[1] A.T. Cross Reports First Quarter results.Business Editors LINCOLN Lincoln, city and district, England Lincoln, city (1991 pop. 79,980) and district, Lincolnshire, E England, in the Parts of Kesteven, on the Witham River. , RI--(BUSINESS WIRE)--April 27, 2000 Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , before restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). charges, was $5.0 million versus a pre-tax loss of $3.3 million in the first quarter of 1999 Restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $15.3 million recorded in the first quarter of 2000 A.T. Cross Company (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :ATX See ATX motherboard. (hardware, standard) ATX - An open PC motherboard specification by Intel. ATX is a development of the Baby AT specification with the motherboard rotated 90 degrees in the chassis. ) today reported writing instrument revenues of $27.8 million for the first quarter ended April 1, 2000, a 2.1% increase over the same period last year. Domestic writing instrument sales increased 2.6% to $12.5 million due to the launch of the Cross Morph morph 1 n. An allomorph. [From morpheme.] morph 2 n. (TM) product, improvement in sales to office mega-store accounts and the growth of OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and revenue. International writing instrument revenues increased 1.7% to $15.3 million due to 5% growth in Asia and essentially flat sales in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . Excluding the impact of unfavorable
exchange rates, Europe's sales increased approximately 9% for the
quarter. In line with the Company's decision to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam"focus - cause to converge on or toward a central point; "Focus the light on this image" 2. its pen computing See gesture recognition and tablet PC. efforts on contract manufacturing, Pen Computing Group revenue in the quarter was $539,000 compared to $1.1 million for the same period of 1999. Consolidated sales from continuing operations totaled $28.4 million for the first quarter 2000, virtually unchanged from $28.3 million in the first quarter of 1999. Excluding the effects of restructuring charges, the writing instrument division recorded an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $1.3 million in the quarter, compared to an operating profit of $413,000 in the prior year quarter. Before restructuring charges, writing instrument pre-tax income was $1.6 million compared to $959,000 in the 1999 first quarter. The Pen Computing Group recorded an operating profit of $62,000 in the quarter, compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $4.3 million in the same period last year. The Pen Computing Group reported income before taxes of $3.4 million, compared to a pre-tax loss of $4.3 million in the first quarter of 1999. Included in the Pen Computing Group's first quarter results was a gain before taxes of $3.3 million on the sale of a portion of the Company's investment in NeoMedia Technologies, Inc. Excluding restructuring charges, consolidated profit from operations was $1.4 million, compared to an operating loss of $3.9 million in the first quarter of 1999. Before restructuring charges, income from continuing operations before income taxes was $5.0 million in the quarter compared to a loss from continuing operations before income taxes of $3.3 million in the first quarter of 1999. Net income prior to the impact of restructuring was $4.0 million in the quarter compared to a net loss of $1.1 million in the prior year period. The Company reported income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $1.3 million, or 8 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in the first quarter of 1999. As previously disclosed, the Company recorded $15.3 million of restructuring charges in the first quarter of 2000 to reflect the reorganization of international and domestic writing instrument operations. After restructuring charges, the net loss in the first quarter of 2000 was $8.3 million, or 50 cents per share compared to a net loss of $1.1 million, or 7 cents per share in the first quarter of 1999. "I am pleased that we have made significant strides in improving the performance of our operations. Our restructuring efforts, combined with continued cost control measures and the absence of losses from our Pen Computing Group, contributed to the significantly improved consolidated operating results before restructuring charges," David G. Whalen Whalen may be:
"Additionally, we've we've Contraction of we have. we've have made very good progress in our new product development and marketing efforts. We are working hard to excite (Excite.com, Irvington, NY, www.excite.com) One of the major search engines on the Web founded in 1995 and part of IAC Search & Media. Excite was acquired by Ask Jeeves, Inc. in 2004, which was acquired by IAC in 2005. See Web search engines. our customers and retail partners about the Cross brand. During the first quarter, we launched the Cross Morph(TM) pen in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and are presently launching our new ATX(TM) line in Europe. As a result of our successful integration of design and packaging, combined with a compelling advertising campaign, both products are receiving very positive acceptance in their respective markets. The two new product lines project an updated image for Cross and give our current consumers a reason to make another Cross purchase and new consumers a reason to join the franchise. We are looking forward to launching both of these products globally by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. ." "Cross is moving forward. We are committed to bringing exciting products and programs to the market from a cost base that is appropriate. In the first quarter, we made a solid start towards consistently achieving these objectives. We will continue to relentlessly pursue these goals as the year moves forward." A.T. Cross Company is a major international manufacturer of fine writing instruments. The Company also manufactures pen computing products. Statements contained in this release that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. 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 risks associated with the continued expansion of the Company's OEM efforts, the uncertainty relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the expected savings from restructuring, consumer reaction to the Company's advertising and promotions, the Company's strategic initiatives, customer and consumer support for such initiatives, the inherent uncertainty of foreign markets, the impact of new distribution methods and channels and the integration of newly acquired businesses. 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)
Thirteen Weeks Ended
-------------------------------------
April 1, April 3,
2000 1999
------------------ ----------------
Net sales $ 28,357 $ 28,332
Cost of goods sold 13,269 16,471
----------------- ---------------
Gross Profit 15,088 11,861
Selling, general and
administrative expenses 12,870 14,300
Research and development expenses 292 533
Service and distribution costs 566 910
Restructuring charges 15,300 0
----------------- ---------------
Operating Loss (13,940) (3,882)
Interest and other 3,611 546
----------------- ---------------
Loss From Continuing Operations
Before Income Taxes (10,329) (3,336)
Income tax benefit (2,066) (867)
----------------- ---------------
Loss From Continuing Operations (8,263) (2,469)
Income from discontinued operations
(net of income taxes) 0 1,346
----------------- -----------
Net Loss $ (8,263) $ (1,123)
================= ===========
Basic and diluted earnings
(loss) per share:
Continuing operations $ (0.50) $ (0.15)
Discontinued operations 0.00 0.08
----------------- ----------
Net Loss Per Share $ (0.50) $ (0.07)
================= ==========
Weighted average shares outstanding 16,583 16,558
================= ==========
----------------------------------------------------------------------
Segment Data
Net Sales:
Quality Writing Instruments $ 27,818 $ 27,253
Pen Computing Products 539 1,079
$ 28,357 $ 28,332
Income (Loss) From Continuing
Operations
Before Income Taxes
Quality Writing Instruments
(includes $15.3 million
restructuring charge in 2000) $ (13,693) $ 959
Pen Computing Products 3,364 (4,295)
$ (10,329) $ (3,336)
----------------------------------------------------------------------
A. T. CROSS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited) April 1, April 3,
2000 1999
----------------- --------------
Assets
Cash and short-term investments $ 36,905 $ 40,896
Accounts receivable 17,649 21,337
Inventories 19,603 18,975
Other current assets 15,279 7,850
----------------- --------------
Total Current Assets 89,436 89,058
Property, plant and equipment, net 31,541 38,090
Intangibles and other assets 6,581 11,927
----------------- --------------
Total Assets $ 127,558 $ 139,075
================= ==============
Liabilities and Shareholders' Equity
Current liabilities 43,582 29,799
Accrued warranty costs 5,821 5,821
Shareholders' equity 78,155 103,455
------------------ --------------
Total Liabilities and
Shareholders' Equity $ 127,558 $ 139,075
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