A.T. Cross Reports Solid First Quarter Results; 6.5% Revenue Growth; Earnings Per Share of 9 Cents Vs. Loss of 50 Cents in Prior Year Quarter.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. , R.I.--(BUSINESS WIRE)--April 26, 2001 A.T. Cross Company (AMEX AMEX See: American Stock Exchange : 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 financial results for the first quarter of 2001 ended March 31. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue for the quarter increased 6.5% to $30.2 million compared to $28.4 million in the first quarter of 2000, marking the fifth consecutive quarter of sales growth. In keeping with the Company's stated goal of making Cross a growing and profitable company, consolidated profit from operations was $1.9 million 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 $13.9 million in the first quarter of 2000. The prior year results included $15.3 million of pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta 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). costs to reflect the reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of international and domestic writing instrument operations. Excluding restructuring costs, first quarter 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. increased 36.3% over the prior year quarter. Net income in the first quarter was $1.6 million, or 9 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. , compared to a net loss of $8.3 million, or 50 cents per share, in the 2000 first quarter. Total writing instrument sales increased 4.4% to $29.1 million. Domestic writing instrument sales increased 3.4% to $12.9 million, due to the performance of new products and improvement in sales to corporate customers and the office mega-store accounts. International writing instrument revenues increased 5.3% to $16.2 million, as all regions, with the exception of Asia, exhibited growth. Asian revenue declined 4.0% in the quarter, due to the adverse impact of foreign exchange. Excluding the impact of unfavorable exchange rates, Asian revenue grew 2.2% and total international revenue grew 10.4% for the quarter. Pen Computing See gesture recognition and tablet PC. Group revenue in the quarter increased to $1.1 million from $539,000 for the same period of 2000, due primarily to the 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 sales of Pen Computing products. David G. Whalen Whalen may be:
n. An allomorph. [From morpheme.] morph 2 n. (TM), ATX(TM), Bill Blass Blass can refer to several people
Seiko Holdings Corporation ( and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) ." The writing instrument division recorded an operating profit of $2.1 million in the first quarter of 2001 compared to an operating loss of $14.0 million in the prior year quarter. The prior year results included $15.3 million of pre-tax restructuring costs to reflect the reorganization of international and domestic writing instrument operations. Income before taxes was $2.5 million in the first quarter of 2001 compared to a $13.7 million loss before taxes in the prior year first quarter. The Pen Computing Group recorded an operating loss of $200,000 in the quarter compared to an operating profit of $62,000 in the same period last year. The Pen Computing Group reported a loss before taxes of $200,000 compared to a profit of $3.4 million in the first quarter of 2000. Included in the Pen Computing Group's first quarter 2000 results was a pre-tax gain of $3.3 million on the sale of a portion of the Company's investment in NeoMedia Technologies, Inc. Mr. Whalen concluded, "Our first quarter results show continued progress in our effort to become a profitable, growing, branded company that will create value for our shareholders. While we recognize the importance of maintaining this momentum throughout the year, we are encouraged by our strong start." A.T. Cross' management will conduct a conference call on April 27, 2001 at 9:00 a.m. Eastern Time to discuss its results for the three months ended March 31, 2001. Investors and interested parties may listen to the call via a live webcast accessible on the financial page of the Company's Web site at www.cross.com. To listen, please register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. audio software from the site at least 15 minutes prior to the start of the call. The webcast will be archived on the site, while a telephone replay of the call will be available beginning at 11:00 a.m. Eastern Time, April 27 through May 4 at 800-633-8284 or 858-812-6440 (international callers) using reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. #18416352. 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 (including but not limited to statements related to the expected benefit of new product introductions and participation in the pen computing business). 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 uncertainty of the domestic economic situation, the inherent uncertainty of foreign markets, 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, and customer and consumer support for the Company's strategic initiatives. 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
March 31, April 1,
2001 2000
---- ----
Net sales $ 30,192 $ 28,357
Cost of goods sold 14,644 13,778
-------- --------
Gross Profit 15,548 14,579
Selling, general and
administrative expenses 12,664 12,870
Research and development expenses 487 292
Service and distribution costs 543 566
Restructuring charges and loss on
impairment of assets (32) 14,791
-------- --------
Operating Income (Loss) 1,886 (13,940)
Interest and other 374 3,611
-------- --------
Income (Loss) From Continuing
Operations Before Income Taxes 2,260 (10,329)
Income tax expense (benefit) 678 (2,066)
-------- --------
Net Income (Loss) $ 1,582 $ (8,263)
======== ========
Basic and diluted earnings (loss)
per share:
Continuing operations $ 0.09 $ (0.50)
Discontinued operations 0.00 0.00
-------- --------
Net Income (Loss) Per Share $ 0.09 $ (0.50)
======== ========
Weighted average shares outstanding 16,756 16,583
======== ========
* Reclassified $509 to Cost of goods sold for inventory
write-down to conform to presentation in 2000 annual report.
Segment Data
Net Sales:
Quality Writing Instruments $ 29,047 $ 27,818
Pen Computing Products 1,145 539
-------- --------
$ 30,192 $ 28,357
======== ========
Income (Loss) From Continuing Operations
Before Income Taxes
Quality Writing Instruments
(includes restructuring) $ 2,460 $(13,693)
Pen Computing Products (200) 3,364
-------- --------
$ 2,260 $(10,329)
======== ========
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
March 31, April 1,
2001 2000
---- ----
Assets
Cash and short-term investments $ 24,335 $ 36,905
Accounts receivable 21,345 17,649
Inventories 22,082 19,603
Deferred income taxes 8,127 8,544
Other current assets 3,283 6,735
-------- --------
Total Current Assets 79,172 89,436
Property, plant and equipment, net 31,576 31,541
Investments 5,000 0
Intangibles and other assets 5,650 6,581
-------- --------
Total Assets $ 121,398 $ 127,558
======== ========
Liabilities and Shareholders' Equity
Current liabilities 37,969 43,582
Accrued warranty costs 4,691 5,821
Shareholders' equity 78,738 78,155
-------- --------
Total Liabilities and
Shareholders' Equity $ 121,398 $ 127,558
======== ========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion