攀登者第二季淨銷售5770萬美元升6.2% 受惠關稅退稅及多類別增長

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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 June 30, 2026 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 or Other Jurisdiction of Incorporation or

 Organization)

 
 
 13-2739290

 (I.R.S. Employer Identification No.)

 
 

 

 
 
 817 Maxwell Ave, Evansville, Indiana

 (Address of principal Executive Office)

 
 
 47711

 (Zip Code)

 
 

 

812-467-1334

(Registrant's Telephone Number, Including Area Code)

 

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

 

 
 Title of each class
 Trading Symbol
 Name of each 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 July 29, 2026

 
 

 
 
 Common, no par value

 
 
 13,766,074

 
 

 

1

 

  

 

INDEX

 

 

 
  
  
 
 Page

 No.

 
 

 
 
 Part I.

 
 
 Financial Information:

 
  
 

 
  
  
  
 

 
 
 Item 1 -

 
 
 Financial Statements:

 
  
 

 
  
  
  
 

 
  
 
 Consolidated Condensed Balance Sheets as of June 30, 2026, December 31, 2025, and June 30, 2025

 
 
 3

 
 

 
  
  
  
 

 
  
 
 Consolidated Condensed Statements of Operations for the Three Months and Six Months Ended June 30, 2026 and June 30, 2025

 
 
 4

 
 

 
  
  
  
 

 
  
 
 Consolidated Condensed Statements of Stockholders’ Equity for the Three Months and Six Months Ended June 30, 2026 and June 30, 2025

 
 
 5

 
 

 
  
  
  
 

 
  
 
 Consolidated Condensed Statements of Cash Flows for the Six Months Ended June 30, 2026 and June 30, 2025

 
 
 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

 
 
 16

 
 

 
  
  
  
 

 
 
 Item 4 -

 
 
 Controls and Procedures

 
 
 16

 
 

 
  
  
  
 

 
 
 Part II.

 
 
 Other Information

 
  
 

 
  
  
  
 

 
 
 Item 1 -

 
 
 Legal Proceedings

 
 
 16

 
 

 
  
  
  
 

 
 
 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

 
  
 
 June 30,

 2026

 
  
  
 
 December 31,

 2025

 
  
  
 
 June 30,

 2025

 
  
 

 
  
  
 
 (Unaudited)

 
  
  
 
 (Audited)

 
  
  
 
 (Unaudited)

 
  
 

 
 
 ASSETS

 
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Current Assets:

 
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cash and cash equivalents

 
  
 $
 16,392
  
  
 $
 11,878
  
  
 $
 10,422
  
 

 
 
 Receivables, less allowance of $1,122; $1,226; and $595; respectively

 
  
  
 44,612
  
  
  
 46,315
  
  
  
 41,926
  
 

 
 
 Inventories

 
  
  
 71,184
  
  
  
 68,474
  
  
  
 72,672
  
 

 
 
 Prepaid expenses

 
  
  
 3,118
  
  
  
 3,351
  
  
  
 2,449
  
 

 
 
 Prepaid income tax

 
  
  
 --
  
  
  
 557
  
  
  
 402
  
 

 
 
 Other current assets

 
  
  
 9,042
  
  
  
 --
  
  
  
 --
  
 

 
 
 TOTAL CURRENT ASSETS

 
  
  
 144,348
  
  
  
 130,575
  
  
  
 127,871
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Property, plant and equipment, net

 
  
  
 22,303
  
  
  
 22,355
  
  
  
 21,827
  
 

 
 
 Operating lease right-of-use assets

 
  
  
 1,233
  
  
  
 1,276
  
  
  
 1,428
  
 

 
 
 Intangible assets, net

 
  
  
 24,284
  
  
  
 25,445
  
  
  
 24,703
  
 

 
 
 Goodwill

 
  
  
 42,326
  
  
  
 42,326
  
  
  
 42,326
  
 

 
 
 Other assets

 
  
  
 24
  
  
  
 132
  
  
  
 184
  
 

 
 
 TOTAL ASSETS

 
  
 $
 234,518
  
  
 $
 222,109
  
  
 $
 218,339
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 LIABILITIES AND STOCKHOLDERS' EQUITY

 
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Current Liabilities:

 
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Current portion of long-term debt

 
  
 $
 14,881
  
  
 $
 7,143
  
  
 $
 7,143
  
 

 
 
 Trade accounts payable

 
  
  
 15,342
  
  
  
 9,150
  
  
  
 14,120
  
 

 
 
 Accrued liabilities

 
  
  
 12,536
  
  
  
 13,680
  
  
  
 9,086
  
 

 
 
 Income tax payable

 
  
  
 1,571
  
  
  
 --
  
  
  
 --
  
 

 
 
 Current operating lease liabilities

 
  
  
 625
  
  
  
 510
  
  
  
 496
  
 

 
 
 TOTAL CURRENT LIABILITIES

 
  
  
 44,955
  
  
  
 30,483
  
  
  
 30,845
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Other Liabilities:

 
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Long‑term debt

 
  
  
 --
  
  
  
 11,309
  
  
  
 14,881
  
 

 
 
 Deferred income tax liability

 
  
  
 6,303
  
  
  
 6,303
  
  
  
 3,302
  
 

 
 
 Operating lease liabilities

 
  
  
 636
  
  
  
 798
  
  
  
 973
  
 

 
 
 TOTAL LIABILITIES

 
  
  
 51,894
  
  
  
 48,893
  
  
  
 50,001
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 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 – 13,766,074; 13,696,311; and 13,803,745; shares respectively

 
  
  
 2,769
  
  
  
 3,013
  
  
  
 3,251
  
 

 
 
 Retained earnings

 
  
  
 179,855
  
  
  
 170,203
  
  
  
 165,087
  
 

 
 
 TOTAL STOCKHOLDERS' EQUITY

 
  
  
 182,624
  
  
  
 173,216
  
  
  
 168,338
  
 

 
 
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 
  
 $
 234,518
  
  
 $
 222,109
  
  
 $
 218,339
  
 

 

See notes to Consolidated Condensed Financial Statements.

 

3

 

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

 

 
  
  
 
 Three Months Ended

 
  
  
 
 Six Months Ended

 
  
 

 
 
 All Amounts in Thousands Except Per Share Data

 
  
 
 June 30, 2026

 
  
  
 
 June 30, 2025

 
  
  
 
 June 30, 2026

 
  
  
 
 June 30, 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net Sales

 
  
 $
 57,702
  
  
 $
 54,333
  
  
 $
 113,487
  
  
 $
 109,812
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Costs and Expenses

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cost of products sold

 
  
  
 42,588
  
  
  
 40,896
  
  
  
 81,224
  
  
  
 81,585
  
 

 
 
 Selling, administrative and general expenses

 
  
  
 12,476
  
  
  
 10,249
  
  
  
 23,209
  
  
  
 20,820
  
 

 
 
 Amortization

 
  
  
 579
  
  
  
 567
  
  
  
 1,160
  
  
  
 1,134
  
 

 
 
 Tariff recovery

 
  
  
 (9,875
 )
  
  
 --
  
  
  
 (9,875
 )
  
  
 --
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Operating Income

 
  
  
 11,934
  
  
  
 2,621
  
  
  
 17,769
  
  
  
 6,273
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Other Income (Expense)

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest expense

 
  
  
 (176
 )
  
  
 (213
 )
  
  
 (364
 )
  
  
 (457
 )
 

 
 
 Interest income

 
  
  
 426
  
  
  
 --
  
  
  
 500
  
  
  
 --
  
 

 
 
 Other income

 
  
  
 18
  
  
  
 51
  
  
  
 31
  
  
  
 82
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Income Before Income Taxes

 
  
  
 12,202
  
  
  
 2,459
  
  
  
 17,936
  
  
  
 5,898
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Provision for Income Taxes

 
  
  
 2,771
  
  
  
 634
  
  
  
 4,124
  
  
  
 1,454
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net Income

 
  
 $
 9,431
  
  
 $
 1,825
  
  
 $
 13,812
  
  
 $
 4,444
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Earnings Per Share Data:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Basic earnings per share

 
  
 $
 0.68
  
  
 $
 0.13
  
  
 $
 1.00
  
  
 $
 0.32
  
 

 
 
 Diluted earnings per share

 
  
 $
 0.68
  
  
 $
 0.13
  
  
 $
 1.00
  
  
 $
 0.32
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Dividends declared

 
  
 $
 0.1525
  
  
 $
 0.1500
  
  
 $
 0.3025
  
  
 $
 0.3000
  
 

 

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 March 31, 2025

 
  
  
 13,756
  
  
 $
 3,428
  
  
 $
 165,337
  
  
 $
 168,765
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net income

 
  
  
 --
  
  
  
 --
  
  
  
 1,825
  
  
  
 1,825
  
 

 
 
 Expense of restricted stock units

 
  
  
 --
  
  
  
 495
  
  
  
 --
  
  
  
 495
  
 

 
 
 Settlement of restricted stock units

 
  
  
 58
  
  
  
 --
  
  
  
 --
  
  
  
 --
  
 

 
 
 Issuance of restricted stock awards

 
  
  
 35
  
  
  
 --
  
  
  
 --
  
  
  
 --
  
 

 
 
 Dividends declared

 
  
  
 --
  
  
  
 --
  
  
  
 (2,075
 )
  
  
 (2,075
 )
 

 
 
 Purchase of stock

 
  
  
 (53
 )
  
  
 (790
 )
  
  
 --
  
  
  
 (790
 )
 

 
 
 Issuance of common stock for service

 
  
  
 8
  
  
  
 118
  
  
  
 --
  
  
  
 118
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Balances at June 30, 2025

 
  
  
 13,804
  
  
 $
 3,251
  
  
 $
 165,087
  
  
 $
 168,338
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Balances at December 31, 2024

 
  
  
 13,733
  
  
 $
 4,218
  
  
 $
 164,779
  
  
 $
 168,997
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net income

 
  
  
 --
  
  
  
 --
  
  
  
 4,444
  
  
  
 4,444
  
 

 
 
 Expense of restricted stock units

 
  
  
 --
  
  
  
 962
  
  
  
 --
  
  
  
 962
  
 

 
 
 Settlement of restricted stock units

 
  
  
 165
  
  
  
 --
  
  
  
 --
  
  
  
 --
  
 

 
 
 Issuance of restricted stock awards

 
  
  
 35
  
  
  
 --
  
  
  
 --
  
  
  
 --
  
 

 
 
 Dividends declared

 
  
  
 --
  
  
  
 --
  
  
  
 (4,136
 )
  
  
 (4,136
 )
 

 
 
 Purchase of stock

 
  
  
 (145
 )
  
  
 (2,171
 )
  
  
 --
  
  
  
 (2,171
 )
 

 
 
 Issuance of common stock for service

 
  
  
 16
  
  
  
 242
  
  
  
 --
  
  
  
 242
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Balances at June 30, 2025

 
  
  
 13,804
  
  
 $
 3,251
  
  
 $
 165,087
  
  
 $
 168,338
  
 

 

 

 
  
  
 
 Common Stock

 
  
  
 
 Retained

 
  
  
  
  
  
 

 
 
 All Amounts in Thousands

 
  
 
 Shares

 
  
  
 
 Amount

 
  
  
 
 Earnings

 
  
  
 
 Total

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Balances at March 31, 2026

 
  
  
 13,762
  
  
 $
 3,306
  
  
 $
 172,530
  
  
 $
 175,836
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net income

 
  
  
 --
  
  
  
 --
  
  
  
 9,431
  
  
  
 9,431
  
 

 
 
 Expense of restricted stock units

 
  
  
 --
  
  
  
 463
  
  
  
 --
  
  
  
 463
  
 

 
 
 Settlement of restricted stock units

 
  
  
 59
  
  
  
 --
  
  
  
 --
  
  
  
 --
  
 

 
 
 Dividends declared

 
  
  
 --
  
  
  
 --
  
  
  
 (2,106
 )
  
  
 (2,106
 )
 

 
 
 Purchase of stock

 
  
  
 (55
 )
  
  
 (1,000
 )
  
  
 --
  
  
  
 (1,000
 )
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Balances at June 30, 2026

 
  
  
 13,766
  
  
 $
 2,769
  
  
 $
 179,855
  
  
 $
 182,624
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Balances at December 31, 2025

 
  
  
 13,696
  
  
 $
 3,013
  
  
 $
 170,203
  
  
 $
 173,216
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net income

 
  
  
 --
  
  
  
 --
  
  
  
 13,812
  
  
  
 13,812
  
 

 
 
 Expense of restricted stock units

 
  
  
 --
  
  
  
 875
  
  
  
 --
  
  
  
 875
  
 

 
 
 Settlement of restricted stock units

 
  
  
 131
  
  
  
 --
  
  
  
 --
  
  
  
 --
  
 

 
 
 Dividends declared

 
  
  
 --
  
  
  
 --
  
  
  
 (4,160
 )
  
  
 (4,160
 )
 

 
 
 Purchase of stock

 
  
  
 (72
 )
  
  
 (1,281
 )
  
  
 --
  
  
  
 (1,281
 )
 

 
 
 Issuance of common stock for service

 
  
  
 11
  
  
  
 162
  
  
  
 --
  
  
  
 162
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Balances at June 30, 2026

 
  
  
 13,766
  
  
 $
 2,769
  
  
 $
 179,855
  
  
 $
 182,624
  
 

 

See notes to Consolidated Condensed Financial Statements.

 

5

 

 

 

ESCALADE, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 
  
  
 
 Six Months Ended

 
  
 

 
 
 All Amounts in Thousands

 
  
 
 June 30, 2026

 
  
  
 
 June 30, 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Operating Activities:

 
  
  
  
  
  
  
  
  
 

 
 
 Net income

 
  
 $
 13,812
  
  
 $
 4,444
  
 

 
 
 Depreciation and amortization

 
  
  
 2,503
  
  
  
 2,501
  
 

 
 
 Allowance for credit losses

 
  
  
 376
  
  
  
 225
  
 

 
 
 Stock-based compensation

 
  
  
 875
  
  
  
 962
  
 

 
 
 Loss on disposal of assets

 
  
  
 --
  
  
  
 3
  
 

 
 
 Common stock issued in lieu of bonus to officers

 
  
  
 162
  
  
  
 124
  
 

 
 
 Director stock compensation

 
  
  
 --
  
  
  
 118
  
 

 
 
 Changes in assets and liabilities

 
  
  
 (2,912
 )
  
  
 8,706
  
 

 
 
 Net cash provided by operating activities

 
  
  
 14,816
  
  
  
 17,083
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Investing Activities:

 
  
  
  
  
  
  
  
  
 

 
 
 Purchase of property and equipment

 
  
  
 (1,290
 )
  
  
 (976
 )
 

 
 
 Net cash used in investing activities

 
  
  
 (1,290
 )
  
  
 (976
 )
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Financing Activities:

 
  
  
  
  
  
  
  
  
 

 
 
 Proceeds from issuance of long-term debt

 
  
  
 568
  
  
  
 9,046
  
 

 
 
 Payments on long-term debt

 
  
  
 (4,139
 )
  
  
 (12,618
 )
 

 
 
 Cash dividends paid

 
  
  
 (4,160
 )
  
  
 (4,136
 )
 

 
 
 Purchase of stock

 
  
  
 (1,281
 )
  
  
 (2,171
 )
 

 
 
 Net cash used in financing activities

 
  
  
 (9,012
 )
  
  
 (9,879
 )
 

 
 
 Net increase in cash and cash equivalents

 
  
  
 4,514
  
  
  
 6,228
  
 

 
 
 Cash and cash equivalents, beginning of period

 
  
  
 11,878
  
  
  
 4,194
  
 

 
 
 Cash and cash equivalents, end of period

 
  
 $
 16,392
  
  
 $
 10,422
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Supplemental Cash Flows Information

 
  
  
  
  
  
  
  
  
 

 
 
 Interest paid

 
  
 $
 313
  
  
 $
 428
  
 

 
 
 Income taxes paid, net

 
  
 $
 1,996
  
  
 $
 1,689
  
 

 

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 31, 2025 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 2025 filed with the Securities and Exchange Commission.

 

 

Note B ‑ Seasonal Aspects

 

The results of operations for the three and six months ended June 30, 2026 and June 30, 2025 are not necessarily indicative of the results to be expected for the full year.

 

 

Note C ‑ Inventories

 

 
 
 In thousands

 
  
 
 June 30,

 2026

 
  
  
 
 December 31,

 2025

 
  
  
 
 June 30,

 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Raw materials

 
  
 $
 3,925
  
  
 $
 2,735
  
  
 $
 3,843
  
 

 
 
 Work in progress

 
  
  
 3,224
  
  
  
 2,940
  
  
  
 2,936
  
 

 
 
 Finished goods

 
  
  
 64,035
  
  
  
 62,799
  
  
  
 65,893
  
 

 
  
  
 $
 71,184
  
  
 $
 68,474
  
  
 $
 72,672
  
 

  

 

Note D – Fair Values of Financial Instruments

 

Accounting Standard Codification (“ASC”) 820, “Fair Value Measurement and Disclosures,” outlines a valuation framework and creates a fair value hierarchy for assets and liabilities as follows:

 

 
  
 
 -

 
 
 Level 1: Observable inputs such as quoted prices in active markets;

 
 

 
  
 
 -

 
 
 Level 2: Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

 
 

 
  
 
 -

 
 
 Level 3: Unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.

 
 

 

Due to their short-term nature, the fair value of cash and cash equivalents, accounts receivable, accounts payable and certain other liabilities approximated their carrying values at June 30, 2026, December 31, 2025 and June 30, 2025. The Company believes the carrying value of borrowings under our senior secured revolving credit facility, due to variable rate interest, adequately reflects the fair value of these instruments.

 

The Company discloses the fair value of its term loan using Level 2 inputs, which are estimated using treasury rates for a similar instrument, as follows:

 

 
  
  
 
 June 30, 2026

 
  
  
 
 December 31, 2025

 
  
  
 
 June 30, 2025

 
  
 

 
 
 In thousands

 
  
 
 Carrying

 Value

 
  
  
 
 Fair Value

 
  
  
 
 Carrying

 Value

 
  
  
 
 Fair Value

 
  
  
 
 Carrying

 Value

 
  
  
 
 Fair Value

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Term Loan Facility

 
  
 $
 14,881
  
  
 $
 14,510
  
  
 $
 18,452
  
  
 $
 17,689
  
  
 $
 22,024
  
  
 $
 20,744
  
 

 

7

 

  

 

Note E – Stock Compensation

 

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

 

For the three and six months ended June 30, 2026, the Company recognized stock based compensation expense of $463 thousand and $875 thousand, respectively, compared to stock based compensation expense of $495 thousand and $962 thousand for the same periods in the prior year.

 

At June 30, 2026 and June 30, 2025, there was $2.3 million and $2.8 million, respectively, in unrecognized stock-based compensation expense related to non-vested stock awards. The unrecognized compensation expense of unvested restricted stock awards not yet recognized as of June 30, 2026 is expected to be recognized over the weighted average period of 1.5 years.

 

During the six months ended June 30, 2026, the Company awarded 20,000 restricted stock units to directors and 116,691 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. All of the 2026 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 continues to serve as an employee, director or consultant of the Company on the vesting date.

 

 

Note F ‑ Segment Information

 

The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its president and chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated net sales and consolidated net income to assess financial performance and allocate resources.

 

Reconciliation to net income:

 

 
  
  
 
 Three Months Ended

 
  
  
 
 Six Months Ended

 
  
 

 
 
 In Thousands

 
  
 
 June 30, 2026

 
  
  
 
 June 30, 2025

 
  
  
 
 June 30, 2026

 
  
  
 
 June 30, 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Net Sales

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Sporting Goods

 
  
 $
 57,702
  
  
 $
 54,333
  
  
 $
 113,487
  
  
 $
 109,812
  
 

 
 
 Total Net Sales

 
  
 $
 57,702
  
  
 $
 54,333
  
  
 $
 113,487
  
  
 $
 109,812
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Sporting Goods Segment Operating Expenses:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Cost of products sold

 
  
 $
 42,588
  
  
 $
 40,896
  
  
 $
 81,224
  
  
 $
 81,585
  
 

 
 
 Other operating expenses

 
  
  
 2,379
  
  
  
 10,205
  
  
  
 12,912
  
  
  
 20,519
  
 

 
 
 Unallocated corporate expense

 
  
  
 801
  
  
  
 611
  
  
  
 1,582
  
  
  
 1,435
  
 

 
 
 Total Operating Income

 
  
 $
 11,934
  
  
 $
 2,621
  
  
 $
 17,769
  
  
 $
 6,273
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Sporting Goods Segment Other Income (Expense):

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Interest expense

 
  
  
 (176
 )
  
  
 (213
 )
  
  
 (364
 )
  
  
 (457
 )
 

 
 
 Interest income

 
  
  
 426
  
  
  
 --
  
  
  
 500
  
  
  
 --
  
 

 
 
 Other income

 
  
  
 18
  
  
  
 51
  
  
  
 31
  
  
  
 82
  
 

 
 
 Total Income Before Income Taxes

 
  
 $
 12,202
  
  
 $
 2,459
  
  
 $
 17,936
  
  
 $
 5,898
  
 

 
 
 Sporting Goods Segment provision for income taxes

 
  
  
 3,573
  
  
  
 844
  
  
  
 5,363
  
  
  
 2,016
  
 

 
 
 Unallocated benefit for taxes

 
  
  
 (802
 )
  
  
 (210
 )
  
  
 (1,239
 )
  
  
 (562
 )
 

 
 
 Total Net Income

 
  
 $
 9,431
  
  
 $
 1,825
  
  
 $
 13,812
  
  
 $
 4,444
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Identifiable Assets

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Sporting Goods

 
  
 $
 217,195
  
  
 $
 207,144
  
  
 $
 217,195
  
  
 $
 207,144
  
 

 
 
 Corporate

 
  
  
 17,323
  
  
  
 11,195
  
  
  
 17,323
  
  
  
 11,195
  
 

 
 
 Total Identifiable Assets

 
  
 $
 234,518
  
  
 $
 218,339
  
  
 $
 234,518
  
  
 $
 218,339
  
 

 

 

Other operating expenses primarily include selling, general and administrative expenses and tariff recovery attributable to the Sporting Goods segment.

 

Note G – Dividend Payment

 

On January 12, 2026, the Company paid a quarterly dividend of $0.15 per common share to all shareholders of record on January 5, 2026. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

 

On April 13, 2026, the Company paid a quarterly dividend of $0.1525 per common share to all shareholders of record on April 6, 2026. The total amount of the dividend was approximately $2.1 million and was charged against retained earnings.

 

8

 

 

On July 13, 2026, the Company paid a quarterly dividend of $0.1525 per common share to all shareholders of record on July 6, 2026. The total amount of the dividend was approximately $2.1 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

 
  
  
 
 Six Months Ended

 
  
 

 
 
 In thousands

 
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Weighted average common shares outstanding

 
  
  
 13,786
  
  
  
 13,769
  
  
  
 13,752
  
  
  
 13,742
  
 

 
 
 Dilutive effect of restricted stock units

 
  
  
 115
  
  
  
 139
  
  
  
 102
  
  
  
 141
  
 

 
 
 Weighted average common shares outstanding, assuming dilution

 
  
  
 13,901
  
  
  
 13,908
  
  
  
 13,854
  
  
  
 13,883
  
 

  

 

Note I – New Accounting Standards and Changes in Accounting Principles

 

With the exception of that discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the three and six months ended June 30, 2026, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, that are of significance, or potential significance to the Company.

 

In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments clarify the application of the current expected credit losses (CECL) model to trade receivable and contract assets and are intended to improve consistency in the measurement of expected credit losses. The guidance is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years. The Company adopted ASU 2025-05 effective January 1, 2026. The adoption of ASU 2025-05 did not have a material impact on the Company’s condensed consolidated financial statements, financial condition, or results of operations.

 

 

Note J – Revenue from Contracts with Customers

 

Revenue Recognition – Revenue is recognized when a contract exists with a customer that specifies the goods to be provided at an agreed upon sales price and when the performance obligations under the terms of the contract 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. Sales are made on normal and customary short-term credit terms or upon delivery of point-of-sale transactions. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The Company expenses incremental costs of obtaining a contract due to the short-term nature of the contracts. These costs are recorded in selling, general and administrative expenses in the accompanying consolidated statements of operations. 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.

 

The Company enters into contractual arrangements with customers in the form of customer orders that specify goods, quantity, pricing, and associated order terms. The Company does not have long-term contracts that are satisfied over time. Due to the nature of the contracts, no significant judgment exists in relation to the identification of the customer contract, satisfaction of the performance obligations, or transaction price.

 

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.

 

9

 

 

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. The accrued liability amount attributable to warranties was $578 thousand as of June 30, 2026. There were no changes to the accrual due to a change in estimate during the current period.

 

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.

 

Contract Balances – Amounts relating to returns and customer allowances create contract liabilities, which were $5,134 thousand and $5,025 thousand as of June 30, 2026 and June 30, 2025, respectively, and $5,324 thousand and $6,708 thousand as of December 31, 2025 and December 31, 2024, respectively.

 

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

 
  
  
 
 Six Months Ended

 
  
 

 
 
 All Amounts in Thousands

 
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Gross Sales by Channel:

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Mass Merchants

 
  
 $
 16,702
  
  
 $
 17,332
  
  
 $
 34,486
  
  
 $
 37,510
  
 

 
 
 Specialty Dealers

 
  
  
 18,568
  
  
  
 17,644
  
  
  
 41,568
  
  
  
 38,211
  
 

 
 
 E-commerce

 
  
  
 24,853
  
  
  
 22,500
  
  
  
 41,641
  
  
  
 38,764
  
 

 
 
 International

 
  
  
 3,328
  
  
  
 2,792
  
  
  
 5,813
  
  
  
 6,490
  
 

 
 
 Other

 
  
  
 843
  
  
  
 845
  
  
  
 1,634
  
  
  
 1,646
  
 

 
 
 Total Gross Sales

 
  
  
 64,294
  
  
  
 61,113
  
  
  
 125,142
  
  
  
 122,621
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Less: Gross-to-Net Sales Adjustments

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Returns

 
  
  
 1,625
  
  
  
 1,547
  
  
  
 2,646
  
  
  
 3,087
  
 

 
 
 Warranties

 
  
  
 130
  
  
  
 159
  
  
  
 381
  
  
  
 532
  
 

 
 
 Customer Allowances

 
  
  
 4,837
  
  
  
 5,074
  
  
  
 8,628
  
  
  
 9,190
  
 

 
 
 Total Gross-to-Net Sales Adjustments

 
  
  
 6,592
  
  
  
 6,780
  
  
  
 11,655
  
  
  
 12,809
  
 

 
 
 Total Net Sales

 
  
 $
 57,702
  
  
 $
 54,333
  
  
 $
 113,487
  
  
 $
 109,812
  
 

  

 

Note K – Leases

 

We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our leases have remaining lease terms of 1 year to 5 years. As of June 30, 2026, 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.

 

10

 

 

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 and are recognized in the presentation of the ROU assets and operating lease liabilities 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. Variable lease costs include payment for taxes and common area maintenance charges.

 

Components of lease expense and other information is as follows:

 

 
  
  
 
 Three Months Ended

 
  
  
 
 Six Months Ended

 
  
 

 
 
 All Amounts in Thousands

 
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Lease Expense

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Operating Lease Cost

 
  
 $
 167
  
  
 $
 153
  
  
 $
 334
  
  
 $
 286
  
 

 
 
 Short-term Lease Cost

 
  
  
 178
  
  
  
 314
  
  
  
 326
  
  
  
 542
  
 

 
 
 Variable Lease Cost

 
  
  
 63
  
  
  
 58
  
  
  
 105
  
  
  
 100
  
 

 
 
 Total Operating Lease Cost

 
  
 $
 408
  
  
 $
 525
  
  
 $
 765
  
  
 $
 928
  
 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 

 
 
 Operating Lease – Operating Cash Flows

 
  
 $
 165
  
  
 $
 155
  
  
 $
 337
  
  
 $
 291
  
 

 
 
 New ROU Assets – Operating Leases

 
  
 $
 --
  
  
 $
 487
  
  
 $
 246
  
  
 $
 487
  
 

 

Other information about lease amounts recognized in our consolidated condensed financial statements are summarized as follows:

 

 
  
  
 
 Period Ended

 
  
 

 
 
 All Amounts in Thousands

 
  
 
 June 30,

 2026

 
  
  
 
 June 30,

 2025

 
  
 

 
  
  
  
  
  
  
  
  
  
 

 
 
 Weighted Average Remaining Lease Term – Operating Leases (in years)

 
  
  
 2.59
  
  
  
 3.20
  
 

 
 
 Weighted Average Discount Rate – Operating Leases

 
  
  
 6.81
 %
  
  
 6.61
 %
 

 

Future minimum lease payments under non-cancellable leases as of June 30, 2026 were as follows:

 

 
 
 All Amounts in Thousands

 
  
  
  
  
 

 
  
  
  
  
  
 

 
 
 Year 1

 
  
 $
 351
  
 

 
 
 Year 2

 
  
  
 583
  
 

 
 
 Year 3

 
  
  
 217
  
 

 
 
 Year 4

 
  
  
 150
  
 

 
 
 Year 5

 
  
  
 70
  
 

 
 
 Thereafter

 
  
  
 8
  
 

 
 
 Total future minimum lease payments

 
  
  
 1,379
  
 

 
 
 Less imputed interest

 
  
  
 (118
 )
 

 
 
 Total

 
  
 $
 1,261
  
 

 
  
  
  
  
  
 

 
 
 Reported as of June 30, 2026

 
  
  
  
  
 

 
 
 Current operating lease liabilities

 
  
  
 625
  
 

 
 
 Long-term operating lease liabilities

 
  
  
 636
  
 

 
 
 Total

 
  
 $
 1,261
  
 

 

11

 

  

 

Note L – Commitments and Contingencies

 

The Company is involved in litigation arising in the normal course of its business, but the Company does not believe the disposition or ultimate resolution of such claims or lawsuits will have a material adverse effect on the business or financial condition of the Company. Based on current information, available insurance coverage and established reserves, the Company believes that the eventual outcome of existing litigation against the Company will not, individually or in the aggregate, have a material adverse effect on the Company’s consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Company’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period.

 

Tariff Refunds

 

During fiscal 2025 and early fiscal 2026, the Company incurred import duties under tariffs imposed pursuant to the International Emergency Economic Powers Act (“IEEPA”). On February 20, 2026, the U.S. Supreme Court ruled that such tariffs were not authorized, and on March 4, 2026, the U.S. Court of International Trade (“CIT”) ordered U.S. Customs and Border Protection to refund certain tariffs collected under IEEPA.

 

The Company identified certain potential refunds of previously paid tariffs in accordance with the ruling by the CIT and we account for such refunds under the loss recovery framework in accordance with ASC Topic 410 when recovery is considered probable and reasonably estimable. During the three months ended June 30, 2026, the Company deemed recovery of approximately $10.2 million to be probable, which recovery remained subject to administrative review and final liquidation of the underlying customs entries by U.S. Customs and Border Protection.

 

During the three months ended June 30, 2026, the Company received and recorded $1.2 million in cash proceeds representing a partial approval of these tariff refund claims. The Company recorded $9.0 million as a receivable within other current assets on the Consolidated Condensed Balance Sheets as of June 30, 2026. In total, the Company recognized tariff benefits in its Statements of Operations of $10.2 million during the three months ended June 30, 2026, of which $9.9 million was recorded in tariff recovery within operating income and $0.3 million was recorded as interest income. Subsequent to the end of the quarter, the Company received a payment of $9.0 million in relation to the recorded tariff receivable as of June 30, 2026.

 

 

Note M – Debt

 

On October 11, 2024, the Company entered into the Fifth Amendment (the “Fifth Amendment”) to its Amended and Restated Credit Agreement with its issuing bank, JPMorgan Chase Bank, N.A. and the other lenders identified therein (the “Restated Credit Agreement”). The Fifth Amendment eliminated the fixed charge coverage ratio covenant and related provisions. 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. 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. 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.

 

The Company was in compliance with the debt covenants set forth in the Restated Credit Agreement as of June 30, 2026.

 

As of June 30, 2026, the outstanding principal amount of the term loan was $14.9 million and total amount drawn under the revolving facility was zero. The term loan and revolving facility have a maturity date of January 21, 2027.

 

 

Note N – Provision for Taxes

 

The effective tax rate for the three months ending June 30, 2026 was 22.7% compared to 25.8% for the same three month period last year. The effective tax rate for the first six months ending June 30, 2026 was 23.0% compared to 24.7% for the same period last year. The effective tax rate for the three and six months ending June 30, 2026 decreased primarily due to refinements to expected state apportionment factors, which reduced state income tax expense.

 

12

 

  

 

 
 
 Item 2.

 
 
 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 
 

 

Forward-Looking Statements

 

This report contains statements that we believe are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 3b-6 promulgated thereunder. All statements, other than statements of histor