Sport Supply Group, Inc. reported its fourth consecutive quarter of significantly improved operating results, with revenue for the fiscal fourth quarter ended March 31, 2005 increasing 12.8% to $27.4 million from $24.2 million in the year-ago period.
Gross margins improved 410 basis points to 29.2% of sales versus 25.1% in Q4 last year. SG&A expenses dropped 840 basis points for the quarter from 30.0% of sales last year to 21.6% in 2005. SG&A expenses for the year also dropped, aiding in the net income increase. SSG reported $1.5 million in net income, or 17 cents per diluted share for the first quarter versus a net loss of $2.1 million, or 24 cents per share in the year-ago quarter, which helped counter a Q3 net loss to bring income back into positive territory for the year.
The company's balance sheet as of March 31 also reflects significant improvements as compared to 2004, including a $4 million reduction in long term debt and a $2 million increase in Stockholders' Equity.
Operating income for the year was $2.2 million, which translates into a $6.1 million operating income improvement from the last fiscal year. Of note is the fact that the 2004 net loss included a $2.7 million gain that was recorded as a result of the sale of the company's subsidiary Athletic Training Equipment Company. Excluding this one-time gain, net income for the 2005 fiscal year improved by $6.5 million.
|Sports Supply Group|
|Fiscal Full-Year Results|
|(in $ millions)||2005||2004||Change|
|Gross Margin %||28.8%||26.4%||+240 bps|
|SG&A %||24.5%||28.7%||-420 bps|
|Net Income||$2.1||($1.7)||vs. loss|
|Diluted EPS||23¢||(19¢)||vs. loss|