Span-America Medical Systems, Inc. (NASDAQ:SPAN) today reported record sales and strong growth in net income for the first quarter ended December 31, 2011. Net income for the first quarter of fiscal 2012 rose 57% to $1.1 million, or $0.39 per diluted share, compared with $717,000, or $0.25 per diluted share, in the first quarter of fiscal 2011. Net sales for the first quarter of fiscal 2012 increased 75% to $20.5 million compared with $11.7 million in the first quarter of fiscal 2011.
“Our record first quarter sales results came from increased demand for consumer bedding products during the holiday selling season and the addition of M.C. Healthcare Products that was acquired on December 9, 2011,” stated Jim Ferguson, president and chief executive officer of Span-America. “Sales in the custom products segment rose 197% to $11.1 million, and medical sales were up 18% to $9.4 million in the first quarter of fiscal 2012 compared with the first quarter of the prior fiscal year. Our medical sales benefited from the M.C. Healthcare acquisition from the closing date of December 9
through the end of the quarter, which added approximately $1.0 million to our first quarter sales. Our new Custom Care® line of therapeutic support surfaces also contributed to medical sales growth during the quarter.
“Span-America’s earnings growth for the first quarter was driven mainly by the large increase in sales volume. We are pleased that our strong earnings and cash flow during the first quarter allowed us to reduce long-term debt from a peak of $7.0 million in mid-December to $1.0 million by the end of the quarter,” continued Mr. Ferguson.
First Quarter Results
Sales for the first quarter of fiscal 2012 increased 75% to $20.5 million compared with $11.7 million in the first quarter of fiscal 2011. The majority of the sales growth came from the custom products segment, where sales almost tripled to $11.1 million compared with $3.7 million in the first quarter of fiscal 2011. Total medical sales increased 18% to $9.4 million for the first quarter of fiscal 2012, including $1.0 million of M.C. Healthcare sales. Excluding the M.C. Healthcare acquisition, sales in the medical segment increased 5% to $8.4 million during the first quarter of fiscal 2012 compared with $8.0 million in the first quarter last fiscal year.