• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Sales dip almost 7% at Broder Bros in Q3 2012

05 Nov '12
5 min read

Historically, borrowing levels have reached peaks during the middle of a given fiscal year and low points during the last quarter of the fiscal year.  Borrowings under the revolving credit facility were $132.8 million at September 2012 compared to $130.8 million at December 2011 and $141.2 million at September 2011. 

The decrease in revolver debt compared to September 2011 was mainly due to lower levels of working capital at September 2012.   The Company's Accounts Payable and Revolver balances at September 2012 reflect the payment of certain Fleece payments that were made in September 2012, whereas the fleece payments in the prior year were made in October 2011.

Borrowing base availability at September 2012, December 2011 and September 2011 was $41.4 million, $57.7 million and $67.3 million, respectively.

The face value of the 2013 Notes outstanding was $117.9 million at September 2012, December 2011 and June 2011.  Guidance provided by the FASB for troubled debt restructuring, however, requires the 2013 Notes to be recorded on the balance sheets as the total future cash payments for the 2013 Notes, including both principal and interest payments.

The 2013 Notes were recorded on the balance sheets at $139.1 million, $146.1 million and $153.2 million at September 2012, December 2011 and September 2011, respectively.  As a result of capitalizing the cash interest payments for the 2013 Notes, the Company does not anticipate recognizing any interest expense on the 2013 Notes through their maturity.  The Company paid $7.1 million in semi-annual cash interest due in October 2012 and in April 2012.  These payments are treated as reductions in the carrying value of the 2013 Notes.

2012 Outlook

As a result of actions taken during the third quarter and fourth quarter 2012 that are designed to generate higher gross profit, Broder Bros., Co. anticipates improved performance in the final quarter of the year relative to the Adjusted EBITDA declines experienced during the first three quarters of the year.  The Company now expects 2012 Adjusted EBITDA between $36 million and $38 million.

Broder Bros., Co. is the nation's leading distributor of imprintable activewear in the country. It operates the largest distribution network in the industry including eight distribution centers and ten "Express" facilities offering pickup room service. 

Broder Bros. Co.

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search