The Company will host a
conference call today at 3:30CT / 4:30 ET. The call may be accessed by dialing
866 730 5767 and using pass code 76240866. A replay of the call may be accessed
for seven days by calling 888 286 8010 and using pass code 54527274.
March 12, 2009. Dallas, TX. Sport Supply Group, Inc. (NASDAQ: RBI) today announced results for its third
fiscal quarter ending March 31, 2009. Results for the Quarter include:
- Net sales of $63.8 Million,
down 3.1% from the prior year
- Gross Margins of 35.4%,
down 118 bps from the prior year
- SG&A of $16.0 Million,
down 10.0% or $1.7 Million from the prior year
- Operating Profit of $6.57 Million,
up 3.9% from the prior year
- Operating Margins of 10.3%,
up from 9.6% the prior year
- EBITDA of $7.3 Million,
essentially even with the prior year
- Net Income of $3.5 Million,
up 3.9% from the prior year
- Diluted EPS of $0.27, up 8.0%
from $0.25 in the prior yea
Year to Date Results for the
first nine months of the Fiscal Year include
- Net sales of $190.5
Million, essentially even with the prior year
- Gross Margins of 35.8%,
down 44 bps from 36.2% in the prior year
- SG&A of $51.5 Million,
down 3.4% or $1.8 Million from the prior year
- Operating Profit of $16.7
Million, up 6.7% from the prior year
- Operating Margins of 8.8%,
up from 8.2% in the prior year
- Net Income of $9.6 Million,
up 21% from the prior year
- Diluted EPS of $0.68, up
11% from $0.61 in the prior year
- Notes Payable and Long Term
Debt reduced by $20.5 Millio
Commenting on these results, Adam Blumenfeld, Chairman and CEO stated: “I am extremely pleased with these results for the
Quarter and Year-to-Date periods given the extraordinary operating environment
that currently exists. We produced operating margins of greater than 10% for
the Quarter by continuing our focus on the cost structure of the business, and
maintaining sales and margins within a relative range of acceptability through
a number of well executed programs on our Catalog and Team Dealer Platforms. Although
we have seen some impact of the weakening economy on our second and third
quarter sales and profits, through nine months the business has produced
marginally higher net sales and higher profits than the prior year, which on a
comparative basis we think is extremely impressive. Within the institutional
sporting goods space, we believe the Company is better positioned than its
peers in both sales and profitability, a byproduct of our fragmented and large
customer base (more than 100,000 active customers), diverse product mix of
equipment and uniforms (more than 10,000 active SKUs), significant scale, superior
technology, and outstanding execution from our 750 employees nationwide.
Mr. Blumenfeld continued,
“Despite our higher profits to date, we have no illusions as to the challenges
that may lie ahead. School and city budgets may face significant challenges in
the coming months. We see a “strong get stronger, weak get weaker” scenario
unfolding and think that Sport Supply Group is well positioned to capitalize on
such a scenario over the longer term. While no company is immune to the
effects of weakened demand, we think a combination of conservative spending and
an aggressive pursuit of new customers, new markets and new products is the
right recipe to best weather the storm. We intend to take every step necessary
today in cutting costs, preserving existing business, strengthening our balance
sheet and locating new opportunities so that when the tide does turn we are
positioned to create maximum operating leverage and growth for the benefit of
our shareholders, and ultimately for the benefit of the franchise value of this
Company.”
Sport Supply Group, Inc. and
Subsidiaries
Condensed Consolidated
Statements of Income
(Unaudited)
(In thousands, except share and per share amounts)
Sport Supply Group, Inc. and
Subsidiaries
Condensed Consolidated
balance sheets
(Unaudited)
(Dollars In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
62,094
|
|
88,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sport Supply Group, Inc. and
Subsidiaries
Condensed Consolidated
statementS of cash flow
(Unaudited)
(In thousands)
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS TO
EBITDA AND
ADJUSTED EBITDA
(Unaudited, in thousands)
|
|
Three Months Ended March 31,
|
|
Trailing Twelve Months Ended March 31,
|
|
|
2009
|
2008
|
|
2009
|
2008
|
|
|
|
|
|
|
|
|
Net Income
|
$ 3,510
|
$ 3,376
|
|
$ 11,433
|
$ 7,621
|
|
Provision for income
taxes
|
2,201
|
2,069
|
|
7,277
|
4,562
|
|
Interest expense, net
of interest income
|
885
|
929
|
|
2,102
|
4,480
|
|
Depreciation and
amortization
|
701
|
947
|
|
3,060
|
3,724
|
|
EBITDA (a)
|
7,297
|
7,321
|
|
23,872
|
20,387
|
|
Other expenses:
|
|
|
|
|
|
|
Stock-based
compensation expense
|
284
|
138
|
|
991
|
355
|
|
Adjusted EBITDA (a)
|
$ 7,581
|
$ 7,459
|
|
$ 24,863
|
$ 20,742
|
|
|
|
|
|
|
|
(a) EBITDA and Adjusted
EBITDA are non-GAAP financial measures. EBITDA is defined as net income before
interest expense (net of interest income), income taxes, depreciation and
amortization. Adjusted EBITDA is defined as net income before interest expense
(net of interest income), income taxes, depreciation, amortization, and other
items included in the caption above labeled "Other expenses" which do
not directly relate to ongoing operations. SSG management relies on EBITDA and
Adjusted EBITDA as the primary measures to review and assess operating
performance. SSG believes it is useful to investors to provide disclosures of
its operating results on the same basis that is used by management. Management
and investors also review EBITDA and Adjusted EBITDA to evaluate SSG's overall
performance and to compare SSG's current operating results with corresponding
periods and with other companies. You should not consider EBITDA and Adjusted
EBITDA in isolation or as a substitute for net income, operating cash flows or
other cash flow statement data determined in accordance with accounting
principles generally accepted in the United States of America. Because EBITDA
and Adjusted EBITDA are not measures of financial performance under accounting
principles generally accepted in the United States of America and are
susceptible to varying calculations, they may not be comparable to similarly
titled measures of other companies.
About Sport Supply Group
Sport Supply Group, Inc. is the nation’s leading marketer, manufacturer and distributor of sporting goods and branded team uniforms to the institutional and team sports market. The Company markets via 3 million direct catalogs, a 40 man telesales team, 197 direct sales professionals and a family of company-controlled websites.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to the Company's anticipated financial performance, business prospects, new developments and similar matters, and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. These forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including changes in business, political, and economic conditions which changes may negatively impact school and other government supported budgets as well as the cost of doing business, actions and initiatives by current and potential competitors, the availability and cost of financing, and certain other additional factors described in the Company's filings with the Securities and Exchange Commission, including under the heading “Risk Factors” in the Company’s annual reports on Form 10-K and under the heading “Risk Factors” and/or “Statement Regarding Forward-Looking Disclosure” in the Company’s quarterly reports on Form 10-Q. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. The Company is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.
