Easton-Bell Sports, Inc. saw net sales drop 5.8 percent to $201.6 million for the second quarter of 2013, which ended June 29. The decrease was due to the exit of the non-core fitness products category and lower hockey sales.
Action sports net sales, which include bicycle and powersports equipment, were flat, despite Bell powersports helmet sales increasing 49 percent from market share gains.
Gross margin increased by 70 basis points to 35.7 percent. Adjusted EBITDA inclusive of one-time severance expenses related to management ranges and costs related to the exit of the lacrosse product category was down 24.3 percent to $19.5 million. Exclusive of those expenses, adjusted EBITDA was down 8.7 percent to $23.5 million.
“We are pleased with our progress to date in reorganizing our company as we prioritize strategies and resources, streamline operations and rationalize spending. To accomplish this, we have incurred substantial one-time costs. Our financial performance when normalized for such costs reflects the strength throughout many of our businesses that is mitigated by the exit of the low-margin non-core fitness products category and challenges in our hockey business,” said Terry Lee, executive chairman and CEO of Easton-Bell.