INTERLINE BRANDS INC 
By
Based on unaudited results, the Company anticipates reporting net sales
for its fourth quarter ended
Commenting on current business conditions, Interline Chairman and Chief
Executive Officer
In response to the challenging environment, the Company today announced
the implementation of several cost actions, including the elimination of 85
full-time positions. As a result of the workforce reduction and other expense
control actions, the Company expects to generate annualized savings of
approximately
"The decision to downsize is never easy to make, and we thank our affected employees for their many important contributions. However, these actions are necessary to ensure that our cost structure aligns with current and expected market dynamics," added Grebe.
In an effort to further improve the long-term efficiency of its operating
platform, Interline also announced that it will accelerate the streamlining of
its distribution and logistics network by consolidating 10 distribution
centers over the next six months. These consolidations are in addition to
those included in Project 20/20, the Company's previously announced cost-
savings and efficiency plan. Interline expects to realize annualized savings
of approximately
Grebe continued, "With these consolidations, we have a great opportunity to reduce our fixed cost structure and to improve our scale. As important, we will continue to provide excellent customer service because we are not exiting any geographic markets. Streamlining our distribution network is the right decision regardless of present market conditions, and we are very excited by the prospect of establishing a more profitable operating platform. We will execute this plan in an orderly fashion, taking into consideration seasonality of demand and other market dynamics, and by timing the consolidations with lease expirations to minimize associated costs."
Grebe concluded, "I am confident the actions announced today reinforce our continued focus on prudent expense controls and underscore our ongoing commitment to operational excellence. I look forward to discussing more of the specifics of today's announced actions, as well as our full fourth quarter 2008 results, on our quarterly conference call next month."
Conference Call
The Company expects to release fourth quarter and full year 2008 results
on
About Interline
Interline Brands, Inc. is a leading national distributor and direct
marketer with headquarters in
Non-GAAP Financial Information
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). Free Cash Flow is a non-GAAP financial measure. The Company defines Free Cash Flow as Net cash provided by operating activities, as defined under Generally Accepted Accounting Principles, less capital expenditures. Management believes that Free Cash Flow is an important measure of its liquidity and therefore its ability to reduce debt and make strategic investments after considering the capital expenditures necessary to operate the business. The Company uses Free Cash Flow in the evaluation of the Company's business performance. A limitation of this measure, however, is that it does not reflect payments made in connection with investments and acquisitions, which reduce liquidity. To compensate for this limitation, management evaluates its investments and acquisitions through other return on capital measures.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this release which are not historical facts
are forward-looking statements that are subject to risks and uncertainties
that could cause actual results to differ materially from those set forth in,
or implied by, forward-looking statements. The Company has tried, whenever
possible, to identify these forward-looking statements by using words such as
"projects," "anticipates," "believes," "estimates," "expects," "plans,"
"intends," and similar expressions. Similarly, statements herein that describe
the Company's business strategy, outlook, objectives, plans, intentions or
goals are also forward-looking statements. The risks and uncertainties
involving forward-looking statements include, for example, economic slowdowns,
general market conditions, credit market contractions, consumer spending and
debt levels, adverse changes in trends in the home improvement and remodeling
and home building markets, the failure to realize expected benefits from the
AmSan acquisition, material facilities systems disruptions and shutdowns, the
failure to locate, acquire and integrate acquisition candidates, commodity
price risk, foreign currency exchange risk, interest rate risk, the dependence
on key employees and other risks described in the Company's Quarterly Report
on Form 10-Q for the period ended
CONTACT:
PHONE: (904) 421-1441
SOURCE Interline Brands, Inc.
