Q.E.P. Co., Inc. Reports Financial Results for the Fiscal 2002 Third Quarter and Nine Months; Net Earnings Improve for Both Periods.Business Editors BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Jan. 10, 2002 Q.E.P. Co., Inc. (Nasdaq:QEPC), today announced its financial results for the fiscal 2002 third quarter, and the nine months ended November November: see month. 30, 2001. Fiscal 2002 third-quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $26.6 million, an increase from $26.3 million in fiscal 2001's third quarter. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the quarter improved versus the comparable prior-year period, reaching 33.39 percent as compared with 28.91 percent a year ago. Last year's results included 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. , incentives and other one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges for a total of approximately $2 million. Net earnings for the fiscal 2002 third quarter improved to $339,000, or $0.10 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with last year's reported net loss of $797,000, or $0.24 per share. For the nine months ended November 30, 2001, net sales were $82.8 million compared with the prior year's $86.0 million. After giving effect to the Company's decision to license out the sale of tackless carpet strip 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. , revenues for the nine-month period were approximately equal to those of the nine-month period of the prior year. Gross profit margin for the nine-month period improved 245 basis points to 33.58 percent from the 31.13 percent reported for last year's comparable period. Net income for the nine months was $1.6 million, or $0.46 per basic and diluted share, compared with $1.0 million, or $0.29 per basic and diluted share -- an increase of 55 percent. The Company will be hosting a conference call at 10:00 a.m. on Thursday Thursday: see week. , January 10, 2002, to discuss today's press release and to answer questions. To participate in the conference call, please dial 1-888-273-9890 five to 10 minutes before the call is scheduled to begin. Q.E.P. Co., Inc., is a leading manufacturer, marketer and distributor of a broad line of specialty tools and flooring-related products. Under brand names Q.E.P., Roberts, and O'Tool, Q.E.P. markets approximately 4,000 specialty tools and related products used primarily for the preparation and installation of ceramic This article is about ceramic materials. For the fine art, see Ceramic art. The word ceramic is derived from the Greek word κεραμικός (keramikos). tile tile, one of the ceramic products used in building, to which group brick and terra-cotta also belong. The term designates the finished baked clay—the material of a wide variety of units used in architecture and engineering, such as wall slabs or blocks, floor , carpet, and marble. The Company sells its products to large home improvement retail centers, as well as traditional distribution outlets in 50 states and 49 countries worldwide.
--FINANCIAL INFORMATION FOLLOWS--
Q.E.P. CO., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED NOVEMBER 30, 2001 AND 2000
(All figures in thousands and figures are unaudited)
Three Months Ended Nine Months Ended
November November November November
30, 30, 30, 30,
2001 2000 2001 2000
---- ---- ---- ----
Net Sales $ 26,646 $ 26,306 $ 82,799 $ 86,047
Cost of goods sold $ 17,748 $ 18,700 $ 54,992 $ 59,264
-------- -------- -------- --------
Gross profit $ 8,898 $ 7,606 $ 27,807 $ 26,783
Costs and expenses
Shipping $ 2,384 $ 2,489 $ 7,226 $ 7,207
General and
administrative $ 2,490 $ 2,517 $ 7,609 $ 7,562
Selling and marketing $ 2,906 $ 2,827 $ 8,884 $ 8,456
Restructuring charge $ -- $ 637 $ -- $ 637
Other (income) expense $ 1 $ (40) $ (221) $ (88)
-------- -------- -------- --------
Operating income
(loss) $ 1,117 $ (824) $ 4,309 $ 3,009
Interest expense, net $ 570 $ 463 $ 1,803 $ 1,392
-------- -------- -------- --------
Income (loss) before
provision for (benefit
from) income taxes $ 547 $ (1,287) $ 2,506 $ 1,617
Provision for (benefit
from) income taxes $ 208 $ (490) $ 954 $ 616
-------- -------- -------- --------
NET INCOME (LOSS) $ 339 $ (797) $ 1,552 $ 1,001
-------- -------- -------- --------
Basic and diluted net
income (loss) per
common share: $ 0.10 $ (0.24) $ 0.46 $ 0.29
CONSOLIDATED BALANCE SHEETS
NOVEMBER 30, 2001 AND FEBRUARY 28, 2001
(All figures in thousands and figures are unaudited)
November 30, February 28,
2001 2001
---- ----
ASSETS
Current assets $39,762 $40,293
Property and equipment, net $ 6,523 $ 7,155
Other assets $15,726 $16,588
------- -------
Total Assets $62,011 $64,036
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities (including current
portion of long-term debt) $29,671 $30,505
Long-term debt and other liabilities $ 9,279 $11,418
Shareholders' equity $23,061 $22,113
------- -------
Total Liabilities and Shareholders' Equity $62,011 $64,036
======= =======
This announcement contains 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. , which are 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 Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Statements as to what the Company "believes," "intends," "expects" or "anticipates," and other similar anticipatory expressions, are generally forward-looking and are made only as of the date of this report. Additionally, the report is subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements and from historical results of operations. Among the risks and uncertainties that could cause such a difference are those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Q.E.P.'s ability to realize increased sales and profitability. |
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