Broder Bros. Co. Announces Fourth Quarter and Fiscal Year Results
Operating expenses during the fourth quarter 2009, excluding the highlighted charges noted below, were $25.4 million compared to $33.9 million during the fourth quarter 2008. 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 expenses.
Full Year 2009 Results Compared to Prior Year
Fiscal 2009 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 ($46.9) million for fiscal 2008. Net loss for fiscal 2009 was ($13.2) million compared to ($68.9) million for fiscal 2008.
EBITDA for fiscal 2009 was $12.8 million compared to $33.6 million for fiscal 2008. Results include the impact of certain restructuring and other highlighted charges discussed below. Excluding these highlighted charges, EBITDA was $17.1 million for fiscal 2009 and $36.9 million for fiscal 2008.
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.
Restructuring charges recorded during the twelve months ended December 2009 consisted of a $1.4 million increase in rent described above, approximately $0.5 million in interest accretion, and $0.4 million in severance costs due to headcount reductions in March 2009. Other highlighted charges recorded during the twelve months ended December 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 and $0.3 million in inventory management consulting charges.