Evansville-based manufacturer Escaladesaw a sizable growth in profits last quarter, in part because of benefits realized from selling off one of its business segments.
Total net income for the third quarter was $13.6 million (96 cents per diluted share), as compared with $2.5 million (18 cents per share) during the same period last year.
Escalade makes and sells sporting goods, including table tennis equipment, basketball goals and outdoor play sets. Until recently, it also had an information security and print finishing division that sold things like paper folders and shredders.
Escalade’s third quarter ended on Oct. 4. The sale of its information security business was completed last quarter, and the sale of its print finishing business was completed during the company’s second quarter.
The company said its third-quarter earnings were helped by tax benefits from the divestiture of its information security business, and from reclassification of income related to the disposition.
Looking only at Escalade’s continuing operations — its sporting goods business — the company’s quarterly net income was $3.8 million (27 cents per diluted share), as compared to $3.4 million (24 cents per diluted share) during the same period last year.
Net sales from Escalade’s sporting goods segment totaled $31.6 million, essentially flat from the same period last year.
For the year to date Escalade’s net sporting goods sales totaled $97.3 million, up 3 percent from 2013.
In its earnings release, Escalade said 2013 has proved to be a tough comparison year so far.
“During the first nine months of 2013, the company experienced exceptional sales growth in certain categories that was not equaled during the first nine months of 2014,” the release said.
But Escalade also said it expects to see stronger sales growth during the fourth quarter, in part because its recently-announced acquisition of Cue & Case Sales.
Based in St. Augustine, Florida, Cue & Case sells specialty billiard accessories including cues, cases, cue accessories, racks, balls, lights and gaming furniture.
In its third-quarter release Escalade also declared a quarterly stock dividend of 10 cents per share, unchanged from the prior quarter.
Shares of Escalade closed at $12.76 Monday on the Nasdaq market, down 38 cents.