Broder Bros. 3Q Sales More Than Double Philadelphia-based Broder Bros., a wholesaler of imprintable sportswear, more than doubled its third-quarter revenue, thanks to two significant acquisitions. Net sales for the three months ended Sept. 25 were $231.3 million, compared with $111.9 million for the third quarter of last year. Income from operations for the quarter totaled $9.9 million, a turnaround from last year’s third-quarter loss from operations of $1.2 million. Net income was $1.7 million, compared with a net loss of $1.0 million.
In August, Broder Bros. acquired NES Clothing Co., and in September 2003, it had acquired chief rival Alpha Shirt Holdings. Throughout 2004, Broder has completed various restructuring and integration activities related to the Alpha acquisitions. The fourth and final stage of the plan, migration of the order entry system onto a single platform, was completed last month.
Since the announcement of the Broder and Alpha merger, Broder has closed four distribution centers. It expects to close at least one more facility in the future.
Tiger Direct Propels Systemax
Led by its Tiger Direct computer subsidiary, Port Washington, NY-based manufacturer/marketer Systemax reported handsome third-quarter gains on both sides of the ledger.
Net sales increased 14%, to $460.3 million for the three months ended Sept. 30, compared with $405.0 million last year. Net income increased 41% ,to $2.7 million from $1.9 million. Excluding the effects of the restructuring and other charges, net income for the quarter would have been $3.4 million, compared with $1.1 million for the third quarter of 2003. Results in 2004 included pretax restructuring charges of $1.0 million, while last year’s third quarter included the reversal of a $1.3 million pretax reserve for litigation no longer required.
Led by Tiger Direct’s strong performance, North American sales rose 16%. European sales increased 10% in U.S. dollars, due to favorable exchange rates.
Direct Division Drags on Aramark Sales
Total fourth-quarter sales for Philadelphia-based Aramark Corp. (NYSE: RMK), a provider of food and apparel products and services, increased 1%, to $2.6 billion. But sales within its direct division, which includes the Galls, Wearguard, and Crest Uniform catalogs, fell 12%, to $100.0 million, due largely to lower revenue from the Galls title, which sells equipment and apparel for public-safety professionals.
Net income for the fiscal fourth quarter slid 20%, to $84.6 million from $105.3 million last year. But last year’s net income included insurance proceeds related to a World Trade Center settlement and a write-down of the company’s periodicals distribution investment. After adjusting for these items, net income for the fourth quarter of last year, which included an extra week, was $92.2 million. Aramark estimates the extra week added approximately 8% to sales and income for the quarter.
For fiscal 2004, Aramark reported sales of $10.2 billion, up 8% from last year on an as-reported basis and up 6% organically. Income from continuing operations for the full year was $263.1 million, compared with $265.4 million for fiscal 2003.
Bluefly Lessens Net Loss
New York-based online apparel marketer Bluefly (Nasdaq SmallCap: BFLY) cut its third-quarter loss by 22%, to $2.0 million from $2.5 million last year. Sales increased 6%, to $8.7 million from $8.2 million. The average customer acquisition cost decreased by more than 20%, to $8.41 from $10.52.