Select Comfort Corp. (SCSS, Financial) filed Quarterly Report for the period ended 2012-06-30.
Select Comfort Corp. has a market cap of $1.53 billion; its shares were traded at around $26.78 with a P/E ratio of 20.7 and P/S ratio of 2.1.
General and administrative (“G&A”) expenses increased $3.1 million to $16.2 million for the three months ended June 30, 2012, compared with $13.1 million in the prior year, but decreased to 7.9% of net sales, compared with 8.1% of net sales one year ago. The $3.1 million increase in G&A expenses was primarily due to (i) a $1.4 million increase in employee compensation expenses resulting from an increase in employee headcount to support the growth of the business, salary and wage rate increases that were in-line with inflation, and increased stock-based compensation expense; (ii) a $0.5 million increase in outside consulting expenses; (iii) $0.5 million of additional depreciation expense resulting from the increase in capital expenditures to support the growth of the business; and (iv) a $0.7 million net increase in miscellaneous other expenses including travel, training and year-over-year changes in contingent liabilities. The G&A expense rate decreased by 0.2 ppt. in the current period compared with the same period one year ago due to the leveraging impact of the 27% net sales increase.
Net sales increased 32% to $467.6 million for the six months ended June 30, 2012, compared with $354.5 million for the same period one year ago. The sales increase was primarily driven by a 30% comparable sales increase in our Company-Controlled channel. Company-Controlled sales of mattress units increased 20% compared to the same period one year ago. Average mattress sales per mattress unit in our Company-Controlled channel increased by 11%. Sales of other products and services increased by 29%.
Sales and marketing expenses for the six months ended June 30, 2012 increased 29% to $194.4 million, or 41.6% of net sales, compared with $150.8 million, or 42.5% of net sales, for the same period one year ago. The $43.6 million increase was primarily due to an $18.8 million, or 43%, increase in media spending, an increase in variable selling expenses due to the higher sales volume, and an increase in customer financing expenses as a larger percentage of our customers took advantage of promotional financing offers. The sales and marketing expense rate declined 0.9 ppt. compared with the same period one year ago due to the leveraging impact of the 32% net sales increase.
General and administrative (“G&A”) expenses increased $4.4 million to $33.1 million for the six months ended June 30, 2012, compared with $28.7 million in the prior year, but decreased to 7.1% of net sales, compared with 8.1% of net sales one year ago. The $4.4 million increase in G&A expenses was primarily due to (i) a $2.7 million increase in employee compensation expenses resulting from an increase in employee headcount to support the growth of the business, salary and wage rate increases that were in-line with inflation, and increased stock-based compensation expense; (ii) a $1.9 million increase in outside consulting expenses and year-over-year changes in contingent liabilities; and (iii) $0.8 million of additional depreciation expense resulting from the increase in capital expenditures to support the growth of the business. These increases were partially offset by reductions in performance-based incentive compensation and rent expense. The G&A expense rate decreased by 1.0 ppt. in the current period compared with the same period one year ago due to the leveraging impact of the 32% net sales increase.
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Select Comfort Corp. has a market cap of $1.53 billion; its shares were traded at around $26.78 with a P/E ratio of 20.7 and P/S ratio of 2.1.
Highlight of Business Operations:
Sales and marketing expenses for the three months ended June 30, 2012 increased 25% to $88.2 million, or 43.0% of net sales, compared with $70.5 million, or 43.7% of net sales, for the same period one year ago. The $17.7 million increase was primarily due to a $7.4 million, or 37%, increase in media spending, an increase in variable selling expenses due to the higher sales volume, and an increase in customer financing expenses as a larger percentage of our customers took advantage of promotional financing offers. The sales and marketing expense rate declined 0.7 ppt. compared with the same period one year ago due to the leveraging impact of the 27% net sales increase.General and administrative (“G&A”) expenses increased $3.1 million to $16.2 million for the three months ended June 30, 2012, compared with $13.1 million in the prior year, but decreased to 7.9% of net sales, compared with 8.1% of net sales one year ago. The $3.1 million increase in G&A expenses was primarily due to (i) a $1.4 million increase in employee compensation expenses resulting from an increase in employee headcount to support the growth of the business, salary and wage rate increases that were in-line with inflation, and increased stock-based compensation expense; (ii) a $0.5 million increase in outside consulting expenses; (iii) $0.5 million of additional depreciation expense resulting from the increase in capital expenditures to support the growth of the business; and (iv) a $0.7 million net increase in miscellaneous other expenses including travel, training and year-over-year changes in contingent liabilities. The G&A expense rate decreased by 0.2 ppt. in the current period compared with the same period one year ago due to the leveraging impact of the 27% net sales increase.
Net sales increased 32% to $467.6 million for the six months ended June 30, 2012, compared with $354.5 million for the same period one year ago. The sales increase was primarily driven by a 30% comparable sales increase in our Company-Controlled channel. Company-Controlled sales of mattress units increased 20% compared to the same period one year ago. Average mattress sales per mattress unit in our Company-Controlled channel increased by 11%. Sales of other products and services increased by 29%.
Sales and marketing expenses for the six months ended June 30, 2012 increased 29% to $194.4 million, or 41.6% of net sales, compared with $150.8 million, or 42.5% of net sales, for the same period one year ago. The $43.6 million increase was primarily due to an $18.8 million, or 43%, increase in media spending, an increase in variable selling expenses due to the higher sales volume, and an increase in customer financing expenses as a larger percentage of our customers took advantage of promotional financing offers. The sales and marketing expense rate declined 0.9 ppt. compared with the same period one year ago due to the leveraging impact of the 32% net sales increase.
General and administrative (“G&A”) expenses increased $4.4 million to $33.1 million for the six months ended June 30, 2012, compared with $28.7 million in the prior year, but decreased to 7.1% of net sales, compared with 8.1% of net sales one year ago. The $4.4 million increase in G&A expenses was primarily due to (i) a $2.7 million increase in employee compensation expenses resulting from an increase in employee headcount to support the growth of the business, salary and wage rate increases that were in-line with inflation, and increased stock-based compensation expense; (ii) a $1.9 million increase in outside consulting expenses and year-over-year changes in contingent liabilities; and (iii) $0.8 million of additional depreciation expense resulting from the increase in capital expenditures to support the growth of the business. These increases were partially offset by reductions in performance-based incentive compensation and rent expense. The G&A expense rate decreased by 1.0 ppt. in the current period compared with the same period one year ago due to the leveraging impact of the 32% net sales increase.
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