WOONSOCKET – For the three months ended Sept. 30, youth products maker Summer Infant Inc. (Nasdaq: SUMR, SUMRU, SUMRW) posted pro forma net income of $1.06 million for its “Summer Operating Companies,” a 90.0-percent increase from the year-ago $558,000. Earnings per diluted share grew to 8 cents from the 2006 third quarter’s 5 cents per share.
Using the Summer Operating Companies – Summer Infant (USA) Inc., Summer Infant Europe Ltd. and Summer Infant Asia Ltd. – as the basis for its initial third-quarter financial report allows it to compare more clearly the results for its major operating units before the March 6 merger with KBL Healthcare Acquisition Corp. II, the parent company said. Summer Infant said it would release full-company results in its upcoming SEC 10-Q filing.
“We are very pleased to report solid performance for the first nine months and remain on track to hit our year-end guidance,” Jason Macari, CEO of Summer Infant Inc. and its operating companies, said in an after-market statement.
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As of Sept. 30, the parent company reported $4.3 million in debt, mostly related to the construction of its new headquarters, and $1.3 million in cash on hand.
“Looking ahead, we are very excited about our 2008 product lineup and have seen a very positive response from our retail partners regarding product placements next year,” Macari said. “In addition, our recently completed warrant tender offer was a positive step in streamlining our capital structure and eliminating a significant portion of the overhang of warrants in the marketplace.”
The purchase of 14.8 million warrants, at $1 per warrant, left Summer Infant with 3.6 million common-stock purchase warrants outstanding, with an exercise price of $5 per warrant. The company said it intends to draw $14.8 million from its line of credit to fund the purchases just completed, leaving $7.2 million available on the $22.0 million line.
Summer Infant Inc. (Nasdaq: SUMR, SUMRU, SUMRW) – formerly KBL Healthcare Acquisition Corp. II – is the parent of Summer Infant (USA) Inc., Summer Infant Europe Ltd. and Summer Infant Asia Ltd. (collectively, the “Summer Infant Operating Companies”), which design and make audio-video monitors, safety gates, bed rails, infant thermometers, booster and potty seats and other infant and toddler products. To learn more, visit www.summerinfant.com.
