Heelys, Inc. had a turnaround in the second quarter despite falling sales.
For the period ended June 30, the Dallas-based company reported net income of $473,000, or 2 cents a share, versus a net loss of $1.6 million, or 6 cents a share, in the second quarter of 2009. The company had incurred a one-time cost of $3.1 million that was related to litigation settlements and related costs in the second quarter last year.
Although Heelys managed to cut costs this second quarter, net sales were weak, falling 29 percent to $8.8 million, from $12.4 million in the corresponding period a year ago.
Tom Hansen, Heelys CEO, said retailers are still hesitant about taking significant inventory positions due to fears of a second fall in the economy and continued reports on the weak job market.
However, results at the retailers who have proactively engaged with the brand are encouraging. Our international business, though down some from original expectations, continues to perform consistently. As always, we continue to look for more efficiencies in our operations, cutting costs where we can and investing in areas that will help us grow the business,” he added.
As of June 30, Heelys had cash and cash equivalents totaling $32.5 million, compared with cash and cash equivalents totaling $39.4 million as of December 31, 2009.