Apr. 1--Heelys Inc., the maker of wheeled shoes for kids, on Tuesday posted a slightly lower net loss and higher net sales for the fourth quarter of 2008 from a year earlier despite a difficult sales market.

The Carrollton-based company's quarterly net loss was $5.2 million, or 19 cents per share, compared with a loss of $5.9 million, or 22 cents per share, a year earlier. Sales rose 59 percent to $15.6 million.

Interim CEO Mike Hessong said he's focused on building Heelys' brand and products. He has been at the helm since February, when former CEO Don Carroll resigned after nine months.

Some big question marks -- including Hessong's long-term role at the company and the company's overall future -- remain unanswered.

Hessong had no update regarding November's hiring of Houlihan Lokey to explore strategies, but he said the "rapid deterioration" of the economy has affected the process.

Questions have abounded about Heelys' future as a stand-alone company after its stock plunged and it rejected a $5.25 pershare bid from rival Skechers USA Inc. last summer.

Hessong said that his future is up to Heelys' board of directors but that he'll stay beyond his initial 60-day contract.

Heelys' did address one major issue in a Tuesday conference call with analysts and investors: pending lawsuits.

The company reached a proposed settlement in two of three lawsuits alleging securities law violations related to its 2006 initial public offering. Chief financial officer Lisa Peterson estimated that Heelys' portion will total $722,000, which was taken as a fourth-quarter charge, and the rest will be covered by insurance.

Heelys' news came after the stock market closed Tuesday. Shares rose 12 cents to close at $1.71. In after-hours trading, shares fell 16 cents to $1.55.

For all of 2008, Heelys' net loss totaled $5.9 million, or 22 cents per share, compared with net income of $21.9 million, or 78 per share, in 2007. Sales fell 61 percent to $70.7 million.

Heelys ended 2008 with no debt and $68 million in cash, which is more than the current value of its outstanding shares.

Heelys lowered its U.S. inventory levels by 50 percent at the end of 2008 from a year earlier amid a difficult last quarter, Hessong said. Although the sales environment remains challenging, Heelys has had positive retail reviews for new products, such as high-top models, that will debut in late May or June, he said.

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