Sport Supply Group, Inc. announced revenues for the three months ended December 27, 2002 were $18,518,378 as compared to $17,042,624. Gross profit for the quarter was $5,067,030 (27.4%) as compared to $4,831,928 (28.4%). Net loss for the quarter was ($2,358,809) as compared to ($3,695,055) for the comparative quarter last year.
The Company announced that more than 1,000 organizations have joined the Company’s Associate Program. The Associate Program enables organizations to incorporate SSG’s electronic catalogue into their own website and market SSG’s sporting goods products to their members. The Associates receive a percentage of the revenues generated from the sale of sporting goods ordered on the associates sites. The Company believes that the advantages offered to an associate are unique in the institutional sporting goods marketplace.
For the nine months ended December 27, 2002, revenues were $71,378,981 as compared to $73,242,437. Gross profit for this period was $21,238,192 (29.8%) as compared to $20,659,766 (28.2%). Net loss for the nine months ended December 27, 2002 was ($2,126,864) compared to ($4,350,250) the prior year.
SSG’s balance sheet remains strong at December 27, 2002, with total assets of $63.0 million, stockholders equity of $34.9 million, and working capital of $23.0 million. SSG reduced its bank debt by $3.5 million from the beginning of the fiscal year.
John P. Walker, President, stated “While the December quarter is traditionally the weakest in the institutional sporting goods industry, our operating results for this quarter are noticeably improved and represent the fourth consecutive quarter of improved results. We continue to be optimistic that the strategic initiatives set in place by the Company are on track and producing favorable results in all operating areas of the Company. Our bookings and revenues increased sharply during the December quarter showed while the restructuring and operating expense reduction initiatives have improved our operating results.
“The Company’s operating, e-commerce and sourcing infrastructure have been streamlined to bring additional product to the marketplace in a very effective and efficient manner. This is being done with such well-known brand names that we own or license like MacGregor(R), Voit(R), Champion Barbell(TM) and ATEC(R). We will continue to look for opportunities to jointly develop additional products and product lines with others in the sporting goods industry. Our product development will be done with our associates in mind, knowing that we can reach them in a joint marketing alliance.
“The Company’s Associate Program continues to expand to many organizations. We have seen a significant increase in the orders through the Associate Program and we expect this to continue as a result of wide acceptance among our customer base.
“Furthermore, we have now successfully launched free website hosting for our customers. We anticipate this value added convenience will reinforce the benefits of participating in the program.”
Emerson Radio Corp. owns approximately 53% of Sport Supply Group.
Sport Supply Group, Inc.
Summary Operating Results and Balance Sheets
For The 9 Months Ended December 2002
Summary Operating Results 9 Months Ended Quarter Ended
--------------- ---------------
($000) Dec 2002 Dec 2001 Dec 2002 Dec 2001
-------- -------- -------- -------
Revenues 71,379 73,242 18,518 17,043
Gross Profit 21,238 20,660 5,067 4,832
Operating Expense 22,930 24,285 7,447 7,945
Operating Loss (1,693) (3,625) (2,380) (3,112)
Interest & Other Expense 434 725 115 208
Net Loss (2,127) (4,350) (2,358) (3,695)
