Interline Brands Inc. (IBI), a distributor of building materials, reported a decline in fourth-quarter profit hurt mainly due to a 8.3% decrease in revenues. Looking ahead to the first quarter, the company expects the demand environment to remain similar to what experienced over the past few months.
The Jacksonville, Florida-based company reported net income for the fourth-quarter of $6.31 million or $0.19 per share, down from $7.25 million or $0.22 per share in the same quarter last year. Quarterly earnings included a charge of $0.01 per share associated with the company's ongoing efforts to improve its distribution network.
Earnings per share for the year-ago quarter included a gain of $0.05 per share, on the early extinguishment of debt and a $0.01 per share charge associated with the closing of certain professional contractor showrooms.
On average, six analysts polled by Thomson Reuters expected the company to earn $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
For the quarter, the company reported net sales of $254.62 million, down 8.3% from $277.58 million in the comparable quarter last year. Analysts expected the company to report revenues of $254.51 million for the quarter.
Gross profit declined 5.9% to $96.8 million from the year ago quarter. As a percentage of net sales, gross profit increased 100 basis points to 38.0% from 37.0% in the same quarter last year.
Total operating expenses for the quarter declined to $82.15 million from $86.93 million in the year ago quarter. Operating income was $14.67 million, compared to $15.91 million in the previous year quarter.
The company reported a net loss on extinguishment of debt of $38 million for the quarter, compared to a net gain on extinguishment of debt of $2.76 million in the same quarter previous year.
For the full year 2009, the company reported net income of $26.09 million or $0.79 per share, compared to net income of $40.83 million or $1.25 per share in the year ago. Net sales declined 11.4% to $1.06 billion from $1.20 billion in the comparable period last year. Analysts anticipated the company to earn $0.80 per share on revenues of $1.06 billion for the full year.
IBI is currently trading at $17.82, down $0.40 or 2.20%, on a volume of 30,800 shares on the NYSE.
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