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EX - 99.1 2 exh_991.htm PRESS RELEASE EXHIBIT 99.1 SUMR Brands Reports 2021 Second Quarter Results Supply Chain Challenges Remain ; Top Line Outlook Improving ; Strong Demand for Products Continues WOONSOCKET , R.I. , Aug. 16 , 2021 ( GLOBE NEWSWIRE ) SUMR Brands ( " SUMR Brands " or the " Company " ) ( NASDAQ : SUMR ) , a global leader in premium infant and juvenile products , today announced financial results for the fiscal second quarter ended July 3 , 2021 . Recent Highlights • Net sales were $ 30.6 million in the second quarter versus $ 38.2 million in the prior - year period , with lower revenue reflecting global supply chain constraints and logistical issues that resulted in missed shipment opportunities even as customer demand remained strong • Aggregate SG & A declined to $ 9.2 million in the quarter compared to $ 10.5 million in last year's comparable period , principally reflecting the decline in sales combined with lower coop advertising costs associated with a shift to more direct import sales • SUMR Brands posted net income for the second quarter of $ 1.4 million , or $ 0.62 per share , versus net income of $ 1.3 million , or $ 0.61 per share , in the prior - year period ; the 2021 results reflect lower SG & A and a decline in interest expense as well as a $ 2.0 million benefit from the forgiveness of a US Paycheck Protection Program ( “ PPP ” ) loan • Second quarter Adjusted EBITDA was $ 3.5 million versus $ 2.1 million in the fiscal 2021 first quarter and $ 4.3 million in the fiscal 2020 second quarter , and the Company generated $ 2.2 million of operating cash “ The second quarter , like the first , was once again plagued by industrywide container bottlenecks , general shipping constraints , and supply chain inefficiencies , impacting our ability to meet strong consumer demand , ” said Stuart Noyes , CEO . “ While we now have a solid array of products , many with enviable brand loyalty , the current environment remains challenging in terms of both top line results and underlying profitability . If it weren't for such supply chain issues , SUMR Brands would likely have shown revenue growth across all core product categories along with improved bottom line performance . In addition , even with these challenges , we were able to post Adjusted EBITDA of $ 3.5 million $ 11.3 % of sales - and make headway towards launching a natural extension into pet categories in areas where we dominate , such as gates , playards , and certain other products . " We are cautiously optimistic about improving fundamentals in the third quarter , albeit in small increments ; inventory availability is expected to get better given current order trends . This makes us more confident about supporting higher sales going forward , although shipping costs will likely continue negatively impacting gross margins for the foreseeable future . We are doing everything possible to mitigate these circumstances , accelerate product throughput , and get our goods in the hands of consumers . " Second Quarter Results Net sales for the three months ended July 3 , 2021 were $ 30.6 million compared with $ 38.2 million for the three months ended June 27 , 2020. The Company's lower revenue reflects continued logistical challenges across the global supply chain , resulting in missed shipment opportunities even as demand remained strong . Sales rose double - digits across certain categories - including soothers , strollers , bath , and boosters