GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Summer Infant Inc. Reports Operating Results (10-Q)

November 10, 2010 | About:
10qk

10qk

18 followers
Summer Infant Inc. (SUMR) filed Quarterly Report for the period ended 2010-09-30.

Summer Infant Inc. has a market cap of $107.6 million; its shares were traded at around $6.97 with a P/E ratio of 14.6 and P/S ratio of 0.7. SUMR is in the portfolios of Whitney Tilson of T2 Partners Management, LP.

Highlight of Business Operations:

Gross profit increased from $14,904,000 for the three months ended September 30, 2009 to $17,946,000 for the three months ended September 30, 2010. The gross profit as a percentage of sales decreased to 36.1% from 36.4% in the prior year. The decrease as a percentage of sales is due to commodity price increases during 2010.

Adjusted EBITDA (as defined) increased from $4,387,000 for the three months ended September 30, 2009 to $4,754,000 for the three months ended September 30, 2010, an increase of approximately 8%. Net income increased from $1,955,000 for the 3 months ended September 30, 2009 to $2,078,000 for the 3 months ended September 30, 2010, an increase of approximately 6.3%. This increase was primarily attributable to the increased sales and gross profit dollars as described above.

Gross profit increased from $40,178,000 for the nine months ended September 30, 2009 to $53,377,000 or the nine months ended September 30, 2010. The gross profit as a percentage of sales increased to 37.2% from 35.2% in the prior year. The increase as a percentage of sales is due to cost reductions achieved during the second half of 2009, which resulted in significant improvements in margin for the first half of 2010.

Adjusted EBITDA increased from $10,734,000 for the nine months ended September 30, 2009 to equal to the $13,908,000 for the nine months ended September 30, 2010, an increase of approximately 30%. Net income increased from $4,001,000 for the 9 months ended September 30, 2009 to $6,032,000 for the 9 months ended September 30, 2010, an increase of approximately 50.8%. This increase was primarily attributable to the increased sales and gross profit dollars as described above.

Based on the above factors, the net cash increase for the nine months ended September 30, 2010 was $331,000, resulting in a cash balance of $1,263,000 at September 30, 2010.

On August 2, 2010, we entered into a secured credit facility (the Loan Agreement) with Bank of America, N.A., as Administrative Agent, and each of the financial institutions a signatory to the Loan Agreement. The Loan Agreement provides for a $60,000,000 working capital revolving credit facility and a $10,000,000 accordion feature which brings the total borrowing capacity to $70 million. The credit facilities mature on June 30, 2012.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.0/5 (6 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide