Collegiate Pacific more than quadrupled net sales over last year for their fiscal first quarter, largely because of the acquisitions of Dixie Sports, Kesslers, and Tomark and the 150 new in-field sales representatives included in the deals. The company also posted “over 20%” organic growth in its existing catalog business.

Net sales were up 364% to $27.7 million vs. $5.9 million during Q1 last year. Gross margins fell 370 basis points to 33.9% due to the lower average margins at the acquired businesses, but GM was roughly 50 basis points higher than management expected.

In a conference call with analysts, BOO president Adam Blumenfeld said that the company’s top sales people increased their margins by two full percentage points. Since the sales force is paid according to margin dollars, not sales dollars, this had a very definite impact on both personal and company earnings.

Fiscal first quarter operating profit was up 655% to $3.4 million compared to $0.5 million during Q1 last year, while net income climbed 669% to $2.07 million vs. $0.3 million during Q1 last year. Diluted EPS was 21 cents in Q1 versus five cents in Q1 last year on 74% more shares outstanding.

Blumenfeld also told analysts that the first step in their strategic plan-the training of sales staff in Collegiate Pacific’s proprietary product and creating leverage with that product-was now complete. Moving forward the company has four initiatives it will implement.

First, the company will accelerate additions to the sales team, with a target of 300-400 salespeople. These additional personnel “may or may not” come in the form of acquisitions. Second, the company will provide more product to push through the pipeline by targeting joint ventures and product marketing relationships with companies like Under Armor. The company will target markets where the sales force is strongest. Third, Collegiate Pacific will step gross margins back up to “the level we’d like to see them.”

Finally, Blumenfeld said they are working on solidifying the operating platform. “Now is the time to invest in quality personnel, systems and equipment… We are building this platform to support a materially larger and more profitable business than we currently have.”

The company continues to look at acquisition opportunities, and “has maintained a near debt free structure” which should allow them to move in on any opportunities presented. Internationally, Blumenfeld said the “low hanging fruit” is clearly on the domestic side, but he foresees JV opportunities in the international market which could “open thing up.”

The company declined to offer guidance, other that saying, “We will take it quarter by quarter until we are at the $1.00 per share range in 2007.”