Mar '11
Fourth Quarter 2010 Results Compared to Fourth Quarter 2009 Results
Fourth quarter 2010 net sales were $215.7 million compared to $182.8 million for the fourth quarter 2009. Income from operations for the fourth quarter 2010 was $12.5 million compared to a loss of ($0.2) million for the fourth quarter 2009. Net income for the fourth quarter 2010 was $10.1 million compared to a net loss of ($2.9) million for the fourth quarter 2009.
For the fourth quarter 2010, the Company reported earnings before interest, taxes, depreciation and amortization ("EBITDA") of $16.0 million compared to EBITDA of $3.7 million for the fourth quarter 2009. A reconciliation of EBITDA to net income (loss) is set forth at the end of this earnings release.
Results include the impact of certain restructuring and other highlighted charges discussed below. Excluding these highlighted charges, EBITDA was $15.8 million for the fourth quarter 2010 compared to $5.5 million for the fourth quarter 2009. The improvement in EBITDA was driven by higher gross margins and higher unit volumes.
Fourth quarter 2010 gross profit was $40.9 million compared to $30.9 million for the fourth quarter 2009. Fourth quarter 2010 gross margin was 19.0% compared to 16.9% in the fourth quarter 2009. The increase in gross profit was attributable to an increase in units sold, sales of products in the fourth quarter 2010 which the Company had purchased when their costs were lower, and management's continued focus on improved pricing and purchasing activities, net of an increase in inventory reserves.
The Company regained lost market share during the fourth quarter 2010. S.T.A.R.S. reported that the U.S. imprintable activewear market grew 7% in units sold during the fourth quarter 2010. The Company's units sold grew by approximately 14% during the period.
Fourth quarter 2010 gross profit included an $8.0 million benefit resulting from cotton prices increases. The Company's major suppliers announced three cost increases during 2010. The Company increased its selling prices in response to each of the cost increases imposed by manufacturers and achieved higher gross margins during the fourth quarter 2010 relative to the fourth quarter 2009 as the Company sold through inventory with pre-price increase costs.
During the fourth quarter 2010, the Company increased its inventory reserves by $6.5 million due to the anticipated reduction in selling prices for some of the Company's private label products that were discontinued as of December 2010 and in prior years. The selling price reductions will permit the Company to increase the rate of sales on these slower-moving, discontinued styles during 2011.
Must ReadView All
Textiles | On 16th Oct 2017
India's garment exports up 24.93% in September 2017
The exports of readymade garments from India in September 2017 was...
Textiles | On 16th Oct 2017
Low GST rate on zari will generate jobs for women: SRTEPC
There will be a rise in the employment for women with the slash in...
Apparel/Garments | On 16th Oct 2017
Consumers may suffer if no assurance to EU workers in UK
Consumers may suffer if the British Government does not quickly offer ...
Interviews View All
Marazban F Velati
Sutlej Textiles & Industries limited
No training can be effective till the candidate believes in it.
Nitin Bhatia
Trend Arrest
Setting up a brand for online selling is easy, but running the brand is not
Claudia Kersten
Global Organic Textile Standard
‘GOTS is a very efficient supply chain management tool, especially for...
Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...
Kusumgar Corporates is a leading manufacturer of technical textiles and...
Idealin Fogging Systems has been engaged in designing and manufacturing...
Kai Poehler
Voith Paper GmbH & Co. KG
The glass mat industry is growing by five to eight per cent annually. Kai...
Eric Scholler
Groz-Beckert
The Indian market has huge potential in technical textiles, and by far,...
Mark Paterson
Technical Absorbents Ltd
Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...
Karan Arora
Karan Arora
Bridal couture created with rich Indian heritage, exquisite craftsmanship...
Yash P. Kotak
Bombay Hemp Company
One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...
Aditi Somani
Aditi Somani
Aditi Somani specialises in luxury fusion wear with international cuts and ...
Recommended
news category
Related Categories:
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
Yes No SkipActive Poll
Do you see sustainability as a route to business growth?
YesTotal Votes: 65
Do you think adopting a sustainable approach will be a profitable move for your business?
Yes No SkipActive Poll
Do you think the sustainability space has the needed tools and resources available for a business to lead change?
YesTotal Votes: 65
Do you want the world to know about your sustainability journey and your business’ environmental footprint?
Yes No SkipActive Poll
Do you think adopting a sustainable approach will be a profitable move for your business?
YesTotal Votes: 65
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?
YesTotal Votes: 65
E-News Insight
Latest News Update in Your Mail Box.
