• EPS Grows 47% to $0.25 versus $0.17 in Year-Ago Period
• Cash On-hand Rises 30% from December 31, 2007 to $13.0 Million
• Operating Margins for the Quarter Approximately 10%

DALLAS--(BUSINESS WIRE)--The Company will host a conference call at 3:30PM CT / 4:30PM ET today, April 29, 2008. The call may be accessed by dialing 866 825 3354 and using pass code 55675289. A replay of the call is available by dialing 888 286 8010 and using pass code 22237904.

Sport Supply Group, Inc. (NASDAQ: RBI - News) today reported record sales and earnings results for the three and nine months ended March 31, 2008.

Financial Highlights for the Three Months Ended March 31, 2008 compared to the Three Months Ended March 31, 2007

• Sales Up 4.1% to $65.8 Million
• Gross Margin Percentage Up 50bps to 36.6%
• SG&A Expense Down $671,000 to $17.8 Million
• Operating Income Up 44% to $6.3 Million
• Net Income Up 94% to $3.4 Million
• EPS up 47% to $0.25 per diluted share, on 15% Increase in Shares

Financial Highlights for the Nine Months Ended March 31, 2008 compared to the Nine Months Ended March 31, 2007

• Sales Up 5.3% to $190 Million
• Gross Margin Percentage Up 70bps to 36.3%
• SG&A Up Approximately 1.6%, or $850,000
• Operating Income Up 33% to $15.7 Million
• Net Income Up 90% to $8.0 Million
• EPS Up 53% to $0.61 per diluted share
• Net Cash Provided by Operating Activities Up 171% to $15.1 Million

Adam Blumenfeld, Chairman of the Board and CEO, stated: “We are pleased to announce today’s results which showcase continued strong operating performance across the platform. It is a testament to our managers and hardworking employees that virtually every key metric is moving in the right direction, most notably SG&A, which actually decreased $671,000 for the quarter ended March 31, 2008 versus the year-ago comparative period. The combination of top-line growth, gross margin expansion and year over year expense reduction proved to be the perfect recipe for significant growth in cash flows and earnings leverage, allowing the company to produce operating margins of approximately 10% for the third quarter, and a 47% increase in earnings per share.

“Strategically, we are very pleased with both the performance and positioning of the Company. In this challenging macroeconomic environment, we believe - more than ever - entities with a superior balance sheet, seasoned management and a scalable infrastructure will be rewarded. Sport Supply Group, with its growing cash position and dominant footprint within the institutional sporting goods space, has significant flexibility in terms of next steps. We continue to review a number of organic and/or acquisition related opportunities as we look to further enhance the platform and leverage our position in the marketplace.”

 

Sport Supply Group Inc. is the nation's leading marketer, manufacturer and distributor of sporting goods and branded team uniforms to the institutional and team sports market. The Company markets via 3 million direct catalogs, a 40 man telesales team, 160 direct sales professionals and a family of company-controlled websites.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to the Company's anticipated financial performance, business prospects, new developments and similar matters, and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. These forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including changes in business, political, and economic conditions due to the threat of future terrorist activity or otherwise, the ability to successfully complete integration related activities, actions and initiatives by current and potential competitors, and certain other additional factors described in the Company's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. The Company is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.