Simmons' sales climb 20.1%
By Jay McIntosh -- Furniture Today, November 18, 2007
Atlanta — Simmons' sales jumped 20.1% in the third quarter, with U.S. volume rising 12.7% on higher unit sales, the bedding major reported.
Net income fell sharply to $12.3 million from $41.9 million in the comparable period a year ago, but the 2006 period included a $43.8 million pretax gain from the sale of retailer Sleep Country USA.
Adjusted earnings before interest, taxes, depreciation and amortization — the company's preferred measure of performance — came to $51.8 million, up 19.2% from last year's third quarter. EBITDA was 16.6% of sales, compared with 16.7% a year ago.
"Our year-to-date sales growth of 16.3% has been driven principally by effective marketing and our decision to be competitive at a broad range of retail price points," said Simmons Chairman and CEO Charlie Eitel.
He said the sales growth was driven by the Beautyrest 2007 product line, launched earlier this year, which "has proven to be our most successful Beautyrest product line in our history."
Also adding to the top line were the acquisitions of Simmons Canada and ComforPedic. Eitel said the company began manufacturing ComforPedic by Simmons products in several of its U.S. facilities and started rolling out the line to accounts in the third quarter.
Domestic unit sales in the quarter rose 13.5% from a year earlier, the company said. Operating income was $37.8 million, or 12.1% of sales, compared with $33.1 million, or 12.7% of sales, a year ago.
Eitel said the company raised prices an average 2.8% on Nov. 5 to partially compensate for rising costs in raw materials, especially petroleum-based products.
Simmons executives also noted the company has benefited from the strong Canadian dollar, whose value in U.S. dollars has risen 20% since the November 2006 acquisition of Simmons Canada.
| Simmons | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 9/29 | 2007 | 2006 | Change |
| (a) Includes a pretax gain of $43.8 million in the 2006 quarter and nine months on the sale of Sleep Country USA. |
|||
| Sales | $311,992,000 | $259,766,000 | 20.1% |
| Operating income | 37,838,000 | 33,115,000 | 14.3% |
| Net income (a) | 12,338,000 | 41,922,000 | (70.6%) |
| Earnings per share | NA | NA | NA |
| 9 months ended 9/29 | 2007 | 2006 | Change |
| Sales | $857,269,000 | $736,835,000 | 16.3% |
| Operating income | 81,296,000 | 89,156,000 | (8.8%) |
| Net income (a) | 17,735,000 | 50,416,000 | (64.8%) |
| Earnings per share | NA | NA | NA |
-
Simmons 3Q sales surge 20.1% as units rise 12.7%
Nov 15, 2007 -
Simmons sales up
Mar 16, 2008 -
Simmons sales up
Mar 16, 2008
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
