Collegiate Pacific, Inc. offset news that it would be reporting a loss for the fourth quarter, a loss it attributes to a shift in delivery timing, with the announcement that it is once again attempting to acquire the approximately 17% of shares in Sport Supply Group, Inc. that it does not currently own. BOO said it had submitted another offer to the Special Committee of Sport Supply Group to purchase the remaining shares for a value of $8.80 per share, comprised of $1.76 per share in cash and the remainder in BOO common stock and/or cash. In November 2005, Collegiate Pacific purchased 1.66 million shares of Sport Supply Group at a price of $5.55 per share from an institutional holder giving itself an approximate 73.2% stake in SSPY. However, BOOs attempt at a full merger was headed off by a class action suit that claimed SSPY management was selling stock at too low of a price.
For the fourth quarter, the company currently expects $53 million in revenues and a loss in the range of $700,000 to $1.1 million. For the full year, revenues will be $224 million with earnings of $1.7 million to $2.1 million. The company attributed the lackluster Q4 results to a $5.3 million increase in unshipped backlog from March 31 to June 30, which is mostly the result of football uniform customers taking their deliveries closer to the start of the school season.
Assuming no change in its current 73.2% ownership of Sport Supply, BOO expects revenues of approximately $250 million and diluted EPS in the 52 cents to 64 cents range for 2007 fiscal year.
