Collegiate Pacific reported revenues increased 25% to $6 milliono for its fiscal first quarter ended September 30.
Gross Margins rose 100 basis points, assisting a 50% gain in pre tax earnings to $444,400. Net Income declined 3.5% to $269,292, or 5 cents per diluted share…
Michael Blumenfeld, CEO, commented on the quarterly results, “We
are pleased with the progression of the quarter which met or exceeded
our expectations. The operating leverage evidenced by the 59% increase
in pretax income is primarily the result of the expanded
infrastructure and marketing programs put in place during our last
fiscal year. This first quarter is fully taxed as compared to no taxes
in the comparative quarter last year and includes a 21% increase in
fully-diluted weighted, outstanding shares. We encourage our
shareholders and investors to measure our success by revenue and
pretax growth until such time as comparative quarters have the same
tax and weighted share count components.” The chart below reflects the
EPS comparisons:
Q1-04 Q1-03 Q1-03 as reported as reported fully taxed EPS $.05 $.06 $.03
When applying the same tax rate and fully diluted share counts to
each reporting period as shown above, comparative EPS would have risen
by 67%. As the year unfolds and as we put our new capital to work, the
comparative EPS impact of rising share counts and taxes should be
reduced.
Subsequent to the end of this quarter Collegiate Pacific completed
a public offering which resulted in the Company now having
approximately $6 million in cash, no bank debt and an unused credit
facility. This unique financial structure will allow for both internal
and external expansion aimed at increasing revenues, earnings and
shareholder values. As the result of our expanded financial structure
we are now reviewing much larger potential transactions which, if
concluded, would have a material impact on future revenues and
earnings.
COLLEGIATE PACIFIC INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended September 30, ---------------------------------- 2003 2002 --------------------- ------------ Net sales $5,973,592 $4,766,191 Cost of sales 3,725,352 3,010,014 --------------------- ------------ Gross margin 2,248,240 1,756,177 Selling, general and administrative Expenses 1,793,446 1,460,638 --------------------- ------------ Operating profit 454,794 295,539 Other income (expense) Interest expense (10,718) (16,555) Other income 278 186 --------------------- ------------ Income before provision for taxes 444,354 279,170 Provision for taxes 175,062 -- --------------------- ------------ Net income $269,292 $279,170 ===================== ============ Net income per share-basic $0.06 $0.07 ===================== ============ Net income per share-diluted $0.05 $0.06