A.T. Cross Company said strong sales of its Costa and Native sunglass brands drove strong sales and earnings gains in the second quarter ended July 3, 2010.
The Lincoln, R.I. company reported consolidated sales for the for the second quarter of 2010 increased by 11.9% to $41.7 million compared to $37.3 million in the second quarter of 2009. Sales grew 23.1% to $20.3 million at Cross Optical Division, compared to last year. The Cross Accessory Division (CAD), which sells pens, time pieces and other business accessories, recorded revenue of $21.4 million, an increase of 3.0%, compared to last year.
Gross margin in the quarter was 57.3% compared to 54.7% in last year's second quarter. Operating income in the quarter was $3.9 million as compared to $1.5 million in the second quarter of last year. Net income for the second quarter was $2.7 million, or 20 cents per share, compared to $600,000, or 4 cents per share, last year.
“The Cross Optical Group powered through its second quarter peak season with both brands generating strong, double digit revenue growth and operating income up significantly,” said David G. Whalen, President and Chief Executive Officer of A.T. Cross.
A. T. CROSS COMPANY |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except per share amounts) |
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(unaudited) | |||||
| Three Months Ended | Six Months Ended | ||||
| July 3, 2010 | July 4, 2009 | July 3, 2010 | July 4, 2009 | ||
| Net sales | $ 41,748 | $ 37,306 | $ 76,121 | $ 68,146 | |
| Cost of goods sold | 17,843 | 16,904 | 32,697 | 30,988 | |
| Gross Profit | 23,905 | 20,402 | 43,424 | 37,158 | |
| Selling, general and administrative expenses | 17,435 | 15,909 | 34,135 | 32,463 | |
| Service and distribution costs | 1,841 | 1,727 | 3,469 | 3,339 | |
| Research and development expenses | 708 | 576 | 1,373 | 1,195 | |
| Restructuring charges | — | 737 | — | 797 | |
| Operating Income (Loss) | 3,921 | 1,453 | 4,447 | (636) | |
| Interest and other expense | (139) | (183) | (416) | (774) | |
| Income (Loss) Before Income Taxes | 3,782 | 1,270 | 4,031 | (1,410) | |
| Income tax provision (benefit) | 1,068 | 635 | 1,143 | (1,096) | |
| Net Income (Loss) | $ 2,714 | $ 635 | $ 2,888 | $ (314) | |
| Net Income (Loss) per Share: | |||||
| Basic | $ 0.20 | $ 0.04 | $ 0.22 | $ (0.02) | |
| Diluted | $ 0.20 | $ 0.04 | $ 0.21 | $ (0.02) | |
| Weighted Average Shares Outstanding: | |||||
| Basic | 13,339 | 14,581 | 13,332 | 14,835 | |
| Diluted | 13,458 | 14,593 | 13,434 | 14,835 | |
| Three Months Ended | Six Months Ended | ||||
| July 3, 2010 | July 4, 2009 | July 3, 2010 | July 4, 2009 | ||
| Segment Data: Cross Accessory Division | |||||
| Net Sales | $ 21,383 | $ 20,762 | $ 42,099 | $ 39,527 | |
| Operating Loss | (609) | (2,069) | (1,200) | (4,932) | |
| Segment Data: Cross Optical Group | |||||
| Net Sales | $ 20,365 | $ 16,544 | $ 34,022 | $ 28,619 | |
| Operating Income | 4,530 | 3,522 | 5,647 | 4,296 | |
