Riddell Bell Holdings, Inc. reported that net sales for the fiscal quarter ended October 1, 2005 increased $64.4 million or 167.2% from the comparable period of the prior year largely a result of the acquisition of Bell Sports.

Net sales for the three fiscal quarters ended October 1, 2005 increased $193.5 million or 192.7% from the comparable period of the prior year. Team Sports net sales for the fiscal quarter increased $3.5 million or 9.1% from the comparable period of the prior year. Team Sports net sales for the three fiscal quarters ended October 1, 2005 increased $7.4 million or 7.4% from the comparable period of the prior year. Sales of Team Sports products for the fiscal quarter ended and three fiscal quarters ended October 1, 2005 was primarily attributable to a shift in product mix to higher end products and expansion of product offerings.

“We executed well in the third quarter with solid revenue growth and strong cash flow,” said RBH's resident and CEO, Bill Fry. “I'm encouraged by what we have achieved to date, and we are focused on driving further growth and performance improvements.”

Fiscal quarter gross profit was $37.0 million or 36.0% of net sales compared to $16.1 million or 41.8% of net sales in the comparable period of the prior year. For the three fiscal quarters ended October 1, 2005 gross profit was $107.3 million or 36.5% of net sales compared to $43.1 million or 42.9% of net sales in the comparable period of the prior year. Gross profit margin primarily changed as a result of our acquisition of Bell Sports which resulted in the inclusion of the Individual Sports business segment in our combined results. The Individual Sports product margins typically yield a lower margin percentage than Team Sports products and services. Gross profit for Team Sports improved 0.3 percentage points to 42.2% due to lower shipping and distribution costs as a result of the restructuring of the Team Sports operations. For the three fiscal quarters ended October 1, 2005, the Team Sports gross profit increased 0.1% as the benefits of certain restructuring initiatives were partially offset by raw material increases.

RBH's operating income was $10.3 million for the third fiscal quarter of 2005, compared to $5.2 million for the third fiscal quarter of 2004. The company's net income was $2.4 million for the third fiscal quarter of 2005 compared to a loss of $2.6 million for the third fiscal quarter of 2004. Operating income for the first three fiscal quarters ending October 1, 2005 was $28.0 million compared to $11.8 million in the comparable period of the prior year. For the fiscal quarter and the three fiscal quarters ending October 1, 2005, adjusted EBITDA was $17.8 million and $49.6 million, respectively, as calculated under the terms of our credit agreements. Last twelve months adjusted EBITDA for the period ended October 1, 2005 was $53.7 million. For a full discussion of adjusted EBITDA see the Reconciliation of Non-GAAP Financial Measures information included later in this press release.

RBH's EVP and CFO, Jeff Gregg, said, “Third fiscal quarter results were in line with our expectations as we are beginning to see the benefits of our investments in the business and growth initiatives. We will continue our diligent focus on optimizing our operations to minimize the impacts of raw material cost increases.”

Balance Sheet Items

Net debt (total debt of $256.2 million less cash of $2.4 million) totaled $253.8 million as of October 1, 2005, a decrease of $25 million during the fiscal quarter. The decrease in net debt is primarily attributable to a seasonal decrease in working capital requirements during the quarter. 

        RIDDELL BELL HOLDINGS, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (unaudited and in thousands)

                                               Fiscal Quarter Ended
                                             -------------------------
                                             October 1,  September 30,
                                                2005         2004
                                             ----------- -------------

Net sales                                      $102,947       $38,526
Cost of sales                                    65,987        22,389
                                             ----------- -------------
 Gross profit                                    36,960        16,137
Selling, general and administrative expenses     24,454        10,190
Amortization of intangibles                       2,170           719
                                             ----------- -------------
 Income from operations                          10,336         5,228
Interest expense, net                             5,657         9,564
Other income                                        557             -
 Income (loss) before income taxes                5,236        (4,336)
Income tax provision (benefit                     2,806        (1,736)
                                             ----------- -------------
Net income                                        2,430        (2,600)
Other comprehensive income (loss)
 Foreign currency translation                       291            --
                                             ----------- -------------
Comprehensive income (loss)                      $2,721       $(2,600)