Theo
9 years ago
Summer Infant, Inc. Reports Third-Quarter 2014 Results
"WOONSOCKET, RI--(Marketwired - Nov 6, 2014) - Summer Infant, Inc. ("Summer Infant" or the "Company") (NASDAQ: SUMR), a global leader in the premium juvenile product market, today announced financial results for the third quarter ended September 30, 2014. The Company also announced in a separate news release the appointment of William Mote as Chief Financial Officer effective November 10.
Management Comments
"We continued to make excellent progress in the execution of our improvement strategy as we transform Summer Infant with a new team and a new process for product development and marketing our brands," said President and Chief Executive Officer Carol Bramson. "Net sales grew slightly compared with the year-ago quarter, which is positive given that the third quarter of 2013 included licensing revenue and a higher level of low-margin furniture items, which we have been phasing out.
"Our bottom line also improved from the year-ago quarter, although we reported a slight loss as a result of additional extraordinary expenses related to severance and reorganization changes as we continue to make investments to enhance our team and reinvigorate our product development process and brands. We expect these investments to have a positive effect on our Company and our financial results in the quarters and years ahead.
"Our newest products are performing very well at retail and we are seeing a great deal of excitement in the market. In early September, we demonstrated our latest products at the ABC Kids Expo, which was a success for both the Summer and Born Free brands. Three products -- the Pop 'n Play Portable Playard, the Bottle Genius, and our new Retractable Gate -- were all finalists for awards at the show by the Juvenile Products Manufacturers Association. In addition, there was excitement at the booth over our new HD Video Monitors that we plan to launch in the first quarter of 2015. These products are follow ups to our popular Baby Zoom and Baby Touch WiFi video monitors, which have been top performers. In addition, new versions of our 3D Lite stroller line generated great enthusiasm among bloggers and buyers from many retailers. We look forward to launching many exciting products in the months ahead.
"In addition to growing sales through innovative new products, we also are seeking to broaden our channels and expand into new markets. For example, in ecommerce, we had exceptional growth in Q3 from our select online partners and saw this channel increase by more than 40%. In specialty retail, we recently hired a new leader who is working to add retailers and distributors to target vertical markets where we do not currently have a presence. Our new head of international sales also is seeking distributors to expand into new geographic markets. We also hired a new senior vice president of sales, who will have an integral role in large customer relationship cultivation, and will work within the sales function on the development and execution of business strategy, financial profitability, product forecasting, and new product marketing.
"We continue to assemble a best-in-class team of leaders, and have hired a number of talented executives during the past month. Our new leadership team is squarely focused on accelerating profitable growth and building shareholder value by developing innovative new products, strengthening awareness of our brands, growing across all channels and controlling expenses. Going forward, while we may have quarters where we do not follow a sequential growth trajectory, our strategy is on track and we are on a course for long-term sales and profit improvement," concluded Bramson.
Third-Quarter Results
Net revenues for the third quarter of 2014 increased to $51.0 million, compared with $50.5 million for the third quarter of 2013.
Gross profit for the third quarter of 2014 increased to $16.6 million, compared with $15.0 million in the third quarter of 2013. The year-over-year increase in gross profit dollars is attributable to a favorable mix of products sold and a lower level of promotional and close-out sales. Gross profit as a percentage of net sales increased to 32.5% for the third quarter of 2014, compared with 29.7% in the third quarter of 2013.
Selling expenses were $4.5 million for the third quarter of 2014, compared with $4.9 million for the third quarter of 2013. The year-over-year decrease was primarily attributable to cost controls implemented over retailer programs such as cooperative advertising and lower royalty costs under licensing agreements as part of our strategy to discontinue certain licensing arrangements.
The Company narrowed its net loss to $0.1 million, or $0.01 per share, in the third quarter of 2014, compared with a net loss of $1.3 million, or $0.07 per share, in the third quarter of 2013.
Adjusted EBITDA for the third quarter of 2014 increased to $3.6 million, compared with $1.5 million in the third quarter of 2013. Adjusted EBITDA for the third quarter of 2014 includes $1.1 million in permitted add back charges compared with $0.4 million in the third quarter of 2013.
Adjusted EBITDA is a non-GAAP metric that excludes various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. An explanation of these measures also is included under the heading below "Use of Non-GAAP Financial Information."
Balance Sheet Highlights
As of September 30, 2014, the Company had approximately $1.1 million of cash and $56.5 million of debt compared with $1.6 million of cash and $49.7 million of debt on December 31, 2013.
Inventory at September 30, 2014 was $48.7 million, compared with $38.4 million at December 31, 2013. Trade Receivables as of September 30, 2014 was $38.2 million, compared with $34.6 million as of December 31, 2013. Accounts Payable and Accrued Expenses as of September 30, 2014 was $35.4 million, compared with $31.7 million as of December 31, 2013.
Conference Call Information
Summer Infant, Inc. will host a conference call today, Thursday, November 6, 2014 at 5:00 p.m. Eastern Time, to discuss financial results. A live webcast can be accessed by visiting the "Investor Relations" section of the Company's website at www.summerinfant.com. Investors may also listen to the call via telephone by dialing (877) 407-5790 or (201) 689-8328. An archive of the webcast will be available on the Company's website for approximately one year.
About Summer Infant, Inc.
Based in Woonsocket, Rhode Island, the Company is a global leader of premium juvenile products for ages 0-3 years, which are sold principally to large North American and international retailers. The Company currently sells proprietary products in a number of different categories, including nursery audio/video monitors, safety gates, durable bath products, bed rails, nursery products, strollers, booster and potty seats, swaddling blankets, bouncers, travel accessories, highchairs, swings, nursery furniture, and infant feeding products. For more information, please visit www.summerinfant.com.
Use of Non-GAAP Financial Information
This release and the referenced webcast include presentations of non-GAAP financial measures, including adjusted EBITDA, adjusted net income and adjusted earnings per share. (i) Adjusted EBITDA means earnings before interest and taxes plus depreciation, amortization, non-cash stock-based compensation expenses and other items added back as detailed in the reconciliation table included in this release and (ii) adjusted net income and adjusted earnings per share mean net income excluding certain items as detailed in the reconciliation table included in this release. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. The Company believes that the presentation of these non-GAAP financial measures provide useful information to investors to better understand, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, and they indicate more clearly the ability of the Company's assets to generate cash sufficient to pay interest on its indebtedness, meet capital expenditure and working capital requirements, comply with the financial covenants of its loan agreements and otherwise meet its obligations as they become due. These non-GAAP measures should not be considered in isolation or as an alternative to such GAAP measures as net income, cash flows provided by or used in operating, investing or financing activities or other financial statement data presented in the Company's consolidated financial statements as an indicator of financial performance or liquidity. The Company provides reconciliations of these non-GAAP measures in its press releases of historical performance. Because these measures are not determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP measures, as presented, may not be comparable to other similarly titled measures of other companies.
Forward-Looking Statements
Certain statements in this release that are not historical fact may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbor created thereby. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believes," "estimate" and similar expressions, and include statements regarding the Company's expectations regarding the execution of its growth strategy, planned launches of new products, expansion into new markets, the impact of investments in personnel and new products on the Company's financial results, accelerating profitable growth and building shareholder value by developing innovative products, strengthening brand awareness, growing across all channels and controlling expenses, and expectations regarding long-term sales and profit improvement. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the concentration of the Company's business with retail customers; the ability of the Company to compete in its industry; the Company's ability to continue to control costs and expenses; the Company's dependence on key personnel; the Company's reliance on foreign suppliers; the Company's ability to develop, market and launch new products; the Company's ability to grow sales with existing and new customers; the Company's ability to meet required financial covenants under its loan agreements; and other risks as detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as amended, and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information contained in this release."
Theo
9 years ago
Summer Infant Appoints Lisa Harnisch to Senior Vice President of Sales
WOONSOCKET, RI--(Marketwired - Oct 30, 2014) - Summer Infant, Inc. (NASDAQ: SUMR), a global leader in premium juvenile products, today announced that Lisa Harnisch has been appointed Senior Vice President of Sales, effective November 3, 2014. Harnisch joins Summer Infant from Toys "R" Us, Inc. where she was Senior Vice President/General Merchandise Manager. At Summer Infant, Harnisch will have an integral role in large customer relationship cultivation, and will work within the sales function on the development and execution of business strategy, financial profitability, product forecasting, and new product marketing. She will report directly to President of Global Sales & Marketing Ken Price.
"Having had the privilege of working with Lisa for many years, I am delighted to have such a highly respected executive join our organization," said Price. "We look forward to leveraging her deep industry experience and broad expertise to strengthen our sales organization."
President and Chief Executive Officer Carol Bramson said, "Establishing strong partnerships with our largest customers is essential to the success of our growth strategy, and we look forward to Lisa's contributions. She is an excellent addition to the highly talented management team that we have built during the past year."
Prior to joining Summer Infant, Harnisch was with Toys "R" Us, Inc. for 12 years. She joined the company in 2002 as a buyer and held roles of increasing responsibility since that time. Most recently, she served as Senior Vice President/General Merchandise Manager, where she was responsible for overseeing all merchandising decisions, negotiations with manufacturers and driving the business to achieve corporate strategic goals for the company's toy division. Before Toys "R" Us, Harnisch was a Merchandise and Planning Manager at Ann Taylor, Inc. from 1997 to 2002. She also has held positions as a portfolio manager at ABN AMRO N.V. and a business analyst for Liz Claiborne, Inc. Harnisch earned an M.B.A. from Fordham University and a B.S. from Georgetown University. She was named Wonder Woman of the Year in the retail category by the Women in Toys organization in 2011.
In connection with her employment, Ms. Harnisch was granted (i) an option to purchase 30,000 shares of the Company's common stock, with an exercise price equal to the closing price of the Company's common stock on the date of grant, and (ii) 10,000 shares of restricted stock. Subject to Ms. Harnisch's continued service with the Company, the option vests in equal annual installments over a four year period beginning on the first anniversary of the date of grant and the restricted stock award vests on the first anniversary of the date of grant. The Compensation Committee of the Company's Board of Directors granted these awards as an inducement material to Ms. Harnisch's acceptance of employment in accordance with NASDAQ Listing Rule 5635(c)(4).
About Summer Infant, Inc.
Based in Woonsocket, Rhode Island, the Company is a global leader of premium juvenile products for ages 0-3 years, which are sold principally to large North American and international retailers. The Company currently sells proprietary products in a number of different categories, including nursery audio/video monitors, safety gates, durable bath products, bed rails, nursery products, strollers, booster and potty seats, swaddling blankets, bouncers, travel accessories, highchairs, swings, nursery furniture, and infant feeding products. For more information about the Company, please visit www.summerinfant.com.
Forward-Looking Statements
Certain statements in this release that are not historical fact may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbor created thereby. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believes," "estimate" and similar expressions, and include statements regarding the Company's expectations regarding Lisa Harnisch's future contributions to Summer Infant. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the concentration of the Company's business with retail customers; the ability of the Company to compete in its industry; the Company's ability to continue to control costs and expenses; the Company's dependence on key personnel; the Company's reliance on foreign suppliers; the Company's ability to develop, market and launch new products; the Company's ability to grow sales with existing and new customers; the Company's ability to meet required financial covenants under its loan agreements; and other risks as detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as amended, and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information contained in this release.
Contact:
David Calusdian
Sharon Merrill Associates, Inc.
SUMR@InvestorRelations.com
617-542-5300
Theo
10 years ago
Summer Infant, Inc. Reports Second Quarter 2014 Results
Reports Sequential Growth in Both Revenue and EPS; Gross Margin Improves 80 Bps; Expects Continued Sequential Top- and Bottom-Line Improvement
WOONSOCKET, RI--(Marketwired - Aug 14, 2014) - Summer Infant, Inc. ("Summer Infant" or the "Company") (NASDAQ: SUMR), a global leader in the premium juvenile product market, today announced financial results for the second quarter ended June 30, 2014.
Management Comments
"We performed as planned in the second quarter, growing revenue and EPS on a sequential basis," said President and Chief Executive Officer Carol Bramson. "We also made significant progress in executing on our growth strategy, especially in the areas of talent acquisition and product innovation."
"We are seeing strong demand in our markets, both in-store and online, and we are capitalizing on positive trends with innovative new products. Two products that performed especially well in the second quarter were our WiFi video monitors and the 3D Lite stroller platform. As a result, sales increased 3.4% from the first quarter of 2014. We also are making good progress on the bottom line. As projected, we had another quarter of positive net income and expect this to continue in the future. Gross margins improved 80 basis points from Q1 2014 to 33.2% and increased 160 basis points from Q2 a year ago."
"Looking ahead, we continue to expect to grow both revenues and EPS on a sequential basis as we capitalize on strong customer demand and increasing consumer acceptance of our innovative products. We see excellent opportunities for growth within our existing large retail customers as well as through ecommerce, international and specialty retail channels," concluded Bramson.
Second-Quarter Results
Net revenues for the second quarter of 2014 were $52.6 million compared with $50.8 million in the first quarter of 2014 and $53.8 million for the second quarter of 2013.
Gross profit for the second quarter of 2014 was $17.4 million compared with $16.4 million in the first quarter of 2014 and $17.0 million in the second quarter of 2013. The sequential and year-over-year increase in gross profit dollars is attributable to the mix of products sold, primarily driven by the nursery and monitor product categories, fewer close out sales and cost-reduction actions.
Gross profit as a percentage of net sales was 33.2% for the second quarter of 2014 compared with 32.4% in the first quarter of 2014 and 31.6% in the second quarter of 2013.
Selling expenses were $4.9 million for the second quarter of 2014 compared with $4.4 million in the first quarter of 2014 and $5.6 million for the second quarter of 2013. The year-over-year decrease was primarily attributable to improved management of programming costs and lower royalty costs due to the Company's strategy to discontinue certain licensing agreements.
The Company reported net income of $0.3 million, or $0.02 per diluted share, in the second quarter of 2014, compared with $0.2 million, or $0.01 per diluted share, in the first quarter of 2014 and a net loss of $0.3 million, or a loss of $0.02 per share, in the second quarter of 2013.
Adjusted EBITDA for the second quarter of 2014 was $3.4 million compared with $3.8 million in the first quarter of 2014 and $3.3 million in the second quarter of 2013. Adjusted EBITDA for the second quarter of 2014 includes $0.4 million in permitted add back charges compared with $1.0 million in the first quarter of 2014 and $0.8 million in the second quarter of 2013.
Adjusted EBITDA is a non-GAAP metric that excludes various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. An explanation of these measures also is included under the heading below "Use of Non-GAAP Financial Information."
Balance Sheet Highlights
As of June 30, 2014, the Company had approximately $1.6 million of cash and $49.5 million of debt compared with $1.6 million of cash and $49.7 million of debt on December 31, 2013.
Inventory at June 30, 2014 was $46.1 million compared with $38.4 million at December 31, 2013. Trade Receivables as of June 30, 2014 was $41.4 million compared with $34.6 million as of December 31, 2013. Accounts Payable and Accrued Expenses as of June 30, 2014 was $43.8 million compared with $31.7 million as of December 31, 2013. The Company procures its inventory on credit terms and its current practice is to submit payments weekly.
Conference Call Information
Summer Infant, Inc. will host a conference call today, Thursday, August 14, 2014 at 5:00 p.m. Eastern Time, to discuss financial results. This live webcast can be accessed by visiting the "Investor Relations" section of the Company's website at www.summerinfant.com. Investors may also listen to the call via telephone by dialing (877) 407-5790 or (201) 689-8328. An archive of the webcast will be available on the Company's website for approximately one year.
About Summer Infant, Inc.
Based in Woonsocket, Rhode Island, the Company is a global leader of premium juvenile products for ages 0-3 years, which are sold principally to large North American and international retailers. The Company currently sells proprietary products in a number of different categories, including nursery audio/video monitors, safety gates, durable bath products, bed rails, nursery products, strollers, booster and potty seats, swaddling blankets, bouncers, travel accessories, highchairs, swings, nursery furniture, infant feeding products, and car seats. For more information about the Company, please visit www.summerinfant.com.
Use of Non-GAAP Financial Information
This release and the referenced webcast include presentations of non-GAAP financial measures, including adjusted EBITDA, adjusted net income and adjusted earnings per share. (i) Adjusted EBITDA means earnings before interest and taxes plus depreciation, amortization, non-cash stock-based compensation expenses and other items added back as detailed in the reconciliation table included in this release and (ii) adjusted net income and adjusted earnings per share mean net income excluding certain items as detailed in the reconciliation table included in this release. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. The Company believes that the presentation of these non-GAAP financial measures provide useful information to investors to better understand, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, and they indicate more clearly the ability of the Company's assets to generate cash sufficient to pay interest on its indebtedness, meet capital expenditure and working capital requirements, comply with the financial covenants of its loan agreements and otherwise meet its obligations as they become due. These non-GAAP measures should not be considered in isolation or as an alternative to such GAAP measures as net income, cash flows provided by or used in operating, investing or financing activities or other financial statement data presented in the Company's consolidated financial statements as an indicator of financial performance or liquidity. The Company provides reconciliations of these non-GAAP measures in its press releases of historical performance. Because these measures are not determined in accordance with GAAP and are susceptible to varying calculations, these non-GAAP measures, as presented, may not be comparable to other similarly titled measures of other companies.
Forward-Looking Statements
Certain statements in this release that are not historical fact may be deemed "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbor created thereby. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believes," "estimate" and similar expressions, and include statements regarding the Company's expectations regarding (i) continuing to report positive net income, (ii) growing both revenues and EPS on a sequential basis as the Company capitalizes on strong customer demand and increasing consumer acceptance of its innovative products, and (iii) opportunities for growth within existing large retail customers as well as through ecommerce, international and specialty retail channels. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include the concentration of the Company's business with retail customers; the ability of the Company to compete in its industry; the Company's ability to continue to control costs and expenses; the Company's dependence on key personnel; the Company's reliance on foreign suppliers; the Company's ability to develop, market and launch new products; the Company's ability to grow sales with existing and new customers; the Company's ability to meet required financial covenants under its loan agreements; and other risks as detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as amended, and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information contained in this release.
....
Contact:
Paul Francese
Chief Financial Officer
Summer Infant, Inc.
(401) 671-6572
or
David Calusdian
Sharon Merrill Associates, Inc.
(617) 542-5300
SUMR@investorrelations.com
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