GREENVILLE, S.C.--(BUSINESS WIRE)--Span-America Medical Systems, Inc. (NASDAQ: SPAN) announced today that it has signed an exclusive agreement for the distribution of most of its line of medical beds and therapeutic support surfaces in Australia. The three-year agreement was signed with Alphacare, a leading supplier of healthcare and rehabilitation equipment in Australia. Alphacare’s initial order of approximately USD $270,000 has already been completed.
“We are very excited about expanding sales of our medical beds and therapeutic support surfaces to Australia,” commented Jim Ferguson, president and chief executive officer of Span-America. “The exclusive agreement with Alphacare will provide us with a strong national dealer network in Australia. We believe that recent changes in Australia will offer an increase in demand as customers in the aged-care sector are now free to select the products that best suit their needs.”
“The principals with Alphacare have over 30 years of experience in the healthcare equipment supply business. Our team will be working with them to maximize our joint sales opportunities including two upcoming national conferences in Australia: the Aged Care Procurement Show in Melbourne in May 2016, and the LASA National Congress in Gold Coast in October 2016,” concluded Ferguson.
The initial term of the agreement with Alphacare is for three years, and it can be extended annually after the initial term according to the terms of the agreement. The period of exclusivity is dependent on certain minimum annual purchase volumes as specified in the agreement.
Forward-Looking Statements
We have made forward-looking statements in this release regarding, among other things, our expectations for future sales performance. We wish to caution the reader that these statements are only predictions. These forward-looking statements may be generally identified by the use of forward-looking words and phrases such as “will,” “intends,” “may,” “believes,” “anticipates,” “should” and “expects,” and are based on the company’s current expectations or beliefs concerning future events that involve risks and uncertainties. Actual events or results may differ materially as a result of risks and uncertainties facing the company, including: (a) the inability to achieve anticipated sales growth in the medical and custom products segments, (b) the possibility of a loss of a key customer or distributor for our products, (c) risks related to international operations and foreign currency exchange associated with our Canadian subsidiary, (d) the possibility of having material uncollectible receivables from one or more key customers or distributors, (e) the potential for volatile pricing conditions in the market for polyurethane foam, (f) raw material cost increases, (g) the possibility that some or all of our medical products could be determined to be subject to the 2.3% medical device excise tax imposed by the Affordable Care Act, (h) the potential for lost sales due to competition from low-cost foreign imports, (i) changes in relationships with large customers or key suppliers, (j) uncertainty about whether or not we will continue to be awarded one-time seasonal promotions with major retailers, which can have a large impact on annual revenues and earnings, (k) the impact of competitive products and pricing, (l) government reimbursement changes in the medical market, (m) FDA and Health Canada regulation of medical device manufacturing and (n) other risks referenced from time to time in our Securities and Exchange Commission filings. We disclaim any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. We are not responsible for changes made to this document by wire services or Internet services.
About Span-America Medical Systems, Inc.
Span-America manufactures and markets a comprehensive selection of pressure management products for the medical market, including Geo-Matt®, PressureGuard®, Geo-Mattress®, Custom Care®, Span+Aids®, Isch-Dish®, Risk Manager® and Selan® products. We also supply custom foam and packaging products to the consumer and industrial markets. Through our wholly-owned subsidiary Span Medical Products Canada Inc., we manufacture and market the M.C. Healthcare Products brands of Encore®, Advantage and Rexx beds as well as related in-room furnishing products for the long-term care market. Span-America’s stock is traded on The NASDAQ Global Market under the symbol “SPAN.” For more information, visit www.spanamerica.com and www.mchealthcare.com.
About Alphacare
Alphacare is Australia’s leading supplier of healthcare and rehabilitation equipment. Founded in 1997, the Company currently serves the long term care and acute care markets. They have a strong national dealer network, which provides customers with high-quality, personalized customer service and 24-hour product delivery, installation and maintenance for most products anywhere in Australia. For more information, visit www.alphacare.com.au.
