Broder Bros., Co. said sales for the fourth quarter ended Dec. 26th 2009 were $182.8 million compared to $219.5 million for the fourth quarter of 2008. Loss from operations for the fourth quarter 2009 was $200,000 compared to income from operations of $3.2 million for the fourth quarter 2008, excluding goodwill and trade name impairment charges. Net loss for the fourth quarter 2009 was $2.9 million compared to net income of $8.5 million for the fourth quarter 2008.

 

Including restructuring charges, EBITDA in the quarter was $3.7 million compared to EBITDA of $7.3 million in the year-ago period. Excluding these charges, EBITDA was $5.5 million for the fourth quarter 2009 and $7.5 million for the fourth quarter 2008.

 

Revenue slipped 16.7% from the year-ago period. The company’s unit shipments were 15% less than the prior year compared to a 9% decline in overall industry unit shipments as reports by STARS, meaning that more than half of the company’s revenue decline was due to market share loss.

 

Fourth quarter 2009 gross profit was $30.9 million compared to $41.4 million for the fourth quarter 2008, primarily due to lower volume unit.

 

Operating expenses excluding charges during the fourth quarter were $25.4 million compared to $33.9 million during the fourth quarter 2008. The company said the reduction in operating expenses was primarily due to a $4.1 million reduction in bad debt expense; a $2.6 million reduction in fixed personnel costs resulting from headcount reductions in the fourth quarter 2008 and first quarter 2009; a $1.0 million reduction in variable operating expenses due to lower volumes; and other reductions in fixed operating costs.

 

For the full fiscal year, Broder Bros. said net sales were $705.2 million compared to $926.1 million for fiscal 2008. Loss from operations for fiscal 2009 was $4.4 million compared to a loss of $46.9 million for fiscal 2008. Net loss for fiscal 2009 was $13.2 million compared to a loss of $68.9 million for fiscal 2008.

 

Regarding outlook, Broder Bros. said it will focus on regaining lost market share and building liquidity required to retire the 2010 Notes and to pay cash interest in on the 2013 Notes in October 2010.