Collegiate Pacific’s Sport Supply Bid Looking Like a Smart Move…

Sport Supply Group, Inc. posted a strong fourth quarter and full year for 2006, especially in the back end and on the bottom line. The news is even better for suitor and would-be owner Collegiate Pacific, who once again laid an offer on the table to acquire the remaining stake in Sport Supply that it does not currently own. All-told, Collegiate Pacific will pay approximately $24 million or $8.80 per share to acquire the remaining 12% of Sport Supply. The deal was approved by the Sport Supply board, but was still awaiting the approval of their stockholders at press time.

The company reported a 3.4% growth in revenues for the fiscal fourth quarter to $24.0 million from $23.2 million last year. Gross profits increased 360 basis points to 34.1% of net sales, while SG&A expenses decreased 110 basis points to 26.5% of net sales. The margin and expense improvements combined with the revenue growth to prompt a 168% jump in net income to $1.7 million from $621,000 for the fourth quarter last year.