Revenues for Sport Supply Group slipped slightly for the second quarter ended December 31, but the company sustained growth for the front half of fiscal 2009, with top-line growth hovering around 2% for the period.
Fiscal second quarter sales were $53.2 million, down slightly from the $54.1 million reported in the comp period a year ago. The company reported net income jumped 135% to $1.1 million from $452,000 reported in the year-ago period. Diluted earnings per share were flat at 4 cents per share.
Management said total revenues were pulled down by weakness in Florida, Arizona and California, while all other states were up mid-singles for the quarter. Notably, revenues were driven by strong Internet sales, which performed particularly well in December, climbing 7%. SG&A expenses remained relatively flat for the quarter, something management called “a bright spot” and attributed to the companys efforts to slim down administrative expenses.
Management said in a conference call with analysts that RBI had entered a new, three-year, $40 million credit facility with Bank of America, a move that the company expects to significantly improve its balance sheet going forward. Sport Supply has also launched a relationship with Nike on its catalog platform. The company said it expects this development to serve as a “major growth catalyst” in the future.
Sport Supply also announced the repurchase of almost $16 million of their $50 million of RBI convertible notes, which the company predicts will save it $2.6 million in future interest and principle payments.
For fiscal 2009, the company expects diluted earnings per share to remain between 82 cents and 92 cents.
