Riddell Bell Holdings, for the first quarter 2005, net sales were $87.2 million compared to $28.2 million for the same period a year ago, a 209.2% increase. The $59.0 million increase in net sales is primarily attributable to the inclusion of Bell Sports. Excluding the effects of the Bell Sports acquisition, net sales were relatively flat when compared to the prior year. Sales of Team Sports products increased slightly due to increased shipments of custom uniforms offset by lower shipments of licensed products.
Gross profit for the first quarter of 2005 was $31.2 million compared to $11.9 million for first quarter of 2004. Excluding the effect of the Bell Sports acquisition, gross profit decreased 1.6 percentage points, resulting primarily from temporary operating inefficiencies as the Team Sports division commenced a restructuring of its operations that is expected to result in cost reductions and margin improvements.
RBH's operating income was $5.3 million for the first quarter of 2005, compared to $2.4 million for the first quarter of 2004. The Company's net income was $0.2 million for the first quarter of 2005 compared to $0.3 million for the first quarter of 2004. For the first quarter of 2005, adjusted EBITDA was $13.1 million as calculated under the terms of our credit agreements. For a full discussion of adjusted EBITDA see the Reconciliation of Non-GAAP Financial Measures information included later in this press release.
RBH's President and Chief Executive Officer, Bill Fry, said, “Our first quarter results were in-line with our expectations. We are pleased with our first quarter results as a combined organization and with the individual business segments. We are also very encouraged by the progress made over the last several months in merging these two great companies into one bigger, better company.”
“During the first quarter we commenced a facilities restructuring plan within our Team Sports division to better leverage our assets and people,” Mr. Fry continued. “We are confident that our current actions and strategies will strengthen our market positions and cost structure in the future.”
Net debt (total debt of $273.1 million less cash of $0.4 million) totaled $272.7 million as of April 2, 2005, an increase of $24.0 million during the first quarter. The increase in net debt is primarily attributable to an increase in seasonal working capital requirements during the quarter.
RIDDELL BELL HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands)
Quarter Ended
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April 2, March 31,
2005 2004
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Net sales $87,233 $28,214
Cost of sales 55,971 16,314
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Gross profit 31,262 11,900
Selling, general and administrative expenses 23,815 8,874
Amortization of intangibles 2,114 657
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Income from operations 5,333 2,369
Interest expense, net 5,090 1,855
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Income before income taxes 243 514
Income tax provision 74 206
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Net income 169 308
Other comprehensive (loss) income
Foreign currency translation (154) --
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Comprehensive income $15 $308
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