Broder Bros. Co. Announces Fourth Quarter and Fiscal Year Results
Liquidity Position
The company relies primarily upon cash flow from operations and borrowings under its revolving credit facility to finance operations, capital expenditures and debt service requirements. Borrowings and availability under the revolving credit facility fluctuate due to seasonal demands. Historical borrowing levels have reached peaks during the middle of a given year and low points during the last quarter of the year. Borrowings under the revolving credit facility were $100.8 million at December 26, 2009 compared to $122.9 million at September 26, 2009 and $150.0 million at December 27, 2008. The reduction in revolver debt was mainly due to a reduction in inventory (net of a smaller decrease in accounts payable) partially offset by payment of transaction costs in connection with the exchange offer. Borrowing base availability at December 26, 2009, September 26, 2009 and December 27, 2008 was $31.5 million, $33.9 million and $35.9 million, respectively.
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