Sport Supply Group Reports Record Q409 EPS of $0.18 Per Share; Record FY09 EPS of $0.86 Per Share

* Company Reports FY09 Net Sales of $250.2 Million - Essentially Even with Prior
Year Results
* FY09 Net Income Up 22% from Year-Ago Levels
* Top Line Sales Growth Expected to Return in FY10

The Company will host a conference call at 3:30PM CT / 4:30 ET today to discuss
these results and future plans. The call may be accessed by dialing 866 202 1971
and using pass code 68622102. A replay of the call will be available for seven
days by dialing 888 286 8010 and using pass code 90043872.
DALLAS--(Business Wire)--
Sport Supply Group, Inc. (NASDAQ:RBI) today announced results for the Quarter
and Fiscal Year ending June 30, 2009. Metrics for the Quarter and Year Ending
are noted below:

For the Fourth Fiscal Quarter Ending June 30, 2009:

* Net Sales $59.7 Million vs. Q408 of $61.1 Million
* Gross Margin Percentage of 35.9% vs. Q408 of 36.2%
* SG&A Down 5.0% to $17.2 Million vs. Q408 of $18.1 Million
* Operating Profit Up 7.5% to $4.3 Million vs. Q408 of $4.0 Million
* Operating Margins Up 70 bps to 7.2% vs. Q408 of 6.5%
* Net Income Up 27.7% to $2.3 Million vs. Q408 of $1.8 Million
* Diluted EPS Up 20% to $0.18 Per Share vs. Q408 of $0.15 Per Share
* EBITDA of $5.0 Million vs. Q408 of $5.0 Million
* Adjusted EBITDA of $5.3 Million vs. Q408 of $5.2 Million

For the Fiscal Year Ending June 30, 2009:

* Net Sales of $250.2 Million vs. FY08 of $251.4 Million
* Gross Margin Percentage of 35.8% vs. FY08 of 36.2%
* SG&A Down 3.7% to $68.7 Million vs. FY08 of $71.3 Million
* Operating Profit Up 6% to $20.9 Million vs. FY08 of $19.7 Million
* Operating Margins Up 50 bps to 8.3% vs. FY08 of 7.8%
* Net Income Up 22% to $11.9 Million vs. FY08 of $9.7 Million
* Diluted EPS Up 13% to $0.86 Per Share vs. FY08 of $0.76 Per Share
* EBITDA of $23.8 Million vs. FY08 of $23.6 Million
* Adjusted EBITDA of $24.9 Million vs. FY08 of $24.0 Million

Commenting on the results, Adam Blumenfeld, Chairman and CEO, stated: "We are
proud to have delivered significant growth in operating margins, net income and
earnings per share for the fourth quarter and the fiscal year, despite the
current severe economic recession. We were able to maintain sales and hold gross
margins within a reasonable range while reducing SG&A expenses by $2.6 Million.
Further, during fiscal 2009, we took actions that we believe have
well-positioned the Company to take advantage of the difficult economy and
enhance future growth opportunities, including reducing our outstanding
convertible debt by $21 Million and entering a new credit facility with Bank of
America. In a year where most industry participants experienced shrinking demand
and profitability, Sport Supply`s non-retail/non-consumer-based institutional
model proved resilient and produced the most profitable year in corporate
history."

Commenting on recent developments, Mr. Blumenfeld stated: "In the last sixty
days the Company has closed 3 transactions. Webster`s Team Sports (Florida), Gus
Doerner Team Sports (Indiana), and Har-bell Athletics (Missouri) each add
strategically valuable new sales outlets for the Company. Despite the relatively
high degree of activity in the last two months, we continue to review a number
of interesting joint venture, business development, internal growth and external
expansion opportunities. Over the last two years we have worked hard to create a
scalable and technologically advanced direct sales platform - built for the
rapid integration and monetization of new relationships and properties within
this highly fragmented industry. We intend to leverage this scalability and
further strengthen our position in the team sports space.

"For the fiscal year ahead, we see mid single digit top line growth returning in
FY10 and have recently guided to annual EPS of $0.89 - $0.97 per diluted
outstanding share."

SPORT SUPPLY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)

Three Months Ended Twelve Months Ended
June 30, June 30,
2009 2008 2009 2008

Net sales $ 59,714 $ 61,110 $ 250,227 $ 251,394
Cost of sales 38,264 39,014 160,551 160,315

Gross profit 21,450 22,096 89,676 91,079

Selling, general and administrative expenses 17,178 18,051 68,703 71,379
Operating profit 4,272 4,045 20,973 19,700

Other income (expense):
Interest income 14 88 132 290
Interest expense (523 ) (951 ) (3,324 ) (4,105 )
Gain on early retirement of Notes -- -- 1,443 --
Other income 18 47 36 124
Total other expense (491 ) (816 ) (1,713 ) (3,691 )

Income before income taxes 3,781 3,229 19,260 16,009

Income tax provision 1,487 1,420 7,344 6,276

Net income $ 2,294 $ 1,809 $ 11,916 $ 9,733

Weighted average number of shares outstanding:
Basic 12,386,830 12,361,816 12,383,129 12,122,765
Diluted 14,393,916 15,891,144 14,830,714 15,656,672

Net income per common share - basic $ 0.19 $ 0.15 $ 0.96 $ 0.80
Net income per common share - diluted $ 0.18 $ 0.15 $ 0.86 $ 0.76
Dividends declared per common share $ 0.025 $ 0.025 $ 0.10 $ 0.10

SPORT SUPPLY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

June 30, June 30,
2009 2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 10,743 $ 20,531
Accounts receivable, net 32,276 34,060
Inventories 33,872 36,318
Current portion of deferred income taxes 4,040 3,866
Prepaid income taxes 1,828 --
Prepaid expenses and other current assets 1,821 1,203
TOTAL CURRENT ASSETS 84,580 95,978
PROPERTY AND EQUIPMENT, net 8,504 9,715
DEFERRED DEBT ISSUANCE COSTS, net 291 1,389
INTANGIBLE ASSETS, net 6,226 6,972
GOODWILL 53,426 53,543
OTHER ASSETS, net 76 98
TOTAL ASSETS $ 153,103 $ 167,695

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 20,132 $ 21,183
Accrued liabilities 7,462 11,842
Dividends payable 311 309
Accrued interest 140 240
Current portion of long-term debt 28,892 108
Income taxes payable -- 677
TOTAL CURRENT LIABILITIES 56,937 34,359
DEFERRED INCOME TAX LIABILITY 4,331 4,014
NOTES PAYABLE AND OTHER LONG-TERM DEBT -- 50,036
TOTAL LIABILITIES 61,268 88,409
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS` EQUITY:
Preferred stock -- --
Common stock 125 125
Additional paid-in capital 66,526 64,648
Retained earnings 25,987 15,316
Treasury stock at cost (803 ) (803 )
TOTAL STOCKHOLDERS` EQUITY 91,835 79,286

TOTAL LIABILITIES AND STOCKHOLDERS` EQUITY $ 153,103 $ 167,695

SPORT SUPPLY GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)

Twelve Months Ended
June 30,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 11,916 $ 9,733
Adjustments to reconcile net income to cash provided by operating activities:
Provision for uncollectible accounts receivable 851 1,028
Depreciation and amortization 2,799 3,738
Amortization of deferred debt issuance costs 1,244 943
Loss on disposition of property and equipment 11 --
Deferred income tax expense 605 4,362
Stock-based compensation expense 1,156 494
Gain on early retirement of long term debt (1,443 ) --
Changes in operating assets and liabilities:
Accounts receivable 1,042 (3,934 )
Inventories 2,512 (4,077 )
Income taxes payable / prepaid income taxes (2,505 ) 3,885
Prepaid expenses and other current assets (618 ) 177
Other assets, net 22 46
Accounts payable (1,051 ) 5,016
Accrued liabilities and accrued interest (4,691 ) 1,473
Net cash provided by operating activities: 11,850 22,884

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (853 ) (1,732 )
Cash used in business acquisitions (309 ) --
Net cash used in investing activities: 1,162 ) (1,732 )

CASH FLOWS FROM FINANCING ACTIVITIES:
Early retirement of long term debt (19,701 ) --
Deferred debt issuance cost (146 ) (23 )
Proceeds from bank line of credit 37,123 1,015
Payments on notes payable and line of credit (37,231 ) (25,865 )
Cash paid for treasury shares -- (146 )
Payment of dividends (1,243 ) (1,180 )
Tax benefit related to the exercise of stock options 493 379
Proceeds from issuance of common stock 229 19,520
Net cash used in financing activities: (20,476 ) (6,300 )

Net change in cash and cash equivalents (9,788 ) 14,861
Cash and cash equivalents, beginning of period 20,531 5,670
Cash and cash equivalents, end of period $ 10,743 $ 20,531

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest $ 1,373 $ 3,181
Cash paid (refunded) for income taxes $ 8,983 $ (1,752 )

SPORT SUPPLY GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS TO EBITDA AND
ADJUSTED EBITDA
(Unaudited, in thousands)

Three Months Ended Twelve Months Ended
June 30, June 30,
2009 2008 2009 2008

Net Income $ 2,294 $ 1,809 $ 11,916 $ 9,733
Provision for income taxes 1,487 1,420 7,345 6,276
Interest expense, net of interest income 509 863 1,749 3,811
Depreciation and amortization 679 940 2,799 3,738
EBITDA (a) 4,969 5,032 23,809 23,558
Other expenses:
Stock-based compensation expense 303 139 1,156 492
Adjusted EBITDA (a) $ 5,272 $ 5,171 $ 24,965 $ 24,050

(a) EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA is
defined as net income before interest expense (net of interest income), income
taxes, depreciation and amortization. Adjusted EBITDA is defined as net income
before interest expense (net of interest income), income taxes, depreciation,
amortization, and stock-based compensation expense included in the caption above
labeled "Other expenses" which do not directly relate to ongoing operations. SSG
management relies on EBITDA and Adjusted EBITDA as the primary measures to
review and assess operating performance. SSG believes it is useful to investors
to provide disclosures of its operating results on the same basis that is used
by management. Management and investors also review EBITDA and Adjusted EBITDA
to evaluate SSG's overall performance and to compare SSG's current operating
results with corresponding periods and with other companies. You should not
consider EBITDA and Adjusted EBITDA in isolation or as a substitute for net
income, operating cash flows or other cash flow statement data determined in
accordance with accounting principles generally accepted in the United States of
America. Because EBITDA and Adjusted EBITDA are not measures of financial
performance under accounting principles generally accepted in the United States
of America and are susceptible to varying calculations, they may not be
comparable to similarly titled measures of other companies.

About Sport Supply Group

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, more than 200 direct sales professionals, 60 Platinum Team
Dealer Partners 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 which changes may negatively impact school and other government
supported budgets as well as the cost of doing business, actions and initiatives
by current and potential competitors, the availability and cost of financing,
and certain other additional factors described in the Company's filings with the
Securities and Exchange Commission, including under the heading "Risk Factors"
in the Company`s annual reports on Form 10-K and under the heading "Risk
Factors" and/or "Statement Regarding Forward-Looking Disclosure" in the
Company`s quarterly reports on Form 10-Q. 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.

Sport Supply Group, Inc.
Adam Blumenfeld, 972-243-0879

Copyright Business Wire 2009

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