FOR FURTHER INFORMATION:
At the Company:
John P. Walker
President
972/406-7108
FOR IMMEDIATE RELEASE
Tuesday August 12, 2003
Sport Supply Group Reports Profitable Results
for First Quarter Ended June 27, 2003DALLAS--(BUSINESS WIRE)--Aug. 12, 2003--Sport Supply Group, Inc. (OTCBB:SSPY), a leading sporting goods distributor and e-commerce company, today announced profitable results for the three months ended June 27, 2003. Net income before cumulative effect of accounting change for the quarter ended June 2003 was $115 thousand compared to $210 thousand for the quarter ended June 2002. Earnings per share for the quarter, before cumulative effect of accounting change, was $0.01 per diluted share as compared to $0.02 the previous year. The June 2002 quarter reflects a one-time, $7.4 million non-cash charge associated with the cumulative accounting effect of implementing Financial Accounting Standards Board Statement 142 (Accounting for Goodwill and Other Intangible Assets). The loss for the quarter ending June 2002 was ($0.81) per diluted share after this non-cash charge.The Company reported continued customer migration to its websites. Orders entered over its websites increased by 91% for the quarter and sales over its websites increased by more than 50% from the same quarter last year. During the quarter the Company processed more than 9,100 orders over the web as compared to 4,800 orders last year for the comparable period.
John P. Walker, President stated, "The results of the June quarter continue to build upon our strategy of making the Company more efficient while at the same time executing our core fundamentals.
"While state and federal budget cuts have affected school spending, we have been successful in increasing our core business with schools during the quarter. Our results reflect softness in our resale and dealer revenues while our traditional direct mail business performed better as compared to the same quarter last year. We continue to see strong migration to the Company's websites that will allow us to continue to enjoy significant savings in overhead.
"We are continuing our revenue diversification strategies to broaden our market reach and expand our sales of sporting goods beyond our traditional institutional sporting goods customer base. Sales and marketing programs directed to big-box retail, corporations, associations and consumers are being launched. We anticipate these efforts will contribute revenue later this fiscal year."
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.
For more information about Sport Supply Group or to sign up as an associate for your organizations own on-line sporting goods store, please visit 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 First Quarter Ended June 27, 2003 Summary Operating Results Quarter Ended ------------------------- June 2003 June 2002 ------------ ------------ (unaudited) (unaudited) Revenues 25,961,460 26,773,157 Gross Profit 7,374,801 8,139,289 SG&A Expenses 6,937,190 7,553,030 Internet Expenses 117,340 73,619 ------------ ------------ Operating Income 320,271 512,640 Interest & Other Expense 136,249 176,074 Taxes On Income 68,979 126,844 ------------ ------------ Net Income Before Cumulative Effect of Accounting Change 115,043 209,722 Cumulative Effect of Accounting Change (7,442,432) Net Income (Loss) After Cumulative Effect of Accounting Change 115,043 (7,232,710) ------------ ------------ EPS - Before Accounting Change $.01 $0.02 EPS - After Accounting Change $.01 $(0.81) ------------ ------------ Summary Balance Sheets June 27, March 28, 2003 2003 ------------ ------------ (unaudited) Cash and Equivalents 929,530 2,142,302 Accounts Receivable 13,495,781 20,245,675 Inventory 19,741,323 19,564,314 Other Current Assets 2,199,751 2,102,125 ------------ ------------ Total Current Assets 36,366,385 44,054,416 Property 8,124,317 8,519,936 Other Assets 8,877,263 9,421,287 ------------ ------------ Total Assets 53,367,965 61,995,639 ------------ ------------ Current Liabilities 9,139,845 16,338,359 Long Term Debt 16,067,550 17,611,753 Stockholders' Equity 28,160,570 28,045,527 ------------ ------------ Total Liabilities and Equity 53,367,965 61,995,639 ------------ ------------Please refer to our Form 10-Q as filed with the SEC for complete financial information.