Polymer Group, Inc. (PGI) has reported results of operations for the fourth quarter and fiscal year ended January 3, 2009, and recorded record sales for the year.

Highlights

·         PGI achieved record sales in 2008 of $1.15 billion, up 8.1% over the prior year and marking the sixth consecutive year of revenue growth

·         Fourth quarter sales grew 5.5% over the prior year period to $280.0 million

·         Gross profit for the fourth quarter grew 36.5% to $53.0 million, representing a gross profit margin of 18.9% compared to 14.6% for the fourth quarter of 2007.  Fiscal year 2008 gross profit was up 9.5% to $184.9 million compared to gross profit in fiscal year 2007 of $168.9         million, and represented a gross profit margin of 16.1%

·         Cash flows from operations for fiscal 2008 increased 52.1% over 2007 to $59.3 million and net debt was reduced by $27.3 million

·         Net income for fiscal 2008 was $5.4 million compared to a loss of $41.1 million in 2007

·         Adjusted EBITDA was up 31.8% to $36.2 million for the fourth quarter compared to the prior year period and up 41.6% on a sequential quarter basis.  For the year, Adjusted EBITDA was relatively flat at $117.6 million.  Adjusted EBITDA, a non-GAAP financial measure, is defined         and reconciled to net income below.

"PGI finished 2008 as a stronger company," said PGI's chief executive officer, Veronica (Ronee) M. Hagen. "On record sales, we were able to increase profit and cash flows while effectively managing the balance sheet and reducing net debt. This was achieved during a year of significant volatility in the global markets. In addition to our financial achievements, PGI continued to make progress on its strategic goal to become the global industry leader. During the year we increased volumes in the developing regions, successfully commercialized our proprietary Spinlace(R) technology and grew our global medical business to attain what we believe is the leading market position in the markets where we participate," Hagen said.

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