SUNRISE MEDICAL REPORTS RECORD FIRST QUARTER EARNINGS
SUNRISE MEDICAL REPORTS RECORD FIRST QUARTER EARNINGS TORRANCE, Calif., Oct. 29 /PRNewswire/ -- Sunrise Medical Inc.
(NYSE: SMD) announced today that earnings per share rose 58 percent to $.30 for its first quarter ended Oct. 2, 1992, vs. $.19 during the comparable period last year. Net income grew 67 percent to $4.0 million from $2.4 million the prior year, while sales advanced 38 percent to $71.7 million from $52.1 million. This marks the 15th consecutive quarter Sunrise Medical has achieved record sales, net income and earnings per share.
The strong sales growth was driven primarily by custom wheelchairs, which gained 33 percent over last year in North America and 38 percent in the United Kingdom, including a 13 percent favorable foreign exchange benefit. European acquisitions during fiscal 1992 accounted for the rest of this product line's 80 percent sales growth. Custom wheelchair sales for the quarter were $37.6 million or 52 percent of total company sales. Overall, Rehabilitation Product sales increased 54 percent to $52.8 million, while Recovery Product sales rose 7 percent to $18.9 million. Shipments to international customers accounted for 33 percent of total sales this quarter vs. 23 percent a year ago. Commenting on the quarter, Richard H. Chandler, chairman and president of Sunrise Medical Inc., said, "Sales growth exceeded our expectations, reflecting strong market acceptance for the 62 new products introduced last year. Sales were especially encouraging in the U.K., where three new power wheelchair models introduced in fiscal 1992 caused our market share to reach 50 percent in this category. Corporate margins improved at all levels in the quarter. Operating profit reached 11 percent of sales vs. 8.4 percent last year, while net margin advanced one full percentage point to 5.6 percent from 4.6 percent during last year's first quarter. We accomplished these margin improvements despite a 51 percent increase in research and development expenses, the roll-out of Bio Clinic's service centers and the start-up of a new dedicated salesforce targeted at homecare bed customers. "Recovery Products contributed importantly to the company's margin improvement due to the rebound at Joerns and the increasing demand for rental of Bio Clinic air therapy products, which are more than making up for soft sales in healthcare foam products. At the quarter's end, Bio Clinic had 13 company-owned rental service centers plus 35 additional locations being operated by revenue-sharing partners. The acquisition of Comfort Sleeper Inc. on Oct. 2 will begin to positively influence sales and profits meaningfully in the next quarter." Sunrise Medical designs, manufactures and markets internationally medical products used in the rehabilitation and recovery phases of patient care. Products include custom manual and power wheelchairs, ambulatory and bath safety aids, patient-room beds and furnishings and therapeutic mattresses for the management of pressure sores. Sunrise products are designed to meet the special needs of three groups of people: the disabled, the elderly and the recovering patient. Richard Chandler and Sunrise chief financial officer, Ted Tarbet, will hold a conference call today at 2 p.m. EST to discuss first quarter results. If you wish to participate, call Noonan/Russo Communications at 212-979-9180. SUNRISE MEDICAL INC. AND SUBSIDIARIES Consolidated Statements of Operations (Dollars and shares in thousands, except per share amounts) Three Months Ended Oct. 2, Sept. 27, Growth 1992 1991 percent (unaudited) Net sales $71,734 $52,083 38 Cost of sales 45,729 34,657 32 Gross profit 26,005 17,426 49 Marketing, selling and administrative expenses 15,014 10,781 39 Research and development expenses 1,709 1,132 51 Corporate expenses 895 798 12 Amortization of goodwill and other intangibles 525 335 57 Corporate operating income 7,862 4,380 79 Other (expense) income: Interest expense (1,208) (365) 231 Interest income and other, net 97 34 185 Income before taxes 6,751 4,049 67 Income taxes 2,706 1,632 66 Net income $4,045 $2,417 67 Earnings per share(A) $0.30 $0.19 58 Weighted average number of shares outstanding 13,348 12,422 7 (A) Fully diluted earnings per share have not been presented because they are not materially different than primary earnings per share for the periods presented. -0- 10/29/92 /CONTACT: Ted N. Tarbet, CFO (financial), or Lisa Riordan, manager of corporate communications (media), of Sunrise Medical, 310-328-8018; or Susan Noonan of Noonan/Russo Communications, 212-979-9180, for Sunrise Medical/ (SMD) CO: Sunrise Medical Inc. ST: California IN: HEA SU: ERN
JL-JB -- LA010 -- 6413 10/29/92 09:03 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Oct 29, 1992|
|Previous Article:||AMERICA WEST AIRLINES REPORTS THIRD QUARTER FINANCIAL RESULTS|
|Next Article:||SCHERING-PLOUGH AND SANDOZ PHARMA ANNOUNCE U.K. LAUNCH OF 'LEUCOMAX'|