Easton-Bell Sports, Inc. saw net sales for the second quarter increase 91.1% to $198.3 million from $103.8 million last year. This increase is primarily attributable to $86.5 million in net sales from the acquired Easton Sports business. Team Sports net sales increased $84.5 million or 225% to $122.0 million from $37.6 million the prior year. In addition to the acquisition of Easton Sports, other factors contributing to the increase in Team Sports net sales included increased football helmet, reconditioning and clothing sales.

Action Sports net sales increased 15.1% to $76.2 million when compared to the prior year. Action Sports sales increased primarily due to the addition of Easton Sports’ bike business and increased sales of helmets and fitness equipment.

Net sales for the two fiscal quarters of 2006 increased $118,433, or 62.0%, as compared to the two fiscal quarters of 2005. This increase is primarily attributable to $101,430 in net sales attributable to Easton Sports. Team Sports net sales increased $96,232, or 146.3% as compared to the prior year. In addition to the acquisition of Easton Sports, other factors contributing to the increase in Team Sports net sales were primarily due to increased football helmets, reconditioning and clothing sales. Action Sports net sales increased $22,201 or 17.7% when compared to the prior year. Action Sports sales increased primarily due to the addition of Easton Sports’ bike business and increased sales of helmets and fitness equipment.

For the second fiscal quarter of 2006, gross profit was $62,559, or 31.5% of net sales as compared to $40,026, or 38.6% of net sales for the second fiscal quarter of the prior year. Team Sports gross profit decreased 19.1 percentage points to 29.2% primarily due to the acquisition of Easton Sports. For the second fiscal quarter Easton Sports gross margin was decreased $11,641 due to expensing the inventory write up resulting from purchase accounting. Action Sports gross profit of 35.3% of net sales increased 2.3 percentage points compared to the prior year primarily due to increased sales in helmets and accessories, partially offset by higher material costs. For the first two fiscal quarters of 2006, gross profit was $99,424, or 32.1% of net sales as compared to $71,288, or 37.3% of net sales for the first two fiscal quarters of the prior year. The lower margin was, in part, attributable to the acquisition of Easton Sports. For the first two fiscal quarters Easton Sports gross margin was decreased $13,875 due to expensing the inventory write up resulting form purchase accounting. Team Sports gross profit decreased 12.6 percentage points to 32.4% primarily due to the acquisition of Easton Sports. Action Sports gross profit of 31.8% of net sales declined 1.5 percentage points compared to the second fiscal quarter of the prior year primarily due to higher raw materials costs and a change in product mix.

Net income increased 80.7% to $6.3 million from $3.5 million during the second quarter of last year.