Span-America Reports Fourth Quarter And Fiscal Year 2016 Results

Span-America Medical Systems, Inc. (NASDAQ:SPAN) today reported its results for the fourth quarter and fiscal year ended October 1, 2016. Net income for the fourth quarter of fiscal 2016 rose 10% to $1.4 million, or $0.51 per diluted share, compared with $1.3 million, or $0.43 per diluted share, in the fourth quarter of fiscal 2015. Net sales for the fourth quarter of fiscal 2016 declined 10% to $16.0 million compared with $17.7 million in the fourth quarter of fiscal 2015. For the full year, fiscal 2016 net income increased 6% to $4.2 million, or $1.54 per diluted share, compared with $4.0 million, or $1.33 per diluted share, in fiscal 2015. Fiscal 2016 net sales were up 5% to $67.6 million compared with $64.3 million in fiscal 2015.

"Span-America's earnings rose in the fourth quarter on a solid 13% increase in operating income, and our earnings per share benefited from fewer shares outstanding as a result of the stock repurchases we made near the end of fiscal 2015," stated Jim Ferguson, president and chief executive officer of Span-America. "Our growth in operating income came from a combination of higher sales in our medical segment and improved margins in our custom products segment. These improvements were partly offset by lower foreign exchange gains related to our operations in Canada.

"We had modest sales growth in our medical segment during the quarter, which came from higher sales volumes among our therapeutic support surface product lines. Our growth in medical sales was offset by lower sales in the custom products segment as we expected due to the loss of a large retail customer that we announced earlier in fiscal 2016. We expect first quarter fiscal 2017 sales of custom products to be lower than in the first quarter of fiscal 2016 due to the loss of this customer, offset partially by sales growth from a new customer for consumer bedding products and continued growth in medical segment sales," continued Ferguson.

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