Published Aug. 6, 2012
Greenville-based Span-America Medical Systems Inc. reported 24% growth in sales for the fiscal third quarter ended June 30.
Net sales increased to $16.9 million, compared with net sales of $13.7 million in the third quarter of fiscal 2011.
“We expect our fourth quarter margins to improve over third quarter levels due to recent price reductions on certain foam raw materials, sales price increases and production changes we made to improve foam yields for selected products,” Ferguson said in a news release.
Span-America sales benefited from acquiring M.C. Healthcare in December, as well as continued growth in its sales of medical, consumer and industrial products, Ferguson said.
Sales of therapeutic support surfaces, its largest medical product line, increased 10% in the third quarter to $6.1 million. Sales of other medical products, including seating, overlays, skin care and fall protection products, were down slightly compared to the third quarter of fiscal 2011.
Sales in the custom products segment rose 10% to $5.3 million in the fiscal third quarter, compared with $4.9 million in the same period in 2011.
“We expect to report record sales and near-record net income in fiscal 2012,” Ferguson said. “We believe the addition of M.C. Healthcare has expanded our markets and should increase our sales opportunities in the future as we integrate the sales, marketing and development of M.C. Healthcare’s and Span-America’s products.”
Span-America manufactures pressure management products for the medical market and supplies custom foam and packaging products to the consumer and industrial markets. Span-America has a wholly owned subsidiary, Span Medical Products Canada Inc. Span-America’s stock is traded on the Nasdaq under the symbol SPAN.