Home / Knowledge / News / Apparel/Garments / Sales dip almost 7% at Broder Bros in Q3 2012
Sales dip almost 7% at Broder Bros in Q3 2012
05
Nov '12
Broder Bros. Co. announced its third quarter results for its quarter ended September 29, 2012.   

Third Quarter 2012 Results Compared to Third Quarter 2011 Results

Third quarter 2012 net sales were $205.1 million compared to $220.5 million for the third quarter 2011.  Income from operations for the third quarter 2012 was $6.5 million compared to $12.7 million for the third quarter 2011.  Net income for the third quarter 2012 was $3.1 million, or $0.30 per diluted share, compared to $8.3 million, or $0.80 per diluted share, for the third quarter 2011.

For the third quarter 2012, the Company reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $8.3 million compared to EBITDA of $15.3 million for the third quarter 2011. Results include the impact of certain restructuring and other highlighted charges discussed below. 

Excluding these highlighted charges, EBITDA was $10.0 million for the third quarter 2012 compared to $15.2 million for the third quarter 2011.  The year-over-year reduction in EBITDA of $5.2 million was driven by lower gross profit.  A reconciliation of EBITDA to net income is set forth at the end of this earnings release.

Third quarter 2012 gross profit was $34.7 million compared to $39.8 million for the third quarter 2011.  Third quarter 2012 gross margin was 16.9% compared to 18.0% one year prior.  The decrease in gross margin was due to lower gross profit per unit.  The Company's unit volume declined by 6% compared to the third quarter 2011 on a 2% reduction in average selling prices.

Effective from the month of July 2012, data from CREST reports is no longer available to the Company.

Highlighted Charges

The other highlighted charges in the third quarter 2012 and for the nine months ended September 29, 2012 consisted of employee separation costs combined with certain charges incurred in connection with refinancing the Company's $118 million aggregate principal amount of 12%/15% Senior Payment-In-Kind Toggle Notes due 2013.

The credit to restructuring charges recorded in the third quarter 2011 consisted of a $0.2 million credit resulting from an amendment to a sublease at our former Philadelphia, PA distribution center partially offset by $0.1 million in interest accretion on restructuring charges for closed facilities.  The credit to restructuring charges during the nine months ended September 2011 was due to a gain of approximately $2.2 million on the purchase of a leased facility in Wadesboro, NC.  The net purchase price of the facility was less than the present value of the remaining lease payments due under the lease, which was set to expire in March 2014.

Liquidity Position

The Company relies primarily upon cash flow from operations and borrowings under its revolving credit facility to finance operations, capital expenditures and debt service requirements.  Borrowings and availability under the revolving credit facility fluctuate due to seasonal demands. 


Must ReadView All

Two slabs of GST will affect Bengaluru garment units: SIGA

Apparel/Garments | On 23rd Jan 2018

Two slabs of GST will affect Bengaluru garment units: SIGA

The South India Garment Association (SIGA) has voiced its concern...

US FTC updates textile rules to drop obsolete requirement

Textiles | On 23rd Jan 2018

US FTC updates textile rules to drop obsolete requirement

The US Federal Trade Commission has eliminated an obsolete provision...

Indian textile industry at inflection point: Report

Textiles | On 23rd Jan 2018

Indian textile industry at inflection point: Report

The textile and apparel sector of India is at an inflection point...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search