FOR FURTHER INFORMATION:
At the Company:
John P. Walker
President
972/406-7108 		Robert Mitchell
Chief Financial Officer
972/406-3484

FOR IMMEDIATE RELEASE

Friday, February 15, 2002

 

SPORT SUPPLY GROUP ANNOUNCES OPERATING RESULTS FOR THE THIRD QUARTER ENDED DECEMBER 2001

Dallas, Texas, Friday, February 15, 2002 - Sport Supply Group, Inc. (OTCBB: SSPY) today announced the results for the quarter ended December 2001.

Quarter Ended December 2001. Net sales for the December quarter were $17.0 million as compared to $18.2 million for the same period last year. Gross profit percentage for the quarter increased 1.4% to 28.4%, from 27.0% for same quarter last year. SG&A expenses were $7.8 million and unchanged from the same period a year ago. Interest expense for the quarter was reduced from $.5 million to $.2 million. Operating loss for the quarter ended December was $3.1 million compared to an operating loss of $3.0 million the same quarter last year. Net loss per share for the quarter was $0.41 as compared to a per share loss of $0.31 the same quarter last year. The increase in the net loss and net loss per share for the quarter was the result of the Company’s recording adjustments to its non-cash deferred tax asset.

Nine Months Ended December 2001. Net sales for the nine months ended December 2001 were $73.2 million compared to $80.9 million for the same period in 2000. Gross margin for the nine month period was 28.2% as compared to 28.7% for the same period last year. Included in the gross margin this year was $.5 million for restructuring reserves to close certain of the Company’s manufacturing facilities. The gross margin for this period without these restructuring reserves was 28.9%. SG&A and Internet expenses were reduced by $3.2 million, or 11.5%, for the period to $24.3 million. Interest expense was reduced by 50% to $.8 million. Operating losses narrowed to $3.6 million from $4.2 million a year ago. Net losses were $4.3 million compared to $3.7 million primarily because of adjustments to the company’s deferred tax assets.


Other Financial Highlights for the periods ended December 2001 as compared to December 2000

John P. Walker, President of Sport Supply Group stated, "Our December quarter is traditionally our weakest quarter, as it is for others in the institutional sporting goods industry. During the past nine months of this fiscal year we have consciously exited certain product lines that were no longer competitive to market. Since implementing this strategy, we have closed two of our manufacturing facilities and have reorganized the production in our Dallas manufacturing facility. These programs, along with a stringent focus on gross margin improvement, working capital management and expense control, have produced significant improvement in the Company’s balance sheet. In the past twelve months, we have reduced our bank debt by more than $5.8 million and trimmed our working capital by more than $3.8 million. These initiatives will allow SSG to move directly into a more efficient role of marketing quality products at lower prices with less inventory commitments.

As the Company looks to expand distribution with other sales channels we believe SSG is well positioned with the necessary brands, product offering, pricing, distribution and technology to begin to attack market share."

Sport Supply Group is a leading direct marketer and B2B e-commerce supplier of sporting goods equipment to the institutional and youth sports market place. Athletes, coaches and instructors in schools, colleges, universities, governmental agencies, camps and youth organizations across the country use the Company’s products. The Company’s Form 10Q and other public information are available on the Internet.

Visit us at www.sportsupplygroup.com.

This news release, other than the historical information, consists of forward looking statements that involve risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Company’s Reports on Form 10-K and Form 10-Q. Such forward-looking statements are made based on management’s belief as well as assumptions made by, and information currently available to, management pursuant to the ‘safe harbor’ provisions of the Private Securities Litigation Reform Act of 1995. Actual results may vary materially.

 

 

Sport Supply Group Inc.

Summary Financial Information

Quarter Ended December 2001

(unaudited)

Statements of Operations

For The Three Months Ended

For the Nine Months Ended

 

December 28, 2001

December 29, 2000

December 28, 2001

December 29,

2000

Net Revenues

$ 17,042,624

$ 18,201,302

$ 73,242,437

$ 80,925,584

Gross Margins

4,831,928

4,916,603

20,659,766

23,232,683

Operating Loss

(3,112,398)

(2,994,215)

(3,624,539)

(4,211,482)

Income Tax (Expense) Benefit

(375,468)

1,298,351

0

2,153,034

Net Loss

$ (3,695,055)

$ (2,227,646)

$ (4,350,250)

$ (3,664,583)

Earnings Per Share

$ (0.41)

$ (0.31)

$ (0.49)

$ (0.50)

Weighted Shares Outstanding

8,914,606

7,279,165

8,914,606

7,279,165

Condensed Balance Sheet

As

of

December 28, 2001

March 30,
2001

Current Assets

$ 35,321,335

$ 44,004,383

Non Current Assets

27,428,607

29,579,961

Total Assets

$ 62,749,942

$ 73,584,344

Current Liabilities

$ 11,438,017

$ 15,621,796

Long Term Debt

15,033,078

17,333,451

Stockholder's Equity

36,278,847

40,629,097

Total Liabilities and Equity

$ 62,749,942

$ 73,584,344