LINCOLN, R.I., April 23, 2009 (GLOBE NEWSWIRE) -- A.T. Cross Company (Nasdaq:ATX) today announced financial results for the first quarter ended April 4, 2009.
Consolidated net sales for the first quarter of 2009 declined 14.9% to $30.9 million compared to $36.3 million in the first quarter of 2008. The Cross Accessory Division (CAD) recorded revenue of $18.8 million, a decline of 29.3% compared to last year. The Cross Optical segment reported sales of $12.1 million, up 24.1% from a year ago. This increase is largely due to Native Eyewear, acquired late in the first quarter 2008.
Gross margin in the first quarter of 2009 was 54.3% versus 55.8% last year. Operating expenses were $18.8 million, or 61.1% of net sales, compared to $19.2 million or 53.0% of net sales for the same period a year ago.
Net loss for the first quarter was $0.9 million or $0.06 per basic and diluted share, compared to net income of $0.6 million or $0.04 per basic and diluted share last year.
David G. Whalen, President and Chief Executive Officer of A.T. Cross said, "The business climate over the last two quarters has been extremely difficult and, like many other companies, A.T. Cross was not immune to the negative effects of the downturn. In response to what we believe are temporary trends, we took steps to reduce spending and manage our cash and inventory. More importantly, we remained committed to our core strategies of growing the Cross Optical segment, reshaping our approach to the writing instrument and accessory market and optimizing our writing instrument cost structure. These strategies were building momentum before the economic downturn and, given continued support, will result in a stronger company once the economy improves."
Guidance
Given this economic climate the Company will not provide specific 2009 guidance at this time. The time for that will most likely be at the end of July when second quarter results are announced. At that point, the peak sunglass season will have been completed and a clearer view of how the holiday season will shape up for the Cross brand will be available.
Share Buyback
In the 2009 first quarter, the Company repurchased 179,000 shares of its Class A common stock at an average price of $2.35 per share. In the last six months, the Company repurchased 467,000 shares at an average price of $3.01 per share.
Conference Call
The Company's management will host a conference call today, April 23, 2009 at 4:30 PM Eastern Time. Parties interested in participating in the conference call may dial-in at (888) 726-2429, while international callers may dial-in at (913) 312-0657. 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 April 23, 2009 through May 1, 2009 at (888) 203-1112 or (719) 457-0820 for international callers, and entering the pass code of 9137498.
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 core strategies once the economy stabilizes). 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 April 23, 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 STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
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April 4, March 29,
2009 2008
Net sales $30,840 $36,257
Cost of goods sold 14,084 16,036
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Gross Profit 16,756 20,221
Selling, general and administrative expenses 16,554 16,984
Service and distribution costs 1,612 1,651
Research and development expenses 619 573
Restructuring charges 60 --
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Operating (Loss) Income (2,089) 1,013
Interest and other expense (591) (47)
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(Loss) Income Before Income Taxes (2,680) 966
Income tax (benefit) provision (1,731) 364
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Net (Loss) Income $ (949) $ 602
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Net (Loss) Income per Share:
Basic $ (0.06) $ 0.04
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Diluted $ (0.06) $ 0.04
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Weighted Average Shares Outstanding:
Basic 14,847 15,070
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Diluted 14,847 15,423
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Three Months Ended
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Segment Data: April 4, March 29,
2009 2008
Cross Accessory Division
Net Sales $18,765 $26,529
Operating Loss (2,863) (17)
Cross Optical Group
Net Sales $12,075 $ 9,728
Operating Income 774 1,030
A. T. CROSS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
April 4, March 29,
2009 2008
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Assets
Cash and cash equivalents $ 14,227 $ 15,501
Short-term investments 2,495 0
Accounts receivable 22,967 28,762
Inventories 31,191 33,931
Deferred income taxes 4,332 5,254
Other current assets 8,838 6,960
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Total Current Assets 84,050 90,408
Property, plant and equipment, net 15,380 17,438
Goodwill 15,280 17,124
Intangibles and other assets 12,912 14,004
Deferred income taxes 11,501 8,301
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Total Assets $139,123 $147,275
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Liabilities and Shareholders' Equity
Accounts payable and other current liabilities $ 21,254 $ 25,237
Retirement plan obligations 2,276 2,182
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Total Current Liabilities 23,530 27,419
Long-term debt 21,721 21,721
Retirement plan obligations 14,384 4,981
Deferred gain on sale of real estate 3,650 4,171
Other long term liabilities 2,023 3,314
Accrued warranty costs 1,332 1,342
Shareholders' equity 72,483 84,327
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Total Liabilities and
Shareholders' Equity $139,123 $147,275
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