* Inventory Down $2 Million
* Net Cash Up $4.4 Million
LINCOLN, R.I., Oct. 21, 2009 (GLOBE NEWSWIRE) -- A.T. Cross Company (Nasdaq:ATX) today announced financial results for the third quarter ended October 3, 2009.
Net income for the third quarter was $0.9 million or $0.06 per basic and diluted share. Net income for the nine month period ending October 3, 2009 was $0.6 million or $0.04 per basic and diluted share. Included in the 2009 nine month results were $0.05 per share of restructuring charges related to the consolidation of both the Company's manufacturing operations and the reduction of its European support structure. In the third quarter of 2008, the Company earned $0.12 per basic share, and for the nine month period of 2008 the Company earned $0.28 per basic share.
Consolidated net sales for the third quarter declined 12.4% to $34.1 million. Net sales for the nine month period of $102.3 million declined 13.6% from the prior year. For the nine month period, Cross Optical Group sales were up 5% while Cross Accessory Division sales were down 23%.
Operating expenses were 10% lower in the third quarter and 9% lower in the first nine months of 2009 compared to 2008, excluding restructuring.
David G. Whalen, President and Chief Executive Officer of A.T. Cross said, "While our three brands each delivered better revenue trends than they did in the first half of the year, the business environment during the third quarter continued to be difficult. Our response was to invest in our brands, focus on cost reduction and tightly manage our assets. Importantly, we reduced inventory by over $2 million from a year ago and increased our net cash position by $4.4 million. As a result, we believe that we are well positioned to take advantage of market opportunities and grow revenue and profit as the economy turns around."
Guidance
The Company expects 2009 earnings per share to be between $0.11 and $0.15. This range is net of $0.08 per share of restructuring charges.
Conference Call
The Company's management will host a conference call today, October 21, 2009 at 4:30 PM Eastern Time. Parties interested in participating in the conference call may dial-in at (888) 539-3612, while international callers may dial-in at (719) 457-2708. A live webcast of the call will be accessible on the Company's website at www.cross.com. The webcast will be archived for 30 days on this site, while a telephone replay of the call will be available beginning at 7:30 PM Eastern Time on October 21, 2009 through October 27, 2009 at (888) 203-1112 or (719) 457-0820 for international callers, and entering the pass code of 2644378.
About A.T. Cross Company
Building on the rich tradition of its award-winning writing instruments and reputation for innovation and craftsmanship, A.T. Cross Company is a designer and marketer of branded personal and business accessories. Cross provides a range of distinctive products that appeal to a growing market of consumers seeking to enhance their image and facilitate their lifestyle. A.T. Cross products, including award-winning quality writing instruments, timepieces, business accessories and Costa Del Mar and Native Eyewear sunglasses, are distributed in retail and corporate gift channels worldwide. For more information, visit the A.T. Cross website at www.cross.com, the Costa Del Mar website at www.costadelmar.com and the Native Eyewear website at www.nativeyewear.com.
The A.T. Cross Company logo is available at: http://www.globenewswire.com/newsroom/prs/?pkgid=5932
Statements contained in this release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (including but not limited to statements relating to the expected impact of the Company's strategies to invest in its brands, reduce costs and tightly manage assets). In addition, words such as "believes," "anticipates," "expects," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to the depth and severity of the economic crisis and consumers' willingness to purchase discretionary items, and are not guarantees since there are inherent difficulties in predicting future results. Actual results could differ materially from those expressed or implied in the forward-looking statements. The information contained in this document is as of October 21, 2009. The Company assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments. Additional discussion of factors that could cause actual results to differ materially from management's expectations is contained in the Company's filings under the Securities Exchange Act of 1934.
A. T. CROSS COMPANY
CONSOLIDATED SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
---------------------------------------------------------------------
Three Months Ended Nine Months Ended
-------------------------- --------------------------
October 3, September 27, October 3, September 27,
2009 2008 2009 2008
Net sales $ 34,129 $ 38,974 $ 102,275 $ 118,439
Cost of goods
sold 16,184 16,741 47,172 51,862
------------ ------------ ------------ ------------
Gross Profit 17,945 22,233 55,103 66,577
Selling,
general and
administrative
expenses 15,090 17,161 47,553 52,559
Service and
distribution
costs 1,664 1,783 5,003 5,301
Research and
development
expenses 745 605 1,940 1,817
Restructuring
charges 252 219 1,049 219
------------ ------------ ------------ ------------
Operating
Income (Loss) 194 2,465 (442) 6,681
Interest and
other income
(expense) 408 (243) (366) (612)
------------ ------------ ------------ ------------
Income (Loss)
Before Income
Taxes 602 2,222 (808) 6,069
Income tax
(benefit)
provision (324) 462 (1,420) 1,834
------------ ------------ ------------ ------------
Net Income $ 926 $ 1,760 $ 612 $ 4,235
============ ============ ============ ============
Net Income per
Share:
Basic $ 0.06 $ 0.12 $ 0.04 $ 0.28
============ ============ ============ ============
Diluted $ 0.06 $ 0.11 $ 0.04 $ 0.27
============ ============ ============ ============
Weighted
Average Shares
Outstanding:
Basic 14,578 14,999 14,823 15,023
============ ============ ============ ============
Diluted 14,646 15,335 14,825 15,411
============ ============ ============ ============
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Three Months Ended Nine Months Ended
-------------------------- --------------------------
October 3, September 27, October 3, September 27,
2009 2008 2009 2008
Segment Data:
Cross
Accessory
Division
Net Sales $ 21,246 $ 26,633 $ 60,773 $ 79,057
Operating
(Loss) Income (1,418) 621 (6,350) (685)
Segment Data:
Cross Optical
Group
Net Sales $ 12,883 $ 12,341 $ 41,502 $ 39,382
Operating
Income 1,612 1,844 5,908 7,366
A. T. CROSS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
October 3, 2009 September 27, 2008
---------------- ------------------
Assets
Cash and cash equivalents $ 10,372 $ 13,963
Short-term investments 6,009 0
Accounts receivable 24,930 28,303
Inventories 30,232 32,279
Deferred income taxes 4,339 5,302
Other current assets 6,805 8,745
---------------- ------------------
Total Current Assets 82,687 88,592
Property, plant and equipment,
net 15,267 16,946
Goodwill 15,279 17,230
Intangibles and other assets 12,544 14,325
Deferred income taxes 11,439 7,893
---------------- ------------------
Total Assets $ 137,216 $ 144,986
================ ==================
Liabilities and Shareholders'
Equity
Accounts payable and other
current liabilities $ 18,611 $ 21,089
Retirement plan obligations 2,504 2,431
---------------- ------------------
Total Current Liabilities 21,115 23,520
Long-term debt 19,721 21,721
Retirement plan obligations 14,751 3,977
Deferred gain on sale of real
estate 3,389 3,911
Other long-term liabilities 1,863 3,112
Accrued warranty costs 1,298 1,397
Shareholders' equity 75,079 87,348
---------------- ------------------
Total Liabilities and
Shareholders' Equity $ 137,216 $ 144,986
================ ==================