Simmons 3Q sales surge 20.1% as units rise 12.7%
Bedding major’s profits plunge because of Sleep Country USA sale last year
By Furniture Today Staff -- Furniture Today, November 15, 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 Tuesday.
Net income fell sharply to $12.3 million from $43.5 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 $38.8 million, or 12.4% of sales, compared with $33.9 million, or 13.1% of sales, a year ago.
The company plans a conference call this morning, which can be accessed on its Web site at www.simmons.com.
