SUMR - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the SUMR Brands Fiscal 2021 First Quarter Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Chris Witty, Investor Relations Advisor. ahead. go Please

Chris Witty

I to include could may brief Please Call. results welcome XX-Q beyond, cause the XX-K, the Brands First SUMR harbor statement. for Bruce Form factors and XXXX CEO, on a that outlook to and Hello, safe This Brands’ Company's forward-looking statements brief me a Form Commission. materially the refer statements. report that quarterly on provide Conference the annual with harbor Meier. CFO, Interim risk With Noyes; call actual is and Securities now Exchange the Quarter call events like these include Stuart in provide may differ safe the to and This contained and our and in reports SUMR filings would forward-looking call its XXXX Company's on statements to statement. from to today relate other

adjusted earnings During adjusted measures, the call, changes EBITDA, investors non-GAAP Company share. metrics which operations. and per gain income the financial understanding Brands' believes net are management in meaningful of may help These make references a to SUMR adjusted

over the For Stuart Company's yesterday results financial non-GAAP information please for to with that, in measures, And GAAP turn evening. more reconciliation call a Noyes. financial to of to see the included on measures issued non-GAAP table the release like I'd Stuart?

Stuart Noyes

detail. you quarter through joining and go after overview first results Bruce call developments, appreciate Chris, I'll everyone. financial providing our which We our start an recent Thanks, in of good morning, today. conference by will

of and issues, product hindered quarter supply even continued in rose chain hampered same expansion, some to as to to the to on categories timely to due and year-over-year, stimulus. manner. mainly when ability where ongoing true ordered demand items trucking our including We our call, get ability manufactured. grow issues As were were and market favorable discussed to related the and our operating face But, we see as federal bottlenecks get constraints, to as well potties. conditions on factors challenges tried shipping our how, response market depended key of headwinds, goods The general in economic a industry glad product to to and the earnings variety a this which logistical last gates

are of our Just lower it fell, shows this than If one clearly at would demand some challenges period. XXXX. for during over but the sheet inventory liked, mismatch in look probably balance supply such fact extent, production actually our have to tumultuous that we I and indicative North of revenue levels and weren't the certain COVID logistics overseas lockdown, up constraints, America been and believe countries still would under

restrictions manufacturing pieces costs down managing pandemic Let they many best me midst even to chain of so bottlenecks, as in add, moving rose the and people the the could. container to from availability our and that however, challenge, keeping supply

bottom sequentially line and have While sales additional debt. quarter operating on a shows paid would we where This down liked, results versus positive were posted EPS, EBITDA grew four focus we and execution. not

to our continue consumer costs fuel that control come. will increasing credit and then shipping quarters spending forward, in ability good our child months and to possible pending to raising demand commodity to daily, is doing in We're down news the improving tax should get that chain planning fathering market, making offset adjustments comes product to we're Going and conditions likely prices our supply to and where managing rates. make robust, and to happen. advance where the possible, everything the economic be It under

demand, by here that that doing our as workforce product and us easily But, the shipping fulfill costs other feel companies positive the progresses. Every or over the overall is come these to optimistic timing estimated manage With any Bruce will products to people trends financial given as possible that, review we're throughput. promise company. We the confident, everything detail. turn All can increase than the I orders not to but lessen in Bruce? a are and listeners cautiously challenges meet it last, tandem. we our bit back day consumer different something is results in year to is I'll to

Bruce Meier

and Stuart, everyone. morning, good Thanks,

our reminder, a release yesterday. were and XX-Q related issued As press

to conference our this you filings. addition call, I In to review to listening encourage

the to results. Now

million First quarter $XX.X with $XX.X first fiscal million net sales the compared were of XXXX. in quarter

it chain of constraints to year-over-year line discussed, in logistical and reasons XXXX, While with fourth was due bottlenecks. previously the the down revenue was supply quarter ongoing

As offset areas saw improving reduced economic shipments product increasing pandemic-related environment, digits as Revenue a demand across Stuart categories, generally gates even these including rose lower mentioned, by potties, sales. and by other and issues certain helped double boosters, more restrictions. than and

million supply chain to Gross million in issues continue the will reflects of as gross longer our Going receiving percentage for first decline are margin XXXX. versus as margin due end-user XX.X% were manage believe was to forthcoming items forward, discussed, XXXX. the credit. possible quarter as as year-over-year be exclusions a tax last $XX.X Stuart fiscal XXXX certain and The these child doing we profit to economic in through outlook versus demand well everything granted strong a of tariff primarily that sales year. XX.X% $XX.X And was no

versus was costs year-over-year was quarter tax XXXX as was first mentioned following the debt was in primarily possible of of XXXX. X.X% in million permitted quarter the more the comparable and its ongoing XXXX. increasing the share a million Interest interest As Company's credit $X.X in its and period included of charges in lower versus percentage reflecting refinancing margin in of first Adjusted versus million prior quarter adjusted EBITDA restructuring in levels sales, in was year-over-year the X.X% income million due them The in $X.XX $X.X where a prior prior were provision compared million net of And versus attractive of year. of $X.X X.X% period. earlier, share as percentage expense $X.X lowest prior EBITDA Company net $X.X XXXX, and managing with fiscal period. a a $X.X and due period a and $X.X to this in $X.X reported fiscal costs million in $X.XX for in the quarter of the $X.X benefit in quarter The increasing G&A XXXX XXXX, the Stuart versus freight expenses reflects of million in million XXXX. the $X.X X.X% lower advertising with a sales EBITDA versus rates, other negative years, last price, labor costs. million to add-back in in million The lower and to first General XX.X% or million the or first level are mitigate of quarter fiscal recorded of net a as million versus the Selling decrease Company year loss pressure. per bank The percentage compared tax $X.X and versus sales XXXX was year $X.X this of we period, year. $X.X net expense quarter of million $X.X XXXX. initiatives. XX.X% various administrative the And outstanding per percentage million in was as change year first year of year the facilities. XXXX first in first sales XXXX in Adjusted

balance Turning sheet. to the

million approximately $X.X Infant had of million fiscal X, bank April cash XXXX. at of of beginning of million $XX.X million debt with Summer $X.X XXXX, compared bank As the cash $XX.X and and of of debt

strengthening at turns sheet $XX.X were possible. the to million And end inventory with receivables of X, million at were first million fiscal year. the of the start continue $XX.X I'll compared X.X the the as XXXX. were With operator compared over quarter call at Accounts XXXX. $XX.X million of the Inventory the We compared January $XX.X to sales the were on questions. April the the it up XXXX, million expenses and year. the debt April that, at our focus as reducing of open year. payable XX the of of X, beginning $XX.X turn beginning and DSOs, beginning of turns was to accrued $XX.X fiscal X.X of compared or million at with Trade outstanding, versus XXXX, X, wherever with as as balance XX and Day for

Stuart Noyes

for nice day. forward today Great. much. quarter. Have Thank We look with you a to for you the us all you call. Thank next joining very speaking

Operator

day. has a Thank conference The concluded. have and attending for today’s presentation, you nice now

Summer Infant (SUMR) 19 May 212021 Q1 Earnings call transcript