Easton-Bell Sports, Inc. reported that net sales for 2005 increased 129% to $379.9 million, as compared to $165.9 million for 2004. Approximately $200.6 million of the increase was a result of including Bell Sports for a full year versus a three-month period from the time of acquisition of Bell Sports in September 2004.
The company's Team Sports segment contributed double-digit growth in the helmet, shoulder pad and cloth product sales categories. Also contributing to the increase in net sales was strong single-digit growth in the company's reconditioning business. The increase in these product categories are the result of the company's expanding sales force and a shift in mix towards the company's Revolution helmet, which is priced at a premium to previous helmet offerings.
Net income was $3.1 million for the year, compared to a net loss of $13.1 million in 2004. Adjusted EBITDA for the full year of 2005 was $57.8 million compared to $50.2 million in 2004. A detailed reconciliation of net income to Adjusted EBITDA is included in the Company's Reconciliation of Non-GAAP Financial Measures which appears at the end of this press release.
The sadi it enjoyed a strong fourth quarter with year over year net sales growth of 31.3% and an Adjusted EBITDA increase of 114.8%.
Net debt (total debt of $248.9 million less cash of $3.6 million) totaled $245.3 million as of December 31, 2005, a decrease of $3.4 million over the prior year due to a lower total debt and a higher cash balance. Interest coverage was 2.9 times as of December 31, 2005 compared to 3.1 times in 2004. Working capital ending December 31, 2005 was $101.7 million versus $85.9 million in 2004.
As of December 31, 2005, the company was comprised of two formerly independent companies, Riddell Sports Group, Inc. (“Riddell Sports”) and Bell Sports Corp. (“Bell Sports”). On March 16, 2006, the Company (which was formerly called Riddell Bell Holdings, Inc.) acquired Easton Sports, Inc. and changed the name of the Company to Easton-Bell Sports, Inc. The Company's 2005 financial results do not include those of Easton Sports, Inc.
