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Broder Bros reports Q4 & fiscal year 2010 results
28 Mar '11
5 min read
Fiscal 2010 Results Compared to Fiscal 2009 Results
Fiscal 2010 net sales were $791.3 million compared to $705.2 million for fiscal 2009. Income from operations was $31.2 million compared to a loss of ($4.4) million for fiscal 2009. Net income for fiscal 2010 was $16.7 million compared to a net loss of ($13.2) million for fiscal 2009.
EBITDA for fiscal 2010 was $45.8 million compared to $12.8 million for fiscal 2009. EBITDA for fiscal 2009 excludes other financing costs and the gain on troubled debt restructuring. Excluding the impact of highlighted charges discussed below, Adjusted EBITDA for fiscal 2010 was $46.1 million compared to $17.1 million for fiscal 2009.
Fiscal 2010 gross profit was $147.1 million compared to $117.1 million for fiscal 2009. Fiscal 2010 gross margin was 18.6% compared to 16.6% for fiscal 2009. The increase in gross profit was attributable to an increase in units sold, sales of products during the third and fourth quarters 2010 which the Company had purchased when their costs were lower, and management's continued focus on improved pricing and purchasing activities, net of the $6.5 million increase in inventory reserves.
The Company regained lost market share during fiscal 2010. S.T.A.R.S. reported that the U.S. imprintable activewear market grew 6% in units sold during fiscal 2010. The Company's units sold grew by 12% during the period.
Highlighted Charges
During the fourth quarter 2010, Company recorded a reduction to restructuring charges of $0.2 million, which consisted of a $0.3 million reduction to expense due to change in the estimate of future real estate taxes payable at one of its closed facilities, net of $0.1 million in interest accretion.
During fiscal 2010, the Company recorded a reduction to restructuring charges of $0.3 million, which consisted of a $0.5 million reduction of expense due to a new sublease agreement for space at one of its closed facilities, plus a $0.3 million reduction of expense due to a change in the estimate of future real estate taxes payable at one of its closed facilities, net of $0.5 million in interest accretion. Other highlighted charges recorded during fiscal 2010 consisted of severance.
Restructuring charges recorded during the fourth quarter 2009 consisted of a $1.4 million increase in rent at one of the Company's closed facilities due to a change in the counterparty to the Company's lease agreement and $0.1 million in interest accretion. Other highlighted charges recorded during the fourth quarter 2009 consisted of $0.3 million in executive bonus expense related to a bonus award program for certain key executives which recognized the executives' commitment to and success in restructuring the Company's finances in 2009.
Restructuring charges recorded during fiscal 2009 consisted of $1.4 million increase in rent described above, $0.5 million in interest accretion, and $0.4 million in severance due to headcount reductions in March 2009. Other highlighted charges recorded during fiscal 2009 consisted of $0.9 million in executive bonus expense related to the program described above, $0.5 million in consulting and professional fees related to the exchange offer completed in May 2009, and $0.3 million in inventory management consulting charges.
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Fiscal 2010 net sales were $791.3 million compared to $705.2 million for fiscal 2009. Income from operations was $31.2 million compared to a loss of ($4.4) million for fiscal 2009. Net income for fiscal 2010 was $16.7 million compared to a net loss of ($13.2) million for fiscal 2009.
EBITDA for fiscal 2010 was $45.8 million compared to $12.8 million for fiscal 2009. EBITDA for fiscal 2009 excludes other financing costs and the gain on troubled debt restructuring. Excluding the impact of highlighted charges discussed below, Adjusted EBITDA for fiscal 2010 was $46.1 million compared to $17.1 million for fiscal 2009.
Fiscal 2010 gross profit was $147.1 million compared to $117.1 million for fiscal 2009. Fiscal 2010 gross margin was 18.6% compared to 16.6% for fiscal 2009. The increase in gross profit was attributable to an increase in units sold, sales of products during the third and fourth quarters 2010 which the Company had purchased when their costs were lower, and management's continued focus on improved pricing and purchasing activities, net of the $6.5 million increase in inventory reserves.
The Company regained lost market share during fiscal 2010. S.T.A.R.S. reported that the U.S. imprintable activewear market grew 6% in units sold during fiscal 2010. The Company's units sold grew by 12% during the period.
Highlighted Charges
During the fourth quarter 2010, Company recorded a reduction to restructuring charges of $0.2 million, which consisted of a $0.3 million reduction to expense due to change in the estimate of future real estate taxes payable at one of its closed facilities, net of $0.1 million in interest accretion.
During fiscal 2010, the Company recorded a reduction to restructuring charges of $0.3 million, which consisted of a $0.5 million reduction of expense due to a new sublease agreement for space at one of its closed facilities, plus a $0.3 million reduction of expense due to a change in the estimate of future real estate taxes payable at one of its closed facilities, net of $0.5 million in interest accretion. Other highlighted charges recorded during fiscal 2010 consisted of severance.
Restructuring charges recorded during the fourth quarter 2009 consisted of a $1.4 million increase in rent at one of the Company's closed facilities due to a change in the counterparty to the Company's lease agreement and $0.1 million in interest accretion. Other highlighted charges recorded during the fourth quarter 2009 consisted of $0.3 million in executive bonus expense related to a bonus award program for certain key executives which recognized the executives' commitment to and success in restructuring the Company's finances in 2009.
Restructuring charges recorded during fiscal 2009 consisted of $1.4 million increase in rent described above, $0.5 million in interest accretion, and $0.4 million in severance due to headcount reductions in March 2009. Other highlighted charges recorded during fiscal 2009 consisted of $0.9 million in executive bonus expense related to the program described above, $0.5 million in consulting and professional fees related to the exchange offer completed in May 2009, and $0.3 million in inventory management consulting charges.
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Broder Bros Co
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