A.T. Cross Company Reports Fourth Quarter and Full Year 2009 Financial Results

• Full Year 2009 EPS of $0.13 Meets Previously Announced Guidance
• 2009 Operating Cash Flow of $11.5 Million
• 10% of Outstanding Shares Repurchased in Fourth Quarter
• 2010 EPS Guidance of Between $0.33 and $0.35 per share

LINCOLN, R.I., Feb. 24, 2010 (GLOBE NEWSWIRE) -- A.T. Cross Company (Nasdaq:ATX) today announced financial results for the fourth quarter and full year ended January 2, 2010. 

David G. Whalen, President and Chief Executive Officer of A.T. Cross, said, "2009 was a difficult but productive year. We battled the recession, generated profit and cash, lowered our cost base, repurchased 10% of the Company, entered an important licensing arrangement with Franklin Covey and positioned our brands - Cross, Costa and Native to grow revenue and profit as the global economy recovers. We are in a good position and look forward to achieving our business objectives in 2010."

Fourth Quarter 2009 Results

Consolidated sales for the fourth quarter of 2009 declined by 5.3% to $39.5 million compared to $41.7 million in the fourth quarter of 2008.  The Cross Accessory Division (CAD) recorded revenue of $30.1 million, a decline of 7.0%, compared to last year.  The Cross Optical segment reported a fourth quarter sales increase of 0.7% to $9.4 million, compared to last year. The Optical Group's revenue growth was driven by continued growth of the Costa brand.

Gross margin in the fourth quarter was 54.7% compared to 54.5% in last year's fourth quarter.

Operating expenses, excluding $0.8 million and $6.3 million of restructuring and impairment charges in 2009 and 2008, respectively, were $19.1 million, or 48.3% of sales in the 2009 fourth quarter, versus $19.6 million, or 47.0% of sales for the same period a year ago.

Operating income in the fourth quarter of 2009 was $1.7 million, as compared to an operating loss of $3.1 million in the fourth quarter of last year. In last year's fourth quarter, the Company recorded a non-cash goodwill impairment charge of $3.9 million.

Net income for the fourth quarter was $1.2 million, or $0.09 per share, compared to a net loss of $3.7 million, or $0.25 per share, last year.

Full Year 2009 Results

Consolidated sales in 2009 decreased 11.5% to $141.8 million compared to $160.1 million in 2008. Cross Accessory Division revenue was $90.9 million, down 18.4% from prior year. The Cross Optical segment reported a sales increase of 4.5% to $50.9 million. 

Gross margin for 2009 was 54.1% compared to 55.8% in 2008 due to unfavorable foreign exchange rates and shifts in product and channel mix.

Operating expenses, excluding restructuring and impairment charges, were $73.6 million, or 51.9% of sales, in 2009 compared to $79.3 million, or 49.5% of sales, in 2008.

For 2009, net income was $1.9 million or $0.13 per share, compared to $0.5 million or $0.03 per share in 2008. Included in 2009 and 2008 results are restructuring and impairment charges of $1.9 million and $6.5 million, respectively.

Guidance

As previously announced, the Company has provided 2010 guidance of earnings between $0.33 and $0.35 per share.

Conference Call

The Company's management will host a conference call today, February 24, 2010 at 4:30 PM Eastern Time. Parties interested in participating in the conference call may dial-in at (877) 303-2912, while international callers may dial-in at (408) 427-3877. 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 February 24, 2010 through March 3, 2010 by dialing (800) 642-1687 or (706) 645-9291 for international callers, and entering the pass code of 57282889.

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. A.T. 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 website at www.costadelmar.com  and the Native 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 a lowered cost base and the expected growth of the Company as the economy recovers). 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 continued effect 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 February 24, 2010. 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.