Broder Bros. Co. Announces Second Quarter Earnings
Broder Bros. Co., based in Trevose, Pa., on Friday announced its second quarter results for its quarter ended June 30, 2012.
Second quarter 2012 net sales were $221.9 million compared to $227.1 million for the second quarter 2011. Income from operations for the second quarter 2012 was $7.0 million compared to $23.3 million for the second quarter 2011. Net income for the second quarter 2012 was $3.2 million, or $0.31 per diluted share, compared to $16.0 million, or $1.54 per diluted share, for the second quarter 2011.
For the second quarter 2012, the company reported earnings before interest, taxes, depreciation and amortization ("EBITDA") of $8.9 million compared to EBITDA of $25.9 million for the second quarter 2011. Results include the impact of certain restructuring and other highlighted charges discussed below. Excluding these highlighted charges, EBITDA was $10.5 million for the second quarter 2012 compared to $23.8 million for the second quarter 2011. The year-over-year reduction in EBITDA of $17.0 million was driven by lower gross margins. A reconciliation of EBITDA to net income is set forth at the end of this earnings release.
Second quarter 2012 gross profit was $34.3 million compared to $48.4 million for the second quarter 2011. Second quarter 2012 gross margin was 15.5 percent compared to 21.3 percent one year prior. The decrease in gross margin was due to lower gross profit per unit. The company's unit volume increased 3 percent relative to the second quarter 2011 on a 5% decrease in average selling prices.
According to data provided by CREST, the U.S. imprintable activewear market grew 4 percent in units sold during the second quarter 2012. The company's units sold grew by 2 percent during the period when using the comparable period used by CREST, which was April 1, 2012 through June 30, 2012 and coincided with the company's second fiscal quarter.