Note 11 - Operating Segment and Geographic Information

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11 —    Operating Segment and Geographic Information

The following table presents certain operating segment information.

In Thousands	2022			2021			2020
Sporting Goods
Net revenue	$	313,757		$	313,612		$	273,649
Operating income		25,925			31,534			32,685
Interest expense		3,780			1,510			250
Provision for taxes		6,106			8,295			8,951
Net income		16,117			21,892			23,625
Identifiable assets		286,417			241,547			211,253
Depreciation & amortization		6,063			4,835			4,016
Capital expenditures		2,111			9,696			5,455
All Other
Net revenue		-			-			-
Operating income		390			362			347
Interest expense (income)		-			-			-
Provision (benefit) for taxes		(1,481	)		(2,151	)		(1,963	)
Net income		1,872			2,513			2,309
Identifiable assets		12,301			10,251			9,452
Depreciation & amortization		-			-			-
Capital expenditures		-			-			-
Total
Net revenue		313,757			313,612			273,649
Operating income		26,315			31,896			33,032
Interest expense		3,780			1,510			250
Provision for taxes		4,625			6,144			6,988
Net income		17,989			24,405			25,934
Identifiable assets		298,718			251,798			220,705
Depreciation & amortization		6,063			4,835			4,016
Capital expenditures		2,111			9,696			5,455

Each operating segment is individually managed and has separate financial results that are reviewed by the Company’s management. There were no changes to the composition of segments in 2022. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

The Sporting Goods segment consists of home entertainment products such as table tennis tables and accessories; basketball goals; pickleball; pool tables and accessories; outdoor playsets; water sports; soccer and hockey tables; archery equipment and accessories; and fitness, arcade and darting products. Customers include retailers, dealers and wholesalers located throughout North America, Europe and the rest of the world.

All Other consist of general and administrative expenses not specifically related to the operating business segments.

Interest expense is allocated to operating segments based on working capital usage and the provision for taxes is allocated based on a combined federal and state statutory rate of 27.5% adjusted for actual taxes on foreign income. Permanent tax adjustments and timing differences are included in the all other segment.

Identifiable assets are principally those assets used in each segment.  The assets in the all other segment are principally cash and cash equivalents; and prepaid assets.

The Company had net assets of $14.8 million and $15.8 million located in Mexico as of December 31, 2022 and December 25, 2021, respectively.

During 2022, 2021 and 2020, the Company had one customer that accounted for approximately 23%, 21% and 23%, respectively, of the Company’s revenues. During 2022, 2021 and 2020 the Company had another customer which accounted for approximately 12%, 11% and 13%, respectively, of the Company’s revenues.

As of December 31, 2022, the Company had approximately 28% of its total accounts receivable with one customer. As of December 25, 2021, the Company had approximately 24%, 17% and 10% of its total accounts receivable with that same customer and two other customers, respectively.

As of December 31, 2022, approximately 31 employees of the Company's labor force were covered by a collective bargaining agreement that expires on January 31, 2025.

Raw materials for Escalade’s various product lines consist of wood, tempered glass, particle board, standard grades of steel and steel tubing, aluminum, engineering plastics, fiberglass and packaging materials. Escalade relies upon domestic, Mexico, Brazil, and Asian suppliers for these materials and upon various Asian manufacturers for many of its products.

Net sales are attributed to country based on location of customer. Net sales by geographic region/country were as follows:

In Thousands	2022		2021		2020
North America	$	307,318	$	309,211	$	270,173
Europe		3,036		2,153		1,555
Other		3,403		2,248		1,921
	$	313,757	$	313,612	$	273,649