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A.T. CROSS COMPANY REPORTS FIRST QUARTER RESULTS
Lincoln, RI – April 23, 2009 – 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 here. 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/Native
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.
CONTACTS:
Kevin F. Mahoney
Vice President, Finance and
Chief Financial Officer
401-335-8470
Download a spreadsheet
with 2009 First Quarter Results
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