Simmons 1Q sales rise 9.1%
By Furniture Today Staff -- Furniture Today, May 19, 2002
ATLANTA — Bedding major Simmons said its first quarter sales rose 9.1% as the company opened a number of new dealers and focused on higher-priced products.
The company also turned a profit, with net income of $5.7 million on sales of $177.2 million. In last year's first quarter, Simmons had a net loss of $978,000.
"We believe the growth in sales at our higher price points … is further evidence that consumers will pay more for a mattress which will provide a better night's sleep," said Charlie Eitel, chairman and chief executive officer.
Eitel also said Simmons is continuing to focus on cost controls and improving operating margins. He said raw materials costs and labor costs as a percentage of net sales both decreased during the quarter.
"As a result of improved efficiencies in our factories, management of labor hours and product demand, we were able to increase sales with over 13% fewer factory workers as compared to a year ago," he said.
The company's EBITDA, or earnings before interest, taxes, depreciation and amortization, leaped 57.3% to $21.3 million.
Simmons said an accounting change regarding the way it records co-op advertising and other cash incentives paid to retailers resulted in a decrease in both net sales and in selling, general and administrative expenses. Such costs previously had been added to SG&A, but are now taken as a reduction in net sales.
Simmons adopted the new accounting policy at the end of 2001 and revised its 2001 sales and SG&A figures to provide more accurate comparisons between the two years.
| Quarter ended 3/30 | 2002 | 2001 | Change |
|---|---|---|---|
| Sales | $177,247,000 | $162,395,000 | 9.1% |
| Operating income | 20,287,000 | 13,218,000 | 53.5% |
| Net income(a) | 5,688,000 | (978,000) | — |
| (a) Includes pretax charges for non-cash variable stock compensation expense of $3.1 million in the 2002 quarter and $3.2 million in the 2001 quarter. The 2001 quarter also includes a $639,000 pretax charge for ESOP expense and a $902,000 income tax benefit. | |||
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Simmons '02 sales up 9.4%
Mar 9, 2003 -
Simmons 1Q sales up 14.7%
May 28, 2006 -
Simmons 3Q sales jump 13.4% despite 2.3% units dip
Nov 10, 2002 -
Simmons '03 sales up 13.8%
Mar 28, 2004 -
Foamex cuts loss in 4th. qtr.
Mar 7, 2004
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