Heelys, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2009. Net sales for the fourth quarter of 2009 were $11.4 million compared to net sales of $15.6 million in the corresponding period a year ago. The company reported a net loss of $1.1 million or $0.04 per fully diluted share against a net loss of $5.2 million or $0.19 per fully diluted share in the fourth quarter of 2008. The company reported loss from operations of $0.58 million and loss before income taxes of $0.61 million compared to loss from operations of $5.73 million and loss before income taxes of $5.58 million reported a year ago. Net sales were $43.8 million for the year compared to net sales of $70.7 million in 2008. The company reported a net loss of $5.1 million or $0.19 per fully diluted share against a net loss of $5.9 million or $0.22 per fully diluted share in 2008. The company reported loss from operations of $7.17 million and loss before income taxes of $6.48 million compared to loss from operations of $9.05 million and loss before income taxes of $6.44 million reported a year ago.

Heelys, Inc. announced that they have made several staff changes to implement their 2010 business plan. Ryan Wills has been promoted to Director of Innovation. Wills primary responsibilities will be driving new product design and development. He will also work across the board with the marketing group to create packaging, in-store merchandising materials and communications programs for these new products. Chris Harper has been promoted to Vice President of Sales and Retail Relationships. In this role Harper will build on his previous retail responsibilities and will work directly with retailers to build specific sales programs as well as product and promotional concepts to drive sales in their particular stores. In doing so he will work closely with Heelys' outside sales representatives, customer service, marketing and product development to ensure that retailers have what they need to succeed with the Heelys brand. In addition to these promotions, the company has named Rick Groesch Vice President of Brand Engagement. Groesch's responsibilities include consumer insights, planning, web site development, marketing partnerships, licensing, media properties and brand events. Groesch brings blue chip experience having spent eleven years in marketing General Motors products, three years as Global Director of Sports Marketing in the Samsung organization, based in Seoul, South Korea and two years with Gaylord Sports developing sports properties, endorsement opportunities for the professional athletes they represented and PGA and LPGA Tour events.

Heelys Inc. has settled with shareholders who previously filed a class-action lawsuit against the company complaining of a breach of fiduciary duties among executives who handled the company's 2006 initial public offering. The settlement, which was not disclosed, has been covered by the company's insurance policies. The two parties have now signed a final judgment and order of dismissal, with Heelys asserting in a statement that the settlement is not an admission of liability or wrongdoing.