Safety 1st Announces Second Quarter and Six Month Results; Realigns Product Mix; Results Include Charges To Discontinue Lower Margin Products.CHESTNUT HILL Chestnut Hill may refer to:In geography:
SAFT Simple Asynchronous File Transfer SAFT Statistical Associating Fluid Theory SAFT Synthetic Aperture Focusing Technique ) today announced financial results for the second quarter and six months ended June 30, 1996, and noted that the recent period's performance was affected by a number of non-recurring and other charges primarily related to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of certain lower-margin products. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the 1996 second quarter were $28.6 million, compared with $27.6 million reported in the second quarter of last year. For the six months ended June 30, 1996, net sales were $60.6 million, an 11.8% increase from the $54.2 million reported in the same period of 1995. The recent quarter's net sales, absent the non-recurring and other charges, were in line with expectations announced by the Company a month ago. Primarily as a result of the nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". discussed below, the Company incurred a net loss for the 1996 second quarter of $8.2 million, or $1.14 per share, compared with net income of $1.8 million, or $0.25 per share, reported in the same period last year. The net loss for the latest six months was $6.5 million, or $0.91 per share, compared with net income of $3.8 million, or $0.54 per share, in the same period of last year. Results for the 1996 second quarter and year-to-date reflected aggregate, non-recurring pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charges of $12.3 million. After tax, these charges reduced net income for the 1996 second quarter by approximately $7.7 million, or $1.08 per share. Excluding this amount, Safety 1st's 1996 second quarter net loss would have been $450,000, or $0.06 per share. The Company also recorded an expense of approximately $1.5 million (pretax), or $0.12 per share on a tax-affected basis, in addition to previously expected second quarter expenses. This expense included write-offs on certain prepaid and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and increased accruals for professional and related fees. The non-recurring charges include an inventory valuation adjustment of $4.1 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc certain discontinued lines of overstocked or lower margin products; a $2.8 million write-off of molds and other capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) largely related to the discontinued lines; an increase of $4.6 million in the reserve for customer credits and bad debts; and a $750,000 write-off of credits receivable from vendors. Michael Lerner Michael Lerner is the name of several notable Americans:
Safety 1st is a leading developer, marketer and distributor of child care products, including feeding, teething teething /teeth·ing/ (teth´ing) the entire process resulting in eruption of the teeth. teeth·ing n. The eruption or cutting of the teeth. , health-hygiene and convenience items, as well as a complete line of home security products. Safety 1st currently distributes over 500 products to more than 3,700 retailers in over 30,000 outlets worldwide. -0-
SAFETY 1ST, INC.
CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
6/30/96 6/30/95 6/30/96 6/30/95
(in thousands, except per share)
Net sales 28,609 27,630 60,616 54,205
Cost of goods sold 23,323 17,407 42,611 34,387
Gross profit 5,286 10,223 18,005 19,818
Selling, general and
administrative 17,600 7,116 26,938 13,201
Operating income (loss) (12,314) 3,107 (8,933) 6,617
Interest expense (866) (226) 1,509 (287)
(13,180) 2,881 (10,442) 6,330
Income taxes (benefit) (4,987) 1,124 (3,953) 2,468
Net income (loss) (8,193) 1,757 (6,489) 3,862
Net income (loss) per share ($1.14) $ 0.25 ($0.91) $ 0.54 Weighted average common shares outstanding 7,156 7,132 7,156 7,121 CONTACT: Safety 1st Inc., Chestnut Hill Richard Caturano Chief Financial Officer (617) 964-7744 or Morgen-Walke Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Naomi Rosenfeld/Stefanie King Media Contact: Stacy Berns (212) 850-5600 |
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