Spanamerica Medical Systems Inc. has a market cap of $39.2 million; its shares were traded at around $14.05 with a P/E ratio of 10.8 and P/S ratio of 0.7. The dividend yield of Spanamerica Medical Systems Inc. stocks is 3.2%. Spanamerica Medical Systems Inc. had an annual average earning growth of 18.5% over the past 10 years.
Highlight of Business Operations:Since many of our operating costs are fixed within a normal monthly range of sales and production activity, sales declines could result in proportionally greater declines in earnings performance. We would attempt to reduce expenses in response to lower sales levels, but we cannot give assurance that we would be able to fully offset the effect of a decline in sales volume. As a result our business could be materially adversely affected by an economic downturn or continuing weakness of the economy.
Performance in our other medical product lines included a 62% increase in sales of the new Risk Manager® bedside safety mat, which we introduced at the beginning of our second fiscal quarter in 2009. Risk Manager sales in fiscal 2010 were $1.3 million compared with $801,000 in fiscal 2009. Sales of our Span-Aids patient positioners and mattress overlays increased by 4% and 5%, respectively, during fiscal 2010 compared with fiscal 2009. Selan skin care sales rose 10%. Sales of seating products remained level during fiscal 2010. The growth in sales of positioners, overlays and Selan products in fiscal 2010 was mainly due to stronger demand from our customers in the acute care portion of the medical market. Medical sales accounted for 68% of total net sales in both fiscal years 2010 and 2009.
Accounts receivable, net of allowances, decreased 11%, or $779,000, to $6.4 million at the end of fiscal 2011 compared with $7.1 million at the end of fiscal 2010. The days sales outstanding (or average collection time), calculated using a 12-month average for trade accounts receivable balances, increased to 43.9 days in 2011 compared with 42.5 days in 2010. The longer collection time was primarily the result of extended payment terms offered to several customers on a temporary basis in response to specific market circumstances. All of our accounts receivable are unsecured.
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