Updates Earnings Outlook for Second Half Fiscal 2014
GREENVILLE, S.C.--(BUSINESS WIRE)--
Span-America Medical Systems, Inc. (NASDAQ: SPAN) announced that it
plans to release its fiscal 2014 third quarter results on Monday, August
4, 2014, after the regular close of trading. The Company also updated
its earnings outlook for the second half of fiscal 2014.
"We expect our earnings for the second half of fiscal 2014 to be similar
to the $0.52 per diluted share reported in the first half, which is
lower than our previous outlook, because of lower than expected sales
volume in the third quarter," stated Jim Ferguson, president and chief
executive officer of Span-America. "We experienced weak demand for our
medical products during April and May as well as delays in the start-up
of some new consumer business during the quarter. Sales rebounded in
June but not enough to offset our performance in the first two months of
the quarter. As a result, we believe the shortfall in sales will cause
third quarter earnings to be lower than we originally expected."
"Although we experienced some short-term weakness in our medical
business in the third quarter, we believe the long-term outlook for the
company is excellent," continued Mr. Ferguson. "We are continuing to
develop and introduce new medical products, which we believe will
contribute to our future sales growth. We have substantial positive free
cash flow and a strong balance sheet with high liquidity and no debt. We
are also pleased to have paid 98 consecutive quarterly dividends in
addition to four special dividends. We have increased our quarterly
dividend 12 times since initiation in 1990, and we will continue to look
for opportunities to provide additional value to our shareholders in the
future," concluded Mr. Ferguson.
Span-America's management expects to provide a full update on the third
quarter's results as well as expectations for the company's fourth
fiscal quarter during the upcoming conference call to be held at 10:00
a.m. ET on Tuesday, August 5, 2014. A live broadcast of the conference
call will be available online at www.spanamerica.com
under "Investor Relations" on the "About Us" tab. The online replay will
follow immediately and continue for 30 days.
About Span-America Medical Systems, Inc.
Span-America manufactures and markets a comprehensive selection of
pressure management products for the medical market, including
Geo-Matt®, PressureGuard®, Geo-Mattress®, Custom Care®, Span+Aids®,
Isch-Dish®, Risk Manager® and Selan® products. We also supply custom
foam and packaging products to the consumer and industrial markets.
Through our wholly-owned subsidiary Span Medical Products Canada Inc.,
we manufacture and market the M.C. Healthcare Products brands of
Encore™, Maxxum, Advantage and Rexx bed frames as well as related case
goods, tables and seating products for the long-term care market.
Span-America's stock is traded on The NASDAQ Global Market under the
symbol "SPAN." For more information, visit www.spanamerica.com
We have made forward-looking statements in this release regarding, among
other things, our expectations for future sales and earnings
performance. We wish to caution the reader that these statements are
only predictions. These forward-looking statements may be generally
identified by the use of forward-looking words and phrases such as
"will," "intends," "may," "believes," "anticipates," "should" and
"expects," and are based on the company's current expectations or
beliefs concerning future events that involve risks and uncertainties.
Actual events or results may differ materially as a result of risks and
uncertainties facing the company, including: (a) the inability to
achieve anticipated growth in sales of medical and industrial products
during fiscal 2014, (b) the possibility of disruptions in our consumer
products business related to the transfer of our exclusive distribution
agreement from Louisville Bedding Company to Hollander Home Fashions in
May 2013 as a result of the sale of Louisville Bedding's utility bedding
retail business to Hollander, (c) the possibility of a loss of a key
customer or distributor for our products, (d) risks related to
international operations and foreign exchange associated with our
Canadian subsidiary, (e) the possibility of having material
uncollectible receivables from one or more key customers or
distributors, (f) the potential for volatile pricing conditions in the
market for polyurethane foam, (g) raw material cost increases, (h) the
possibility that some or all of our medical products could be determined
to be subject to the 2.3% medical device excise tax imposed by the
Affordable Care Act, (i) the potential for lost sales due to competition
from low-cost foreign imports, (j) changes in relationships with large
customers or key suppliers, (k) the impact of competitive products and
pricing, (l) government reimbursement changes in the medical market, (m)
FDA and Health Canada regulation of medical device manufacturing and
(n) other risks referenced from time to time in our Securities and
Exchange Commission filings. We disclaim any obligation to update
publicly any forward-looking statement, whether as a result of new
information, future events or otherwise. We are not responsible for
changes made to this document by wire services or Internet services.
Source: Span-America Medical Systems, Inc.