Span-America Provides Weak Outlook For Q4

(RTTNews) - Span-America Medical Systems Inc. (SPAN) said Tuesday it expects consumer sales to be lower in fiscal 2014 as a key retail customer has selected another supplier.

The company said its sales to the aforesaid customer are expected to decrease by about $13.3 million in 2014 compared with the prior year, which includes the previously announced loss of the November seasonal promotion.

Span-America said the sales decline is expected to reduce fiscal 2014 earnings per share by about $0.10 to $0.15 per share compared with the prior year, after factoring in the expected benefits from planned sales growth in other parts of Span-America's business in fiscal 2014.

"We are disappointed to lose this account for the coming year, but we expect that continued growth from our core medical business and higher sales to other retail accounts will partially offset the loss," stated Jim Ferguson, chief executive officer of Span-America.

"We expect to continue supplying consumer bedding products to this customer at normal levels through January 2014," said Ferguson.

Ferguson said the company is optimistic about potential growth opportunities for additional retail accounts with its marketing and distribution partner, Hollander Home Fashions.

Span-America expects an orderly wind down of business with the large account and does not expect any material exit costs associated with the lost business.

The company plans to release its financial results for the fourth quarter on November 6.

Greenville, South Carolina-based Span-America makes therapeutic support surfaces and related products.