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    David Cohen • Minerva

    David Cohen's questions to Escalade Inc (ESCA) leadership

    David Cohen's questions to Escalade Inc (ESCA) leadership • Q4 2024

    Question

    David Cohen asked for quantification of the non-recurring expenses incurred in 2023 and 2024 to better understand the company's normalized profitability. He also questioned if the recent reduction in balance sheet leverage has altered the company's perspective on capital allocation priorities.

    Answer

    An executive, likely CEO Walt Laser, indicated that the one-time costs absorbed in 2024 were roughly comparable to the reported $3.9 million gain on sale. He also confirmed that with debt reduced, the company's capital allocation strategy has broadened to include share repurchases, having bought back $2.2 million in the quarter, in addition to its dividend, core business investment, and potential selective M&A.

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    David Cohen's questions to Escalade Inc (ESCA) leadership • Q3 2024

    Question

    David Cohen asked about Escalade's capital allocation priorities, noting that the company's net leverage is now below its stated target range. He questioned whether this might trigger a reconsideration of strategies like share repurchases or acquisitions.

    Answer

    CEO Walter Glazer acknowledged that net leverage is below the target 1.5x to 2.5x range and confirmed the immediate priority is to continue repaying high-cost variable rate debt. He stated that all capital allocation levers, including dividends, share repurchases, and opportunistic M&A, remain under consideration depending on available opportunities, though there are no immediate acquisition needs.

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