For the third quarter ended Oct. 3, Phoenix Footwear Group had a 32 percent drop in sales from continuing operations to $5.5 million. It scraped together a net profit of $310,000, improving from the net loss of $2.1 million for the same period in 2008. The loss from continuing operations was $1.0 million, which includes $598,000 in one-time charges, and which compares with a loss of $1.3 million last year.
The company cut its funded bank debt by $5.4 million to $2.6 million from the end of the second quarter to the end of the third quarter.
Phoenix’ chief executive, Rusty Hall, said in a statement that the gross margin went up by 22 percentage points, and that orders were up by 65 percent over last year.
On Oct. 15, Phoenix amended its deals with Wells Fargo Bank, with one aspect being an extended maturity date for the revolving line of credit and expiration date of the forbearance period to Nov. 30.
Also in October, the New York Stock Exchange Amex informed the company that it no longer met the terms necessary for a listing, and had to submit a plan by Nov. 9 addressing its plans to regain compliance. The company was planning to submit a proposal to continue its listing on the exchange.