Collegiate Pacific reported record earnings for
its fourth quarter and year ended June 30, 2004.
Michael J. Blumenfeld, CEO stated: “We are pleased to report
record results for the quarter and fiscal year ended June 30,2004.
FY04 results exceeded previously disclosed company expectations in net
sales ($39.6M vs. $38.0M); net income ($1.9M vs. $1.8M); and net
income per share (“EPS”) ($0.25 vs. $0.24). When comparing FY04 net
income and EPS to the previous year, it is important to note that FY04
was fully taxed, whereas FY03 was not only non-taxed, but included a
$350,000 tax credit. As we move forward into FY05 (beginning July
1,2004), given the dynamic changes in the Company, we encourage
investors to use net sales, operating profit, net income and EPS as
the key metrics for evaluation. Metrics such as gross margins and SG&A
as a percentage of sales will be less meaningful for comparative
purposes with Tomark Sports, Kesslers Team Sports and Dixie Sporting
Goods being included in our results of operations for FY05.
“Achieving this level of performance while simultaneously bringing
Tomark, Kesslers and now Dixie onto our operating platform is
gratifying, and a testament to the dedicated and hard working employee
base at Collegiate Pacific. Having successfully concluded a national
training seminar in late July for each of the acquired sales forces,
we enter FY05 with high expectations. In addition to maximizing the
performance of these acquisitions and our organic business, we will
continue to seek strategic partners on the distribution, and/or
manufacturing front as opportunities warrant. In particular, we seek
those partners who can influence the geographic reach of our sales
force, or those with products and brands that can add to the 'tool
kit' of our sales teams and catalogs.
“For fiscal 2005, we anticipate net sales to exceed $90.0M, net
income of approximately $5.0M or greater, and EPS of approximately
$0.50. The Company may incur additional non-cash amortization charges
in conjunction with the acquisitions of Kesslers Team Sports and Dixie
Sporting Goods during FY05, however, these charges have been included
in our EPS outlook.”
Outlook for Fiscal 2005
-- Net Sales to exceed $90.0M vs. $39.6M
-- Operating Profit of approximately $8.0M or greater vs. $3.2M
-- Net Income of approximately $5.0M or greater vs. $1.9M
-- EPS to approximate $0.50 or greater based on anticipated share
count of 10.0 - 10.3M shares outstanding vs. $0.25 on 7.57M
outstanding in FY04-- Includes estimated non-cash amortization charges for
Kesslers and Dixie acquisitionsCOLLEGIATE PACIFIC INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 2004 AND 20032004 2003
------------ ------------Net sales $39,561,521 $21,075,893
Cost of sales 25,372,325 13,268,532
------------ ------------Gross profit 14,189,196 7,807,361
Selling, general and administrative expenses 10,866,254 6,780,705
Amortization expense 119,232 58,300
------------ ------------Operating profit 3,203,710 968,356
------------ ------------Other income (expense):
Interest income 22,388 3,200
Interest expense (52,415) (84,525)
Other 18,376 17,186
------------ ------------
Total other expense (11,651) (64,139)
------------ ------------Income before income taxes 3,192,059 904,217
Provision for income tax (benefit) 1,308,367 (349,632)
------------ ------------Net income $1,883,692 $1,253,849
============ ============Weighted average number of shares
outstanding:
Basic 6,324,950 4,225,784
============ ============
Diluted 7,571,910 4,669,574
============ ============Net income per share common stock -- basic $0.30 $0.30
============ ============
Net income per share common stock -- diluted $0.25 $0.27
============ ============
