Mattress Firm Stock Begins Trading on NASDAQ
HOUSTON-Mattress Firm began its new life as a public company on Friday, with its stock opening for trading on the NASDAQ exchange under the symbol MFRM.
The stock opened at $19 a share, a price that finished the day gaining nearly 16 percent in value to close at $22 per share. In a company statement, Mattress Firm said it would use the net proceeds from its initial public offering, which it expects to total $95 million, mostly to repay debt and to pay accrued management fees and interest. The remainder will go toward providing itself with working capital and "other general corporate purposes," and the IPO is expected to finish on Wednesday of this week, the statement said.
In a filing for the IPO with the U.S. Securities and Exchange Commission, Mattress Firm said its net sales for the fiscal years 2008, 2009 and 2010 were $433.3 million, $432.3 million and $494.1 million, respectively. Its bottom line for those three years were a net loss of $124.9 million for 2008, a net loss for 2009 of $4.7 million and net income of $349,000 for 2010.
For the first six months of fiscal 2011, Mattress Firm reported net income of $4.7 million, up from $104,000 in the first six months of fiscal 2010. Net sales for the first six months of this year were $331.8 million, an increase of 41 percent over the same period in the previous year.