Span-America Medical Systems, Inc. (NASDAQ:SPAN) today reported strong growth in sales and net income for the second fiscal quarter and six months ended March 31, 2012. Net income for the second quarter of fiscal 2012 rose 74% to $1.8 million, or $0.62 per diluted share, compared with $1.1 million, or $0.37 per diluted share, in the second quarter of fiscal 2011. Net sales for the second quarter of 2012 increased 56% to $20.9 million compared with net sales of $13.5 million in the second quarter of fiscal 2011.
“Span-America’s excellent results came from the acquisition of M.C. Healthcare and solid growth in our custom products segment compared with last year,” stated Jim Ferguson, president and chief executive officer of Span-America Medical Systems. “We are very pleased with our strong sales and earnings performance and believe it demonstrates the growth potential we can achieve with the addition of the M.C. Healthcare business.
“This was the first full quarter of operations for M.C. Healthcare as a part of Span-America, and the new unit contributed approximately $4.9 million in revenue during the quarter. Their excellent performance was partly the result of higher seasonal sales during the quarter as several Canadian provinces increased purchases ahead of their March 31
fiscal year-ends. We expect the addition of M.C. Healthcare to expand our future sales opportunities by combining Span-America’s proprietary medical therapeutic support surfaces with M.C. Healthcare’s line of medical bed frames. We believe the combination of these products will allow us to be more competitive and expand our product offerings in key market segments,” continued Mr. Ferguson.
Second Quarter Results
Second quarter sales for fiscal 2012 rose 56% to $20.9 million compared with $13.5 million in the second quarter of last year. The majority of the sales growth was due to the newly acquired M.C. Healthcare product lines and higher sales in the custom products segment.