Collegiate Pacific Inc. reported third quarter sales grew 6.4% to $63.2 million, primarily attributable to a 17% organic growth rate generated by its road sales force and end-of-season basketball uniform deliveries, as well as solid uniform demand from spring sports. Gross margins improved to 36.1% from 35.3%, driven primarily by the company’s Catalog division, which experienced a 150 basis point improvement in gross margin percentages to 37.5% from 36% a year ago. Net income improved 41% to $$1.7 million, or 17 cents a share, from $1.2 million, or 12 cents, a year ago.

Management said the bottom-line improvement was due in part to the elimination of minority interest in Sport Supply Group, as well as synergies gained from the integration of the companies. Newly combined catalogs will be mailing at the end July, and management anticipates “some rather significant paper catalog savings” as they move into fiscal 2008. Also, roughly 400 to 500 SKUs have been identified for elimination. This was partly why year-over-year inventory levels through March 31 were down $2.2 million on a consolidated basis.

Looking to 2008, CEO Adam Blumenfeld said he expects top-line organic growth similar to this year. Investments are being made in the telemarketing and road sales divisions to offset any weakening in sales caused by the reduction in catalogs.