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Heelys net income grows in Q2 financial results

13 Aug '07

3 min read

Heelys Inc reported the following record financial results for the second quarter ended June 30, 2007.

Mike Staffaroni, President and Chief Executive Officer of Heelys Inc commented, “We experienced another strong quarter of domestic sales growth driven by demand for our spring / summer line combined with early deliveries of fall product."

"We also continued to witness growing demand in our international markets, namely Europe. Importantly, we were able to leverage our operating platform and translate a top-line increase of 140% into a 205% gain in net income while at the same time heightening our brand awareness through additional investments in marketing and advertising.”

For the second quarter ended June 30, 2007, gross profit was $26.3 million, or 35.4% of net sales, compared to $10.7 million, or 34.6% of net sales for the second quarter ended June 30, 2006.

Total selling, general and administrative expenses for the second quarter of 2007 were $7.2 million, or 9.8% of net sales, compared to $4.2 million, or 13.5% of net sales in the second quarter of last year.

Operating income was $19.1 million, or 25.7% of net sales for the second quarter of 2007 versus operating income of $6.5 million, or 21.1% of net sales in the corresponding period a year ago.

For the third quarter of fiscal 2007, the Company currently expects net sales to range from $55 million to $58 million and diluted earnings per share to range from $0.28 and $0.30.

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