Loss for the year but a turnaround seems to be happening.
Here is latest out yesterday.
Sport Supply Group Announces Improved Results for the Three-Months and Fiscal Year Ended March 29, 2002
DALLAS--(BUSINESS WIRE)--June 28, 2002--
Fourth Quarter Profit Improves and Year End Loss Narrows,
Company Expects Continued Improvement in Financial Results
Sport Supply Group, Inc. today announced improved results for the
three-months and fiscal-year ended March 2002.
Fiscal Year 2002 Highlights Compared to Fiscal 2001
-- Operating expenses reduced by 10% or $3.6 million
-- Operating loss improved by 23% or $838,000
-- Interest and other expenses reduced by $1.2 million
-- Loss before taxes reduced by 37% or $2.1 million
-- Internet orders increased by 30%
-- Internet revenue increased by 17%
-- Inventory reduced by $2.7 million
-- Current liabilities reduced by $2.4 million
Quarter Ended March 2002 Highlights Compared to Quarter Ended March
2001
-- Income before taxes improved 345% or $600,000
-- Gross margin improved 1%
-- Operating expenses reduced 5% or $435,000
Net revenues for the fiscal year ended March 29, 2002 were $103.6
million, down 8.4% from the prior year. The decrease in revenues was
primarily due to the result of a general slow-down in the economy,
reduced participation in traditional youth sports, a reduced sales
force and the discontinuation of certain unprofitable and low margin
product lines. Gross margin was 28.5%,unchanged from the prior year.
SSG realized a 10% reduction in operating expenses for the year.
Operating expenses were $32.3 million as compared to $35.9 million for
the prior fiscal year. The loss before taxes improved by 37% or $2.1
million from the prior year. SSG recorded a $2.1 million income tax
benefit in the prior year, but did not recognize an income tax benefit
for the current year. The loss per share for the year improved from
$.45 per share to $.40 per share in the current year.
Net sales for the quarter ended March 2002 were $30.4 million down
5.5% from the prior year's quarter. Gross margin increased 1% to 29%
for the current quarter. SSG reduced operating expenses by 5.2% or
approximately $400,000 for the quarter ended March 2002 as compared to
last year. Pretax income increased 345%, to $768,000 for the quarter
ended March 2002. Earnings per share improved from $0.01 to $0.09 for
the quarter ended March 2002.
The number of orders received over the internet increased by 30%
in the past fiscal year. This increase in migration to the web by its
customers has allowed the Company to enjoy significant savings in
order processing and customer service costs. Since the start of its
new fiscal year, internet orders have increased by almost 75% over the
same period last year. The Company believes it will continue to have a
significant increase in its electronic catalogue business, which is
expected to have a favorable impact on sales and profitability in the
next year.
John P. Walker, President stated, "The progress of SSG in the past
year is readily evident in our financial results when compared to last
year. During the past year we began the process of outsourcing many of
the products historically manufactured by us. This process, while
impacting the short-term sales of certain lines, has allowed the
Company to consolidate existing plants and improve remaining
manufacturing efficiencies.
This strategy has enabled us to transition the Company from a
manufacturing concern to a more nimble marketing and distribution
company offering better quality products, with more features to our
customers at improved margins.
Two years ago we embarked on a plan to supplement the Company's
direct mail selling effort with an entirely integrated e-commerce
platform that would pave the way for electronic cataloguing. Today,
SSG is one of the leaders in the sporting goods industry in IT
development and e-commerce solutions. Our technology has now been
developed further to form more than 157 associate marketing alliances
reaching more than 28 million participants. The purpose of the
associate program is to create strong bonds with the participating
organizations that will purchase SSG's sporting goods and recreational
products for use in their activities and enable the organization to
raise funds for their own purposes. Since we offer our technology to
participating organizations free of charge, they do not have to commit
significant amounts of financial and human capital to develop such
technology. Our associate program is growing each day and we expect to
double the number of participants by the end of the year.
As we continue into the new fiscal year, we believe the changes
made to the Company's marketing, product development and operational
infrastructure continues to have a beneficial impact on the Company's
performance."
For more information about Sport Supply Group or to sign up as an
associate for your own on line sporting goods store, please visit
www.sportsupplygroup.com.
This news release, other than the historical information, consists
of forward looking statements that involve risks and uncertainties
detailed from time to time in the Company's filings with the
Securities and Exchange Commission, including the Company's Reports on
Form 10-K and Form 10-Q. Such forward-looking statements are made
based on management's belief as well as assumptions made by, and
information currently available to, management pursuant to the `safe
harbor' provisions of the Private Securities Litigation Reform Act of
1995. Actual results may vary materially.
Sport Supply Group, Inc.
Summary Operating Results and Balance Sheets
Fiscal Year Ended March 2002
Summary Operating Results
12 Months Ended Quarter Ended
----------------------- ----------------------
March 2002 March 2001 March 2002 March 2001
----------------------- ----------------------
Revenues 103,601 113,061 30,358 32,135
Gross Profit 29,495 32,252 8,835 9,019
Operating Expense 32,285 35,880 8,001 8,436
Operating Income (2,790) (3,628) 834 583
Interest & Other
Expense 792 2,017 66 412
Net Income Before
Taxes (3,582) (5,645) 768 171
Summary Balance Sheets
March 2002 March 2001
-----------------------
Cash and equivalents 587 1,271
Accounts Receivable 19,060 19,417
Inventory 18,368 21,050
Other Current Assets 2,219 2,266
-----------------------
Total Current Assets 40,234 44,004
Property 9,951 11,408
Other Assets 17,122 18,172
-----------------------
Total Assets 67,307 73,584
-----------------------
Current Liabilities 13,258 15,622
Long Term Debt 17,000 17,333
Stockholders' Equity 37,049 40,629
-----------------------
Total Liabilities and
Equity 67,307 73,584
-----------------------
financial information.
CONTACT:
Sport Supply Group, Dallas
John P. Walker, 972/406-7108
SOURCE: Sport Supply Group
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06/28/2002 17:27 EASTERN
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