Broder Reports Quarterly Financials
Posts 2.3% Year-Over-Year Decrease
Counselor Top 40 supplier Broder Bros. (asi/42090) has announced that its sales for the second quarter of 2012 fell to $221.9 million, a 2.3% year-over-year decrease. Second-quarter 2012 gross profit was $34.3 million versus $48.4 million during the same period in 2011, while Q2 net income also slipped to $3.2 million from $16.0 million.
Among the factors leading to lower earnings for Broder was a reduced gross margin in Q2, which slipped from 21.3% a year ago to 15.5% in 2012. According to the Pennsylvania-based company, unit volume was up 3% relative to Q2 2011, while average selling prices decreased by 5%. Although Broder's revenues were slightly weaker in the second quarter, the supplier still improved its January to June performance in 2012. For the first six months of this year, Broder said its net sales increased to $405.2 million, an uptick of $4.1 million compared to 2011. A review of Broder's balance sheet also notes improvement, as gains were made in accounts receivable and inventory levels.
In its outlook for the remainder of 2012, Broder said it "anticipates improved performance" and "expects adjusted EBITDA of approximately $43 million." Ranked by Counselor as the largest supplier in the industry, Broder reported 2011 North American ad specialty sales of $483.4 million, a 31.1% year-over-year increase.