Select Comfort Corporation announced results for the fiscal fourth quarter ended Dec. 30, 2006. Fourth quarter earnings totaled $0.20 per diluted share, a decrease of 29 percent compared to $0.28 per diluted share in the fourth quarter of 2005.
Net sales increased 6 percent to $198.0 million, and net income decreased 32 percent to $10.8 million, compared to net sales of $187.5 million and net income of $15.8 million in the fourth quarter of 2005.
Net income in the fourth quarter of 2006 included a $4.2 million asset impairment charge, $0.05 per diluted share after-tax, associated with the company's decision to adopt a fully integrated SAP Enterprise Resource Planning (ERP) system that is expected to launch in early 2008.
Earnings for the year totaled $0.85 per diluted share, an increase of 12 percent compared to $0.76 per diluted share in 2005. Net sales increased 17 percent to $806.0 million, compared to $689.5 million in 2005.
If full year 2005 results had included stock option expense, earnings would have been $0.69 per diluted share in the prior year, and 2006 earnings of $0.85 per diluted share would represent earnings growth of 23 percent. A reconciliation of this 2005 pro-forma measure accompanies this press release.
"Despite a challenging fourth quarter, we had a solid year with revenue growth of 17 percent and earnings growth of 23 percent on a like-for-like basis, adjusting 2005 for accounting rule changes related to stock option expense, while absorbing $6.0 million in asset impairment charges in 2006," said Bill McLaughlin, Select Comfort chairman and chief executive officer.
"This year's results were in-line with our long-term targets and marked our fifth consecutive year of double-digit revenue and earnings growth."
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Select Comfort Corporation, USA
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