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Rawlings warns on sales
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January 15, 2001: 3:05 p.m. ET
Sporting goods company posts 1Q profit; says may miss earlier guidance
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NEW YORK (CNNfn) - Rawlings Sporting Goods Co. reported an 8 percent gain in sales as it moved into the black from the year-earlier loss, but it warned it may not be able to meet earlier sales gains projections.
The Fenton, Mo., company earned $346,000, or 4 cents a share, in its fiscal first quarter, which ended Nov. 30. That compares with the loss from continuing operations of $1.3 million, or 17 cents a share, in the year earlier period. Earnings tracker First Call did not have a forecast for the company's results.
 Sales in the most recent quarter increased 8 percent to $36.7 million from $34.0 million a year earlier. Gross profit, which reflects sales less the cost of goods sold, rose to $25.2 million from $23.3 million a year earlier.
The company said it sees continued gains the rest of this fiscal year, although it said it may not be able to hit previous guidance on sales gain during the year. It said it now looks for growth in the 2 to 9 percent range for the year, compared to earlier guidance of a 7-to-9 percent gain.
"Recognizing the greater sales range, we project EBITDA (earnings before interest, taxes, depreciation and amortization) from continuing operations between $13 million and $17 million in fiscal year 2001. Combined with reductions in working capital that lower our debt requirements and interest costs, these would translate to earnings per share of 50 cents to 73 cents in fiscal year 2001," the company said.
The company earned 17 cents a share for fiscal year 2000.
The company also said it could be hurt by a major league baseball strike in 2002. Rawlings makes the baseballs used by the major leagues, as well as gloves used by more than half of major league players.
Shares of Rawlings (RAWL: Research, Estimates) gained 13 cents to $5.50 in trading Friday. Markets were closed Monday for the Martin Luther King Jr. holiday. 
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