Span-America Medical Systems, Inc. (NASDAQ:SPAN) today reported higher sales and net income for the first quarter ended December 29, 2012. Net income for the first quarter of fiscal 2013 rose 21% to $1.4 million, or $0.46 per diluted share, compared with $1.1 million, or $0.39 per diluted share, in the first quarter of fiscal 2012. Net sales for the first quarter of fiscal 2013 increased 6% to $21.7 million compared with $20.5 million in the first quarter of fiscal 2012.
“Span-America reported record quarterly sales and a healthy increase in net income for the first fiscal quarter of 2013,” stated Jim Ferguson, president and chief executive officer of Span-America. “Our improved results came from higher medical sales, including the acquisition of M.C. Healthcare completed in December 2011, and improved operating margins from our custom products segment.
“We remain focused on integrating our sales and marketing for Span-America’s therapeutic support surfaces with M.C. Healthcare’s medical bed frames to expand our markets for medical product sales. As a result of the acquisition, we have increased our research and development budget to expand our medical product line for new beds and therapeutic support surfaces. We also plan to add new product offerings in fiscal 2013 by combining our therapeutic support surfaces and medical bed frames for both U.S. and Canadian markets. We believe these efforts will be key to expanding our sales in the future.
“Span-America’s cash flow and balance sheet remained strong in the first quarter of fiscal 2013. In recognition of our improved operating results, our Board of Directors declared and paid a quarterly cash dividend of $0.125 per share and a special cash dividend of $1.00 per share during the quarter. This marked our 92
consecutive quarterly dividend and the fourth special dividend paid to shareholders,” continued Mr. Ferguson.
First Quarter Results
Sales for the first quarter of fiscal 2013 increased 6% to $21.7 million compared with $20.5 million in the first quarter of fiscal 2012. The sales growth was due primarily to the contribution of M.C. Healthcare Products (MCHP) that was acquired in December 2011.