The Cross Optical Group (COG), which owns the Costa and Native eyewear brands, had third quarter revenue of $19.5 million, an 8.0 percent increase compared to last year, parent company A.T. Cross Company reported.
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 | |
