Broder Bros. Co. Announces First Quarter 2010 Results
Trevose, Pennsylvania-based Broder Bros., Co. announced results for its first quarter ended March 27, 2010.
First Quarter 2010 Results Compared to Prior Year
First quarter 2010 net sales were $153.5 million compared to $151.7 million for the first quarter 2009. Loss from operations for the first quarter 2010 was ($3.3) million compared to ($6.9) million for the first quarter 2009. Net loss for the first quarter 2010 was ($6.0) million compared to ($14.8) million for the first quarter 2009.
For the first quarter 2010, the company reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $0.9 million compared to an EBITDA loss of ($2.3) million for the first quarter 2009. A reconciliation of EBITDA to net 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 $1.4 million for the first quarter 2010 compared to an EBITDA loss of ($1.2) million for the first quarter 2009. The improvement in EBITDA was driven by higher gross margins and higher unit volumes.
First quarter 2010 gross profit was $26.9 million compared to $25.0 million for the first quarter 2009. The increase in gross profit was due to higher unit volumes and improved gross margins. First quarter 2010 gross margin was 17.5 percent compared to 16.5 percent in the first quarter 2009. Consistent with management's expectations, the company began to regain lost market share during the first quarter 2010. The company's unit shipments were 4 percent better than the prior year compared to a 3 percent increase in overall industry unit shipments as reported by STARS.
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