A.T. Cross Company Reports First Quarter Results

Lincoln, RI – April 24, 2003 – A.T. Cross Company (AMEX: ATX), today announced financial results for the first quarter ended March 29, 2003.

• Net sales were $26.0 million compared to $27.5 million last year reflecting an 8% increase in sales to the corporate gift channel offset by an 11% decrease in retail sales. Due to the weak consumer spending pattern, domestic writing instrument sales declined 8% and international writing instrument sales declined 3%. OEM revenue declined 6% as compared to the same period last year.
• Gross margin was 51.3% versus 52.1% in the prior year period, primarily due to the revenue decline and product mix.
• Selling, general and administrative expenses of $12.0 million were 2% less than last year. Included in the first quarter of 2003 were approximately $300,000 of expenses associated with closing the sales and marketing office in Ireland and consolidating this operation into the existing U.K. subsidiary.
• Net income was $151,000, or $0.01 per share, compared to $604,000, or $0.04 per share, in the first quarter of 2002.

David G. Whalen, President and Chief Executive Officer of A.T. Cross said, “While our top line performance was impacted by a difficult economic environment, we made progress towards our long-term goals. A major effort included the February launch of our branded accessories line. We are pleased with the initial reaction the products have received. Distribution by the end of March exceeded our initial goal of 600 doors.”

“Additionally, we were very focused on identifying opportunities to diversify our revenue stream by offering our consumers new and complementary product categories that embody the same commitment to quality, innovation and self-expression for which Cross is known. As evidenced by our recent announcement, we identified Costa Del Mar, with its line of high-quality, polarized sunglasses, as a strong partner to accomplish these goals. We are excited about the opportunity to leverage our existing global distribution channels and operating expertise to grow and develop the Costa Del Mar brand.”

Mr. Whalen concluded, “Finally, we continue to be proactive and make progress toward solidifying holiday programs with our office superstore accounts. In addition, we are furthering our commitment to bring innovation to our core quality writing instrument business. We are preparing to launch several exciting new quality writing instruments in the second and third quarters and have developed several value added gift items for the holiday season. We are confident that the investments and strategic initiatives that we are currently undertaking will gain traction and greatly contribute to the long-term value of A.T. Cross.”

During the first quarter, the Company repurchased 260,000 shares of its Class A common stock for approximately $1.4 million.

The Company’s management will host a conference call tomorrow, April 25, 2003, at 9:00 a.m. Eastern Time. A live webcast of the call will be accessible here. The webcast will be archived for 30 days on the site, while a telephone replay of the call will be available beginning at 11:00 a.m. Eastern Time on April 25th through May 2nd at 1-800-938-2796 or 1-402-220-9030.

Building on the rich tradition of its award-winning writing instruments and reputation for American 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. Cross products, including award-winning quality writing instruments, timepieces, business accessories and Costa Del Mar sunglasses, are distributed in the retail and corporate gift channels worldwide.

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 statements relating to business accessories, sunglasses, new writing instrument products, new consumer targets, programs with office superstores, a diversification of the Company’s revenue stream and an expectation that the Company’s existing distribution channels remain stable). 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 ability to launch new products successfully, the ability to successfully operate a new line of business, existing and new consumers’ reaction to the Company’s writing instrument products, consumer reaction to the Company’s ability to transfer its brand beyond writing instruments and the Company’s ability to maintain its existing distribution channels, 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 24, 2003. 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.

For information contact:
John T. Ruggieri
Senior Vice President and Chief Financial Officer
(401) 335-8470
jruggieri@cross.com

Download a spreadsheet with 2003 First Quarter Results