Sport Supply Group has now either sold or discontinued operations in all of its team dealers with the exception of its operation based in Dallas, TX.
In July, SSPY shut down Spaulding Athletic, a team dealer located in Little Rock, AR that it had acquired in late 1999. In October, the company sold all assets, other than cash and accounts receivable, of the Spaulding operation. SSPY has also jettisoned the Larry Black Sporting Goods operations that it acquired in early 1999. In October 2003, the company discontinued operations at the Larry Black location in Enid, OK. In November, they sold all assets of the Larry Black operation in Wichita, KS with the exception of cash and accounts receivable.
The company reported $256,000 in losses from the discontinued Spaulding operation during the fiscal second quarter ended September 26, 2003. Revenues generated through the Spaulding operation in fiscal Q2 amounted to just over $170k, versus more than $540k in the year-ago period. The Larry Black operations showed $55,000 in earnings in the period on sales of over $1.2 million, versus earnings of just $14,000 on sales of approximately $1.8 million in fiscal Q2 LY.
Overall, Team Dealer operations saw a $422,000 decrease in revenues for the quarter. SSPY also had a $383,000 decrease in revenues at its wholly-owned subsidiary, Athletic Training Equipment Company, Inc.
Total revenues for the fiscal second quarter rose 1.4% to $29.9 million, with the declines offset primarily from a $1.2 million increase in core institutional revenues from “more aggressive pricing and other revenue generating programs”. Internet orders increased 9.0% to $1.2 million for the quarter.
Gross margins dipped 250 basis points to 28.2%, due primarily to “aggressive competitive pricing and increased importing costs”. The importing costs accounted for 110 basis points of the decline.
The net result was a $290,000, or 3 cents per diluted share, loss for the period versus a small $22,000 profit and no EPS in the year-ago period.
