Increased Net Income
Second quarter net income increased to $1.2 million or $0.11 per diluted share, up from $0.08 in the year-ago quarter, primarily due to reduced marketing and administrative expenses.
Strong Performance in Bibs, Toys, and Disposable Products
Sales in bibs, toys, and disposable products increased by $800,000, partially offsetting declines in other areas.
Successful Cost Management
Marketing and administrative expenses reduced by $740,000 to 19.9% of net sales for the quarter, down from 22.3% in the prior year period.
Solid Cash Flow and Balance Sheet
Cash and cash equivalents increased to $810,000 from $521,000 at the end of fiscal 2025, with $13.7 million available under the revolving line of credit.
Positive International Sales Growth
International sales, particularly for the Sassy and Manhattan Toy brands, showed significant growth with new distributors in Europe.