# EDGAR Filing Document

**Accession Number:** 0000033488
**File Stem:** 0001437749-26-005968
**Filing Date:** 2026-2
**Character Count:** 25437
**Document Hash:** 0f8ddf050c89b1db3b1b4bab91773118
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-005968.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0001437749-26-005968

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260226

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ESCALADE INC
- **CENTRAL INDEX KEY:** 0000033488
- **STANDARD INDUSTRIAL CLASSIFICATION:** [3949]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 132739290
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-06966
- **FILM NUMBER:** 26692330

**BUSINESS ADDRESS:**
- **STREET 1:** 817 MAXWELL AVE.
- **CITY:** EVANSVILLE
- **STATE:** IN
- **ZIP:** 47711
- **BUSINESS PHONE:** 812-467-4449

**MAIL ADDRESS:**
- **STREET 1:** 817 MAXWELL AVE.
- **CITY:** EVANSVILLE
- **STATE:** IN
- **ZIP:** 47711

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MARTIN YALE BUSINESS MACHINES CORP
- **DATE OF NAME CHANGE:** 19820310

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MARTIN YALE INDUSTRIES INC
- **DATE OF NAME CHANGE:** 19720306

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WILLIAMS MANUFACTURING CO
- **DATE OF NAME CHANGE:** 19710504

?xml version='1.0' encoding='ASCII'? esca20260226_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 8-K**

**CURRENT REPORT PURSUANT**

**TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

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| | |
|:---|:---|
| Date of report (Date of earliest event reported) | &nbsp;&nbsp;&nbsp;February 26, 2026 |

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**ESCALADE, INCORPORATED**

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(Exact Name of Registrant as Specified in Its Charter)

Indiana

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(State or Other Jurisdiction of Incorporation)

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| | |
|:---|:---|
| 0-6966 | 13-2739290 |
| (Commission File Number) | (IRS Employer Identification No.) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| | |
|:---|:---|
| 817 Maxwell Avenue, Evansville, Indiana | 47711 |
| (Address of Principal Executive Offices) | (Zip Code) |

---

(812) 467-1334

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(Registrant's Telephone Number, Including Area Code)

Not Applicable

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(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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| | | |
|:---|:---|:---|
| <u>Title of each class</u> | <u>Trading Symbol</u> | <u>Name of Exchange on which registered</u> |
| Common Stock, No Par Value | ESCA | The NASDAQ Stock Market LLC |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐

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. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐

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**Section 2** – **Financial Information**

**Item 2.02 Results of Operations and Financial Condition.**

On February 27, 2026, Escalade, Incorporated ("Escalade") issued the press release attached hereto as Exhibit 99.1 announcing financial information regarding Escalade's fourth quarter and full year results for 2025.

The information under this Item 2.02 shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

**Section 8** – **Other Events**

**Item 8.01 Other Events.**

On February 26, 2026, the Board of Directors of Escalade approved a quarterly dividend of fifteen and twenty-five hundredths cents $0.1525 per share that will be paid to all shareholders of record on April 6, 2026 and disbursed on April 13, 2026.

**Item 9.01 Financial Statements and Exhibits**

(d) Exhibits

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| | |
|:---|:---|
| <u>Exhibit</u> | <u>Description</u> |
| 99.1 | [Press release dated February 27, 2026](ex_925917.htm) |
| 104 | Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL). |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, Escalade, Incorporated has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | |
|:---|:---|
| **Date: February 27, 2026** | **ESCALADE, INCORPORATED** |
|  | By: /s/ STEPHEN R. WAWRIN |
|  | Stephen R. Wawrin, Vice President and Chief Financial Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 99.1

EXHIBIT 99.1

**Escalade Reports Fourth Quarter and Full Year 2025 Results**

**EVANSVILLE, IN, February 27, 2026** – Escalade, Inc. (Nasdaq: ESCA, or the "Company"), a leading manufacturer and distributor of sporting goods and indoor/outdoor recreational equipment, today announced results for the fourth quarter and full year 2025.

**FOURTH QUARTER 2025 RESULTS**

*(As compared to the fourth quarter 2024)*

&nbsp;&nbsp;&nbsp;&nbsp;● Net sales decreased 2.2% to $62.6 million

&nbsp;&nbsp;&nbsp;&nbsp;● Gross margin improved 280 basis points, to 27.7%

&nbsp;&nbsp;&nbsp;&nbsp;● Net income of $3.7 million, or $0.27 per diluted share vs. $2.7 million, or $0.19 per diluted share for 2024

&nbsp;&nbsp;&nbsp;&nbsp;● EBITDA totaled $6.5 million, an increase of 9.3%

&nbsp;&nbsp;&nbsp;&nbsp;● Cash provided by operations of $14.9 million vs $12.3 million in 2024

&nbsp;&nbsp;&nbsp;&nbsp;● Total debt decreased 27.9% and net leverage was 0.3x

&nbsp;&nbsp;&nbsp;&nbsp;● Increased quarterly dividend to $0.1525 per share

**FULL YEAR 2025 RESULTS**

*(As compared to full year 2024)*

&nbsp;&nbsp;&nbsp;&nbsp;● Net sales decreased 4.5% to $240.2 million

&nbsp;&nbsp;&nbsp;&nbsp;● Gross margin improved 219 basis points, to 26.9%

&nbsp;&nbsp;&nbsp;&nbsp;● Net income of $13.7 million, or $0.99 per diluted share vs. $13.0 million, or $0.93 per diluted share for 2024

&nbsp;&nbsp;&nbsp;&nbsp;● EBITDA totaled $23.9 million, a decrease of 8.4%

&nbsp;&nbsp;&nbsp;&nbsp;● Cash provided by operations of $31.0 million vs. $36.0 million in 2024

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For the fourth quarter ended December 31, 2025, Escalade reported net income of $3.7 million, or $0.27 per diluted share, versus net income of $2.7 million, or $0.19 per diluted share for the fourth quarter in 2024. Total net sales declined 2.2% on a year-over-year basis in the fourth quarter, primarily due to uneven consumer demand across the majority of the Company's product categories, partially offset by improved demand in the archery, billiards, and games categories.

Escalade reported fourth quarter gross margin of 27.7%, an increase of 280 basis points versus the prior-year quarter, driven by improved operational efficiencies from lower fixed costs and decreased inventory storage and handling costs.

Earnings before interest, taxes, depreciation, and amortization ("EBITDA") increased 9.3% to $6.5 million in the fourth quarter 2025, versus $5.9 million in the prior-year period. The increase in EBITDA compared to the fourth quarter of 2024 primarily reflects improved gross margins and the impact of the Gold Tip acquisition, partly offset by $0.5 million in non-recurring executive transition expenses.

During the fourth quarter of 2025, the Company generated $14.9 million of cash flow from operations, compared to $12.3 million in the prior-year period. Operating cash flow during the fourth quarter reflected seasonal reductions in inventory associated with the holiday selling season, combined with the Company's efforts to reduce its inventory on hand.

Total debt at the end of the quarter was $18.5 million, down 27.9% from $25.6 million at the end of the fourth quarter of last year.

As of December 31, 2025, the Company had total cash and cash equivalents of $11.9 million, together with $52.9 million of availability on its senior secured revolving credit facility maturing in 2027. At the end of the fourth quarter 2025, net debt (total debt less cash) was 0.3x trailing twelve-month EBITDA, down from 0.8x at the end of the fourth quarter of 2024.

Escalade announced a quarterly dividend of $0.1525 per share to be paid to all shareholders of record on April 6, 2026 and payable April 13, 2026.

**MANAGEMENT COMMENTARY**

"We concluded 2025 with strong margin performance, driven by disciplined operational execution across the business," said Patrick Griffin, Interim President and CEO of Escalade. "Fourth-quarter margins reflect the cost structure improvements implemented over the last year. Importantly, demand across our higher-value, premium brands remains resilient, and our diversified product portfolio continues to position us well to navigate an uncertain consumer environment."

Griffin continued, "As we enter 2026, we are shifting our focus to drive growth while maintaining the operational discipline that delivered our strong performance in 2025. During the fourth quarter we completed the acquisition of AllCornhole, further expanding our presence in a premium, fast-growing category, and we acquired a 110,000 square foot facility to support growth in our safety and fitness categories. In addition, we completed the integration of the Gold Tip Archery acquisition, which closed in the third quarter and was immediately accretive during the fourth quarter."

"Our shift to focus on growth is supported by a strong balance sheet and a continued focus on capital efficiency," Griffin added. "In the fourth quarter, we improved our cash flow 21.2% and reduced our total debt by 27.9%, resulting in net leverage of 0.3x. Reflecting the confidence we have in the long-term cash-generation profile of the business, our Board has approved an increase in our quarterly dividend to $0.1525 per share. Looking ahead, we remain focused on driving working capital efficiencies and we intend to deploy our strong free cash flow toward organic growth investments, strategic M&A, continued debt reduction, and a disciplined return of capital to shareholders."

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**CONFERENCE CALL**

A conference call will be held Friday, February 27, 2026, at 11:00 a.m. ET to review the Company's financial results, discuss recent events and conduct a question-and-answer session.

A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of Escalade's website at www.escaladeinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download, and install any necessary audio software.

To participate in the live teleconference:

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| | |
|:---|:---|
| **Domestic Live:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1-833-890-3250 |
| **International Live:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1-412-206-6441 |

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To listen to a replay of the teleconference, which subsequently will be available through March 13, 2026:

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| | |
|:---|:---|
| **Domestic Replay:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1-844-512-2921 |
| **International Replay:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1-412-317-6671 |
| **Conference ID:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10206528 |

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**USE OF NON-GAAP FINANCIAL MEASURES**

In addition to disclosing financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"), this release contains the non-GAAP financial measure known as "EBITDA." A reconciliation of this non-GAAP financial measure is contained at the end of this press release. EBITDA is a non-GAAP financial measure that Escalade uses to facilitate comparisons of operating performance across periods. Escalade believes the disclosure of EBITDA provides useful information to investors regarding its financial condition and results of operations. Non-GAAP measures should be viewed as a supplement to and not a substitute for the Company's U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated. Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of the Company's results as reported under U.S. GAAP and should be evaluated only on a supplementary basis.

**ABOUT ESCALADE** 

Founded in 1922, and headquartered in Evansville, Indiana, Escalade designs, manufactures, and sells sporting goods, fitness, and indoor/outdoor recreation equipment. Our mission is to connect family and friends, create lasting memories, and play life to the fullest. Leaders in our respective categories, Escalade's distinct and acclaimed brands include Goalrilla™ in-ground basketball hoops; STIGA® tennis tables and accessories; Bear® Archery and archery equipment; Brunswick Billiards® tables and accessories; Accudart® darting; ONIX® pickleball; Lifeline® fitness products; and RAVE Sports® water recreation products. Escalade's products are available online and through leading retailers nationwide. For more information about Escalade's diverse and prominent brand portfolio, history, financials, and governance, please visit www.escaladeinc.com.

**INVESTOR RELATIONS CONTACT**

Wesley Smith

Vice President, Financial Reporting & Investor Relations

812-467-1334

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**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 historical fact, are forward-looking statements. These statements relate to our financial condition, results of operations, plans, objectives, future performance, capital actions or business. They usually can be identified by the use of forward-looking language such as "will likely result," "may," "are expected to," "is anticipated," "potential," "estimate," "forecast," "projected," "intends to," or may include other similar words or phrases such as "believes," "plans," "trend," "objective," "continue," "remain," or similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," or similar verbs. You should not place undue reliance on these statements, as they are subject to risks and uncertainties. These risks include, but are not limited to: Escalade's ability to achieve its business objectives; Escalade's plans and expectations surrounding the transition to its new Chief Executive Officer and all potential related effects and consequences; Escalade's ability to successfully implement actions to lessen the potential impacts of tariffs, a potential trade war with China and other trade restrictions applicable to our products and raw materials, including impacts on the costs of producing our goods, importing products and materials into our markets for sale, and on the pricing of our products; our international operations, including any related to political uncertainty and geopolitical tensions; Escalade's ability to successfully achieve the anticipated results of strategic transactions, including the integration of the operations of acquired assets and businesses and of divestitures or discontinuances of certain operations, assets, brands, and products; the continuation and development of key customer, supplier, licensing and other business relationships; Escalade's ability to protect its intellectual property; Escalade's ability to develop and implement our own direct to consumer e-commerce distribution channel; the impact of competitive products and pricing; product demand and market acceptance; new product development; Escalade's ability to successfully negotiate the shifting retail environment and changes in consumer buying habits; the financial health of our customers; disruptions or delays in our business operations, including without limitation disruptions or delays in our supply chain, arising from political unrest, war, terrorist attacks, labor strikes, natural disasters, public health crises such as the coronavirus pandemic, and other events and circumstances beyond our control; the evaluation and implementation of remediation efforts designed and implemented to enhance the Company's control environment; the potential identification of one or more additional material weaknesses in the Company's internal control of which the Company is not currently aware or that have not yet been detected; Escalade's ability to control costs, including managing inventory levels; general economic conditions, including inflationary pressures; fluctuation in operating results; changes in foreign currency exchange rates; changes in the securities markets; continued listing of the Company's common stock on the NASDAQ Global Market; the Company's inclusion or exclusion from certain market indices; Escalade's ability to obtain financing, to maintain compliance with the terms of such financing and to manage debt levels; the availability, integration and effective operation of information systems and other technology, and the potential interruption of such systems or technology; the potential impact of actual or perceived defects in, or safety of, our products, including any impact of product recalls or legal or regulatory claims, proceedings or investigations involving our products; risks related to data security of privacy breaches; the potential impact of regulatory claims, proceedings or investigations involving our products; Escalade's use of estimates in its financial reporting as well as in its forward looking statements; and other risks detailed from time to time in Escalade's filings with the Securities and Exchange Commission. Escalade's future financial performance could differ materially from the expectations of management contained herein. Escalade undertakes no obligation to release revisions to these forward-looking statements after the date of this report.

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Escalade, Incorporated and Subsidiaries

**Consolidated Statements of Operations**

(Unaudited, In Thousands Except Per Share Data)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fourth Quarter Ended | Fourth Quarter Ended | Four Quarters Ended | Four Quarters Ended |
| All Amounts in Thousands Except Per Share Data | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 |
| Net sales | $62560 | $63942 | $240158 | $251510 |
| Costs and Expenses |  |  |  |  |
| Cost of products sold | 45208 | 47994 | 175513 | 189306 |
| Selling, administrative and general expenses | 11608 | 10864 | 43626 | 43303 |
| Amortization | 591 | 571 | 2292 | 2802 |
| Gain on sale of assets held for sale |  |  |  | (3905) |
| Operating Income | 5153 | 4513 | 18727 | 20004 |
| Other Income (Expense) |  |  |  |  |
| Interest expense | (175) | (307) | (836) | (2302) |
| Other income (expense) | 28 | 61 | 131 | 74 |
| Income Before Income Taxes | 5006 | 4267 | 18022 | 17776 |
| Provision for Income Taxes | 1303 | 1567 | 4321 | 4790 |
| Net Income | $3703 | $2700 | $13701 | $12986 |
| Earnings Per Share Data: |  |  |  |  |
| Basic earnings per share | $0.27 | $0.20 | $1.00 | $0.94 |
| Diluted earnings per share | $0.27 | $0.19 | $0.99 | $0.93 |
| Dividends declared | $0.15 | $0.15 | $0.60 | $0.60 |

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Consolidated Balance Sheets

(Unaudited, In Thousands)

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| | | |
|:---|:---|:---|
| All Amounts in Thousands Except Share Information | December 31,<br> 2025 | December 31,<br> 2024 |
| ASSETS |  |  |
| Current Assets: |  |  |
| Cash and cash equivalents | $11878 | $4194 |
| Receivables, less allowance for credit losses of $1,226 and $694; respectively | 46315 | 48768 |
| Inventories | 68474 | 76025 |
| Prepaid expenses | 3351 | 4372 |
| Prepaid income tax | 557 | 465 |
| TOTAL CURRENT ASSETS | 130575 | 133824 |
| Property, plant and equipment, net | 22355 | 22221 |
| Operating lease right-of-use assets | 1276 | 1186 |
| Intangible assets, net | 25445 | 25838 |
| Goodwill | 42326 | 42326 |
| Other assets | 132 | 935 |
| TOTAL ASSETS | $222109 | $226330 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| Current portion of long-term debt | $7143 | $7143 |
| Trade accounts payable | 9150 | 11858 |
| Accrued liabilities | 13680 | 15050 |
| Current operating lease liabilities | 510 | 444 |
| TOTAL CURRENT LIABILITIES | 30483 | 34495 |
| Long-term debt | 11309 | 18452 |
| Deferred income tax liability, net | 6303 | 3302 |
| Operating lease liabilities | 798 | 787 |
| Other liabilities |  | 297 |
| TOTAL LIABILITIES | 48893 | 57333 |
| Commitments and contingencies |  |  |
| 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: 2025 —13,696,311 shares, 2024 —13,732,719 shares | 3013 | 4218 |
| Retained earnings | 170203 | 164779 |
| TOTAL STOCKHOLDERS' EQUITY | 173216 | 168997 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $222109 | $226330 |

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Consolidated Statements of Cash Flows

(Unaudited, In Thousands)

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| | | |
|:---|:---|:---|
|  | Years Ended | Years Ended |
| All Amounts in Thousands | December 31,<br> 2025 | December 31,<br> 2024 |
| Operating Activities: |  |  |
| Net Income | $13701 | $12986 |
| Reconciling adjustments: |  |  |
| Depreciation and amortization | 5063 | 6041 |
| Allowance for credit losses | 983 | 747 |
| Stock option and restricted stock unit expense | 1651 | 1932 |
| Issuance of common stock for service | 242 |  |
| Deferred income taxes | 3001 | 177 |
| Loss (gain) on disposals of assets | 7 | (3651) |
| Changes in |  |  |
| Accounts receivable | 1469 | 470 |
| Inventories | 7551 | 16437 |
| Prepaids and other assets | 1732 | (1724) |
| Accounts payable and accrued expenses | (4386) | 2634 |
| Net cash provided by operating activities | 31014 | 36049 |
| Investing Activities: |  |  |
| Purchase of property and equipment | (2512) | (2038) |
| Acquisitions | (2300) |  |
| Proceeds from sale of property and equipment |  | 5967 |
| Net cash (used in) provided by investing activities | (4812) | 3929 |
| Financing Activities: |  |  |
| Dividends paid | (8277) | (8306) |
| Proceeds from issuance of long-term debt | 26208 | 114785 |
| Payments on long-term debt | (33351) | (140085) |
| Purchase of stock | (3098) | (2194) |
| Net cash used in financing activities | (18518) | (35800) |
| Increase in Cash and Cash Equivalents | 7684 | 4178 |
| Cash and Cash Equivalents, beginning of year | 4194 | 16 |
| Cash and Cash Equivalents, end of year | $11878 | $4194 |
| Supplemental Cash Flows Information |  |  |
| Interest paid | $812 | $2231 |
| Income taxes paid, net | $1708 | $4989 |

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Reconciliation of GAAP Net Income to Non-GAAP EBITDA

(Unaudited, In Thousands)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Fourth Quarter Ended | Fourth Quarter Ended | Four Quarters Ended | Four Quarters Ended |
| All Amounts in Thousands | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 |
| Net Income (GAAP) | $3703 | $2700 | $13701 | $12986 |
| Interest expense | 175 | 307 | 836 | 2302 |
| Income tax expense | 1303 | 1567 | 4321 | 4790 |
| Depreciation and amortization | 1296 | 1350 | 5063 | 6041 |
| EBITDA (Non-GAAP) | $6477 | $5924 | $23921 | $26119 |

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