Sport Supply Group reported sales rose 5.3% to $77.5 million in the first quarter ended Sept. 30, from $73.6 million in the year-ago period. Earnings were basically flat at $5 million though earnings per share improved to 37 cents from 35 cents due to fewer shares outstanding. The company also raised its EPS guidance for the year.
Commenting on the quarter, Chairman and Chief Executive Officer Adam Blumenfeld stated, “We generated 5.3% sales growth in our largest and most difficult comparative sales quarter of the year and, simultaneously, produced record operating profits. Strength in sales was broad based with our Catalog Platform producing 7.3% organic top line growth, and our Road Sales Platform producing 3.0% top line growth.”
“Additionally, we added $6.0 million in cash to our balance sheet over the last ninety days, bringing cash on-hand to $16.7 million as of September 30, 2009. This strong cash position, coupled with an untapped $40 million credit facility with Bank of America and continued positive cash flow, uniquely positions Sport Supply Group to both repay our remaining outstanding convertible debentures on December 1, 2009 and monetize internal and external expansion opportunities as situations merit.”
During the quarter, Sport Supply Group acquired the sales teams of Webster, Doerner, and Har-bell, expanding the company’s reach vertically. The company also entered into an exclusive five-year contract with U.S. Communities for P.E. product, athletic equipment and uniforms to act as a cornerstone for the Company’s organic school district aggregation efforts via catalog and online procurement.
With regard to outlook, the company stated that it is raising FY10 EPS guidance to a range of 91 cents to $1.00 per diluted share. The company previously said it expected earnings in the range of 89 cents to 97 cents.
