Easton-Bell Reports 28.2% Jump in Q2 Net Income
Easton-Bell Sports, Inc. (the “Company”), parent company of Giro and Bell, announced it will discuss its financial results for the fiscal quarter ended June 28, 2008 on a conference call to be held on Wednesday, August 13, 2008, beginning at 3:00 p.m. Eastern Daylight Time.
Results for the Fiscal Quarter Ended June 28, 2008
The Company’s net sales for the second fiscal quarter of 2008 increased $14.4 million to $220.8 million, or 7.0%, as compared to $206.4 million of net sales in the second fiscal quarter of 2007. Team Sports net sales increased $6.8 million for the second fiscal quarter of 2008, or 5.4% as compared to the comparable fiscal quarter in 2007. Team Sports net sales increased due to strong growth in football equipment and modest growth in ice hockey equipment. Sales of baseball and softball equipment were down slightly in the quarter. Action Sports net sales increased $7.6 million in the second fiscal quarter of 2008, or 9.4% as compared to the comparable fiscal quarter in 2007. Action Sports net sales increased due to increased sales of cycling and snow helmets, cycling components, eyewear and fitness related products. Sales in the specialty channel were strong in the second fiscal quarter of 2008 as they increased 14.3% as compared to the second fiscal quarter of 2007.
The Company’s net income for the second quarter of 2008 was $15.5 million, as compared to $12.1 million for the second quarter of 2007, an increase of 28.2%. The increase in net income is primarily due to the sales growth and the impact of the fair market adjustment for an interest rate swap agreement entered into during the quarter, which reduced interest expense. Adjusted EBITDA for the second quarter of 2008 was $40.2 million, as compared to $38.8 million for the second quarter of 2007, an increase of 3.7%. “I am pleased with the Company’s second quarter results, specifically sales growth during uncertain economic times and strong cash flow management,” said Paul Harrington, Easton Bell Sports, Inc. President and Chief Executive Officer. A detailed reconciliation of net income to Adjusted EBITDA is included in the section entitled “Reconciliation of Non-GAAP Financial Measures,” which appears at the end of this press release.
Balance Sheet Items
Net debt totaled $440.3 million (total debt of $468.5 million less cash of $28.2 million) as of June 28, 2008, a decrease of $52.9 million over such amount at June 30, 2007. The reduction in net debt is due to decreased revolver borrowings, which are used for seasonal working capital needs of $30.0 million, a decrease in long term debt of $2.5 million and an increase in cash of $20.4 million. Working capital as of June 28, 2008 was $298.3 million, as compared to $262.8 million as of December 29, 2007. Inventories of $115.7 million at June 28, 2008 were down $19.6 million and of higher quality as compared to inventories of $135.3 million at December 29, 2007.
About Easton-Bell Sports, Inc.
Easton-Bell Sports, Inc. is a leading designer, developer and marketer of innovative sports equipment, protective products and related accessories. The Company markets and licenses products under such well-known brands as Easton, Bell, Riddell, Giro and Blackburn. The Company’s products incorporate leading technology and designs and are used by professional athletes and enthusiasts alike. Headquartered in Van Nuys, California, the Company has 29 facilities worldwide. More information is available at www.eastonbellsports.com.
Press Release
- August 12 2008 | 91 views
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