A.T. Cross Optical’s Q3 Sales Up 8 Percent

The performance helped offset declining sales at the Cross Accessory Division (CAD), which had third quarter revenue of $23.9 million, a 7.2 percent decrease compared to $25.8 million last year. On a consolidated basis, A.T. Cross’s reported revenue for the third quarter of 2012 decreased 0.9 percent to $43.4 million compared to $43.8 million in the third quarter of 2011.

“The Cross Optical Group continued to perform well and is expected to grow revenue 13 percent and deliver more than 15 percent operating margin in the full year 2012,” said David G. Whalen, president and CEO for A.T. Cross. “The Cross Accessory Division, however, despite growth in the Americas and Asia was challenged in the European markets.”

Gross margin in the quarter was 53.3 percent, compared to last year's third quarter gross margin of 53.7 percent. Operating income in the quarter was $2.6 million, as compared to $3.0 million in the third quarter of last year. Net income for the third quarter was $2.0 million, or 15 cents per diluted share, compared to $1.9 million, or 15 cents per diluted share, last year.

 

A. T. CROSS COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
	Three Months Ended		Nine Months Ended
	September 29,	October 1,	September 29,	October 1,
	2012	2011	2012	2011
Net sales	$ 43,396	$ 43,809	$ 134,149	$ 131,359
Cost of goods sold	20,249	20,300	59,618	57,288
Gross Profit	23,147	23,509	74,531	74,071
Selling, general and administrative expenses	17,699	17,396	55,528	56,069
Service and distribution costs	2,123	2,325	6,338	6,020
Research and development expenses	679	746	2,055	2,024
Operating Income	2,646	3,042	10,610	9,958
Interest and other expense	(147)	(657)	(558)	(1,010)
Income Before Income Taxes	2,499	2,385	10,052	8,948
Income tax provision	460	440	2,814	2,579
Net Income	$ 2,039	$ 1,945	$ 7,238	$ 6,369
Net Income per Share:
Basic	$ 0.16	$ 0.16	$ 0.59	$ 0.52
Diluted	$ 0.15	$ 0.15	$ 0.56	$ 0.49
Weighted Average Shares Outstanding:
Basic	12,729	12,244	12,357	12,183
Diluted	13,326	13,040	12,978	12,975
	Three Months Ended		Nine Months Ended
	September 29,	October 1,	September 29,	October 1,
	2012	2011	2012	2011
Segment Data: Cross Accessory Division
Net Sales	$ 23,947	$ 25,795	$ 67,197	$ 71,681
Operating Income (Loss)	182	786	(980)	(63)
Segment Data: Cross Optical Group
Net Sales	$ 19,449	$ 18,014	$ 66,952	$ 59,678
Operating Income	2,464	2,256	11,590	10,021