Riddell Bell Holdings, Inc. reported financial results for the year ended December 31, 2004. RBH, the owner of Riddell Sports since June 2003, acquired Bell Sports in September 2004.
RBH President and Chief Executive Officer, Bill Fry, said, “We are very pleased with our fiscal 2004 results and accomplishments, our performance was consistent with our expectations for the year. We have said all along that our focus has been to bring these two great businesses and their respective brands together, and to preserve the cultures that have made them successful, without causing disruption in the process. Our plans have progressed in accordance with those expectations during the fourth quarter of 2004. Each of our businesses has great opportunities for growth in the markets they currently serve, and we are committed to investing in the businesses to support future growth.”
The Company's net sales for 2004 increased 52.6% to $165.9 million, as compared to $108.7 million for 2003 on a pro forma basis. Approximately $47.5 million of the increase was a result of acquisitions including $45.4 million related to the acquisition of Bell Sports in September 2004. The remaining increase was primarily the result of the expansion of our sales force, including sales representatives from a regional reconditioner acquisition made in March 2004, and the mix impact of increased unit shipments of the Revolution football helmet.
RBH reported a net loss of $13.1 million for 2004, due principally to increased interest expense, intangible amortization expense, and non-recurring expenses, the majority of which are related to the September acquisition of Bell Sports by the Company. Adjusted EBITDA for the full year of 2004 was $50.2 million. A detailed reconciliation of net loss to adjusted EBITDA is included in our Reconciliation of Non-GAAP Financial Measures.
Net debt (total debt of $250.1 million less cash of $1.4 million) totaled $248.7 million as of December 31, 2004, an increase of $177.9 million, due principally to the acquisition of Bell Sports in September 2004. During the fourth quarter of 2004, net debt was decreased by $0.9 million as a result of cash flow from operations.
Jeffrey Gregg, Executive Vice President and CFO, commented, “We are pleased with our financial performance for the year and the progress we have made since the acquisition of Bell Sports in September of 2004. The combination of these businesses increases the depth and strength of our capabilities in almost every area in the company, and we believe that this will only strengthen our presence and scope of opportunities in the future.”