Span-America Medical Reports Second Quarter Fiscal 2017 Results

GREENVILLE, S.C.--(BUSINESS WIRE)--Span-America Medical Systems, Inc. (NASDAQ:SPAN) today reported its results for the second fiscal quarter ended April 1, 2017. Net sales for the second quarter of fiscal 2017 were up 3% to $15.2 million compared with $14.9 million in the second quarter of fiscal 2016. Net income for the second quarter of fiscal 2017 rose 126% to $1.7 million compared with $758,000 in the second quarter of fiscal 2016 and benefited from a higher sales volume in the medical segment, a more profitable sales mix and a $732,000 non-recurring, after-tax gain (approximately $0.26 per diluted share) from life insurance proceeds. Net income per diluted share rose 121% to $0.62 in the second quarter of fiscal 2017 compared with $0.28 in the second quarter of fiscal 2016.

Second Quarter Results

Sales for the second quarter of fiscal 2017 were $15.2 million compared with $14.9 million in the second quarter of fiscal 2016. The sales increase came entirely from our medical segment and was partly offset by a sales decline in our custom products segment. Sales in the medical segment increased by 18% to $12.9 million compared with $11.0 million in the second quarter last year. Sales in the custom products segment were down by 41% to $2.3 million in the second quarter of this year compared with $3.9 million in the second quarter last year. Operating income increased by 21% to $1.4 million in the second quarter this year compared with $1.2 million in the same quarter last year due to higher sales volume in the medical segment and a more profitable sales mix during the second quarter of fiscal 2017 compared with the same quarter last year.