Sport Supply Group, Inc. said its fourth-quarter results “appear higher” than the year-ago period and as much as double current consensus analyst expectations for the quarter of 8 cents per share. Given the strength of Q408, the company predicted FY08 revenues would be above $250 million and FY08 EPS in a range of 75 cents to 77 cents, up from the previous range of 65 cents to 73 cents. Sport Supply Group also introduced FY09 EPS guidance (starting July 1, 2008) of 85 cents to 95 cents per fully diluted share outstanding.
Sports Supply also noted that cash-on-hand increased 58% from $13.0 million to $20.5 million as of June 30, 2008.
Adam Blumenfeld, chairman and CEO, stated: “Our fourth fiscal quarter appears to have delivered an outstanding finish to what has been a very impressive year. Preliminary results for the Quarter ended June 30, 2008 indicate near 10% organic sales growth, significant gross margin expansion, and SG&A expenses lower than the prior year for the second straight quarterly period. We have continued to focus on bottom line performance as we expand market share. Results suggest the plan is working. The business is well positioned for continued organic growth and growth via acquisition or joint-venture opportunity. We continue to evaluate a number of options to expand our footprint in the space and further leverage our scalable business platform and ever strengthening balance sheet, which as of June 30, 2008 had approximately $20.5 Million cash on-hand, up 58% from $13.0 Million on March 30, 2008. Other uses of excess cash and our untapped credit facility may include the repurchase of common stock and/or the repurchase of outstanding convertible debentures as conditions merit. Fiscal 2008 will likely represent the second straight year of 100%+ earnings growth for the Company. This earnings expansion is a credit to our hard working employees across the Nation.”
Regarding FY09 guidance, Blumenfeld stated: “We are today introducing GAAP EPS guidance for Fiscal 2009 of $0.85 – $0.95 per fully diluted outstanding share. Absent any acquisitions or dispositions of assets we anticipate cash on-hand will well surpass $30 Million by the end of Fiscal 2009. The fragile US economy represents, we believe, a unique opportunity for Sport Supply Group to leverage its best of breed, value-oriented direct distribution model and ultimately re-direct customer activity from a fragmented supplier base to our more efficient platform.”
The company intends to release fourth quarter and fiscal year 2008 results in early September upon completion of our normal course end of year audit process.
