Phoenix Footwear Group Inc. reversed its fourth-quarter loss, despite a 25 percent plunge in revenues.
The Carlsbad, Calif.-based footwear firm said Tuesday after the close of the markets that it had net earnings of $1 million, or 13 cents a diluted share, versus a loss of $14.9 million, or $1.83, the prior year.
On an operating basis, or earnings before interest and taxes, the firm, which owns the Trotters, SoftWalk and H.S. Trask shoe brands, said it had a loss of $1.3 million, narrowed from a loss of $4.3 million the prior year.
Revenues, however, fell to $4.4 million from $5.9 million a year ago.
Operating expenses in the quarter more than halved to $2.7 million from $6.3 million last year.
“Despite not being profitable on an operating basis, we were able to report a profit for the quarter due to income from our Chambers divestiture and a tax gain. More important, the quarter marked further improvement in our capital base as we completed the refinancing of our revolving credit facility with First Community Financial,” CEO Rusty Hall said in a written statement. “Also, the period was marked by a continued build of momentum in our sales efforts. During the second half of 2009, we opened over 60 new or former accounts and we continue to experience double-digit growth in our future orders.”
For the year, Phoenix had a net loss of $7 million, or 86 cents, versus a loss of $19.5 million, or $2.39, last year. Revenues fell 33 percent to $19.9 million.
Hall said the firm’s backlogs are 37 percent higher than a year ago.
“We are certainly not out of the woods yet, but our progress has been considerable and we have reason to be encouraged,” he said in the statement.
Shares of Phoenix were down about 6 percent at 64 cents in early Wednesday trading.