Summer Infant, Inc. Reports First Quarter 2012 Results

WOONSOCKET, RI, May 14 (Marketwire) --
Summer Infant, Inc. ("Summer Infant" or the "Company") (NASDAQ: SUMR), a
leading developer and distributor of juvenile health, safety, and
wellness products, today announced financial results for the first
quarter ended March 31, 2012.

First Quarter 2012 Results

Net revenues in the first quarter of 2012 increased 7.8% to $63.0 million
from $58.5 million in the first quarter of 2011. Revenue growth was
primarily driven by the addition of Born Free which was acquired on March
24, 2011.

Gross profit increased 7.1% to $21.1 million in the first quarter of 2012
from $19.7 million in the first quarter of 2011. Gross margin decreased
slightly in the first quarter of 2012 to 33.5%, from a gross margin of
33.7% in the first quarter of 2011.

Selling, general and administrative ("SG&A") expenses were $16.6 million
in the first quarter of 2012, compared to $16.1 million in the first
quarter of 2011. As a percent of revenues, SG&A was 26.4% in the first
quarter of 2012 compared to 27.5% a year ago which reflects a 110 basis
point improvement.

Adjusted EBITDA (defined herein as earnings before interest, taxes,
depreciation and amortization and non-cash stock-based compensation, and
for the first quarter of 2011 only, deal-related fees) was $4.7 million
in the first quarter of 2012 compared to $4.4 million on a comparable
basis in the first quarter of 2011 which reflects an increase of 6.7%.
Adjusted EBITDA margin for the first quarter 2012 was 7.5% compared to
7.6% for the first quarter of 2011.

The Company reported net income of $1.3 million, or $0.07 per diluted
share, in the first quarter of 2012, compared to $1.2 million, or $0.07
per diluted share, in the first quarter of 2011. The company recorded a
tax expense of $0.5 million in the first quarter of 2012 versus $0.4
million in the first quarter of 2011. The company's effective tax rate
has increased in 2012 to 29.0% from approximately 24.0% in 2011.

Jason Macari, Chairman and Chief Executive Officer of Summer Infant,
commented, "We are pleased with the improved product placement we
received at the start of this year. Our increased retail presence is
helping to broaden awareness of our brands and product portfolio while at
the same time further reducing the concentration of our distribution. The
initial sell-through of our core product lines and categories was
encouraging. However, as the first quarter progressed, the retail
environment became more challenging which led to a greater degree of
promotional activity than we expected."

Balance Sheet

As of March 31, 2012, the Company had approximately $1.7 million of cash
and $69.3 million of debt for a net debt balance of $67.6 million,
compared to $62.0 million as of December 31, 2011. The increase in debt
versus year-end reflects borrowings for working capital purposes.

Loan Agreement

The Company also announced that it recently reached an amended loan
agreement with its lenders. The amendment reset certain financial
covenants and extended the maturity date to December 31, 2013 from June
30, 2013. This Amendment provides the Company the necessary access to
working capital to support its growth plans and extends the term six
months thereby allowing the Company added time to reach a longer term
financing agreement with its lenders.

Mr. Macari concluded, "We are committed to leveraging our strengths in
safety and innovation in order to establish leadership positions in each
of our product categories. While the second quarter will remain
challenging due to a heightened promotional environment, we are confident
that we have a sound plan in place to achieve our goals. Over the next
few months we are introducing our revolutionary PEEK(TM) Monitoring
System and re-launching our award winning PRODIGY(TM) Car Seat and Travel
System. Along with other new product initiatives and enhanced marketing
programs, we are optimistic that we can drive improved top-line
performance beginning in the third quarter. We also have initiatives in
place to expand gross margins in the second half of 2012 above first
quarter levels which include price increases and product cost
improvements."

Conference Call Information

Summer Infant, Inc. will host a conference call today, Monday, May 14,
2012 at 4:30 p.m. Eastern Time, to discuss financial results for its
first quarter ended March 31, 2012. This call is being webcast and can be
accessed by visiting the Investor section of our website at
www.summerinfant.com. Investors may also listen to the call via telephone
by dialing (719) 325-2127 (confirmation code: 5261467). In addition, a
telephone replay will be available by dialing (858) 384-5517
(confirmation code: 5261467) through May 28, 2012, at 11:59 p.m. Eastern
Time.

About Summer Infant, Inc.

Based in Woonsocket, Rhode Island, the Company is a designer, marketer
and distributor of branded durable juvenile health, safety and wellness
products (for ages 0-3 years), which are sold principally to large U.S.
retailers. The Company currently sells proprietary products in a number
of different categories, including nursery audio/video monitors, safety
gates, durable bath products, bed rails, nursery products, booster and
potty seats, swaddling blankets, bouncers, travel accessories,
highchairs, swings, nursery furniture, infant feeding products, and car
seats.

Use of Non-GAAP Financial Information

This release includes presentations of adjusted EBITDA, which is defined
herein as income before interest and taxes plus depreciation,
amortization, and non-cash stock-based compensation expenses, and, for
certain periods, deal-related fees. The Company believes that the
presentation of adjusted EBITDA provides useful information to investors
as it indicates more clearly the ability of the Company's assets to
generate cash sufficient to pay interest on its indebtedness, meet
capital expenditure and working capital requirements and otherwise meet
its obligations as they become due. EBITDA is commonly used as a measure
of leverage capacity, debt service ability and liquidity. EBITDA is not
considered a measure of financial performance under U.S. generally
accepted accounting principles (GAAP), and the items excluded from EBITDA
are significant components in understanding and assessing our financial
performance. EBITDA should not be considered in isolation or as an
alternative to such GAAP measures as net income, cash flows provided by
or used in operating, investing or financing activities or other
financial statement data presented in our consolidated financial
statements as an indicator of financial performance or liquidity. The
Company provides reconciliations of adjusted EBITDA and any other
non-GAAP financial measures in its press releases of historical
performance. Since adjusted EBITDA is not a measure determined in
accordance with GAAP and is susceptible to varying calculations, adjusted
EBITDA, as presented, may not be comparable to other similarly titled
measures of other companies.

Forward-Looking Statements

Certain statements in this release that are not historical fact may be
deemed "forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934, and the Company intends that such forward-looking statements be
subject to the safe harbor created thereby. These statements are
accompanied by words such as "anticipate," "expect," "project," "will,"
"believes," "estimate" and similar expressions. These include statements
regarding our outlook for 2012, expected market demand for our products,
our ability to successfully launch new products, and expected cost
pressures. The Company cautions that these statements are qualified by
important factors that could cause actual results to differ materially
from those reflected by such forward-looking statements. Such factors
include the concentration of the Company's business with retail
customers; the ability of the Company to compete in its industry; the
Company's dependence on key personnel; the Company's reliance on foreign
suppliers; the Company's ability to develop and market new products, the
Company's ability to integrate strategic acquisitions; and other risks as
detailed in the Company's Annual Report on Form 10-K for the fiscal year
ended December 31, 2011, and subsequent filings with the Securities and
Exchange Commission. The Company assumes no obligation to update the
information contained in this presentation.

Summer Infant, Inc.
Consolidated Statements of Operations (unaudited)
(amounts in thousands of US dollars, except share and per share data)

Three Months Ended March 31,
2012 2011
----------------- -----------------

Net revenues $ 62,999 $ 58,456
Cost of goods sold 41,894 38,780
----------------- -----------------
Gross profit 21,105 19,676
Selling, general, and administrative
expenses 16,648 16,067
Depreciation and amortization 1,875 1,526
----------------- -----------------
Income before interest $ 2,582 2,083
Interest expense 720 552
----------------- -----------------
Income before taxes $ 1,862 $ 1,531
Provision for income taxes 540 368
----------------- -----------------
Net income $ 1,322 $ 1,163
================= =================

Earnings per diluted share $ 0.07 $ 0.07

Shares used in fully diluted EPS 17,976,634 16,780,223

Reconciliation of Non-GAAP EBITDA

GAAP Income before interest and taxes $ 2,582 $ 2,083
Plus: depreciation and amortization 1,875 1,526
Plus: non-cash stock based stock
compensation expense 259 177
Plus: Born Free deal fees ---- 635
----------------- -----------------
EBITDA $ 4,716 $ 4,421
----------------- -----------------

Summer Infant, Inc.
Consolidated Balance Sheet
(amounts in thousands of US dollars)

March 31, 2012 December 31, 2011
(unaudited)
Cash and cash equivalents $ 1,706 $ 1,215
Trade receivables, net 57,769 47,670
Inventory, net 47,851 50,014
Property and equipment, net 16,969 17,682
Goodwill and other intangibles, net 91,613 91,953
Other assets 5,303 4,381
----------------- -----------------
Total assets $ 221,211 $ 212,915
================= =================

Current portion of long-term debt $ 707 $ 736
Accounts payable, accrued expenses and
other liabilities 55,106 55,798
Long term debt, less current portion 68,613 62,479
----------------- -----------------
Total liabilities 124,426 119,013

Total stockholders' equity 96,785 93,902
----------------- -----------------
Total liabilities and stockholders'
equity $ 221,211 $ 212,915
================= =================

Contact:

Ed Schwartz
Chief Financial Officer
Summer Infant, Inc.
(401) 671-6922

or

Brendon Frey
ICR
(203) 682-8200
brendon.frey@icrinc.com

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