Collegiate Pacific reported it's operating results for its three and six month periods ended December 31, 2003.
Michael Blumenfeld, CEO, in discussing the company's operating
results stated “While our three and six month operating results each
fiscal year are historically the seasonal low points of our
operations, both the second fiscal quarter ended December 31, 2003 and
six months ended December 31, 2003 were almost exactly on track to
meet our previously announced operating results for fiscal 2004, which
ends on June 30, 2004. Highlights of the periods were:
For the Second Fiscal Quarter Ended December 31, 2003
-----------------------------------------------------
Current financial ratio increases to 10:1
Net Sales rise 21% to $4.24 million
Seasonal net loss reduced by 12%
Diluted EPS seasonal loss reduced 25% to ($.04) vs. ($.05)
“Our second fiscal quarter each fiscal year is generally used as a
staging platform for our historically stronger January-June selling
periods and is heavily influenced by national holidays, school
closings and weather conditions. With sequential quarterly net sales
set to grow by over 100% this fiscal year over our fiscal year ended
June 30, 2003, we experienced a disproportionate increase in operating
expenses during our second fiscal quarter this year in anticipation of
the acceleration of net sales. This increase is part of the normal
“table-setting” process.
For the Six Months Ended December 31, 2003
------------------------------------------
Net Sales increased 23% to $10.2 million
Operating profits increased 85%
Pretax profits increased 183%
Net income increased 37%
“We believe the operating results for the six months ended
December 31 each fiscal year offer a more representative view of the
company's net sales and net income for seasonal comparisons. For the
six months ended December 31, 2003, virtually every measurable
financial component – net sales, gross margins, operating expense
ratios and operating and net income levels improved. Our customer mix
continues to be one of our strongest assets and responses to our
increased product offerings has been rewarding.
“Our balance sheet remains strong with over $5 million in cash on
hand and no outstanding bank debt. Our current ratio is a very solid
10:1. We continue to receive new capital from the exercise of our
outstanding warrants. As of February 6, 2004, Collegiate Pacific had
approximately 2.3 million publicly traded warrants outstanding that,
if fully converted, would produce $11.5 million in new equity capital
for the company. We maintain an active list of acquisition candidates
and intend to put new capital to work for the benefit of our
shareholders as quickly and efficiently as possible.
“We continue down the path of both internal and external
expansion. We completed the acquisition of Tomark Sports in January
2004 and today announced execution of the definitive agreement to
acquire Kessler Team Sports. We believe the combination of these
businesses with Collegiate Pacific's core businesses will produce a
much stronger and more profitable enterprise.”
COLLEGIATE PACIFIC INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, June 30,
2003 2003
-------------- -----------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 5,468,982 $ 365,713
Accounts receivable, net of
allowance for doubtful
accounts of $77,923 and
$121,139 at December 31,
2003 and June 30, 2003,
respectively 1,784,163 2,702,551
Inventories 4,368,635 3,691,615
Prepaid expenses and other
assets 908,332 218,030
Current portion of deferred
income taxes 102,171 102,171
--------------- -------------
Total current assets 12,632,283 7,080,080
Property, plant and equipment, net
of accumulated depreciation of
$726,364 and $629,205 at December
31, 2003 and June 30, 2003,
respectively 544,375 541,055
Other assets:
License agreements, net of
accumulated amortization
of $132,427 and $118,915
at December 31, 20032
and June 30, 2003,
respectively 103,200 116,514
Goodwill 544,375 544,375
Deferred income taxes 304,646 304,646
Other assets, net 227,633 238,654
--------------- ---------------
$ 14,287,972 $8,825,324
=============== ===============
COLLEGIATE PACIFIC INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
2003 2002 2003 2002
----------- ----------- ------------ -----------
Net sales $4,238,444 $3,508,767 $10,212,036 $8,274,958
Cost of sales 2,718,844 2,217,659 6,444,195 5,227,673
----------- ----------- ------------ -----------
Gross margin 1,519,600 1,291,108 3,767,841 3,047,285
Selling, general and
administrative
expenses 1,824,741 1,505,791 3,618,187 2,966,429
----------- ----------- ------------ -----------
Operating profit
(loss) (305,141) (214,683) 149,654 80,856
Other income
(expense)
Interest expense (13,143) (19,288) (23,861) (35,843)
Other income 9,992 2,910 10,269 3,096
----------- ----------- ------------ -----------
Income before
provision for taxes (308,292) (231,061) 136,062 48,109
Income tax
(benefit)
expense (105,068) - 69,994 -
----------- ----------- ------------ -----------
Net income (loss) $(203,224) $(231,061) $66,068 $48,109
=========== =========== ============ ===========
Net income (loss) per
share - basic $(0.04) $(0.05) $0.01 $0.01
=========== =========== ============ ===========
Net income (loss) per
share - diluted $(0.04) $(0.05) $0.01 $0.01
=========== =========== ============ ===========
Weighted average
shares
outstanding:
Basic 5,616,399 4,224,186 4,953,501 4,227,696
=========== =========== ============ ===========
Diluted 5,616,399 4,224,186 6,385,389 4,927,029
=========== =========== ============ ===========
