SpanAmerica Medical Systems Inc. (SPAN, Financial) filed Quarterly Report for the period ended 2008-12-27.
SPAN-AMERICA MEDICAL SYS INC. manufactures and distributes a variety of polyurethane foam products and contract packaging products for the medical consumer and industrial markets. SpanAmerica Medical Systems Inc. has a market cap of $29.4 million; its shares were traded at around $9.27 with a P/E ratio of 6 and P/S ratio of 0.5. The dividend yield of SpanAmerica Medical Systems Inc. stocks is 3.35%. SpanAmerica Medical Systems Inc. had an annual average earning growth of 42.5% over the past 5 years.
Income from continuing operations declined by 16% to $888,000, or $0.32 per diluted share, compared with $1.1 million, or $0.37 per diluted share, in the first quarter last year primarily because of lower sales in the custom products segment, a less profitable sales mix within the medical segment and increases in selling and administrative expenses. Similarly, net income, which includes discontinued operations, decreased 15% during the first quarter to $887,000, or $0.32 per diluted share, compared with $1.0 million, or $0.36 per diluted share, in the same quarter last year.
During the first quarter of fiscal 2009, we paid dividends of $246,000, or 28% of net income. This payment represented one quarterly dividend of $0.09 per share. During the first quarter of last year, we paid dividends of $222,000, or 21% of net income. This payment represented one quarterly dividend of $0.08 per share.
Cash provided by operations during the first quarter of fiscal 2009 declined 9% to $1.1 million compared with $1.2 million in the first quarter of fiscal 2008. The reduction in operating cash flow was caused mainly by lower net income and a decrease in accounts payable during the first quarter of fiscal 2009 compared with increases in accounts payable and accrued expenses during the first quarter of fiscal 2008. Major uses of cash provided by operations during the first quarter were repayment of long-term debt ($700,000), payment of dividends ($246,000), capital expenditures ($105,000) and share repurchases ($279,000).
Net property and equipment decreased by $78,000 to $6.5 million at the end of the first quarter of fiscal 2009 as the result of the combination of depreciation expense of $183,000 partially offset by capital expenditures of $105,000. We expect capital expenditures during fiscal 2009 to be lower than those of fiscal 2008.
Our trade accounts payable decreased by $474,000, or 19%, to $2.1 million compared with fiscal year end 2008 due to the decline in sales volume and related raw material purchases as well as normal monthly fluctuations. Accrued and sundry liabilities increased by $217,000, or 8%, to $3.0 million compared with fiscal year end 2008 due to an increase in income taxes payable.
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SPAN-AMERICA MEDICAL SYS INC. manufactures and distributes a variety of polyurethane foam products and contract packaging products for the medical consumer and industrial markets. SpanAmerica Medical Systems Inc. has a market cap of $29.4 million; its shares were traded at around $9.27 with a P/E ratio of 6 and P/S ratio of 0.5. The dividend yield of SpanAmerica Medical Systems Inc. stocks is 3.35%. SpanAmerica Medical Systems Inc. had an annual average earning growth of 42.5% over the past 5 years.
Highlight of Business Operations:
Sales for the first quarter of fiscal 2009 declined 2% to $13.4 million compared with $13.7 million in the first quarter of last year due to volume declines in our custom products segment. Income from continuing operations was down 16% to $888,000, or $0.32 per diluted share, compared with $1.1 million, or $0.37 per diluted share, in the first quarter of 2008. The decline in income from continuing operations was caused by lower volume in the custom products segment, a less profitable product mix within the medical segment and an increase in selling and administrative expenses compared with the first quarter last year.Income from continuing operations declined by 16% to $888,000, or $0.32 per diluted share, compared with $1.1 million, or $0.37 per diluted share, in the first quarter last year primarily because of lower sales in the custom products segment, a less profitable sales mix within the medical segment and increases in selling and administrative expenses. Similarly, net income, which includes discontinued operations, decreased 15% during the first quarter to $887,000, or $0.32 per diluted share, compared with $1.0 million, or $0.36 per diluted share, in the same quarter last year.
During the first quarter of fiscal 2009, we paid dividends of $246,000, or 28% of net income. This payment represented one quarterly dividend of $0.09 per share. During the first quarter of last year, we paid dividends of $222,000, or 21% of net income. This payment represented one quarterly dividend of $0.08 per share.
Cash provided by operations during the first quarter of fiscal 2009 declined 9% to $1.1 million compared with $1.2 million in the first quarter of fiscal 2008. The reduction in operating cash flow was caused mainly by lower net income and a decrease in accounts payable during the first quarter of fiscal 2009 compared with increases in accounts payable and accrued expenses during the first quarter of fiscal 2008. Major uses of cash provided by operations during the first quarter were repayment of long-term debt ($700,000), payment of dividends ($246,000), capital expenditures ($105,000) and share repurchases ($279,000).
Net property and equipment decreased by $78,000 to $6.5 million at the end of the first quarter of fiscal 2009 as the result of the combination of depreciation expense of $183,000 partially offset by capital expenditures of $105,000. We expect capital expenditures during fiscal 2009 to be lower than those of fiscal 2008.
Our trade accounts payable decreased by $474,000, or 19%, to $2.1 million compared with fiscal year end 2008 due to the decline in sales volume and related raw material purchases as well as normal monthly fluctuations. Accrued and sundry liabilities increased by $217,000, or 8%, to $3.0 million compared with fiscal year end 2008 due to an increase in income taxes payable.
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