Hmmmmm. Quiet, quiet, quiet. My kind of thread.
Riddell Sports Inc. Announces Third Quarter 1999 Results
Revenues Rise 15%; Pre-Tax Earnings Increase by 46%;
Diluted EPS up 83%
NEW YORK, Oct. 28 /PRNewswire/ -- Riddell Sports Inc.
Amex: RDL today announced third quarter 1999 net income of $9,174,000, or $0.86 per share on a diluted basis, as
compared to $5,049,000, or $0.47 per share on a diluted basis, in the third quarter last year.
For the first nine-months of 1999, Riddell reported net income of $8,184,000, or $0.78 per share on a diluted
basis, as compared to $3,804,000, or $0.37 per share on a diluted basis, for the same period last year.
Tax expenses for the third quarter were lower in 1999 than in 1998, but higher for the first nine months of 1999 as
compared to the same period in 1998, because the Company's tax accrual has been subject to differing effects of loss
carry forwards and certain changes in estimates.
Operating income of $14,002,000 and $20,757,000 for the third quarter and first nine-months of 1999 was 31% and 39%
above the same periods last year, and pre-tax earnings of $10,079,000 and $9,089,000 in the third quarter and first
nine-months of 1999 was 46% and 139% above last year's levels.
Revenues for the third quarter of 1999 grew by $10,626,000, or 15%, to $79,965,000 from $69,339,000 for the third
quarter of 1998. Revenues for the first nine months grew by 13%, from $159,326,000 in 1998 to $179,750,000 in 1999. The
Company's Institutional business (cheerleading uniforms and camps, team sports uniforms, equipment and reconditioning)
recorded an 18% increase in revenues for the third quarter and a 15% rise for the first nine months of 1999 as compared to the same periods last year, with all
Institutional product lines registering solid gains.
Gross margins improved in every operating unit in the quarter and year to date, as the Company increased its
overall gross margin by 1.3 and 1.4 margin points as compared to the third quarter and year-to-date periods last year.
SG&A expenses in the quarter and for the first nine months declined as a percentage of sales as the Company continued
to deliver positive operating leverage on its infrastructure costs.
Commenting on these results, David Mauer, Riddell's President & CEO said, "The third quarter has usually been
our strongest time of year, but this year has been especially buoyant, because many of the strategic actions
and cost saving initiatives that we implemented over the last few years have begun to gain traction in the
marketplace. Our sales force is becoming increasingly effective and is 20% larger than it was two years ago. At
the same time that we have increased the size of our sales force, we've introduced new products including football and
baseball uniforms under the Riddell brand, soccer apparel, footwear and equipment under the Umbro name and new
initiatives in the dance and youth sports markets. Together, all of these actions have led to the solid
revenue growth and higher profitability that we reported today."
Riddell Sports Inc. provides institutional sporting goods and school spirit products and services to educational and
recreational organizations through its national, direct sales force. The Company is the leading manufacturer and reconditioner of football protective equipment and the
leading supplier of products and services to the school spirit industry. The Company's consumer products group
markets miniature and full-size helmets for collectors and
licenses the Riddell and MacGregor trademarks for use on athletic footwear and apparel.
This release contains forward-looking statements that involve a number of risks and uncertainties and actual
results may differ significantly from those anticipated in these forward-looking statements. The factors that may
cause such differences include, but are not limited to, the continuation of satisfactory performance of the Company's
Umbro and athletic game uniform product lines and implementation of cost savings programs and other profit
enhancement actions that began in late 1998, overall economic conditions and other business factors.
For more information visit Riddell's Web site at riddell1.com.
RIDDELL SPORTS INC.
Financial Highlights
(Dollars in thousands except per share data)
OPERATING RESULTS: Third Quarter Nine Months
Ended Sept. 30 Ended Sept. 30,
1999 1998 1999 1998
Net revenues $79,965 $69,339 $179,750 $159,326
Cost of revenues 47,054 41,702 104,969 95,239
Gross profit 32,911 27,637 74,781 64,087
Selling, general and
administrative
expenses 18,909 16,935 54,024 49,169
Operating income 14,002 10,702 20,757 14,918
Interest expense 3,923 3,783 11,668 11,114
Income before taxes 10,079 6,919 9,089 3,804
Income taxes 905 1,870 905 --
Net income $9,174 $5,049 $8,184 $3,804
Earnings per share:
Basic $0.99 $0.55 $0.88 $0.42
Diluted 0.86 0.47 0.78 0.37
Average common and
equivalent shares outstanding:
Basic 9,259 9,133 9,259 9,122
Diluted 10,745 10,913 10,862 11,066
Depreciation and
amortization $1,468 $1,509 $4,285 $4,246
BALANCE SHEET DATA: Sept. 30, Dec. 31,
1999 1998
Cash $368 $1,752
Accounts receivable, net 56,064 28,016
Inventories 30,356 28,763
Other current assets 6,318 9,390
Total current assets 93,106 67,921
Property and equipment, net 8,095 7,871
Intangibles and deferred
charges, net 106,674 108,735
Other assets 2,425 1,684
$ 210,300 $ 186,211
Current liabilities $ 27,996 $ 29,958
Long-term debt 145,144 126,900
Deferred taxes 271 348
Other liabilities 3,254 3,554
Shareholders' equity 33,635 25,451
$ 210,300 $ 186,211
See their Unbro and riddlee sports wear. Maybe a hedge for a tech correction.
Jack |
