Sport Supply Group, Inc. said it expects it will exceed current analyst
consensus revenue and EPS estimates and produce a profitable second
quarter. The team sports manufacturer and distributor, based in Dallas,
also announced a program to repurchase of up to $10 million worth of
the company's common stock.

“Preliminary estimates for the second quarter highlight strong results,
and we expect to report year-over-year sales growth for the quarter of
approximately 8-10%,” said Adam Blumenfeld, chairman and CEO,
“Additionally, in what is traditionally the year's most challenging
seasonal period, we expect the company produced a profit for the full
quarter, which is a significant improvement over the comparable year
ago period, when the company reported a loss of ($.09) per fully
diluted share.”

He adds, “I believe this relative performance demonstrates how we
intend to leverage our scale and platform to generate profitable
revenue growth, even in weaker periods. Strength was evident
platform-wide with most notable contributions coming from strong team
uniform and footwear sales from our Road Sales Group; solid sales and
margin performance from our Catalog Group, strong 'B2C' or
Business-to-Consumer ecommerce sales during the holiday season, and
company-wide success in controlling operating expenses.”

Regarding the share repurchase program, Blumenfeld said, “We believe
shares of Sport Supply Group are undervalued at current levels, and
accordingly have authorized the repurchase of up to $10.0 Million of
common stock from time to time, subject to price and availability of
shares. Recent volatility has, in our view, dislocated the price of the
stock from both its operating and franchise value. As recently noted,
we know of no corporate development which would explain the decrease in
our stock price. Our balance sheet – with more than $7.0 million in
cash on-hand as of December 31 plus a sizeable untapped credit facility
– allows us the flexibility to repurchase shares for the benefit of the
company and its shareholders.”

The company expects to report Q208 results towards the end of January.