SpanAmerica Medical Systems Inc. (SPAN, Financial) filed Quarterly Report for the period ended 2010-01-02.
Spanamerica Medical Systems Inc. has a market cap of $43.47 million; its shares were traded at around $16.03 with a P/E ratio of 9.11 and P/S ratio of 0.78. The dividend yield of Spanamerica Medical Systems Inc. stocks is 2.5%. Spanamerica Medical Systems Inc. had an annual average earning growth of 42.5% over the past 5 years.
General and administrative expenses declined by 26% to $693,000 in the first quarter of fiscal 2010 compared with $939,000 in the first quarter of last year. The decrease was primarily due to a swing in costs associated with the cash value of corporate-owned life insurance, from expense of $146,000 in the first quarter of fiscal 2009 to income of $76,000 in the first quarter of fiscal 2010. Excluding the income from the cash value of life insurance, total administrative expenses in the first quarter of fiscal 2010 would have been $769,000. The cash value of life insurance is adjusted to fair market value at the end of each quarter. An increase in market value is recorded as a reduction in administrative expenses, and a decrease in market value is recorded as an increase in administrative expenses. See Item 3 – “Quantitative and Qualitative Disclosures about Market Risk” for more information about the cash value of life insurance. Administrative expenses for the full year of fiscal 2010 are expected to be slightly lower than those of fiscal 2009.
Net income rose 27% to $1.1 million, or $0.40 per diluted share, compared with $887,000, or $0.32 per diluted share, in the first quarter last year primarily because of reductions in manufacturing, selling and administrative expenses.
During the first quarter of fiscal 2010, we paid dividends of $272,000, or 24% of net income. This payment represented one quarterly dividend of $0.10 per share. During the first quarter of last year, we paid dividends of $246,000, or 28% of net income. This payment represented one quarterly dividend of $0.09 per share.
Cash provided by operations during the first quarter of fiscal 2010 increased 36% to $1.5 million compared with $1.1 million in the first quarter of fiscal 2009. The increase in operating cash flow was caused mainly by higher net income and a decrease in inventory during the first quarter of fiscal 2010 compared with decreases in accounts receivable, accounts payable and accrued expenses and an increase in prepaid expenses during the first quarter of fiscal 2009. Major uses of cash provided by operations during the first quarter were purchases of marketable securities ($700,000) and payment of dividends ($272,000).
Our trade accounts payable decreased by $426,000, or 25%, to $1.3 million on January 2, 2010, compared with $1.7 million at fiscal year-end 2009 due to the decline in sales volume and related raw material purchases as well as normal monthly fluctuations. Accrued and sundry liabilities increased by $378,000, or 10%, to $4.1 million compared with $3.7 million at fiscal year-end 2009 due to increases in customer deposits and accruals for incentive compensation and income taxes payable.
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Spanamerica Medical Systems Inc. has a market cap of $43.47 million; its shares were traded at around $16.03 with a P/E ratio of 9.11 and P/S ratio of 0.78. The dividend yield of Spanamerica Medical Systems Inc. stocks is 2.5%. 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 2010 declined 9% to $12.2 million compared with $13.4 million in the first quarter of last year primarily due to lower sales of our private label therapeutic support surfaces. Net income for the quarter rose 27% to $1.1 million, or $0.40 per diluted share, compared with $887,000, or $0.32 per diluted share, in the first quarter of 2009. The increase in net income was the result of reduced operating costs, including lower administrative expenses and improvements in manufacturing processes that have resulted in lower material, labor and overhead costs compared with last year.General and administrative expenses declined by 26% to $693,000 in the first quarter of fiscal 2010 compared with $939,000 in the first quarter of last year. The decrease was primarily due to a swing in costs associated with the cash value of corporate-owned life insurance, from expense of $146,000 in the first quarter of fiscal 2009 to income of $76,000 in the first quarter of fiscal 2010. Excluding the income from the cash value of life insurance, total administrative expenses in the first quarter of fiscal 2010 would have been $769,000. The cash value of life insurance is adjusted to fair market value at the end of each quarter. An increase in market value is recorded as a reduction in administrative expenses, and a decrease in market value is recorded as an increase in administrative expenses. See Item 3 – “Quantitative and Qualitative Disclosures about Market Risk” for more information about the cash value of life insurance. Administrative expenses for the full year of fiscal 2010 are expected to be slightly lower than those of fiscal 2009.
Net income rose 27% to $1.1 million, or $0.40 per diluted share, compared with $887,000, or $0.32 per diluted share, in the first quarter last year primarily because of reductions in manufacturing, selling and administrative expenses.
During the first quarter of fiscal 2010, we paid dividends of $272,000, or 24% of net income. This payment represented one quarterly dividend of $0.10 per share. During the first quarter of last year, we paid dividends of $246,000, or 28% of net income. This payment represented one quarterly dividend of $0.09 per share.
Cash provided by operations during the first quarter of fiscal 2010 increased 36% to $1.5 million compared with $1.1 million in the first quarter of fiscal 2009. The increase in operating cash flow was caused mainly by higher net income and a decrease in inventory during the first quarter of fiscal 2010 compared with decreases in accounts receivable, accounts payable and accrued expenses and an increase in prepaid expenses during the first quarter of fiscal 2009. Major uses of cash provided by operations during the first quarter were purchases of marketable securities ($700,000) and payment of dividends ($272,000).
Our trade accounts payable decreased by $426,000, or 25%, to $1.3 million on January 2, 2010, compared with $1.7 million at fiscal year-end 2009 due to the decline in sales volume and related raw material purchases as well as normal monthly fluctuations. Accrued and sundry liabilities increased by $378,000, or 10%, to $4.1 million compared with $3.7 million at fiscal year-end 2009 due to increases in customer deposits and accruals for incentive compensation and income taxes payable.
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