Sport Supply Group, Inc. reported its third consecutive quarter of improved operating results. Results for the
nine months ended December 31, 2004 reflect revenue growth, margin improvement, operating cost reductions and a $3.2 million improvement in net income before discontinued operations. Net income before discontinued operations for the nine months ended December 31, 2004 was $511,000, a significant turnaround from the $2.6 million loss reported for the same period last year.
Geoffrey P. Jurick, Chairman of the Board and Chief Executive Officer, commented, “We achieved significant improvement through the first nine months of this fiscal year in virtually all measures of financial performance. While the December quarter is traditionally the weakest quarter of the year in the institutional sporting goods market, we are very pleased to report a 30% reduction in our net loss before
discontinued operations this quarter as compared to the December quarter last year.
“We continued to strengthen our balance sheet by managing cash flow, accounts receivable and
inventory, reducing total debt by approximately $10 million since March 2004. Our turnaround efforts
initiated during September of last year continued to produce year over year improvements.”
SPORT SUPPLY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except earnings per share)
Three Months Ended Nine Months Ended
December December
2004 2003 2004 2003
----------- ------------- ---------- ------------
Net revenues $14,369 $14,726 $62,736 $59,705
Cost of sales 10,537 10,978 44,676 43,723
----------- ------------- ---------- ------------
Gross profit 3,832 3,748 18,060 15,982
Selling, general &
administrative
expenses 5,569 6,205 17,380 18,215
----------- ------------- ---------- ------------
Operating profit
(loss) (1,737) (2,458) 680 (2,233)
Interest & other
expense 58 114 169 409
----------- ------------- ---------- ------------
Income (loss) before
taxes (1,795) (2,572) 511 (2,642)
Provision for income
taxes
----------- ------------- ---------- ------------
Net income (loss)
before
discontinued
operations (1,795) (2,572) 511 (2,642)
Discontinued
operations 0 3,153 0 3,048
----------- ------------- ---------- ------------
Net income (loss)
$ (1,795) $581 $511 $ 406
----------- ------------- ---------- ------------
Earnings per share:
Continuing
operations $(0.20) $(0.29) $0.06 $(0.30)
Discontinued
operations $- $0.36 $- $0.35
----------- ------------- ---------- ------------
$(0.20) $0.07 $0.06 $0.05
