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EX - 99.1 2 exh_991.htm PRESS RELEASE EXHIBIT 99.1 SUMR Brands Reports 2021 Third Quarter Results Revenue Growth Both Sequentially & Year - over - Year ; EPS $ 0.12 Management of Supply Chain Issues Continues WOONSOCKET , R.I. , Nov. 10 , 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 third quarter ended October 2 , 2021 . Recent Highlights • Net sales were $ 41.6 million in the third quarter versus $ 40.7 million in the prior - year period , with higher revenue driven by strong consumer demand across the Company's core products , even in the face of ongoing supply chain constraints and lingering pandemic - related issues ; SUMR was successful in shifting certain domestic sales to direct - import , avoiding some of the logistical bottlenecks the Company otherwise experienced • SUMR Brands posted net income for the third quarter of $ 0.3 million , or $ 0.12 per share , versus net income of $ 2.2 million , or $ 1.03 per share , in the prior - year period ; the decline was primarily driven by lower gross profit , a consequence of elevated transportation expense , increased commodity costs for certain products , and the expiration of various tariff exclusions in August , 2020 • 2020 third quarter benefited from higher gross margins and a tax provision adjustment related to changes in the interest deduction threshold under the U.S. Cares Act , worth approximately $ 0.17 of favorable impact • Adjusted EBITDA was $ 2.4 million in the 2021 third quarter versus $ 4.7 million in the prior - year period Reflecting recent success in managing the supply chain , debt rose to $ 36.6 million as of October 2 , 2021 to fund inventory necessary to meet product demand , with an associated increase in Company receivables " As indicated earlier in the year , we are becoming better equipped at managing through a tough operating environment caused first by the pandemic and , now , ongoing supply chain constraints , " said Stuart Noyes , CEO . " The good news is that we were able to get additional product to market this period – resulting in revenue rising both sequentially , from the second quarter , as well as year - over - year . While this meant taking on debt to fund working capital requirements , we procured additional inventory and , in doing so , got it into the hands of consumers for many of our best - selling categories . Our shift to direct - import sales has also continued to be a success , but it has not completely offset the impact from higher freight and raw material costs resulting from inflationary forces , dampening gross margins . " As with last quarter , were it not for current logistical bottlenecks , we would have sold a great deal more product . We remain confident in our ability to manage through these constraints but anticipate continued supply chain challenges in the fourth quarter . Obviously , our hope is that global throughput increases in the weeks to come but , without such clarity , we will continue managing working capital aggressively , building inventory where necessary , and increasing prices as appropriate – all while driving further direct- import sales . We're seeing improvement in certain areas of the supply chain , but it is difficult to know what is temporary and what is not ; in such an environment , while cautiously optimistic , we will remain vigilant in operating SUMR Brands as efficiently as possible . " Third Quarter Results Net sales for the three months ended October 2. 2021 were $ 41.6 million compared with $ 40.7 million for