Mr. Ferguson: Span-America Medical Systems has been in business for about 25 years. We are located in Greenville, South Carolina. We have a manufacturing facility here and one in California. We do about 25 million in annual revenue. Our company is basically involved in our core medical business, and also what we call our custom products business. Our medical business manufacturers and markets a comprehensive selection of pressure management products, which includes our brands of GEO-Matt', PressureGuard', GEO-Mattress', Span-Aids' and Isch-Dish' products. In the custom products business, we sell products into mass merchandisers, retailers and also into companies that manufacture or need protective packaging for their OEM products. So in terms of our overall business, that is what it looks like today. As far as my involvement here, I have been with Span almost 11 years. I started out as the materials manager. I moved into our contract packaging business unit as Director, and then, on into Vice President of Operations. Finally I became President and Chief Executive Officer about four years ago. As far as our business is concerned today, we feel that we are in a very good position on all fronts. The medical business has taken a hit over the last 12 to 18 months, but we are finally climbing our way out of it. A lot of that had to do with the Balanced Budget Amendment of 1997 and the things that have happened with the Medicare system. But overall our business is doing very well right now. We have had a very good year during 2000, and we look forward to fiscal year 2001 to be even better.
TWST: What is the competitive landscape today?
Mr. Ferguson: It is very competitive, in particular, on the medical side
of the business and the markets that we deal in. We are basically in all
market segments of medical or health care, and by that I mean, we are in
acute care, long-term care, and home care. We have formidable
competitors in all of those marketplaces and it is getting more and more
competitive as time goes on, particularly because of what is happening
with the Medicare situation and the Balanced Budget Amendment. If I can
just digress for a minute. The Balanced Budget Amendment called for
taking money out of the Medicare system, particularly in the long-term
care environment, which is one of our fastest growing segments. You have
about 7 out of the top 10 long-term care chains in this country in
Chapter 11 bankruptcy. So it has been a very tough 12 to 18 months, but
we have made it through that and things seem to be going fairly well
right now.
Tickers included in this excerpt: SPAN
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.