A.T. Cross Co., the owner of Costa and Native Eyewear sunglasses, reported sales grew 14.4 percent in the second quarter, to $47.8 million.
The Cross Optical Group (COG) reported second quarter sales of $24.7
million, a 21.4 percent increase compared to last year. The Cross Accessory
Division (CAD) recorded sales of $23.0 million, an increase of 7.8 percent,
compared to last year.
Gross margin in the quarter was 57.3 percent, equal to last year’s second quarter.
Operating income in the quarter increased 23.5 percent to $4.8 million as compared to $3.9 million in the second quarter of last year.
Net income for the second quarter was $3.2 million, or 26 cents per basic
share, compared to $2.7 million, or 20 cents per basic share, last year.
Year-To-Date 2011 Results
Consolidated sales for the first six months of 2011 increased by 15.0%
to $87.6 million compared to $76.1 million for the same period of 2010.
CAD recorded sales of $45.9 million or 9.0 percent higher compared to last year
while COG’s sales grew 22.5 percent to $41.7 million from 2010’s $34.0
million.
Gross margin for the six months of 2011 was 57.7 percent or 70 basis points higher than the 2010 six month period.
Year-to-date operating income was $6.9 million or 55.0 percent higher than the 2010 operating income of $4.4 million.
David G. Whalen, president and chief executive officer of A.T. Cross said, “A.T. Cross delivered an outstanding first half performance. Led by the Cross Optical Group, our business grew 15% and our bottom line improved substantially. At investor conferences we have said time and again that in terms of growth potential and return on capital our sunglass business compares favorably with any business that investors are considering. The 2011 first half performance that our optical team just delivered only strengthens the argument. As important, the Cross Accessory Division also performed very well and saw growth in every region of the world. Our Accessory Division continues to rebuild the base of sales lost during the recession and it is doing this off of a lower cost structure, thus generating operating leverage.”
Second Quarter 2011 Results
Consolidated sales for the second quarter of 2011 increased by 14.4 percent to $47.8 million compared to $41.7 million in the second quarter of 2010.
Whalen continued, “Our two businesses have momentum and we expect our strong performance to continue. We delivered a very successful first half of 2011. As a result, the Company is increasing its previously announced EPS guidance of $0.56 to $0.60 per share to $0.67 to $0.70 per share. The outlook for A.T. Cross is very favorable. We are excited by our position and will work to enhance it as the year moves forward.”
Guidance
The company has raised 2011 earnings per share guidance from 56 cents to 60 cents per share to 67 cents to 70 cents per share.
| Three Months Ended | Six Months Ended | ||||
|
|
|
July 2, 2011 |
July 3, 2010 |
July 2, 2011 |
July 3, 2010 |
Net sales |
$ 47,768 |
$41,748 |
$87,550 |
$76,121 |
|
Cost of goods sold |
20,382 |
17,843 |
37,009 |
32,697 |
|
Gross Profit |
27,386 |
23,905 |
50,541 |
43,424 |
|
Selling, general and administrative expenses |
19,721 |
17,435 |
38,673 |
34,135 |
|
Service and distribution costs |
2,116 |
1,841 |
3,695 |
3,469 |
|
Research and development expenses |
707 |
708 |
1,278 |
1,373 |
|
Operating Income |
4,842 |
3,921 |
6,895 |
4,447 |
|
Interest and other expense |
(163) |
(139) |
(353) |
(416) |
|
Income Before Income Taxes |
4,679 |
3,782 |
6,542 |
4,031 |
|
Income tax provision |
1,527 |
1,068 |
2,132 |
1,143 |
|
Net Income |
$ 3,152 |
$ 2,714 |
$ 4,410 |
$ 2,888 |
|
Net Income per Share: |
|||||
| Basic | $ 0.26 |
$ 0.20 |
$ 0.36 |
$ 0.22 |
|
| Diluted | $ 0.24 |
$ 0.20 |
$ 0.34 |
$ 0.21 |
|
Weighted Average Shares Outstanding: |
|||||
| Basic | 12,191 |
13,339 |
12,153 |
13,332 |
|
| Diluted | 13,001 |
13,458 |
12,943 |
13,434 |
|
| Three Months Ended | Six Months Ended | ||||
|
|
|
July 2, 2011 |
July 3, 2010 |
July 2, 2011 |
July 3, 2010 |
Segment Data: Cross Accessory Division |
|||||
Net Sales |
$ 23,046 |
$21,383 |
$45,886 |
$42,099 |
|
Operating Loss |
(547) |
(609) |
(870) |
(1,200) |
|
Segment Data: Cross Optical Group |
|||||
Net Sales |
$ 24,722 |
$20,365 |
$41,664 |
$34,022 |
|
Operating Income |
5,389 |
4,530 |
7,765 |
5,647 |
|
