WOONSOCKET – Summer Infant Inc. cut its loss in half in 2016, and saw revenue drop 5.6 percent.
The juvenile-product maker, in its earnings report released this week, said the loss in 2016 was $4.3 million, or 23 cents a share, compared with a loss of $8.7 million, or 47 cents a share, the prior year.
Revenue fell to $194.3 million last year, compared with $205.8 million in 2015. The company said if $8.3 million of sales related to its bank-approved inventory reduction plan and furniture exit in 2015 are considered, revenue was only down “modestly” year over year.
Fiscal 2016 included $2.1 million of unfavorable foreign exchange on a constant currency basis, mostly due to the decline of the British pound.
Litigation costs fell to $2.4 million from $6.6 million in fiscal 2015. The company had been embroiled in a lawsuit against former executives and consultants and had claimed they were trying to create a competing company and stole trade secrets.
In the fourth quarter, the loss grew to $4.5 million, or 24 cents a share, compared with a loss of $3.1 million, or 17 cents a share. Revenue fell to $45.5 million in the fourth quarter from $50.8 million in fourth quarter 2015.
“Looking back on 2016, we accomplished a great deal and took the necessary steps to position the company for even better operating performance going forward,” Mark Messner, president and CEO, said in a statement. “Using $8.8 million of cash generation, we paid down $6.5 million of debt – further strengthening the balance sheet – and lowered our interest expense in tandem. At the same time, even including certain one-time expenses, we reduced [general and administrative expenses] by more than 10 percent, and the company’s prior litigation issue is now behind us. All in all, Summer Infant is stronger now than it’s been in years.”