49 unchanged sentences
Management cannot predict the full impact of these factors on the Company.
−Removed: Due to the above circumstances and as described generally in this Form 10-Q, the Company’s results of operations for the period ended June 30, 2024 are not necessarily indicative of the results to be expected for fiscal year 2024.
+Added: Due to the above circumstances and as described generally in this Form 10-Q, the Company’s results of operations for the period ended September 30, 2024 are not necessarily indicative of the results to be expected for fiscal year 2024.
Results of Operations
1 unchanged sentence
Three Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2024
−Removed: June 30, 2023
−Removed: June 30, 2024
−Removed: June 30, 2023
+Added: Nine Months Ended
+Added: September 30,
+Added: September 30,
+Added: September 30,
+Added: September 30,
Cost of products sold
Selling, administrative and general expenses
+Added: Gain on sale of assets held for sale
Operating income
Revenue and Gross Margin
−Removed: Total net sales declined 7.7% on a year-over-year basis in the second quarter, due to softening consumer demand and channel inventory destocking, particularly in our indoor/outdoor games categories, partly offset by growth in our Stiga table tennis, Bear Archery, and Brunswick Billiards brands.
−Removed: Mass merchant, specialty dealer and third-party e-commerce channel sales were all soft during the quarter, partly offset by 15% growth in international sales and 28% growth in our owned e-commerce sales.
−Removed: For the first six months of 2024, total net sales declined 3.9% compared to the first half of 2023 again due to softening consumer demand and channel destocking, partly offset by growth in our table tennis, basketball, and archery categories.
−Removed: Gross margin decreased to 24.2% for the second quarter of 2024 compared to 24.6% for the same period in 2023 primarily driven by lower fixed cost absorption, increased customer program spending, and severance related expenses associated with the Company’s ongoing asset optimization initiative.
+Added: Total net sales declined 7.7% on a year-over-year basis in the third quarter, due to soft consumer demand and inventory destocking in most categories, partly offset by growth in the archery, safety, and basketball categories.
+Added: During the third quarter, sales declined across most of our sales channels, partly offset by growth in our international and e-commerce.
+Added: Our e-commerce channel experienced growth driven by our owned e-commerce sales.
+Added: For the nine months ended September 30, 2024, total net sales declined 5.3% compared to the same period in 2023 again due to soft consumer demand and channel destocking, partly offset by growth in the Company’s table tennis, basketball, and archery categories.
+Added: Gross margin increased to 24.8% for the third quarter of 2024 compared to 24.7% for the same period in 2023 primarily driven by improved fixed cost absorption, partly offset by increased cost of goods sold of $1.8 million due to non-recurring expenses associated with strategic cost rationalization initiatives, including the closure and sale of its Mexico operations.
Selling, General and Administrative Expenses
−Removed: Selling, general and administrative expenses (SG&A) were $10.1 million for the second quarter of 2024 compared to $9.8 million for the same period in the prior year, an increase of $0.3 million or 3.0%.
−Removed: SG&A as a percent of sales is 16.1% for the second quarter of 2024 compared with 14.5% for the same period in the prior year.
−Removed: For the first six months of 2024, SG&A were $20.8 million compared to $20.1 million for the same period in the prior year, an increase of $0.7 million, or 3.6%.
−Removed: SG&A as a percent of sales is 17.3% for the first six months of 2024 compared with 16.1% for the same period in the prior year.
+Added: Selling, general and administrative expenses (SG&A) were $11.7 million for the third quarter of 2024 compared to $11.1 million for the same period in the prior year, an increase of $0.6 million or 5.5%.
+Added: SG&A as a percent of sales is 17.2% for the third quarter of 2024 compared with 15.1% for the same period in the prior year.
+Added: For the nine months ended September 30, 2024, SG&A were $32.4 million compared to $31.1 million for the same period in the prior year, an increase of $1.3 million, or 4.2%.
+Added: SG&A as a percent of sales is 17.3% for the nine months ended September 30, 2024 compared with 15.7% for the same period in the prior year.
Provision for Income Taxes
−Removed: The effective tax rate for the first six months of 2024 was 23.8% compared to 22.6% for the same period last year.
+Added: The effective tax rate for the nine months ended September 30, 2024 was 23.9% compared to 19.0% for the same period last year.
Financial Condition and Liquidity
−Removed: Total debt as of June 30, 2024 was $43.2 million, a decrease of $7.7 million from December 31, 2023.
+Added: Total debt as of September 30, 2024 was $29.5 million, a decrease of $21.4 million from December 31, 2023.
The following schedule summarizes the Company’s total debt:
+Added: September 30,
+Added: September 30,
Current portion of long-term debt
Long term debt
−Removed: As a percentage of stockholders’ equity, total debt was 26.0%, 30.9% and 53.0% at June 30, 2024, December 31, 2023, and June 30, 2023 respectively.
+Added: As a percentage of stockholders’ equity, total debt was 17.3%, 30.9% and 44.7% at September 30, 2024, December 31, 2023, and September 30, 2023 respectively.
On January 21, 2022, the Company and its wholly owned subsidiary, Indian Industries, Inc.
24 unchanged sentences
As reflected in the Fourth Amendment to the Restated Credit Agreement effective September 1, 2023, the maximum availability of the senior revolving credit facility was reduced to $85.0 million following the dissolution of Escalade Insurance, Inc.
−Removed: The Company was in compliance with the debt covenants set forth in the Restated Credit Agreement as of June 30, 2024.
−Removed: As of June 30, 2024, the outstanding principal amount of the term loan was $29.2 million and total amount drawn under the Revolving Facility was $14.0 million.
+Added: On October 11, 2024, the Company entered into the Fifth Amendment (the “Fifth Amendment”) to the Restated Credit Agreement.
+Added: The Fifth Amendment eliminated the fixed charge coverage ratio covenant and related provisions.
+Added: The fixed charge ratio covenant was replaced by a new minimum interest coverage ratio covenant of 3.50 to 1:00 effective September 30, 2024.
+Added: Under the terms of the Fifth Amendment, the Company and the Lender also agreed to decrease the maximum availability under the senior revolving credit facility from $75.0 million to $60.0 million, but added an accordion feature that could increase the facility in an amount not to exceed $85.0 million.
+Added: The Fifth Amendment further revised the restricted payments covenant to provide that if at any time the Company’s Funded Debt to EBITDA Ratio would exceed 1.75 to 1.0, then the aggregate combined total of cash dividends and Company share repurchases may not exceed $12.0 million in any trailing twelve month period.
+Added: The Company was in compliance with the debt covenants set forth in the Restated Credit Agreement as of September 30, 2024.
+Added: As of September 30, 2024, the outstanding principal amount of the term loan was $27.4 million and total amount drawn under the Revolving Facility was $2.1 million.
The Company funds working capital requirements and shareholder dividends through operating cash flows and revolving credit agreements with its Lenders.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.