Home / Knowledge / News / Apparel/Garments / Broder Bros posts second quarter results
Broder Bros posts second quarter results
09
Aug '10
Broder Bros., Co. announced results for its second quarter ended June 26, 2010.

Second Quarter 2010 Results Compared to Prior Year

Second quarter 2010 net sales were $211.6 million compared to $177.7 million for the second quarter 2009. Income from operations for the second quarter 2010 was $9.1 million compared to $1.0 million for the second quarter 2009. Net income for the second quarter 2010 was $6.0 million compared to $5.8 million for the second quarter 2009, which included the gain on troubled debt restructuring.

For the second quarter 2010, the Company reported earnings before interest, taxes, depreciation and amortization ("EBITDA") of $12.7 million compared to EBITDA of $5.4 million for the second quarter 2009. A reconciliation of EBITDA to net income (loss) is set forth at the end of this press release.

Results include the impact of certain restructuring and other highlighted charges discussed below. Excluding these highlighted charges, EBITDA was $12.4 million for the second quarter 2010 compared to EBITDA of $5.8 million for the second quarter 2009. The improvement in EBITDA was driven by higher unit volumes and higher gross margins.

Second quarter 2010 gross profit was $38.3 million compared to $30.2 million for the second quarter 2009. The increase in gross profit was due to a 21.6% growth in unit volumes combined with a 4% increase in gross profit per unit. Second quarter 2010 gross margin was 18.1% compared to 17.0% in the second quarter 2009.

The Company regained lost market share during the second quarter 2010. As reported by STARS, the market grew 11% in units sold. Approximately half of the increase in the Company's unit volume for the second quarter 2010 was due to the growth in the market. The remainder of the increase in the Company's unit volume was due to the Company's three-part guarantee instituted in July 2009 as well as sales and marketing efforts to grow revenues and gross profit. The three-part guarantee consists of promises that the Company would be in stock in key styles and colors, that it would fulfill orders accurately and that the Company would not be undersold.

Highlighted Charges
The reversal of restructuring charges during the second quarter 2010 was the result of the Company entering into a sublease at its former Philadelphia, PA distribution center, net of $0.1 million of interest accretion on restructuring charges for closed facilities. Restructuring charges recorded during the first quarter 2010 consisted of interest accretion on restructuring charges for closed facilities and other highlighted charges consisted of severance.

Restructuring charges recorded during the second quarter 2009 consisted of interest accretion on restructuring charges for closed facilities. Restructuring charges recorded during the first quarter 2009 consisted mainly of severance costs due to the March 2009 headcount reductions. Other highlighted charges recorded during the first quarter 2009 consisted of $0.4 million in inventory management consulting charges and $0.1 million in consulting fees related to the exchange offer.

Must ReadView All

Textiles | On 8th Dec 2016

China’s economy on track to meet growth expectations

China’s GDP has grown at 6.7 per cent in the first three quarters of...

SSM TK2-20 CT

Textiles | On 8th Dec 2016

SSM shows winding & air-texturing machines at India ITME

SSM (Schärer Schweiter Mettler AG), a leader in yarn processing and...

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Johan Berlin
InvestKonsult Sweden AB

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search