Heelys Losses Persist in Q2

Heelys Inc. saw its troubles balloon during the second quarter, as the Dallas-based company’s loss mounted to $1.6 million, or 6 cents a share, versus $400,000, or 1 cent a share, in the year-ago period.
 
Sales for the three months ended June 30 dropped 32 percent to $12.4 million, from $18.2 million during the second quarter of 2009. SG&A declined 22 percent to $4 million.
 
For the first half of the year, Heelys’ net loss totaled $2.9 million, or 11 cents a share, compared with a loss of $1.4 million, or 5 cents, in the first six months of 2008. Sales dipped 31 percent to $21.7 million.
 
The company also announced an accrual of $3.6 million for proposed settlements of lawsuits. The lawsuits were filed in late 2007 and early 2008, in connection with Heelys’ initial public offering in December 2006.

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