Summer Infant, Inc. (�Company�)(Nasdaq: SUMR, SUMRU, SUMRW),
formerly KBL Healthcare Acquisition Corp. II (�KBL�), today
announced financial results for the second quarter ended June 30,
2007 for Summer Infant (USA), Inc., Summer Infant Europe Limited
and Summer Infant Asia Ltd (collectively, the �Summer Operating
Companies�). The Company has included and refers below solely to
the Pro Forma operating performance of the Summer Operating
Companies on a stand alone basis (excluding the combination with
KBL) for the second quarter of 2007 and for the second quarter of
2006, as this is the clearest comparison of the underlying
operations year over year. The full year 2006 results for both the
Summer Operating Companies and KBL may be found in the Form 8-K
filing of Summer Infant, Inc. dated March 12, 2007. The Summer
Operating Companies� net revenues for the second quarter of 2007
were $18.68 million, a 45.4% increase from $12.85 million in the
second quarter of 2006. This growth was driven primarily by
expanded product listings at existing customers and penetration
into a larger number of stores within customers� networks. New
product introductions, including initial shipments from the soft
goods division, and the addition of new customers also contributed
to the revenue growth in the quarter. Video monitors continue to be
the strongest growth category. The Summer Operating Companies�
gross profit for the second quarter of 2007 was $7.26 million, a
46.6% increase compared to $4.95 million in the second quarter of
2006. Gross margins for the second quarter of 2007 increased
approximately 40 basis points to 38.9% from 38.5% in the second
quarter of 2006. This increase is primarily attributable to
improved product mix, the continued emphasis on cost reduction
programs related to the best selling items and a number of quality
improvement initiatives that resulted in reduced product returns.
The Summer Operating Companies� selling, general and administrative
(�SG&A�) expenses excluding depreciation and amortization as
well as stock based compensation expense for the second quarter of
2007 were $5.41 million, or 29.0% of net revenues, compared to
$3.79 million, or 29.5% of net revenues, in the second quarter of
2006. The year-over-year decrease as a percentage of net revenues
was primarily due to leveraging fixed costs on higher sales. The
Summer Operating Companies� earnings before interest, taxes,
depreciation and amortization (�EBITDA�) for the second quarter of
2007 was $1.85 million, representing a 58.6% increase from the
$1.16 million reported in the second quarter of 2006. The EBITDA
margin in the quarter increased to 9.9% of net revenues compared to
9.1% in the year ago quarter. For the six months ended June 30,
2007, net revenues were approximately $35.85 million, an increase
of 37.2% as compared to $26.13 million for the first six months of
2006. EBITDA for the six months ended June 30, 2007 were
approximately $3.50 million, or 9.8% of net revenues, a 45.3%
increase from $2.41 million, or 9.2% of net revenues, during the
first six months of 2006. �Our sales performance this quarter
highlights the success and growth opportunity of our business
model,� commented Jason Macari, Chief Executive Officer of the
Company and the Summer Operating Companies. �We continue to drive
sales by developing innovative products and improved designs in
both new and core product categories, expanding shelf space at our
key retail customers, and forming new retail partnerships to help
build out the Summer Infant brand. In addition, we were encouraged
by the decrease in SG&A as a percent of sales in the quarter,
as we begin to see the benefits of leveraging our fixed cost
structure over a larger sales base.� Based on customer commitments
to date and updated sales data at the retail level, the Company is
affirming previously issued guidance for the full year 2007, which
calls for net revenues of $70 to $75 million and EBITDA of $7.5 to
$8.0 million, before any acquisitions. Mr. Macari stated, �We are
very pleased to report solid performance for the first half of the
year and remain on track to hit our year end guidance.
Specifically, we expect sales in the third quarter to increase
slightly from the second quarter due to the continued benefit of
mid-year product introductions, including shipments of soft goods,
as well as the addition of new customers. While retailer
commitments for 2008 product placements will not be finalized until
the end of the summer, initial customer feedback has been very
positive regarding our product line up this season.� As of June 30,
2007, the Company had approximately $4.2 million of cash and $4.2
million of debt on the balance sheet. The debt is primarily related
to the construction of the new corporate headquarters. Summer
Infant, Inc will host a conference call today to discuss financial
results for its second quarter ended June 30, 2007 at 4:30 p.m.
Eastern Time on Thursday August 9, 2007. This call is being web
cast and can be accessed by visiting the Investor section of our
website at www.summerinfant.com. Investors may also listen to the
call via telephone by dialing (913) 981-5584 (pass code 3415134).
In addition, a telephone replay will be available by dialing (719)
457-0820 (pass code 3415134) through August 23, 2007, at 11:59 p.m.
Eastern Time. About Summer Infant, Inc. Based in Woonsocket, Rhode
Island, the Company is a designer, marketer and distributor of
branded durable juvenile health, safety and wellness products (for
ages 0-3 years), which are sold principally to large U.S.
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, infant
thermometers and related health and safety products, booster and
potty seats, soft goods, bouncers, strollers, highchairs and
swings. Use of Non-GAAP Financial Information This release includes
certain financial information (EBITDA) not derived in accordance
with generally accepted accounting principles (�GAAP�). The Company
believes that the presentation of this non-GAAP measure provides
information that is useful to investors as it indicates more
clearly the ability of Summer�s assets to generate cash sufficient
to pay interest on its indebtedness, meet capital expenditure and
working capital requirements and otherwise meet its obligations as
they become due. This presentation of this additional information
should not be considered in isolation or as a substitute for
results prepared in accordance with GAAP. The Company has included
a reconciliation of this information to the most comparable GAAP
measures in a table below the Statement of Operations. Forward
Looking Statements Certain statements in this release that are not
historical fact may be deemed �forward-looking statements� within
the meaning of the Private Securities Litigation Reform Act of
1995, and the Company intends that such forward-looking statements
be subject to the safe harbor created thereby. Such forward-looking
statements include statements regarding expected sales, expected
net revenues and EBITDA for fiscal 2007, expected operating
performance in the remainder of fiscal 2007, and expected customer
commitments for 2008. 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 the industry; the Company�s dependence on key personnel;
the Company�s reliance on foreign suppliers; and other risks as
detailed in the Company�s Annual Report on Form 10-KSB for the
fiscal year ended December 31, 2006, Definitive Proxy filed
February 13, 2007, and subsequent filings with the Securities and
Exchange Commission. The Company assumes no obligation to update
the information contained in this presentation. Summer Operating
Companies Pro Forma Consolidated Statements of Operations
(unaudited) (in thousands of US dollars, except for share and per
share data) � Three Months EndedJune 30, Six Months EndedJune 30,
2007 2006 2007 2006 � Net revenues $ 18,675 $ 12,845 $ 35,845 $
26,133 Cost of goods sold � 11,415 � 7,894 � � 22,022 � 16,254 �
Gross profit 7,260 4,951 13,823 9,879 Selling, general, and
administrative expenses 5,414 3,787 10,321 7,468 Depreciation &
amortization 325 184 630 314 Non-cash stock option expense � 38 � 0
� � 191 � 0 � Income before interest 1,483 980 2,681 2,097 Interest
income (expense) � 20 � (236 ) � 84 � (405 ) Income before taxes $
1,503 $ 744 $ 2,765 $ 1,692 Provision for income taxes1 � 574 � 298
� � 1,106 � 677 � Net income $ 929 $ 446 � $ 1,659 $ 1,015 � �
Earnings per share $ 0.07 $ 0.04 $ 0.12 $ 0.09 � Shares used in
fully diluted EPS 14,269,000 11,200,000 13,302,000 11,200,000 �
EBITDA Reconciliation: Income before interest 1,483 980 2,681 2,097
Plus: depreciation & amortization 325 184 630 314 Plus:
non-cash stock option expense � 38 � 0 � � 191 � 0 � EBITDA $ 1,846
$ 1,164 � $ 3,502 $ 2,411 � � � 1Provision for income taxes assumes
a pro forma income tax rate of 40% for 2006. � The above condensed
income statement reflects the unaudited operating performance of
Summer Operating Companies on a stand alone basis for Q2 of 2007
versus 2006. This is the clearest comparison of the underlying
operations year over year, as it excludes the impacts of the
combination with KBL. This is a pro forma comparison for
informational purposes only. The actual year to date reporting in
Form 10Q will contain the six months of activity of KBL Healthcare
plus the Summer operating performance subsequent to the merger
(March 6, 2007 through June 30, 2007). Summer Infant, Inc.
Consolidated Balance Sheet (in thousands of US dollars) � Unaudited
June 30, 2007 � Cash and cash equivalents $ 4,211 Trade receivables
15,693 Inventory 13,547 Prepaids and other current assets � 553
Total current assets 34,004 Property and equipment, net 8,377
Goodwill and other intangibles 39,178 Other assets � 509 Total
assets $ 82,068 � Line of credit $ 0 Accounts payable and accrued
expenses 11,771 Current portion of long term liabilities � 205
Total current liabilities 11,976 Long term liabilities, less
current portion � 3,965 Total liabilities 15,941 � � Total
stockholders equity � 66,127 Total liabilities & stockholders
equity $ 82,068 � � The June 30, 2007 amounts include the effects
of the merger between KBL Healthcare and Summer Infant which
occurred on March 6, 2007.
Cummer Infant Wrts (MM) (NASDAQ:SUMRW)
Historical Stock Chart
From May 2024 to Jun 2024
Cummer Infant Wrts (MM) (NASDAQ:SUMRW)
Historical Stock Chart
From Jun 2023 to Jun 2024