-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WZkfcCSgr8nqyUEGzYkKL/7q58DxELMiRhjNqnLie8tINcLTDqHsWQjtMUD68JNV sX3j+up3cTO7pvDqTRlaGw== 0000926236-03-000107.txt : 20030714 0000926236-03-000107.hdr.sgml : 20030714 20030714152233 ACCESSION NUMBER: 0000926236-03-000107 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030711 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030714 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SPORT SUPPLY GROUP INC CENTRAL INDEX KEY: 0000872855 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CATALOG & MAIL-ORDER HOUSES [5961] IRS NUMBER: 752241783 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10704 FILM NUMBER: 03785339 BUSINESS ADDRESS: STREET 1: 1901 DIPLOMAT DRIVE CITY: FARMERS BRANCH STATE: TX ZIP: 75234-8914 BUSINESS PHONE: 9724849484 8-K 1 ssg8k071103.txt CURRENT REPORT JULY 11, 2003 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 11, 2003 ------------- SPORT SUPPLY GROUP, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 001-10704 75-2241783 --------------- ------------ ------------- (State or Other (Commission (IRS Employer Jurisdiction of File Number) Identification No.) Incorporation) 1901 Diplomat Drive, Farmers Branch, Texas 75234 -------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (972) 484-9484 ITEM 7: EXHIBITS Exhibit No. Description ----------- ----------- 99.1 Press Release of Sport Supply Group, Inc. dated July 14, 2003 (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1934, as amended) ITEM 9: REGULATION FD DISCLOSURE On July 14, 2003, Sport Supply Group, Inc., a Delaware corporation (the "Company"), filed with the Securities and Exchange Commission (the "Commission"), a Press Release discussing its financial results for the quarter and year ended March 28, 2003. A copy of the Press Release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information in this report is being furnished (i) pursuant to Regulation FD, and (ii) pursuant to Item 12 Results of Operations and Financial Condition (in accordance with SEC interim guidance issued March 28, 2003). In accordance with General Instructions B.2 and B.6 of Form 8- K, the information in this report shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1934, as amended. The furnishing of the information set forth in this report is not intended to, and does not, constitute a determination or admission as to the materiality or completeness of such information. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 14, 2003 SPORT SUPPLY GROUP, INC. By: /s/ Robert K. Mitchell ---------------------- Robert K. Mitchell Chief Financial Officer Index to Exhibits Exhibit No. Description ----------- ----------- 99.1 Press Release of Sport Supply Group, Inc. dated July 14, 2003 (furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and not deemed incorporated by reference in any filing under the Securities Act of 1934, as amended) EX-99.1 3 exh99-1.txt PRESS RELEASE OF JULY 14,2003 EXHIBIT 99.1 [SPORT SUPPLY LOGO] FOR IMMEDIATE RELEASE Monday, July 14, 2003 FOR FURTHER INFORMATION: John P. Walker President, SSG 972/406-7108 Sport Supply Group Announces Improved Results For The Fiscal Year Ended March 2003 E Commerce Revenue, Product Outsourcing and Reduced SG&A Produce Significant Improvements in Operating Results Dallas, Texas Monday, July 14, 2003 - Sport Supply Group, Inc., (OTCBB: SSPY), a leading sporting goods distributor and e commerce company, announced significantly improved results for its fiscal year ended March 2003. Fiscal Year 2003 Highlights Compared to Fiscal 2002 --------------------------------------------------- * Revenues stabilize at $102.6 million in 2003 compared to $103.6 in 2002 * Gross profit increased to 29.3% from 28.5% * Selling, general and administrative expenses (SG&A) reduced by more than $1.4 million or 4.4% * Operating loss narrows to $1.6 million marking a year over year 66% improvement * Loss before taxes (and before cumulative effect of accounting change) reduced by 56%, a $2.0 million improvement * Cash flow (EBITDA) increased $1.4 million * Internet revenues increased by more than 70% to $5.3 million. The number of orders processed over the web increases by more than 112% from the prior year. * Working capital increased $740,000 Net revenues for the fiscal year ended March 28, 2003 were $102.6 million as compared to $103.6 million the prior year. The decrease in revenues for the year was primarily attributable to lower revenues in the Company's team dealer business. Gross margin improved 0.8% to 29.3% from 28.5% a year ago. Selling, general and administrative expenses were reduced 4.4% to $30.5 million as compared to $31.9 million last year. The loss before taxes and cumulative effect of accounting change improved by $2.0 million or 56.4% to a loss of $1.6 million as compared to a loss of $3.6 million last year. The loss per share before cumulative effect of accounting change was $0.18 per diluted share as compared to a loss per share of $0.40 the previous year. After a one-time, $7.4 million non-cash charge associated with the cumulative accounting effect of implementing Financial Accounting Standards Board Statement 142 (Accounting for Goodwill and Other Intangible Assets), the Company's net loss was $9.0 million, or $1.01 per diluted share. Net revenues for the quarter ended March 2003 were $31.2 million, up 2.8% from the same quarter last year. Gross margin decreased 1.0% from 29.1% to 28.1%, and selling, general and administrative expenses were $7.9 million in both 2003 and 2002. Operating Income for the March quarter decreased 11.3% to $749,000. Net income for the quarter was $567,000 as compared to $768,000 the prior year. Earnings per share were $0.06 per diluted share compared to $0.09 per diluted share for the quarter ended March 2002. The number of orders received and revenues generated over the Internet increased significantly in the past fiscal year. During the fiscal year ended March 2003 the Company processed more than 20,000 orders and generated 70% revenue growth over the Internet. This increase in migration of customers to our websites has helped the Company enjoy significant savings in order processing and customer service costs. Our Associate Program, developed by the Company in 2002, now has more than 1,350 participating organizations. We expect continued revenue growth from this effort, as organizations look for strategic alliances that help fund various athletic programs that benefit their participants. The Company is in the process of launching an e procurement model specifically designed for schools that will enable school districts, one of the Company's largest revenue segments, to incorporate on-line order entry, purchasing preferences and invoice processing into the Company's SAP system. The Company believes that this solution will help its school customers process orders more efficiently and reduce order-processing costs for both the school districts and SSG. John P. Walker, President stated, "We continue to execute the elements of our strategic plan begun two years ago. Our plan focuses on several strategic initiatives including: outsourcing manufacturing to more efficient producers, both domestically and overseas; streamlining internal operations; and migrating a significant part of our customer base to e commerce marketing, order processing and customer service. The results of the past year, which show almost 70% improvement in the Company's operating performance, are beginning to substantiate the programs we believe have provided and will continue to produce better operating results. As part of this plan, we have transferred product lines historically manufactured by the Company to more efficient manufacturers, primarily in Asia. We have achieved significant cost reductions over the past two years in our expenses and cost of sales. Our e commerce platform continues to expand and enhances our marketing and sales efforts, improves on-line customer service and reduces order processing costs. We are confident that we are executing these strategies in a manner that will produce profitable results that maximize returns to our shareholders. At the same time, we are continuing to position the Company to aggressively market and sell sporting goods and recreational products in today's very competitive and technologically challenging world." For more information about Sport Supply Group or to sign up as an associate for your organizations 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 2003 Sport Supply Group Inc Summary Operating Results 12 Months Ended Quarter Ended --------------------------------------------- (in $000) March 2003 March 2002 March 2003 March 2002 --------------------------------------------- Revenues 102,617 103,601 31,238 30,358 Gross Profit 30,029 29,495 8,790 8,835 SG&A Expenses 30,511 31,929 7,879 7,914 Internet Expenses 461 356 161 86 Operating Income (Loss) (943) (2,790) 750 835 Interest & Other Expense 618 792 183 67 Net Income (Loss) Before Cumulative Effect of Accounting Change (1,561) (3,582) 567 768 Cumulative Effect of Accounting Change (7,442) Net Income (Loss) After Effect of Accounting Change (9,003) (3,582) 567 768 Summary Balance Sheets --------------------- (in $000) March 2003 March 2002 --------------------- Cash and Equivalents 2,142 587 Accounts Receivable 20,246 19,060 Inventory 19,564 18,368 Other Current Assets 2,102 2,219 --------------------- Total Current Assets 44,054 40,234 Property 8,520 9,951 Other Assets 9,421 17,122 --------------------- Total Assets 61,995 67,307 --------------------- Current Liabilities 16,338 13,258 Long Term Debt 17,612 17,000 Stockholders' Equity 28,045 37,049 --------------------- Total Liabilities and Equity 61,995 67,307 --------------------- Sport Supply Group Inc Reconciliation of Non GAAP Financial Measurement 12 Months Ended FY 2003 --------------------- March 28, 2003 (in $000) March 2003 March 2002 --------------------- Net Income (9,003) (3,582) Add: Interest expense 618 792 Tax benefit Depreciation and amortization 2,172 2,573 Cumulative effect of accounting change 7,442 - --------------------- Earnings before interest, depreciation and amortization (EBITDA) 1,229 (217) --------------------- Please refer to our Form 10-K as filed with the SEC for complete financial information. -----END PRIVACY-ENHANCED MESSAGE-----