-votes. Therefore, the appointment of BKD, LLP was approved.

As to the re-approval of the performance criteria and goals under the Escalade, Incorporated 2007 Incentive Plan, the Company’s stockholders ratified the re-approval by a vote of 7,690,010 shares FOR, 1,054,531 shares AGAINST, and 16,301 shares ABSTAINED, with 3,615,063 broker non-votes. Therefore, the re-approval of the performance criteria and goals under the Escalade, Incorporated 2007 Incentive Plan was approved.

As to the approval of the amendment to the Escalade, Incorporated 2007 Incentive Plan, providing for the issuance of up to an additional one million five hundred thousand shares thereunder, the Company’s stockholders approved the amendment by a vote of 6,877,547 shares FOR, 1,867,944 shares AGAINST, and 15,351 shares ABSTAINED, with 3,615,063 broker non-votes. Therefore, the amendment to the Escalade, Incorporated 2007 Incentive Plan was approved.

17

Item 6. Exhibits

(a) Exhibits

Number	Description
10.1	Eighth Amendment to Credit Agreement dated as of May 4, 2012 by and between Escalade, Incorporated and JPMorgan Chase Bank, N.A., incorporated by reference from Exhibit 10.1 of the Company’s Form 8-K filed with the SEC on May 7, 2012.
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.

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: August 14, 2012	/s/ Deborah Meinert
	Vice President and Chief Financial Officer
	(On behalf of the registrant and in her
	capacities as Principal Financial Officer
	and Principal Accounting Officer)

18

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Robert J. Keller, 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, 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: August 14, 2012	/s/ Robert J. Keller
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Deborah Meinert, 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, 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: August 14, 2012	/s/ Deborah Meinert
	Vice President and Chief Financial Officer
	(On behalf of the registrant and in her
	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 July 14, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert J. Keller, 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 result of operations of the Company.

/s/ Robert J. Keller

Chief Executive Officer

August 14, 2012

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 July 14, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Deborah Meinert, 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 result of operations of the Company.

/s/ Deborah Meinert

Vice President and Chief Financial Officer

(On behalf of the registrant and in her

capacities as Principal Financial Officer

and Principal Accounting Officer)

August 14, 2012

XML

Earnings Per Share (Details)	3 Months Ended		6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011	Jul. 14, 2012	Jul. 09, 2011
Weighted average common shares outstanding	13,260	12,839	13,103	12,824
Dilutive effect of stock options and restricted stock units	188	429	180	438
Weighted average common shares outstanding, assuming dilution	13,448	13,268	13,283	13,262

XML

Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011
Beginning Balance	$ 46	$ 220
Additions for current year tax positions	0	0
Additions for prior year tax positions	0	0
Settlements	0	0
Reductions settlements	0	0
Reductions for prior year tax positions	0	0
Ending Balance	$ 46	$ 220

XML

Fair Values of Financial Instruments (Tables)

6 Months Ended

Jul. 14, 2012

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 July 14, 2012 and July 09, 2011.

			Fair Value Measurements Using
July 14, 2012 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	$	1,615	$	1,615	$	—	$	—
Time deposits	$	1,200	$	1,200	$	—	$	—
Financial liabilities
Note payable and Short-term debt	$	12,671	$	—	$	12,671	$	—
Current portion of Long-term debt	$	2,000	$	—	$	2,000	$	—
Long-term debt	$	4,000	$	—	$	4,000	$	—

			Fair Value Measurements Using
July 09, 2011 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	$	2,224	$	2,224	$	—	$	—
Time deposits	$	1,000	$	1,000	$	—	$	—
Financial liabilities
Note payable and Short-term debt	$	13,825	$	—	$	13,825	$	—
Current portion of Long-term debt	$	2,000	$	—	$	2,000	$	—
Long-term debt	$	6,000	$	—	$	6,000	$	—

XML

Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011	Jul. 14, 2012	Jul. 09, 2011	Dec. 31, 2011
Revenues from external customers	$ 42,029	$ 40,850	$ 72,594	$ 68,848
Operating income (loss)	2,689	2,717	5,431	4,784
Net income (loss)	1,087	1,485	2,663	2,688
Total assets	128,766	135,275	128,766	135,275	130,115
Sporting Goods [Member]
Revenues from external customers	31,432	29,743	53,646	48,930
Operating income (loss)	4,189	3,987	7,448	6,323
Net income (loss)	2,479	2,278	4,422	3,602
Total assets	72,837	73,116	72,837	73,116
Information Security and Print Finishing [Member]
Revenues from external customers	10,597	11,107	18,948	19,918
Operating income (loss)	(656)	(312)	(507)	268
Net income (loss)	(1,046)	(610)	(1,108)	(373)
Total assets	39,099	42,261	39,099	42,261
Corporate [Member]
Revenues from external customers	0	0	0	0
Operating income (loss)	(844)	(958)	(1,510)	(1,807)
Net income (loss)	(346)	(183)	(651)	(541)
Total assets	$ 16,830	$ 19,898	$ 16,830	$ 19,898

XML

Seasonal Aspects

6 Months Ended

Jul. 14, 2012

Accounting Policies [Abstract]

Seasonal Aspects [Text Block]

Note C - Seasonal Aspects

The results of operations for the three and six month periods ended July 14, 2012 and July 09, 2011 are not necessarily indicative of the results to be expected for the full year.

XML

Equity Interest Investments (Details) (USD $) In Thousands, unless otherwise specified	Jul. 14, 2012	Dec. 31, 2011	Jul. 09, 2011
Current assets	$ 64,989	$ 64,146	$ 61,733
Total assets	128,766	130,115	135,275
Current liabilities	34,105	34,650	34,732
Total liabilities	40,981	42,550	42,887
Stiga Sports AB [Member]
Current assets	17,926	23,451	15,728
Non-current assets	8,076	9,460	11,393
Total assets	26,002	32,911	27,121
Current liabilities	5,580	10,033	5,965
Non-current liabilities	5,266	6,334	8,613
Total liabilities	10,846	16,367	14,578
Net assets	$ 15,156	$ 16,544	$ 12,543

XML

Inventories (Details) (USD $) In Thousands, unless otherwise specified	Jul. 14, 2012	Dec. 31, 2011	Jul. 09, 2011
Raw materials	$ 8,911	$ 7,865	$ 9,465
Work in progress	4,230	3,751	3,940
Finished goods	21,933	17,419	19,322
Total Inventory	$ 35,074	$ 29,035	$ 32,727

XML

Equity Interest Investments (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011	Jul. 14, 2012	Jul. 09, 2011
Net sales	$ 42,029	$ 40,850	$ 72,594	$ 68,848
Net income (loss)	1,087	1,485	2,663	2,688
Stiga Sports AB [Member]
Net sales	8,628	9,147	12,775	13,618
Gross profit	4,245	5,314	6,412	7,574
Net income (loss)	$ (123)	$ 239	$ (220)	$ 45

XML

Equity Interest Investments (Details Textual) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011	Jul. 14, 2012	Jul. 09, 2011
Net income (loss)	$ 1,087	$ 1,485	$ 2,663	$ 2,688
Stiga Sports AB [Member]
Equity Method Investment, Ownership Percentage	50.00%		50.00%
Finite-Lived Intangible Assets, Accumulated Amortization	9,800	9,100	9,800	9,100
Goodwill, Translation Adjustments			13,700	12,700
Cumulative goodwill adjustments, tax effect			3,900	3,600
Net income (loss)			500	500
Cumulative Adjustments Net Income Impact			1,200	1,100
Percentage Of Net Income			50.00%
Escalade International [Member]
Equity Method Investment, Ownership Percentage	50.00%		50.00%
Net income (loss)			$ (88)	$ 67
Percentage Of Net Income			50.00%

XML

Reclassifications

6 Months Ended

Jul. 14, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Reclassifications [Text Block]

Note B - 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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Notes Payable (Details Textual) In Millions, except Share data, unless otherwise specified	6 Months Ended						6 Months Ended
	Jul. 14, 2012 USD ($)	May 04, 2012 USD ($)	May 04, 2012 EUR (€)	Jul. 14, 2012 Euro Overdraft Facility [Member] USD ($)	Dec. 31, 2011 Euro Overdraft Facility [Member] USD ($)	Jul. 09, 2011 Euro Overdraft Facility [Member] USD ($)	Jul. 14, 2012 Fiscal Year 2012 [Member] USD ($)	Jul. 14, 2012 Fiscal Year 2013 [Member] USD ($)
Line of Credit Facility, Maximum Borrowing Capacity	$ 22.0
Debt Instrument, Maturity Date	Jul. 31, 2013
Debt Instrument Principal Amount	8.5
Debt Instrument Term Loan Maturity Date	May 31, 2015
Debt Instrument, Periodic Payment	0.5
Long-term Commercial Paper	5.0
Bank Overdrafts		2.4	2.0	2.0	2.2	2.1
Maximum Amount Of Capital Expenditures							7.5	4.0
Bank Authorised Amount For Future Stock Aquisition	$ 1.0
Common Stock Issued For Incentive Plan	2,500,000
Number Of Shares Available For Grant Before Annual Meeting	1,000,000
Number Of Shares Available For Grant After Annual Meeting	2,500,000

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Earnings Per Share (Details Textual)	6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	456,500	252,024

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CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jul. 14, 2012	Dec. 31, 2011	Jul. 09, 2011
ASSETS
Cash and cash equivalents	$ 1,615	$ 3,821	$ 2,224
Time deposits	1,200	950	1,000
Receivables, less allowance of $822; $938; and $940; respectively	24,367	26,914	22,610
Inventories	35,074	29,035	32,727
Prepaid expenses	1,177	1,102	1,863
Deferred income tax benefit	1,556	1,478	1,309
Income tax receivable	0	846	0
TOTAL CURRENT ASSETS	64,989	64,146	61,733
Property, plant and equipment, net	12,045	11,915	19,593
Intangible assets	12,751	14,064	15,054
Goodwill	24,806	25,285	26,163
Investments	14,098	14,397	12,732
Other assets	77	308	0
Assets	128,766	130,115	135,275
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable	12,671	14,947	13,825
Current portion of long-term debt	2,000	2,000	2,000
Trade accounts payable	4,533	3,293	4,773
Accrued liabilities	12,975	14,410	13,179
Income tax payable	1,926	0	955
TOTAL CURRENT LIABILITIES	34,105	34,650	34,732
Other Liabilities:
Long-term debt	4,000	5,000	6,000
Deferred income tax liability	2,876	2,900	2,155
TOTAL LIABILITIES	40,981	42,550	42,887
Stockholders' Equity:
Preferred stock: Authorized 1,000,000 shares; no par value, none issued	0	0	0
Common stock: Authorized 30,000,000 shares; no par value, issued and outstanding - 13,364,999; 12,883,948; and 12,855,936; shares respectively	13,365	12,884	12,856
Retained earnings	72,331	71,348	73,385
Accumulated other comprehensive income	2,089	3,333	6,147
Stockholders' Equity	87,785	87,565	92,388
Liabilities and Equity	$ 128,766	$ 130,115	$ 135,275

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011
Operating Activities:
Net income	$ 2,663	$ 2,688
Depreciation and amortization	2,305	2,344
Loss on disposal of property and equipment	0	39
Stock-based compensation	306	218
Adjustments necessary to reconcile net income to net cash used by operating activities	(116)	(5,114)
Net cash provided by operating activities	5,158	175
Investing Activities:
Purchase of property and equipment	(1,461)	(984)
Purchase of short-term time deposits	(250)	0
Proceeds from disposal of short-term time deposits	0	250
Proceeds from sale of property and equipment	4	0
Net cash used by investing activities	(1,707)	(734)
Financing Activities:
Dividends paid	(2,893)	0
Net increase (decrease) in notes payable	(2,050)	2,294
Net increase (decrease) in overdraft facility	(226)	478
Principal payment on long-term debt	(1,000)	(1,500)
Proceeds from exercise of stock options	395	87
Director stock compensation	100	138
Net cash provided (used) by financing activities	(5,674)	1,497
Effect of exchange rate changes on cash	17	(250)
Net increase (decrease) in cash and cash equivalents	(2,206)	688
Cash and cash equivalents, beginning of period	3,821	1,536
Cash and cash equivalents, end of period	$ 1,615	$ 2,224

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Fair Values of Financial Instruments (Details Textual) In Millions, unless otherwise specified	May 04, 2012 USD ($)	May 04, 2012 EUR (€)	Jul. 14, 2012 Euro Overdraft Facility [Member] USD ($)	Dec. 31, 2011 Euro Overdraft Facility [Member] USD ($)	Jul. 09, 2011 Euro Overdraft Facility [Member] USD ($)
Bank Overdrafts	$ 2.4	€ 2.0	$ 2.0	$ 2.2	$ 2.1

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Inventories (Tables)

6 Months Ended

Jul. 14, 2012

Disclosure Text Block [Abstract]

Schedule of Inventory, Current [Table Text Block]

In thousands	July 14, 2012		December 31, 2011		July 09, 2011
Raw materials	$	8,911	$	7,865	$	9,465
Work in progress		4,230		3,751		3,940
Finished goods		21,933		17,419		19,322
	$	35,074	$	29,035	$	32,727

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Stock Compensation (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011	Jul. 14, 2012	Jul. 09, 2011
Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Terms			25% per year over four years
Allocated Share-based Compensation Expense	$ 235,000	$ 137,000	$ 406,000	$ 356,000
Employee And Non Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized	$ 1,300,000	$ 1,200,000	$ 1,300,000	$ 1,200,000
Director Fees [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			26,091
Director Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			37,500
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			200,000

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Income Taxes (Tables)

6 Months Ended

Jul. 14, 2012

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, the Company has recorded the following changes in uncertain tax positions:

	Six Months Ended
In thousands	July 14, 2012		July 09, 2011
Beginning Balance	$	46	$	220
Additions for current year tax positions		—		—
Additions for prior year tax positions		—		—
Settlements		—		—
Reductions settlements		—		—
Reductions for prior year tax positions		—		—
Ending Balance	$	46	$	220

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Summary of Significant Accounting Policies

6 Months Ended

Jul. 14, 2012

Accounting Policies [Abstract]

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 annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 31, 2011 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 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 2011 filed with the Securities and Exchange Commission.

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CONSOLIDATED CONDENSED BALANCE SHEETS [Parenthetical] (USD $) In Thousands, except Share data, unless otherwise specified	Jul. 14, 2012	Dec. 31, 2011	Jul. 09, 2011
Receivables allowance (in dollars)	$ 822	$ 938	$ 940
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	13,364,999	12,883,948	12,855,936
Common Stock, Shares, outstanding	13,364,999	12,883,948	12,855,936

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Dividend Payment

6 Months Ended

Jul. 14, 2012

Accounting Policies [Abstract]

Dividend Payment Terms [Text Block]

Note K – Dividend Payment

On January 5, 2012, the Company paid a dividend of $0.07 per common share to all shareholders of record on December 22, 2011. The total amount of the dividend was approximately $906 thousand and was charged against retained earnings.

On April 16, 2012, the Company paid a dividend of $0.07 per common share to all shareholders of record on April 6, 2012. The total amount of this dividend payment was approximately $926 thousand and was charged against retained earnings.

On July 9, 2012, the Company paid a dividend of $0.08 per common share to all shareholders of record on July 2, 2012. The total amount of this dividend payment was approximately $1.1 million and was charged against retained earnings.

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Document And Entity Information	6 Months Ended
	Jul. 14, 2012	Aug. 03, 2012
Entity Registrant Name	ESCALADE INC
Entity Central Index Key	0000033488
Current Fiscal Year End Date	--12-29
Entity Filer Category	Smaller Reporting Company
Trading Symbol	esca
Entity Common Stock, Shares Outstanding		13,373,594
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 14, 2012
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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Earnings Per Share

6 Months Ended

Jul. 14, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note L - Earnings Per Share

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

	Three Months Ended				Six Months Ended
All amounts in thousands	July 14, 2012		July 09, 2011		July 14, 2012		July 09, 2011
Weighted average common shares outstanding		13,260		12,839		13,103		12,824
Dilutive effect of stock options and restricted stock units		188		429		180		438
Weighted average common shares outstanding, assuming dilution		13,448		13,268		13,283		13,262

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 2012 and 2011 were 456,500 and 252,024, respectively.

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CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011	Jul. 14, 2012	Jul. 09, 2011
Net sales	$ 42,029	$ 40,850	$ 72,594	$ 68,848
Costs, expenses and other income:
Cost of products sold	29,685	28,043	49,694	45,916
Selling, general and administrative expenses	8,966	9,598	16,263	17,339
Amortization	689	492	1,206	809
Operating income	2,689	2,717	5,431	4,784
Interest expense, net	(192)	(228)	(346)	(412)
Other income	240	513	412	635
Income before income taxes	2,737	3,002	5,497	5,007
Provision for income taxes	1,650	1,517	2,834	2,319
Net income	$ 1,087	$ 1,485	$ 2,663	$ 2,688
Per share data:
Basic earnings per share	$ 0.08	$ 0.12	$ 0.20	$ 0.21
Diluted earnings per share	$ 0.08	$ 0.11	$ 0.20	$ 0.20
Dividends declared	$ 0.15	$ 0	$ 0.15	$ 0

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Notes Payable

6 Months Ended

Jul. 14, 2012

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note F – Notes Payable

On May 4, 2012, the Company entered into the Eighth Amendment to its Credit Agreement with its issuing bank, JP Morgan Chase Bank, N.A. (Chase). The Eighth Amendment amends the Credit Agreement originally dated as of April 30, 2009. The Credit Agreement, as amended, makes available to the Company a senior revolving credit facility in the maximum principal amount of up to $22 million with a maturity date of July 31, 2013 and a term loan in the principal amount of $8.5 million with a maturity date of May 31, 2015. The term loan agreement requires the Company to make repayment of the principal balance in equal installments of $0.5 million per quarter beginning in September 2010. A portion of the credit facility not in excess of $5 million is available for the issuance of commercial or standby letters of credit to be issued by Chase. The Credit Agreement Amendment also provides a Euro 2.0 million (approximately $2.4 million) overdraft facility.

The Eighth Amendment modified the loan covenants relating to Capital Expenditures, stock repurchases, and issuance of common stock. Escalade now may incur Capital Expenditures of up to $7,500,000 for fiscal year 2012, and up to $4,000,000 for fiscal year 2013; repurchase shares of Escalade common stock for an aggregate amount of up to $1,000,000; and issue up to 2,500,000 shares of its common stock pursuant to the Escalade 2007 Incentive Plan, as amended at Escalade’s 2012 Annual Meeting of Stockholders to increase the total number of shares available for grant thereunder from 1,000,000 to 2,500,000 shares.

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Equity Interest Investments

6 Months Ended

Jul. 14, 2012

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

Note E – 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 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 effect on Stiga’s net assets resulting from the amortization of goodwill for the periods ended July 14, 2012 and July 09, 2011 are addbacks to Stiga’s consolidated financial information of $9.8 million and $9.1 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $13.7 million offset by the related cumulative tax effect of $3.9 million as of July 14, 2012 and cumulative goodwill adjustments of $12.7 million offset by the related cumulative tax effect of $3.6 million as of July 09, 2011. The statement of operations impact of these goodwill and tax adjustments and other individually insignificant U.S. GAAP adjustments for the periods ended July 14, 2012, and July 09, 2011 are to increase Stiga’s net income by approximately $1.2 million and $1.1 million, respectively. The Company’s 50% portion of net income for Stiga for the periods ended July 14, 2012 and July 09, 2011 was $0.5 million and $0.5 million, respectively, and is included in other income on the Company’s statements of operations.

In addition, Escalade has a 50% interest in two joint ventures, Escalade International, Ltd. in the United Kingdom, and Neoteric Industries Inc. in Taiwan. Escalade International Ltd. is a sporting goods wholesaler, specializing in fitness equipment. The Company’s 50% portion of net income (loss) for Escalade International for the periods ended July 14, 2012 and July 09, 2011 was ($87,634) and $67,306 respectively, and is included in other income on the Company’s statements of operations. The income and assets of Neoteric have no impact on the Company’s financial reporting. Additional information regarding these entities is considered immaterial and has not been included in the totals listed below.

Summarized financial information for Stiga Sports AB balance sheets as of July 14, 2012, December 31, 2011, and July 09, 2011 and statements of operations for the periods ended July 14, 2012 and July 09, 2011 is as follows:

In thousands	July 14, 2012		December 31, 2011		July 09, 2011
Current assets	$	17,926	$	23,451	$	15,728
Non-current assets		8,076		9,460		11,393
Total assets		26,002		32,911		27,121
Current liabilities		5,580		10,033		5,965
Non-current liabilities		5,266		6,334		8,613
Total liabilities		10,846		16,367		14,578
Net assets	$	15,156	$	16,544	$	12,543

	Three Months Ended					Six Months Ended
	July 14, 2012			July 09, 2011		July 14, 2012			July 09, 2011
Net sales	$	8,628		$	9,147	$	12,775		$	13,618
Gross profit		4,245			5,314		6,412			7,574
Net income (loss)		(123	)		239		(220	)		45

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Equity Interest Investments (Tables)

6 Months Ended

Jul. 14, 2012

Equity Method Investments and Joint Ventures [Abstract]

Schedule Of Joint Ventures Balance Sheet Information [Table Text Block]

Summarized financial information for Stiga Sports AB balance sheets as of July 14, 2012, December 31, 2011, and July 09, 2011 and statements of operations for the periods ended July 14, 2012 and July 09, 2011 is as follows:

In thousands	July 14, 2012		December 31, 2011		July 09, 2011
Current assets	$	17,926	$	23,451	$	15,728
Non-current assets		8,076		9,460		11,393
Total assets		26,002		32,911		27,121
Current liabilities		5,580		10,033		5,965
Non-current liabilities		5,266		6,334		8,613
Total liabilities		10,846		16,367		14,578
Net assets	$	15,156	$	16,544	$	12,543

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

	Three Months Ended					Six Months Ended
	July 14, 2012			July 09, 2011		July 14, 2012			July 09, 2011
Net sales	$	8,628		$	9,147	$	12,775		$	13,618
Gross profit		4,245			5,314		6,412			7,574
Net income (loss)		(123	)		239		(220	)		45

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New Accounting Standards

6 Months Ended

Jul. 14, 2012

New Accounting Pronouncements and Changes In Accounting Principles [Abstract]

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

Note M – New Accounting Standards

There have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended July 14, 2012, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, that are of significance, or potential significance to the Company.

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Stock Compensation

6 Months Ended

Jul. 14, 2012

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

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

Note I – Stock Compensation

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

During the six months ended July 14, 2012 and pursuant to the 2007 Incentive Plan, in lieu of director fees, the Company awarded to certain directors 26,091 shares of common stock. In addition, the Company awarded 37,500 stock options to directors and 200,000 stock options to employees. The stock options awarded to directors vest at the end of one year and have an exercise price equal to the market price on the date of grant. Director stock options 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 2012 stock options awarded to employees have a graded vesting of 25% per year over four years and are subject to forfeiture if on the vesting date the employee is no longer employed. The 2012 employee awards were conditioned upon stockholder approval of an amendment to the Escalade, Incorporated 2007 Incentive Plan and bank approval. The Plan amendment was voted upon and approved at the April 2012 Shareholder Meeting, and bank approval was obtained as part of the Eighth Amendment to the Credit Agreement. The Company utilizes the Black-Scholes option pricing model to determine the fair value of stock options granted.

For the three months and six months ended July 14, 2012, the Company recognized stock based compensation expense of $235 thousand and $406 thousand, respectively, compared to stock based compensation expense of $137 thousand and $356 thousand for the same periods last year. At July 14, 2012 and July 09, 2011, respectively, there was $1.3 million and $1.2 million in unrecognized stock-based compensation expense related to non-vested stock awards.

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Income Taxes

6 Months Ended

Jul. 14, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note G – Income Taxes

The provision for income taxes was computed based on financial statement income. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, the Company has recorded the following changes in uncertain tax positions:

	Six Months Ended
In thousands	July 14, 2012		July 09, 2011
Beginning Balance	$	46	$	220
Additions for current year tax positions		—		—
Additions for prior year tax positions		—		—
Settlements		—		—
Reductions settlements		—		—
Reductions for prior year tax positions		—		—
Ending Balance	$	46	$	220

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Fair Values of Financial Instruments

6 Months Ended

Jul. 14, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note H – 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 and Time Deposits

Fair values of cash and cash equivalents and time deposits 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 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 July 14, 2012 and July 09, 2011.

			Fair Value Measurements Using
July 14, 2012 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	$	1,615	$	1,615	$	—	$	—
Time deposits	$	1,200	$	1,200	$	—	$	—
Financial liabilities
Note payable and Short-term debt	$	12,671	$	—	$	12,671	$	—
Current portion of Long-term debt	$	2,000	$	—	$	2,000	$	—
Long-term debt	$	4,000	$	—	$	4,000	$	—

			Fair Value Measurements Using
July 09, 2011 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	$	2,224	$	2,224	$	—	$	—
Time deposits	$	1,000	$	1,000	$	—	$	—
Financial liabilities
Note payable and Short-term debt	$	13,825	$	—	$	13,825	$	—
Current portion of Long-term debt	$	2,000	$	—	$	2,000	$	—
Long-term debt	$	6,000	$	—	$	6,000	$	—

The outstanding balance of the euro overdraft facility is included in Notes payable and Short-term debt. For the periods ended July 14, 2012, December 31, 2011, and July 09, 2011, the balance of the euro overdraft facility was $2.0 million, $2.2 million, and $2.1 million, respectively.

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Segment Information

6 Months Ended

Jul. 14, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note J - Segment Information

	As of and for the Three Months  Ended July 14, 2012
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	31,432	$	10,597		$	—		$	42,029
Operating income (loss)		4,189		(656	)		(844	)		2,689
Net income (loss)		2,479		(1,046	)		(346	)		1,087

	As of and for the Six Months  Ended July 14, 2012
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	53,646	$	18,948		$	—		$	72,594
Operating income (loss)		7,448		(507	)		(1,510	)		5,431
Net income (loss)		4,422		(1,108	)		(651	)		2,663
Total assets	$	72,837	$	39,099		$	16,830		$	128,766

	As of and for the Three Months  Ended July 09, 2011
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	29,743	$	11,107		$	—		$	40,850
Operating income (loss)		3,987		(312	)		(958	)		2,717
Net income (loss)		2,278		(610	)		(183	)		1,485

	As of and for the Six Months  Ended July 09, 2011
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	48,930	$	19,918		$	—		$	68,848
Operating income (loss)		6,323		268			(1,807	)		4,784
Net income (loss)		3,602		(373	)		(541	)		2,688
Total assets	$	73,116	$	42,261		$	19,898		$	135,275

 

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Fair Values of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Jul. 14, 2012	Dec. 31, 2011	Jul. 09, 2011	Dec. 25, 2010
Financial assets
Cash and cash equivalents	$ 1,615	$ 3,821	$ 2,224	$ 1,536
Time deposits	1,200	950	1,000
Financial liabilities
Note payable and Short-term debt	12,671	14,947	13,825
Current portion of Long-term debt	2,000	2,000	2,000
Long-term debt	4,000	5,000	6,000
Fair Value, Inputs, Level 1 [Member]
Financial assets
Cash and cash equivalents	1,615		2,224
Time deposits	1,200		1,000
Financial liabilities
Note payable and Short-term debt	0		0
Current portion of Long-term debt	0		0
Long-term debt	0		0
Fair Value, Inputs, Level 2 [Member]
Financial assets
Cash and cash equivalents	0		0
Time deposits	0		0
Financial liabilities
Note payable and Short-term debt	12,671		13,825
Current portion of Long-term debt	2,000		2,000
Long-term debt	4,000		6,000
Fair Value, Inputs, Level 3 [Member]
Financial assets
Cash and cash equivalents	0		0
Time deposits	0		0
Financial liabilities
Note payable and Short-term debt	0		0
Current portion of Long-term debt	0		0
Long-term debt	$ 0		$ 0

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jul. 14, 2012

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 annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 31, 2011 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 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 2011 filed with the Securities and Exchange Commission.

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Segment Information (Tables)

6 Months Ended

Jul. 14, 2012

Segment Reporting [Abstract]

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

	As of and for the Three Months  Ended July 14, 2012
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	31,432	$	10,597		$	—		$	42,029
Operating income (loss)		4,189		(656	)		(844	)		2,689
Net income (loss)		2,479		(1,046	)		(346	)		1,087

	As of and for the Six Months  Ended July 14, 2012
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	53,646	$	18,948		$	—		$	72,594
Operating income (loss)		7,448		(507	)		(1,510	)		5,431
Net income (loss)		4,422		(1,108	)		(651	)		2,663
Total assets	$	72,837	$	39,099		$	16,830		$	128,766

	As of and for the Three Months  Ended July 09, 2011
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	29,743	$	11,107		$	—		$	40,850
Operating income (loss)		3,987		(312	)		(958	)		2,717
Net income (loss)		2,278		(610	)		(183	)		1,485

	As of and for the Six Months  Ended July 09, 2011
In thousands	Sporting Goods		Information Security and Print Finishing			Corp.			Total
Revenues from external customers	$	48,930	$	19,918		$	—		$	68,848
Operating income (loss)		6,323		268			(1,807	)		4,784
Net income (loss)		3,602		(373	)		(541	)		2,688
Total assets	$	73,116	$	42,261		$	19,898		$	135,275

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CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jul. 14, 2012	Jul. 09, 2011	Jul. 14, 2012	Jul. 09, 2011
Net income	$ 1,087	$ 1,485	$ 2,663	$ 2,688
Foreign currency translation adjustment	(1,824)	333	(1,239)	2,226
Comprehensive income (loss)	$ (737)	$ 1,818	$ 1,424	$ 4,914

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Inventories

6 Months Ended

Jul. 14, 2012

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Note D - Inventories

In thousands	July 14, 2012		December 31, 2011		July 09, 2011
Raw materials	$	8,911	$	7,865	$	9,465
Work in progress		4,230		3,751		3,940
Finished goods		21,933		17,419		19,322
	$	35,074	$	29,035	$	32,727

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Earnings Per Share (Tables)

6 Months Ended

Jul. 14, 2012

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				Six Months Ended
All amounts in thousands	July 14, 2012		July 09, 2011		July 14, 2012		July 09, 2011
Weighted average common shares outstanding		13,260		12,839		13,103		12,824
Dilutive effect of stock options and restricted stock units		188		429		180		438
Weighted average common shares outstanding, assuming dilution		13,448		13,268		13,283		13,262

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Dividend Payment (Details Textual) (USD $) In Thousands, except Per Share data, unless otherwise specified	0 Months Ended						3 Months Ended		6 Months Ended
	Jul. 02, 2012	Jul. 09, 2012	Apr. 06, 2012	Apr. 16, 2012	Jan. 05, 2012	Dec. 22, 2011	Jul. 14, 2012	Jul. 09, 2011	Jul. 14, 2012	Jul. 09, 2011
Dividends declared	$ 0.08		$ 0.07			$ 0.07	$ 0.15	$ 0	$ 0.15	$ 0
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)		$ 0.08		$ 0.07	$ 0.07
Dividends, Common Stock, Cash		$ 1,100		$ 926	$ 906

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Commitments and Contingencies

6 Months Ended

Jul. 14, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note N – 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.