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
Total Sales $90.0 $83.9 +7.3%
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
Inventories* $15.4 $17.0 -9.4%