Summer Infant Inc. (SUMR, Financial) filed Quarterly Report for the period ended 2012-09-30.
Summer Infant, Inc. has a market cap of $22.3 million; its shares were traded at around $1.23 with a P/E ratio of 4.4 and P/S ratio of 0.1. Summer Infant, Inc. had an annual average earning growth of 17.3% over the past 5 years.
Gross profit decreased by $2,370 to approximately $19,625 for the three months ended September 30, 2012 from approximately $21,995 for the three months ended September 30, 2011. The decrease in gross profit in the third quarter ended September 30, 2012 resulted from an unfavorable product mix caused primarily by higher sales in the lower margin furniture category, a decline in sales in the higher margin gear category and a one-time $530 charge to cost of goods sold to write off obsolete inventory acquired from Born Free., Ltd. In addition, markdown and returned goods allowances were higher by $1,558 in the three months ended September 30, 2012 as compared with the same period in the prior year.
Net sales increased by 3.2% from approximately $182,803 for the nine months ended September 30, 2011 to approximately $188,714 for the nine months ended September 30, 2012. The sales increase was primarily attributable to higher sales in the furniture, nursery, feeding and safety categories offset, in part, by lower sales in the monitor and gear categories in the nine months ended September 30, 2012 as compared with the same period in the prior year.
Gross profit decreased by $392 from approximately $61,908 for the nine months ended September 30, 2011 to approximately $61,516 for the nine months ended September 30, 2012. The decline in gross profit in the nine months ended September 30, 2012 can be attributed to an unfavorable product mix, in particular, caused by an increase in lower margin sales in the furniture category, a decrease in sales in the higher margin monitor category and a one-time $530 adjustment to cost of goods sold pertaining to the write off of obsolete inventory acquired from Born Free. In addition, markdown and returned goods allowances were higher by $3,480 in the nine months ended September 30, 2012 as compared with the nine months ended September 30, 2011.
Selling, general and administrative expenses (excluding depreciation and amortization and stock-based compensation) increased by about 7.6% from approximately $48,957 for the nine months ended September 30, 2011 to approximately $52,680 for the nine months ended September 30, 2012. The increase is mainly the result of higher promotional costs related to customer cooperative advertising and placement of consumer ads, higher royalty payments under licensing agreements and an increase in other variable selling costs associated with the increase in sales. Excluding the one-time charge of $453 related to the Born Free net asset adjustment, general and administrative expense was slightly lower in the nine months ended September 30, 2012 compared with the same period in the prior year as we begin to benefit from overhead cost reductions initiated at the end of the second quarter of 2012.
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Summer Infant, Inc. has a market cap of $22.3 million; its shares were traded at around $1.23 with a P/E ratio of 4.4 and P/S ratio of 0.1. Summer Infant, Inc. had an annual average earning growth of 17.3% over the past 5 years.
Highlight of Business Operations:
Net sales increased by 1.0% from approximately $63,342 for the three months ended September 30, 2011 to approximately $63,984 for the three months ended September 30, 2012. The sales increase was primarily attributable to higher sales in the furniture, nursery and play categories partially offset by lower sales in the gear product category.Gross profit decreased by $2,370 to approximately $19,625 for the three months ended September 30, 2012 from approximately $21,995 for the three months ended September 30, 2011. The decrease in gross profit in the third quarter ended September 30, 2012 resulted from an unfavorable product mix caused primarily by higher sales in the lower margin furniture category, a decline in sales in the higher margin gear category and a one-time $530 charge to cost of goods sold to write off obsolete inventory acquired from Born Free., Ltd. In addition, markdown and returned goods allowances were higher by $1,558 in the three months ended September 30, 2012 as compared with the same period in the prior year.
Net sales increased by 3.2% from approximately $182,803 for the nine months ended September 30, 2011 to approximately $188,714 for the nine months ended September 30, 2012. The sales increase was primarily attributable to higher sales in the furniture, nursery, feeding and safety categories offset, in part, by lower sales in the monitor and gear categories in the nine months ended September 30, 2012 as compared with the same period in the prior year.
Gross profit decreased by $392 from approximately $61,908 for the nine months ended September 30, 2011 to approximately $61,516 for the nine months ended September 30, 2012. The decline in gross profit in the nine months ended September 30, 2012 can be attributed to an unfavorable product mix, in particular, caused by an increase in lower margin sales in the furniture category, a decrease in sales in the higher margin monitor category and a one-time $530 adjustment to cost of goods sold pertaining to the write off of obsolete inventory acquired from Born Free. In addition, markdown and returned goods allowances were higher by $3,480 in the nine months ended September 30, 2012 as compared with the nine months ended September 30, 2011.
Selling, general and administrative expenses (excluding depreciation and amortization and stock-based compensation) increased by about 7.6% from approximately $48,957 for the nine months ended September 30, 2011 to approximately $52,680 for the nine months ended September 30, 2012. The increase is mainly the result of higher promotional costs related to customer cooperative advertising and placement of consumer ads, higher royalty payments under licensing agreements and an increase in other variable selling costs associated with the increase in sales. Excluding the one-time charge of $453 related to the Born Free net asset adjustment, general and administrative expense was slightly lower in the nine months ended September 30, 2012 compared with the same period in the prior year as we begin to benefit from overhead cost reductions initiated at the end of the second quarter of 2012.
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