Summer Infant Inc. (SUMR, Financial) filed Annual Report for the period ended 2011-12-31.
Summer Infant has a market cap of $84.2 million; its shares were traded at around $6.02 with a P/E ratio of 10.1 and P/S ratio of 0.4.
Net sales increased 22% from $194,485 in the year ended December 31, 2010 to $238,172 for the year ended December 31, 2011. This increase was primarily attributable to organic growth resulting from increased distribution of existing products throughout our customer base, introduction of new products and international growth. In addition, the Company acquired Born Free Holdings, Ltd. in March 2011, which added approximately $10,175 to net sales in 2011. While net sales increased in 2011, sales were impacted by lower than expected consumer purchases of our new PRODIGY car seat and travel system, reduced inventory levels at retail customers and delays in shipping of certain new products.
Gross profit increased 17% from $69,491 for the year ended December 31, 2010 to $81,385 for the year ended December 31, 2011. This increase was primarily attributable to the 22% increase in net sales. Gross profit percentage decreased to 34.2% of sales for the year ended December 31, 2011 from 35.7% in the prior year due to increased costs of raw materials and labor, plus a change in sales mix.
attributable to increased variable costs such as co-op advertising allowances as a result of the significant increase in sales. In addition, there were increased expenditures in product development, payroll, professional fees, and warehouse operations. Finally, there were several significant items incurred during 2011 including professional fees and transition costs related to the Born Free acquisition, related to the proposed settlement of outstanding litigation, $482 related to the closure and relocation of our Rhode Island distribution center and $773 of severance for three former senior management employees.
Other expenses increased 40% from $7,403 for the year ended December 31, 2010 to $10,387 for the year ended December 31, 2011. This increase was attributable to an increase in depreciation and amortization in 2011 and higher interest expense.
Read the The complete Report
Summer Infant has a market cap of $84.2 million; its shares were traded at around $6.02 with a P/E ratio of 10.1 and P/S ratio of 0.4.
Highlight of Business Operations:
A number of large, North American retail customers account for a majority of our sales. Three customers generated more than 10% of sales for the year ended December 31, 2011, Toys R Us (39%), Walmart (11%), and Target (10%). Because of the concentration of our business with these customers and because we have no long term contracts with these customers, our success depends on our customers' willingness to purchase and provide shelf space for our products.Net sales increased 22% from $194,485 in the year ended December 31, 2010 to $238,172 for the year ended December 31, 2011. This increase was primarily attributable to organic growth resulting from increased distribution of existing products throughout our customer base, introduction of new products and international growth. In addition, the Company acquired Born Free Holdings, Ltd. in March 2011, which added approximately $10,175 to net sales in 2011. While net sales increased in 2011, sales were impacted by lower than expected consumer purchases of our new PRODIGY car seat and travel system, reduced inventory levels at retail customers and delays in shipping of certain new products.
Gross profit increased 17% from $69,491 for the year ended December 31, 2010 to $81,385 for the year ended December 31, 2011. This increase was primarily attributable to the 22% increase in net sales. Gross profit percentage decreased to 34.2% of sales for the year ended December 31, 2011 from 35.7% in the prior year due to increased costs of raw materials and labor, plus a change in sales mix.
attributable to increased variable costs such as co-op advertising allowances as a result of the significant increase in sales. In addition, there were increased expenditures in product development, payroll, professional fees, and warehouse operations. Finally, there were several significant items incurred during 2011 including professional fees and transition costs related to the Born Free acquisition, related to the proposed settlement of outstanding litigation, $482 related to the closure and relocation of our Rhode Island distribution center and $773 of severance for three former senior management employees.
Other expenses increased 40% from $7,403 for the year ended December 31, 2010 to $10,387 for the year ended December 31, 2011. This increase was attributable to an increase in depreciation and amortization in 2011 and higher interest expense.
Read the The complete Report
