Sport Supply Group reported that sales increased 4.4% for its second fiscal quarter ended December 31 to $55.5 million from $53.1 million in the year-ago period. Earnings fell by 12.4% for the quarter, from $1.1 million to $0.9 million in the latest quarter, principally due to the one-time gain from the early retirement of 5.75% notes that occurred in fiscal 2009.
Speaking on the results of the quarter, company Chairman and CEO Adam Blumenfeld stated, “We are pleased to report solid results in the second fiscal quarter. It was another strong performance, led by 10.5% top line growth from our Road Sales Group, which was slightly offset by a 1.8% decrease in our Catalog Group; gross margin expansion across the operating platform, and a continued focus on managing working capital and preserving cash.
The company experienced increases in both operating profit and diluted EPS, as operating profit rose 26.3% to $1.8 million, up from $1.4 million a year go, while diluted EPS rose 75% from 4 cents to 7 cents. Adjusted EBITDA increased 30.8% to $3.2 million vs. $2.4 million for the three months ended December 31, 2009 as compared to the comparable period in 2008.
The company plans to continue to leverage its exclusive U.S. Communities Contract, and the included online procurement tool to aid its entire customer base. Much of that will be focused on the growth of its elementary school relationships, including its recently-signed contract with Focus Fitness.
In regard to its outlook for fiscal 2010, Sport Supply maintained its previously released guidance of $263 million to $270 million in revenues and an EPS of 91 cents to $1.00 per share.
