Sport Supply Group, Inc. reported net sales increased 4.1% to $65.8 million for the fiscal third quarter ending March 31, 2008. Gross margin increased 50 basis points to 36.6% of net sales for the quarter, which helped boost net income 94% to $3.4 million. Diluted earnings per share grew 47% to 25 cents.


Adam Blumenfeld, chairman of the board and CEO, stated: “We are pleased to announce today’s results which showcase continued strong operating performance across the platform. It is a testament to our managers and hardworking employees that virtually every key metric is moving in the right direction, most notably SG&A, which actually decreased $671,000 for the quarter ended March 31, 2008 versus the year-ago comparative period. The combination of top-line growth, gross margin expansion and year over year expense reduction proved to be the perfect recipe for significant growth in cash flows and earnings leverage, allowing the company to produce operating margins of approximately 10% for the third quarter, and a 47% increase in earnings per share.

“Strategically, we are very pleased with both the performance and positioning of the Company. In this challenging macroeconomic environment, we believe – more than ever – entities with a superior balance sheet, seasoned management and a scalable infrastructure will be rewarded. Sport Supply Group, with its growing cash position and dominant footprint within the institutional sporting goods space, has significant flexibility in terms of next steps. We continue to review a number of organic and/or acquisition related opportunities as we look to further enhance the platform and leverage our position in the marketplace.”