Summer Infant reports $1.7M loss in Q3

SUMMER INFANT, doing business as SUMR Brands, reported a $1.7 million loss in the third quarter of 2019. Above, a product from its Born Free brand. / COURESY SUMR BRANDS
SUMMER INFANT, doing business as SUMR Brands, reported a $1.7 million loss in the third quarter of 2019. Above, a product from its Born Free brand. / COURESY SUMR BRANDS

WOONSOCKET – Summer Infant Inc., doing business as SUMR Brands, reported a loss of $1.7 million in the third quarter, compared with a profit of $118,000 one year prior.

Loss per diluted share was 9 cents for the quarter, compared with a gain of 1 cent in the third quarter of 2018.

The infant and juvenile product company’s revenue for the quarter declined 5.3% year over year to $41.5 million. The company attributed the decline in revenue primarily to the impact of tariffs.

“This quarter we continued to effectively manage working capital and take steps to improve the company’s underlying performance, even in the face of ongoing headwinds,” said Mark Messner, president and CEO. “Similar to our competitors, we saw additional tariffs imposed on goods from China during the period – impacting products previously unaffected – resulting in various changes to retail positioning and an overall revenue decline year over year.”

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Despite the impact of tariffs, Messner said the quarter was still productive.

“We generated $6.3 million in cash from operations, reduced inventory from second quarter levels, and paid down $6 million of debt,” he said. “At the same time, we’ve maintained a singular commitment to new-product development, including our innovative, upcoming car seat and travel system – on track for introduction in early 2020 – which is exempt from tariff regulations.”

The company had $659,000 in cash and cash equivalents at the end of the quarter and $91 million in total assets. Total liabilities were $84.7 million, while the current portion of long-term debt was $875,000 at the end of the quarter.

Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.

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