Trevose, Pennsylvania-based BroderBros. Co. announced its third quarter 2009 revenue financial position. Third quarter 2009 net sales were $193.0 million compared to $252.3 million for the third quarter 2008. Income from operations for the third quarter 2009 was $1.7 million compared to $7.8 million for the third quarter 2008.
Net loss for the third quarter 2009 was $1.4 million compared to $0.9 million for the third quarter 2008. For the third quarter 2009, the company reported earnings before interest, other financing costs, taxes, depreciation, amortization and the extraordinary item (EBITDA) of $6.0 million compared to $12.3 million for the third quarter 2008. A reconciliation of EBITDA to net income (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, adjusted EBITDA was $7.0 million for the third quarter 2009 and $13.3 million for the third quarter 2008.
Third quarter 2009 revenue was 23.5 percent lower than third quarter 2008. The company’s unit shipments were 22 percent less than the prior year compared to a 12 percent decline in overall industry unit shipments as reported by STARS, meaning more than half of the company’s revenue decline was due to market contraction as a result of the recession in the U.S. and less than half of the revenue decline was due to market share loss.
Third quarter 2009 gross profit was $31.0 million compared to $43.9 million for the third quarter 2008. Gross profit was 29 percent less than the prior year primarily due to lower unit volume as noted above.
Operating expenses during the third quarter 2009, excluding the highlighted charges noted below, were $24.0 million compared to $30.6 million during the third quarter 2008. The reduction in operating expenses was mainly due to a $3.9 million reduction in fixed personnel costs resulting from headcount reductions in the fourth quarter 2008 and first quarter 2009; a $2.0 million reduction in variable operating expenses primarily due to lower unit volumes; and a $0.5 million reduction in non-personnel-related distribution center expenses.
