Kid Brands Q3 Loss And Revenue Fall Short Of Estimates

(RTTNews) - Kid Brands, Inc. (KID), a maker of infant and juvenile consumer products, Tuesday reported a narrower third quarter loss, despite a fall in revenue, chiefly as the company paid significantly less taxes during the current period. Further, both loss and revenue missed analysts' estimates.

Loss of the company for the third quarter was $9.5 million, or $0.43 per share, compared with the loss of $49.6 million, or $2.27 per share, a year ago. The company recorded a income tax provision of $49.2 million in the third quarter 2012. This compared with only $191,000 worth of taxes paid these year.

Excluding certain items, the company reported loss of $2.05 million, or $0.09 per share, for the quarter, compared with a profit of $0.7 million, or $0.03 per share, a year ago. Two analysts polled by Thomson Reuters estimated the company's loss to be $0.05 for the quarter. Analysts' estimates typically exclude one-time items.

Third quarter sales of the company declined to $46.7 million from $60.9 million a year ago. Analysts had estimated revenue to be $54.82 million for the period. Raphael Benaroya, CEO, said, "In line with trends in the first half of the year, and as anticipated, sales in the third quarter declined from the same period last year, primarily due to sales declines at certain large customers in our LaJobi and Soft Home (Kids Line and CoCaLo) businesses, reflecting new product acceptance and execution issues."

The company also stated that sales were affected by the discontinuation of product lines and brands, closeouts of a high level of inventory in the third quarter and the closure of UK operation last year.

Monday, the stock closed at $1.21 on the NYSE.