Collegiate Pacific Inc. reported its results for the first fiscal quarter of 2006 ended September 30, 2005 with sales increasing 124.7% to $65.3 million from $27.7 million during the same period last year. The huge gain comes largely on the heels of the acquisition of Sport Supply Group as organic sales increased 13% for the quarter. Gross margins also saw some beneficial effects from the acquisition, increasing 1750 basis points to 51.4% of sales from 33.9% for the year-ago quarter.
Net income increased 21.6% to $2.5 million for the fiscal first quarter from $2.1 million last year. Diluted earnings per share were not able to post as large of a gain, up one penny to 22 cents per share, from 21 cents last year, due to a four million share count increase as a result of the “if converted method” required by Financial Accounting Standard 128 for the company when its net income for the quarter averages out to be greater than $6 million for the full fiscal year.
Before approximately $1.2 million in acquisition related charges, Sport Supply Group generated a 7% revenue increase to $25 million and a 100% increase in operating income to $2.1 million versus $1.1 million in the year-ago period.
For FY06, the company sees diluted earnings per share of approximately 40 cents to 50 cents on consolidated revenues of approximately $230 million.