The newly formed Easton-Bell Sports hosted a slightly delayed conference call with analysts, investors, and the media after reporting their first quarter results last week (SEW_0621). Easton CEO Tony Palma and CFO Mark Tripp offered several new details concerning the development and integration between Easton and the former Riddell-Bell Sports. Mr. Palma stated that following the acquisition of Easton, their top priority was to select the best of the best from the management team to lead the new company. With this process behind them, the cultural fit between the two companies “is progressing naturally.”


The company is implementing a new ERP system in a series of phases. Phase one is currently underway, and includes the action sports business and a portion of the team sports business. This phase should be complete by the end of 2006 at a cost of $5 million.


Easton-Bell is also seeing some increases in the cost of composite raw materials, which have been steadily increasing for the past 18-24 months. The company feels that this trend may be peaking since production capacity for these raw materials is expanding.


In the specialty bike business, the company has begun two initiatives. First, Easton bicycle components were previously being sold through a distributor. Going forward they will be pulled into the company’s existing sales force. Second, Easton-Bell began a program for dealers that offers incentives for buying all three Bell Sports brands-Bell, Giro, and Blackburn.