10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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

For the quarterly period ended March 19, 2022 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)

812-467-1358

(Registrant's Telephone Number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of Exchange on which registered
Common Stock, No Par Value	ESCA	The NASDAQ Stock Market LLC

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).

Yes ☒ No ☐

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

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     ☐

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

Yes ☐ No ☒

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

Class	Outstanding at April 8, 2022
Common, no par value	13,585,096

1

INDEX

		Page No.
Part I.	Financial Information:
Item 1 -	Financial Statements:
	Consolidated Condensed Balance Sheets as of March 19, 2022, December 25, 2021, and March 20, 2021	3
	Consolidated Condensed Statements of Operations for the Three Months Ended March 19, 2022 and March 20, 2021	4
	Consolidated Condensed Statements of Stockholders’ Equity for the Three Months Ended March 19, 2022 and March 20, 2021	5
	Consolidated Condensed Statements of Cash Flows for the Three Months Ended March 19, 2022 and March 20, 2021	6
	Notes to Consolidated Condensed Financial Statements	7
Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3 -	Quantitative and Qualitative Disclosures About Market Risk	15
Item 4 -	Controls and Procedures	16
Part II.	Other Information
Item 1A -	Risk Factors	16
Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 6 -	Exhibits	18
	Signature	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	March 19, 2022		December 25, 2021		March 20, 2021
	(Unaudited)		(Audited)		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	6,392	$	4,374	$	5,879
Receivables, less allowance of $566; $457; and $954; respectively		67,301		65,991		54,475
Inventories		114,605		92,382		91,425
Prepaid expenses		12,716		7,569		4,044
Prepaid income tax		--		739		--
TOTAL CURRENT ASSETS		201,014		171,055		155,823
Property, plant and equipment, net		28,812		24,936		18,962
Operating lease right-of-use assets		1,896		2,210		2,147
Intangible assets, net		36,208		20,778		22,216
Goodwill		38,837		32,695		32,695
Other assets		294		124		117
TOTAL ASSETS	$	307,061	$	251,798	$	231,960
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt	$	7,143	$	7,143	$	--
Trade accounts payable		27,378		15,847		22,708
Accrued liabilities		19,875		24,385		12,194
Income tax payable		1,087		--		1,456
Current operating lease liabilities		604		818		1,310
TOTAL CURRENT LIABILITIES		56,087		48,193		37,668
Other Liabilities:
Long‑term debt		92,850		50,396		46,907
Deferred income tax liability		4,759		4,759		4,193
Operating lease liabilities		1,298		1,387		844
Other liabilities		448		448		448
TOTAL LIABILITIES		155,442		105,183		90,060
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 – 13,585,096; 13,493,332; and 13,924,754; shares respectively		13,585		13,493		13,925
Retained earnings		138,034		133,122		127,975
TOTAL STOCKHOLDERS' EQUITY		151,619		146,615		141,900
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	307,061	$	251,798	$	231,960

See notes to Consolidated Condensed Financial Statements.

3

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended
All Amounts in Thousands Except Per Share Data	March 19, 2022			March 20, 2021
Net sales	$	72,380		$	59,191
Costs and Expenses
Cost of products sold		52,261			41,757
Selling, administrative and general expenses		10,526			9,876
Amortization		570			429
Operating Income		9,023			7,129
Other Income (Expense)
Interest expense		(560	)		(234	)
Other income		43			35
Income Before Income Taxes		8,506			6,930
Provision for Income Taxes		1,852			1,488
Net Income	$	6,654		$	5,442
Earnings Per Share Data:
Basic earnings per share	$	0.49		$	0.39
Diluted earnings per share	$	0.49		$	0.39
Dividends declared	$	0.15		$	0.14

See notes to Consolidated Condensed Financial Statements.

4

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)

	Common Stock						Retained
All Amounts in Thousands	Shares			Amount			Earnings			Total
Balances at December 26, 2020		13,919		$	13,919		$	125,237		$	139,156
Net income								5,442			5,442
Expense of stock options and restricted stock units								111			111
Exercise of stock options		10			10			134			144
Settlement of restricted stock units		45			45			(45	)		--
Dividends declared								(1,950	)		(1,950	)
Purchase of stock		(49	)		(49	)		(954	)		(1,003	)
Balances at March 20, 2021		13,925		$	13,925		$	127,975		$	141,900
Balances at December 25, 2021		13,493		$	13,493		$	133,122		$	146,615
Net income								6,654			6,654
Expense of restricted stock units								388			388
Settlement of restricted stock units		92			92			(92	)		--
Dividends declared								(2,038	)		(2,038	)
Balances at March 19, 2022		13,585		$	13,585		$	138,034		$	151,619

See notes to Consolidated Condensed Financial Statements.
 

5

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended
All Amounts in Thousands	March 19, 2022			March 20, 2021
Operating Activities:
Net income	$	6,654		$	5,442
Depreciation and amortization		1,473			1,134
Provision for doubtful accounts		99			55
Stock-based compensation		388			111
Loss (gain) on disposal of property and equipment		--			(26	)
Adjustments necessary to reconcile net income to net cash provided by operating activities		(11,486	)		(16,958	)
Net cash used by operating activities		(2,872	)		(10,242	)
Investing Activities:
Purchase of property and equipment		(730	)		(1,451	)
Proceeds from sale of property and equipment		--			42
Acquisitions		(34,616	)		--
Net cash used by investing activities		(35,346	)		(1,409	)
Financing Activities:
Proceeds from issuance of long-term debt		72,830			49,072
Payments on long-term debt		(30,376	)		(32,238	)
Proceeds from exercise of stock options		--			144
Purchase of stock		--			(1,003	)
Deferred financing fees		(180	)		--
Cash dividends paid		(2,038	)		(1,950	)
Net cash provided by financing activities		40,236			14,025
Net increase in cash and cash equivalents		2,018			2,374
Cash and cash equivalents, beginning of period		4,374			3,505
Cash and cash equivalents, end of period	$	6,392		$	5,879

See notes to Consolidated Condensed Financial Statements.
 

6

ESCALADE, INCORPORATED AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

Note A – Summary of Significant Accounting Policies

Presentation of Consolidated Condensed Financial Statements – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 25, 2021 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2021 filed with the Securities and Exchange Commission.

Note B ‑ Seasonal Aspects

The results of operations for the three months ended March 19, 2022 and March 20, 2021 are not necessarily indicative of the results to be expected for the full year.

Note C ‑ Inventories

In thousands	March 19, 2022		December 25, 2021		March 20, 2021
Raw materials	$	9,395	$	9,142	$	9,749
Work in progress		4,318		3,529		4,074
Finished goods		100,892		79,711		77,602
	$	114,605	$	92,382	$	91,425

Note D – Fair Values of Financial Instruments

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

Cash and Cash Equivalents

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

Long-term Debt

Fair values of 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.

7

 

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 March 19, 2022, December 25, 2021 and March 20, 2021.

			Fair Value Measurements Using
March 19, 2022 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	$	6,392	$	6,392	$	--	$	--
Financial liabilities
Current portion of long-term debt	$	7,143	$	--	$	7,143	$	--
Long-term debt	$	92,850	$	--	$	92,850	$	--

			Fair Value Measurements Using
December 25, 2021 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	4,374	$	4,374	$	--	$	--
Financial liabilities
Current portion of long-term debt	$	7,143	$	--	$	7,143	$	--
Long-term debt	$	50,396	$	--	$	50,396	$	--

			Fair Value Measurements Using
March 20, 2021 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	$	5,879	$	5,879	$	--	$	--
Financial liabilities
Long-term debt	$	46,907	$	--	$	46,907	$	--

Note E – Stock Compensation

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

During the three months ended March 19, 2022, the Company awarded 15,000 restricted stock units to directors and 196,254 restricted stock units to employees. The restricted stock units awarded to directors time vest over two years (one-half one year from grant date and one-half two years from grant date) provided that the director is still a director of the Company at the vest date. Director restricted stock units are subject to forfeiture, except for termination of services as a result of retirement, death or disability, if on the vesting date the director no longer holds a position with the Company. The 2022 restricted stock units awarded to employees time vest over three years (one-third one year from grant, one-third two years from grant and one-third three years from grant) provided that the employee is still employed by the Company on the vesting date.

For the three months ended March 19, 2022 and March 20, 2021, the Company recognized stock based compensation expense of $388 thousand and $111 thousand, respectively. At March 19, 2022 and March 20, 2021, respectively, there was $3.2 million and $1.5 million in unrecognized stock-based compensation expense related to non-vested stock awards.

8

Note F ‑ Segment Information

	As of and for the Three Months Ended March 19, 2022
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	72,380	$	--		$	72,380
Operating income (loss)		9,535		(512	)		9,023
Net income		6,541		113			6,654
Total assets	$	300,074	$	6,987		$	307,061

	As of and for the Three Months Ended March 20, 2021
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	59,191	$	--		$	59,191
Operating income (loss)		7,595		(466	)		7,129
Net income (loss)		5,362		80			5,442
Total assets	$	225,183	$	6,777		$	231,960

Note G – Dividend Payment

On March 21, 2022, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on March 14, 2022 (the amount was funded to the transfer agent by the Company on March 17, 2022). The total amount of the dividend was approximately $2.0 million and was charged against retained earnings.

Note H ‑ Earnings Per Share

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

	Three Months Ended
In thousands	March 19, 2022		March 20, 2021
Weighted average common shares outstanding		13,509		13,880
Dilutive effect of stock options and restricted stock units		138		97
Weighted average common shares outstanding, assuming dilution		13,647		13,977

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 2022 and 2021 were zero and 11,900, respectively.

Note I – New Accounting Standards and Changes in Accounting Principles

There have been no recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 19, 2022, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021, that are of significance, or potential significance to the Company.

9

Note J – Revenue from Contracts with Customers

Revenue Recognition – Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue.

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

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

Warranties – Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year.

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

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

	Three Months Ended
All Amounts in Thousands	March 19, 2022		March 20, 2021
Gross Sales by Channel:
Mass Merchants	$	27,030	$	18,396
Specialty Dealers		25,343		22,560
E-commerce		22,856		21,226
International		4,080		2,727
Other		774		571
Total Gross Sales		80,083		65,480
Less: Gross-to-Net Sales Adjustments
Returns		2,170		1,615
Warranties		625		582
Customer Allowances		4,908		4,092
Total Gross-to-Net Sales Adjustments		7,703		6,289
Total Net Sales	$	72,380	$	59,191

10

Note K – Leases

We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our commenced leases have remaining lease terms of 1 year to 5 years. As of March 19, 2022, the Company has not entered into any lease arrangements classified as a finance lease.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and operating lease liabilities on our consolidated balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. The Company also elected the package of practical expedients which applies to leases that commenced before the adoption date. By electing the package of practical expedients, the Company did not need to reassess the following; whether any existing contracts are or contain leases, the lease classification for any existing leases and initial direct costs for any existing leases.

ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information as follows:

	Three Months Ended
All Amounts in Thousands	March 19, 2022			March 20, 2021
Lease Expense
Operating Lease Cost	$	338		$	311
Short-term Lease Cost		501			523
Variable Lease Cost		182			86
Total Operating Lease Cost	$	1,021		$	920
Operating Lease – Operating Cash Flows	$	303		$	255
New ROU Assets – Operating Leases (non-cash)	$	--		$	827
Weighted Average Remaining Lease Term – Operating Leases (in years)		4.12			1.90
Weighted Average Discount Rate – Operating Leases		5.00	%		5.00	%

Future minimum lease payments under non-cancellable leases as of March 19, 2022 were as follows:

All Amounts in Thousands
Year 1	$	563
Year 2		412
Year 3		341
Year 4		312
Year 5		289
Thereafter		197
Total future minimum lease payments		2,114
Less imputed interest		(212	)
Total	$	1,902
Reported as of March 19, 2022
Current operating lease liabilities		604
Long-term operating lease liabilities		1,298
Total	$	1,902

As of March 19, 2022, we have entered into a lease for additional warehouse and operations which has not yet commenced. Although the location is currently under construction, we do not control the building during construction, and are thus not deemed to be the owner during construction. Amounts in the table above exclude legally binding minimum lease payments for leases signed but not yet commenced of $9.9 million.

11

Note L – Commitments and Contingencies

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

Note M – Acquisition

On January 21, 2022, the Company completed its acquisition of the assets constituting the Brunswick Billiards business of Life Fitness, LLC. The estimated purchase price of the acquisition is $34.6 million, subject to final adjustment for net working capital as of the closing date. The acquisition was funded by cash and the Company’s revolving credit facility. The Company has not yet finalized the purchase price or its final evaluation of the fair value of certain items, including net working capital. The current estimates of fair value for the more significant assets acquired and liabilities assumed were receivables ($1.2 million), inventory ($14.5 million), fixed assets, including building and land ($4.0 million), accounts payable ($4.7 million), other accrued liabilities ($2.6 million), goodwill ($6.1 million) and other intangible assets ($16.0 million).

12

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

Forward-Looking Statements

This report contains forward-looking statements relating to present or future trends or factors that are subject to risks and uncertainties. These risks include, but are not limited to: specific and overall impacts of the COVID-19 global pandemic on Escalade’s financial condition and results of operations; the impact of competitive products and pricing; product demand and market acceptance; new product development; Escalade’s ability to achieve its business objectives, especially with respect to its Sporting Goods business on which it has chosen to focus; Escalade’s ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and of divestitures or discontinuances of certain operations, assets, brands, and products; the continuation and development of key customer, supplier, licensing and other business relationships; Escalade’s ability to develop and implement our own direct to consumer e-commerce distribution channel; Escalade’s ability to successfully negotiate the shifting retail environment and changes in consumer buying habits; the financial health of our customers; disruptions or delays in our business operations, including without limitation disruptions or delays in our supply chain, arising from political unrest, war, labor strikes, natural disasters, public health crises such as the coronavirus pandemic, and other events and circumstances beyond our control; Escalade’s ability to control costs; Escalade’s ability to successfully implement actions to lessen the potential impacts of tariffs and other trade restrictions applicable to our products and raw materials, including impacts on the costs of producing our goods, importing products and materials into our markets for sale, and on the pricing of our products; general economic conditions; fluctuation in operating results; changes in foreign currency exchange rates; changes in the securities markets; continued listing of the Company’s common stock on the NASDAQ Global Market and/or inclusion in market indices such as the Russell 2000; Escalade’s ability to obtain financing and to maintain compliance with the terms of such financing; the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology; risks related to data security of privacy breaches; and other risks detailed from time to time in Escalade’s filings with the Securities and Exchange Commission. Escalade’s future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.

Overview

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

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

To enhance growth opportunities, the Company has focused on promoting new product innovation and development and brand marketing. In addition, the Company has embarked on a strategy of acquiring companies or product lines that complement or expand the Company's existing product lines or provide expansion into new or emerging categories in sporting goods. A key objective is the acquisition of product lines with barriers to entry that the Company can take to market through its established distribution channels or through new market channels. Significant synergies are achieved through assimilation of acquired product lines into the existing Company structure. In January 2022, the Company completed its acquisition of the assets of the Brunswick Billiards® business, complementing its existing portfolio of billiards brands and other offerings in the Company’s indoor recreation market. The Company also sometimes divests or discontinues certain operations, assets, brands, and products that do not perform to the Company's expectations or no longer fit with the Company's strategic objectives.

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

13

The Company continues to respond to the challenges and opportunities arising from the COVID-19 pandemic. Management cannot predict the full impact of the COVID-19 pandemic on the Company’s sales channels, supply chain, manufacturing and distribution nor to economic conditions generally, including the effects on consumer spending. The ultimate extent of the effects of the COVID-19 pandemic on the Company is highly uncertain and will depend on future developments, and such effects could exist for an extended period of time even after the pandemic ends. Due to the above circumstances and as described generally in this Form 10-Q, the Company’s results of operations for the period ended March 19, 2022 are not necessarily indicative of the results to be expected for fiscal year 2022.

Results of Operations

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

	Three Months Ended
	March 19, 2022			March 20, 2021
Net revenue		100.0	%		100.0	%
Cost of products sold		72.2	%		70.5	%
Gross margin		27.8	%		29.5	%
Selling, administrative and general expenses		14.5	%		16.7	%
Amortization		0.8	%		0.8	%
Operating income		12.5	%		12.0	%

Revenue and Gross Margin

Sales increased by 22.3% for the first quarter of 2022, compared with the same period in the prior year. The increase in sales was driven by strong organic growth across the basketball, archery, pickleball, and indoor game categories, together with contributions from the Company’s acquisition of Brunswick Billiards®.

The overall gross margin percentage decreased to 27.8% for the first quarter of 2022, compared to 29.5% for 2021. The decline in gross margin was due to continued challenges related to the global supply chain, raw materials cost inflation and labor constraints.

Selling, General and Administrative Expenses

Selling, general and administrative expenses (SG&A) were $10.5 million for the first quarter of 2022 compared to $9.9 million for the same period in the prior year, an increase of $0.6 million or 6.6%. SG&A as a percent of sales is 14.5% for the first quarter of 2022 compared with 16.7% for the same period in the prior year.

Provision for Income Taxes

The effective tax rate for the first three months of 2022 was 21.8% compared to 21.5% for the same period last year.

Financial Condition and Liquidity

Total debt at the end of the first three months of 2022 was $100.0 million, an increase of $42.5 million from December 25, 2021. The increase in debt was largely driven by the funding of the Brunswick Billiards acquisition completed in January of 2022. The following schedule summarizes the Company’s total debt:

In thousands	March 19, 2022		December 25, 2021		March 20, 2021
Current portion of long-term debt	$	7,143	$	7,143	$	--
Long term debt		92,850		50,396		46,907
Total Debt	$	99,993	$	57,539	$	46,907

As a percentage of stockholders’ equity, total debt was 66.0%, 39.2% and 33.1% at March 19, 2022, December 25, 2021, and March 20, 2021 respectively.

14

On January 21, 2022, the Company entered into an Amended and Restated Credit Agreement (“Restated Credit Agreement”) with its issuing bank, JP Morgan Chase Bank, N.A. (“Chase”), and the other lenders identified in the Restated Credit Agreement (collectively, the “Lender”). Under the terms of the Restated Credit Agreement, Old National Bank has been added as a Lender. The Lenders have now made available to the Company a senior revolving credit facility with increased maximum availability of $65.0 million (the “Revolving Facility”), up from $50.0 million, plus an accordion feature that would allow borrowings up to $90.0 million under the Revolving Facility subject to certain terms and conditions. The maturity date of the revolving credit facility was extended to January 21, 2027. The Company may prepay the Revolving Facility, in whole or in part, and reborrow prior to the revolving loan maturity date. The Restated Credit Agreement further extended the maturity date for the term loan facility to January 21, 2027. As of March 19, 2022, the outstanding principal amount of the term loan was $45.8 million.

Each loan bears interest at the Adjusted LIBO Rate for the interest period in effect plus the Applicable Rate. Applicable Rate means the applicable rate per annum set forth below, based upon Escalade’s Funded Debt to Adjusted Ratio as of the most recent determination date:

Funded Debt to EBITDA Ratio	Revolving Commitment ABR Spread			Revolving Commitment Term Benchmark Spread			Letter of Credit Fee			Commitment Fee Rate
Category 1 Greater than or equal to 2.50 to 1.0		0.25	%		2.00	%		2.00	%		0.30	%
Category 2 Greater than or equal to 1.50 to 1.0 but less than 2.50 to 1.0		-0-			1.75	%		1.75	%		0.25	%
Category 3 Less than 1.50 to 1.0		(0.25	%)		1.50	%		1.50	%		0.20	%

The Applicable Rate is determined as of the end of each quarter based upon the Company’s annual or quarterly consolidated financial statements and shall be effective during the period commencing the date of delivery to the agent.

In addition to the increased revolving borrowing amount and extended maturity dates, other significant changes reflected in the Restated Credit Agreement included: specifying that Indian’s acquisition of the assets of the Brunswick Billiards business is a permitted acquisition; providing a $7.5 million swingline commitment by Chase; replacing LIBOR with the replacement benchmark secured overnight financing rate as previously contemplated; and adjustments to certain financial covenants relating to the fixed charge coverage ratio. Escalade’s indebtedness under the Restated Credit Agreement continues to be collateralized by liens on all of the present and future equity of each of Escalade’s domestic subsidiaries and substantially all of the assets of the Company (excluding real estate). Each direct and indirect domestic subsidiary of Escalade and Indian has secured its guaranty of indebtedness incurred under the Revolving Facility with a first priority security interest and lien on all of such subsidiary’s assets. Escalade, Indian and all of the domestic subsidiaries entered into an Amended and Restated Pledge and Security Agreement dated January 21, 2022 in favor of the Lender to continue the existing liens, previously existing under the original pledge and security agreements entered into on April 30, 2009, as amended, and thereafter for subsidiaries created or acquired after that date. The obligations, guarantees, liens and other interests granted by Escalade, Indian, and their domestic subsidiaries continue in full force and effect.

The Company funds working capital requirements, shareholder dividends, and stock repurchases through operating cash flows and revolving credit agreements with its Lenders. The Company expects that cash generated from its 2022 operations and its access to adequate levels of revolving credit will provide it with sufficient cash flows for its operations and to meet growth needs.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Required.

15

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

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

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

Changes in Internal Control over Financial Reporting

Management of the Company has evaluated, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, changes in the Company’s internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the first quarter of 2022.

There have been no changes to the Company’s internal control over financial reporting that occurred since the beginning of the Company’s first quarter of 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS.

None.

Item 1A. RISK FACTORS.

In addition to the other information set forth in this report, you should carefully consider the risks and uncertainties disclosed in our Annual Report on Form 10-K for the fiscal year ended December 25, 2021. These risks and uncertainties could materially and adversely affect our business, consolidated financial condition, results of operations, or cash flows. Our operations could also be affected by additional risks or uncertainties that are not presently known to us or that we currently do not consider material to our business. As of the date of this filing, there have been no material changes in our risk factors from those disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended December 25, 2021, which risk factors are incorporated herein by reference.

16

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

c) Issuer Purchases of Equity Securities

Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
Share purchases prior to 12/25/2021 under the current repurchase program.		2,153,132	$	13.38		2,153,132	$	4,153,252
First quarter purchases:
12/26/2021–1/22/2022	None		None		No Change		No Change
1/23/2022-2/19/2022	None		None		No Change		No Change
2/20/2022-3/19/2022	None		None		No Change		No Change
Total share purchases under the current program		2,153,132	$	13.38		2,153,132	$	4,153,252

The Company has one stock repurchase program which was established in February 2003 by the Board of Directors and which initially authorized management to expend up to $3,000,000 to repurchase shares on the open market as well as in private negotiated transactions. In February 2005, February 2006, August 2007 and February 2008 the Board of Directors increased the remaining balance on this plan to its original level of $3,000,000. In September 2019, the Board of Directors increased the stock repurchase program from $3,000,000 to $5,000,000. In December 2020, the Board of Directors increased the stock repurchase program to $15,000,000. From its inception date through March 19, 2022, the Company has repurchased 2,153,132 shares of its common stock under this repurchase program for an aggregate price of $28,812,686. The repurchase program has no termination date and there have been no share repurchases that were not part of a publicly announced program.

Item 3. DEFAULTS UPON SENIOR SECURITIES.

None.

Item 4. MINE SAFETY DISCLOSURES.

Not applicable.

Item 5. OTHER INFORMATION.

None.

17

Item 6. EXHIBITS

Number	Description
2.1	Asset Purchase Agreement dated December 30, 2021, by and between Indian Industries, Inc. d/b/a Escalade Sports and Life Fitness, LLC (without exhibits and schedules, which Escalade has determined are not material). Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 3, 2022.
3.1	Articles of Incorporation of Escalade, Incorporated. Incorporated by reference from the Company’s 2007 First Quarter Report on Form 10-Q.
3.2	Amended By-laws of Escalade, Incorporated, as amended April 22, 2014. Incorporated by reference from the Company’s 2014 First Quarter Report on Form 10-Q.
10.1	Amended and Restated Credit Agreement dated as of January 21, 2022 among Escalade, Incorporated, Indian Industries, Inc., each of their domestic subsidiaries, and JPMorgan Chase Bank, N.A., as Administrative Agent (without exhibits and schedules, which Escalade has determined are not material). Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 24, 2022.
10.2	Amended and Restated Pledge and Security Agreement dated as of January 21, 2022 among Escalade, Incorporated, Indian Industries, Inc., each of their domestic subsidiaries, and JPMorgan Chase Bank, N.A., as Administrative Agent (without exhibits and schedules, which Escalade has determined are not material. Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 24, 2022.
31.1	Chief Executive Officer Rule 13a-14(a)/15d-14(a) Certification.
31.2	Chief Financial Officer Rule 13a-14(a)/15d-14(a) Certification.
32.1	Chief Executive Officer Section 1350 Certification.
32.2	Chief Financial Officer Section 1350 Certification.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURE

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

ESCALADE, INCORPORATED

Date:     April 14, 2022	/s/ Stephen R. Wawrin
	Vice President and Chief Financial Officer
	(On behalf of the registrant and in his
	capacities as Principal Financial Officer
	and Principal Accounting Officer)

18

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

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

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

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

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

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

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

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

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

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

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

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

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

Date: April 14, 2022	/s/ Walter P. Glazer, Jr.
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Stephen R. Wawrin, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: April 14, 2022	/s/ Stephen R. Wawrin
	Vice President and Chief Financial Officer
	(On behalf of the registrant and in his
	capacities as Principal Financial Officer
	and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Escalade, Incorporated (the “Company”) on Form 10-Q for the period ended March 19, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Walter P. Glazer, Jr., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

/s/ Walter P. Glazer, Jr.

Chief Executive Officer

April 14, 2022

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 ended March 19, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen R. Wawrin, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

/s/ Stephen R. Wawrin

Vice President and Chief Financial Officer

(On behalf of the registrant and in his

capacities as Principal Financial Officer

and Principal Accounting Officer)

April 14, 2022

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 19, 2022	Apr. 08, 2022
Document Information [Line Items]
Entity Central Index Key	0000033488
Entity Registrant Name	ESCALADE INC
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 19, 2022
Document Transition Report	false
Entity File Number	0-6966
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	13-2739290
Entity Address, Address Line One	817 Maxwell Ave
Entity Address, City or Town	Evansville
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47711
City Area Code	812
Local Phone Number	467-1358
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	ESCA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,585,096

XML

Consolidated Condensed Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 19, 2022	Dec. 25, 2021	Mar. 20, 2021
Current Assets:
Cash and cash equivalents	$ 6,392	$ 4,374	$ 5,879
Receivables, less allowance of $566; $457; and $954; respectively	67,301	65,991	54,475
Inventories	114,605	92,382	91,425
Prepaid expenses	12,716	7,569	4,044
Prepaid income tax		739
TOTAL CURRENT ASSETS	201,014	171,055	155,823
Property, plant and equipment, net	28,812	24,936	18,962
Operating lease right-of-use assets	1,896	2,210	2,147
Intangible assets, net	36,208	20,778	22,216
Goodwill	38,837	32,695	32,695
Other assets	294	124	117
TOTAL ASSETS	307,061	251,798	231,960
Current Liabilities:
Current portion of long-term debt	7,143	7,143
Trade accounts payable	27,378	15,847	22,708
Accrued liabilities	19,875	24,385	12,194
Income tax payable	1,087		1,456
Current operating lease liabilities	604	818	1,310
TOTAL CURRENT LIABILITIES	56,087	48,193	37,668
Other Liabilities:
Long-term debt	92,850	50,396	46,907
Deferred income tax liability	4,759	4,759	4,193
Operating lease liabilities	1,298	1,387	844
Other liabilities	448	448	448
TOTAL LIABILITIES	155,442	105,183	90,060
Stockholders' Equity:
Common stock: Authorized 30,000,000 shares; no par value, issued and outstanding – 13,585,096; 13,493,332; and 13,924,754; shares respectively	13,585	13,493	13,925
Retained earnings	138,034	133,122	127,975
TOTAL STOCKHOLDERS' EQUITY	151,619	146,615	141,900
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 307,061	$ 251,798	$ 231,960

XML

Consolidated Condensed Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands	Mar. 19, 2022	Dec. 25, 2021	Mar. 20, 2021
Receivables, allowance	$ 566	$ 457	$ 954
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000	1,000,000
Preferred stock, par value (in dollars per share)	$ 0	$ 0	$ 0
Preferred stock, shares issued (in shares)	0	0	0
Common stock, shares authorized (in shares)	30,000,000	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0	$ 0	$ 0
Common stock, shares issued (in shares)	13,585,096	13,493,332	13,924,754
Common stock, shares outstanding (in shares)	13,585,096	13,493,332	13,924,754

XML

Consolidated Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 19, 2022	Mar. 20, 2021
Net sales	$ 72,380	$ 59,191
Costs and Expenses
Cost of products sold	52,261	41,757
Selling, administrative and general expenses	10,526	9,876
Amortization	570	429
Operating Income	9,023	7,129
Other Income (Expense)
Interest expense	(560)	(234)
Other income	43	35
Income Before Income Taxes	8,506	6,930
Provision for Income Taxes	1,852	1,488
Net Income	$ 6,654	$ 5,442
Earnings Per Share Data:
Basic earnings per share (in dollars per share)	$ 0.49	$ 0.39
Diluted earnings per share (in dollars per share)	0.49	0.39
Dividends declared (in dollars per share)	$ 0.15	$ 0.14

XML

Consolidated Condensed Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Dec. 26, 2020	13,919
Balances at Dec. 26, 2020	$ 13,919	$ 125,237	$ 139,156
Net income		5,442	5,442
Expense of stock options and restricted stock units		111	111
Exercise of stock options (in shares)	10
Exercise of stock options	$ 10	134	144
Settlement of restricted stock units (in shares)	45
Settlement of restricted stock units	$ 45	(45)	0
Dividends declared		(1,950)	(1,950)
Purchase of stock (in shares)	(49)
Purchase of stock	$ (49)	(954)	(1,003)
Balances (in shares) at Mar. 20, 2021	13,925
Balances at Mar. 20, 2021	$ 13,925	127,975	141,900
Balances (in shares) at Dec. 25, 2021	13,493
Balances at Dec. 25, 2021	$ 13,493	133,122	146,615
Net income		6,654	6,654
Settlement of restricted stock units (in shares)	92
Settlement of restricted stock units	$ 92	(92)	0
Dividends declared		(2,038)	(2,038)
Expense of restricted stock units		388	388
Balances (in shares) at Mar. 19, 2022	13,585
Balances at Mar. 19, 2022	$ 13,585	$ 138,034	$ 151,619

XML

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 19, 2022	Mar. 20, 2021
Operating Activities:
Net income	$ 6,654	$ 5,442
Depreciation and amortization	1,473	1,134
Provision for doubtful accounts	99	55
Stock-based compensation	388	111
Loss (gain) on disposal of property and equipment		(26)
Adjustments necessary to reconcile net income to net cash provided by operating activities	(11,486)	(16,958)
Net cash used by operating activities	(2,872)	(10,242)
Investing Activities:
Purchase of property and equipment	(730)	(1,451)
Proceeds from sale of property and equipment		42
Acquisitions	(34,616)
Net cash used by investing activities	(35,346)	(1,409)
Financing Activities:
Proceeds from issuance of long-term debt	72,830	49,072
Payments on long-term debt	(30,376)	(32,238)
Proceeds from exercise of stock options		144
Purchase of stock		(1,003)
Deferred financing fees	(180)
Cash dividends paid	(2,038)	(1,950)
Net cash provided by financing activities	40,236	14,025
Net increase in cash and cash equivalents	2,018	2,374
Cash and cash equivalents, beginning of period	4,374	3,505
Cash and cash equivalents, end of period	$ 6,392	$ 5,879

XML

Note A - Summary of Significant Accounting Policies

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

Note A – Summary of Significant Accounting Policies

Presentation of Consolidated Condensed Financial Statements – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 25, 2021 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2021 filed with the Securities and Exchange Commission.

XML

Note B - Seasonal Aspects

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Seasonal Aspects [Text Block]

Note B ‑ Seasonal Aspects

The results of operations for the three months ended March 19, 2022 and March 20, 2021 are not necessarily indicative of the results to be expected for the full year.

XML

Note C - Inventories

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Inventory Disclosure [Text Block]

Note C ‑ Inventories

In thousands	March 19, 2022		December 25, 2021		March 20, 2021
Raw materials	$	9,395	$	9,142	$	9,749
Work in progress		4,318		3,529		4,074
Finished goods		100,892		79,711		77,602
	$	114,605	$	92,382	$	91,425

XML

Note D - Fair Values of Financial Instruments

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note D – Fair Values of Financial Instruments

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

Cash and Cash Equivalents

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

Long-term Debt

Fair values of 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 March 19, 2022, December 25, 2021 and March 20, 2021.

			Fair Value Measurements Using
March 19, 2022 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	$	6,392	$	6,392	$	--	$	--
Financial liabilities
Current portion of long-term debt	$	7,143	$	--	$	7,143	$	--
Long-term debt	$	92,850	$	--	$	92,850	$	--

			Fair Value Measurements Using
December 25, 2021 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	4,374	$	4,374	$	--	$	--
Financial liabilities
Current portion of long-term debt	$	7,143	$	--	$	7,143	$	--
Long-term debt	$	50,396	$	--	$	50,396	$	--

			Fair Value Measurements Using
March 20, 2021 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	$	5,879	$	5,879	$	--	$	--
Financial liabilities
Long-term debt	$	46,907	$	--	$	46,907	$	--

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Note E - Stock Compensation

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

Note E – Stock Compensation

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

During the three months ended March 19, 2022, the Company awarded 15,000 restricted stock units to directors and 196,254 restricted stock units to employees. The restricted stock units awarded to directors time vest over two years (one-half one year from grant date and one-half two years from grant date) provided that the director is still a director of the Company at the vest date. Director restricted stock units are subject to forfeiture, except for termination of services as a result of retirement, death or disability, if on the vesting date the director no longer holds a position with the Company. The 2022 restricted stock units awarded to employees time vest over three years (one-third one year from grant, one-third two years from grant and one-third three years from grant) provided that the employee is still employed by the Company on the vesting date.

For the three months ended March 19, 2022 and March 20, 2021, the Company recognized stock based compensation expense of $388 thousand and $111 thousand, respectively. At March 19, 2022 and March 20, 2021, respectively, there was $3.2 million and $1.5 million in unrecognized stock-based compensation expense related to non-vested stock awards.

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Note F - Segment Information

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note F ‑ Segment Information

	As of and for the Three Months Ended March 19, 2022
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	72,380	$	--		$	72,380
Operating income (loss)		9,535		(512	)		9,023
Net income		6,541		113			6,654
Total assets	$	300,074	$	6,987		$	307,061

	As of and for the Three Months Ended March 20, 2021
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	59,191	$	--		$	59,191
Operating income (loss)		7,595		(466	)		7,129
Net income (loss)		5,362		80			5,442
Total assets	$	225,183	$	6,777		$	231,960

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Note G - Dividend Payment

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Dividend Payment Terms [Text Block]

Note G – Dividend Payment

On March 21, 2022, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on March 14, 2022 (the amount was funded to the transfer agent by the Company on March 17, 2022). The total amount of the dividend was approximately $2.0 million and was charged against retained earnings.

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Note H - Earnings Per Share

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

Note H ‑ Earnings Per Share

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

	Three Months Ended
In thousands	March 19, 2022		March 20, 2021
Weighted average common shares outstanding		13,509		13,880
Dilutive effect of stock options and restricted stock units		138		97
Weighted average common shares outstanding, assuming dilution		13,647		13,977

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 2022 and 2021 were zero and 11,900, respectively.

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Note I - New Accounting Standards and Changes in Accounting Principles

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

Note I – New Accounting Standards and Changes in Accounting Principles

There have been no recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 19, 2022, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 25, 2021, that are of significance, or potential significance to the Company.

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Note J - Revenue From Contracts With Customers

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note J – Revenue from Contracts with Customers

Revenue Recognition – Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our goods at a point in time based on shipping terms and transfer of title. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue.

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

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

Warranties – Limited warranties are provided on certain products for varying periods. We record an accrued liability and reduction in sales for estimated future warranty claims based upon historical experience and management’s estimate of the level of future claims. Changes in the estimated amounts recognized in prior years are recorded as an adjustment to the accrued liability and sales in the current year.

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

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

	Three Months Ended
All Amounts in Thousands	March 19, 2022		March 20, 2021
Gross Sales by Channel:
Mass Merchants	$	27,030	$	18,396
Specialty Dealers		25,343		22,560
E-commerce		22,856		21,226
International		4,080		2,727
Other		774		571
Total Gross Sales		80,083		65,480
Less: Gross-to-Net Sales Adjustments
Returns		2,170		1,615
Warranties		625		582
Customer Allowances		4,908		4,092
Total Gross-to-Net Sales Adjustments		7,703		6,289
Total Net Sales	$	72,380	$	59,191

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Note K - Leases

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note K – Leases

We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our commenced leases have remaining lease terms of 1 year to 5 years. As of March 19, 2022, the Company has not entered into any lease arrangements classified as a finance lease.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and operating lease liabilities on our consolidated balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. The Company also elected the package of practical expedients which applies to leases that commenced before the adoption date. By electing the package of practical expedients, the Company did not need to reassess the following; whether any existing contracts are or contain leases, the lease classification for any existing leases and initial direct costs for any existing leases.

ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information as follows:

	Three Months Ended
All Amounts in Thousands	March 19, 2022			March 20, 2021
Lease Expense
Operating Lease Cost	$	338		$	311
Short-term Lease Cost		501			523
Variable Lease Cost		182			86
Total Operating Lease Cost	$	1,021		$	920
Operating Lease – Operating Cash Flows	$	303		$	255
New ROU Assets – Operating Leases (non-cash)	$	--		$	827
Weighted Average Remaining Lease Term – Operating Leases (in years)		4.12			1.90
Weighted Average Discount Rate – Operating Leases		5.00	%		5.00	%

Future minimum lease payments under non-cancellable leases as of March 19, 2022 were as follows:

All Amounts in Thousands
Year 1	$	563
Year 2		412
Year 3		341
Year 4		312
Year 5		289
Thereafter		197
Total future minimum lease payments		2,114
Less imputed interest		(212	)
Total	$	1,902
Reported as of March 19, 2022
Current operating lease liabilities		604
Long-term operating lease liabilities		1,298
Total	$	1,902

As of March 19, 2022, we have entered into a lease for additional warehouse and operations which has not yet commenced. Although the location is currently under construction, we do not control the building during construction, and are thus not deemed to be the owner during construction. Amounts in the table above exclude legally binding minimum lease payments for leases signed but not yet commenced of $9.9 million.

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Note L - Commitments and Contingencies

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note L – Commitments and Contingencies

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

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Note M - Acquisition

3 Months Ended

Mar. 19, 2022

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note M – Acquisition

On January 21, 2022, the Company completed its acquisition of the assets constituting the Brunswick Billiards business of Life Fitness, LLC. The estimated purchase price of the acquisition is $34.6 million, subject to final adjustment for net working capital as of the closing date. The acquisition was funded by cash and the Company’s revolving credit facility. The Company has not yet finalized the purchase price or its final evaluation of the fair value of certain items, including net working capital. The current estimates of fair value for the more significant assets acquired and liabilities assumed were receivables ($1.2 million), inventory ($14.5 million), fixed assets, including building and land ($4.0 million), accounts payable ($4.7 million), other accrued liabilities ($2.6 million), goodwill ($6.1 million) and other intangible assets ($16.0 million).

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Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 19, 2022
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Presentation of Consolidated Condensed Financial Statements – The significant accounting policies followed by the Company and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for its annual financial reporting. All adjustments that are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated condensed financial statements. The consolidated condensed balance sheet of the Company as of December 25, 2021 has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2021 filed with the Securities and Exchange Commission.

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Note C - Inventories (Tables)

3 Months Ended

Mar. 19, 2022

Notes Tables

Schedule of Inventory, Current [Table Text Block]

In thousands	March 19, 2022		December 25, 2021		March 20, 2021
Raw materials	$	9,395	$	9,142	$	9,749
Work in progress		4,318		3,529		4,074
Finished goods		100,892		79,711		77,602
	$	114,605	$	92,382	$	91,425

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Note D - Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 19, 2022

Notes Tables

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

			Fair Value Measurements Using
March 19, 2022 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	$	6,392	$	6,392	$	--	$	--
Financial liabilities
Current portion of long-term debt	$	7,143	$	--	$	7,143	$	--
Long-term debt	$	92,850	$	--	$	92,850	$	--

			Fair Value Measurements Using
December 25, 2021 In thousands	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	4,374	$	4,374	$	--	$	--
Financial liabilities
Current portion of long-term debt	$	7,143	$	--	$	7,143	$	--
Long-term debt	$	50,396	$	--	$	50,396	$	--

			Fair Value Measurements Using
March 20, 2021 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	$	5,879	$	5,879	$	--	$	--
Financial liabilities
Long-term debt	$	46,907	$	--	$	46,907	$	--

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Note F - Segment Information (Tables)

3 Months Ended

Mar. 19, 2022

Notes Tables

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

	As of and for the Three Months Ended March 19, 2022
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	72,380	$	--		$	72,380
Operating income (loss)		9,535		(512	)		9,023
Net income		6,541		113			6,654
Total assets	$	300,074	$	6,987		$	307,061

	As of and for the Three Months Ended March 20, 2021
In thousands	Sporting Goods		Corp.			Total
Revenues from external customers	$	59,191	$	--		$	59,191
Operating income (loss)		7,595		(466	)		7,129
Net income (loss)		5,362		80			5,442
Total assets	$	225,183	$	6,777		$	231,960

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Note H - Earnings Per Share (Tables)

3 Months Ended

Mar. 19, 2022

Notes Tables

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

	Three Months Ended
In thousands	March 19, 2022		March 20, 2021
Weighted average common shares outstanding		13,509		13,880
Dilutive effect of stock options and restricted stock units		138		97
Weighted average common shares outstanding, assuming dilution		13,647		13,977

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Note J - Revenue From Contracts With Customers (Tables)

3 Months Ended

Mar. 19, 2022

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three Months Ended
All Amounts in Thousands	March 19, 2022		March 20, 2021
Gross Sales by Channel:
Mass Merchants	$	27,030	$	18,396
Specialty Dealers		25,343		22,560
E-commerce		22,856		21,226
International		4,080		2,727
Other		774		571
Total Gross Sales		80,083		65,480
Less: Gross-to-Net Sales Adjustments
Returns		2,170		1,615
Warranties		625		582
Customer Allowances		4,908		4,092
Total Gross-to-Net Sales Adjustments		7,703		6,289
Total Net Sales	$	72,380	$	59,191

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Note K - Leases (Tables)

3 Months Ended

Mar. 19, 2022

Notes Tables

Lease, Cost [Table Text Block]

	Three Months Ended
All Amounts in Thousands	March 19, 2022			March 20, 2021
Lease Expense
Operating Lease Cost	$	338		$	311
Short-term Lease Cost		501			523
Variable Lease Cost		182			86
Total Operating Lease Cost	$	1,021		$	920
Operating Lease – Operating Cash Flows	$	303		$	255
New ROU Assets – Operating Leases (non-cash)	$	--		$	827
Weighted Average Remaining Lease Term – Operating Leases (in years)		4.12			1.90
Weighted Average Discount Rate – Operating Leases		5.00	%		5.00	%

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

All Amounts in Thousands
Year 1	$	563
Year 2		412
Year 3		341
Year 4		312
Year 5		289
Thereafter		197
Total future minimum lease payments		2,114
Less imputed interest		(212	)
Total	$	1,902
Reported as of March 19, 2022
Current operating lease liabilities		604
Long-term operating lease liabilities		1,298
Total	$	1,902

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Note C - Inventories - Inventories (Details) - USD ($) $ in Thousands	Mar. 19, 2022	Dec. 25, 2021	Mar. 20, 2021
Raw materials	$ 9,395	$ 9,142	$ 9,749
Work in progress	4,318	3,529	4,074
Finished goods	100,892	79,711	77,602
Inventory, Net, Total	$ 114,605	$ 92,382	$ 91,425

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Note D - Fair Values of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 19, 2022	Dec. 25, 2021	Mar. 20, 2021
Cash and cash equivalents	$ 6,392	$ 4,374	$ 5,879
Current portion of long-term debt	7,143	7,143
Long-term debt	92,850	50,396	46,907
Fair Value, Inputs, Level 1 [Member]
Cash and cash equivalents	6,392	4,374	5,879
Fair Value, Inputs, Level 2 [Member]
Current portion of long-term debt	7,143	7,143
Long-term debt	$ 92,850	$ 50,396	$ 46,907

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Note E - Stock Compensation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 19, 2022	Mar. 20, 2021
Share-based Payment Arrangement, Expense	$ 388	$ 111
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 3,200	$ 1,500
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	196,254
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	3 years
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | Share-based Payment Arrangement, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	33.33%
Restricted Stock Units (RSUs) [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	15,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	2 years
Restricted Stock Units (RSUs) [Member] | Director [Member] | Share-based Payment Arrangement, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Restricted Stock Units (RSUs) [Member] | Director [Member] | Share-based Payment Arrangement, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%

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Note F - Segment Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 19, 2022	Mar. 20, 2021	Dec. 25, 2021
Revenues from external customers	$ 72,380	$ 59,191
Operating income (loss)	9,023	7,129
Net income	6,654	5,442
Total assets	307,061	231,960	$ 251,798
Sporting Goods [Member]
Revenues from external customers	72,380	59,191
Operating income (loss)	9,535	7,595
Net income	6,541	5,362
Total assets	300,074	225,183
Corporate Segment [Member]
Operating income (loss)	(512)	(466)
Net income	113	80
Total assets	$ 6,987	$ 6,777

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Note G - Dividend Payment (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Mar. 21, 2022	Mar. 19, 2022	Mar. 20, 2021
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)	$ 0.15
Dividends, Common Stock, Cash	$ 2,000	$ 2,038	$ 1,950

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Note H - Earnings Per Share (Details Textual) - shares	3 Months Ended
	Mar. 19, 2022	Mar. 20, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	0	11,900

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Note H - Earnings Per Share - Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 19, 2022	Mar. 20, 2021
Weighted average common shares outstanding (in shares)	13,509	13,880
Dilutive effect of stock options and restricted stock units (in shares)	138	97
Weighted average common shares outstanding, assuming dilution (in shares)	13,647	13,977

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Note J - Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 19, 2022	Mar. 20, 2021
Gross Sales	$ 80,083	$ 65,480
Returns	2,170	1,615
Warranties	625	582
Customer Allowances	4,908	4,092
Total Gross-to-Net Sales Adjustments	7,703	6,289
Total Net Sales	72,380	59,191
Mass Merchants [Member]
Gross Sales	27,030	18,396
Specialty Dealers [Member]
Gross Sales	25,343	22,560
E-commerce [Member]
Gross Sales	22,856	21,226
International [Member]
Gross Sales	4,080	2,727
Other Channels [Member]
Gross Sales	$ 774	$ 571

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Note K - Leases (Details Textual) $ in Millions	Mar. 19, 2022 USD ($)
Lessee, Operating Lease, Lease Not yet Commenced, Minimum Lease Payments	$ 9.9
Minimum [Member]
Lessee, Operating Lease, Remaining Lease Term (Year)	1 year
Maximum [Member]
Lessee, Operating Lease, Remaining Lease Term (Year)	5 years

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Note K - Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 19, 2022	Mar. 20, 2021
Operating Lease Cost	$ 338	$ 311
Short-term Lease Cost	501	523
Variable Lease Cost	182	86
Total Operating Lease Cost	1,021	920
Operating Lease – Operating Cash Flows	$ 303	255
New ROU Assets – Operating Leases (non-cash)		$ 827
Weighted Average Remaining Lease Term – Operating Leases (in years) (Year)	4 years 1 month 13 days	1 year 10 months 24 days
Weighted Average Discount Rate – Operating Leases	5.00%	5.00%

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Note K - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 19, 2022	Dec. 25, 2021	Mar. 20, 2021
Year 1	$ 563
Year 2	412
Year 3	341
Year 4	312
Year 5	289
Thereafter	197
Total future minimum lease payments	2,114
Less imputed interest	(212)
Total	1,902
Current operating lease liabilities	604	$ 818	$ 1,310
Long-term operating lease liabilities	1,298	$ 1,387	$ 844
Total	$ 1,902

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Note M - Acquisition (Details Textual) - USD ($) $ in Thousands	Jan. 21, 2022	Mar. 19, 2022	Dec. 25, 2021	Mar. 20, 2021
Goodwill, Ending Balance		$ 38,837	$ 32,695	$ 32,695
Life Fitness LLC [Member]
Business Combination, Consideration Transferred, Total	$ 34,600
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	1,200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	14,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment, Total	4,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	4,700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	2,600
Goodwill, Ending Balance	6,100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	$ 16,000