A.T. Cross Company said sales at its Cross Optical Group (COG), which owns the Costa and Native sunglass brands, reached $12.8 million in the fourth quarter ended Dec. 31, a 12.0 percent increase compared to last year. COG sales grew 19.8 percent to $72.5 million in 2011 compared to $60.5 million in 2010.
“Our goal is, on an annual basis, to consistently grow our top and bottom line at a double digit rate,” said David G. Whalen, president and CEO of A.T. Cross. In 2011, we accomplished that goal. Led by 20 percent growth of our optical group, 2011 sales and net income were the highest they have been in more than a decade. Revenue climbed 10 percent and net income increased by 34 percent. The fact that profit increased at more than three times the pace of our top line was indicative of the greater contribution from our Cross Optical Group, as well as the operating leverage in our Accessory business.
“The investment we made in our Cross Optical Group proved productive, as we expanded both the Costa and Native brands into new doors and geographies, launched the Costa prescription sunglass program and introduced several new Native products including ski goggles,” Whalen continued. “Our confidence in the Optical Group's business model and growth prospects remains very high.”
A. T. CROSS COMPANY | ||||
CONSOLIDATED SUMMARY OF INCOME | ||||
(in thousands, except per share amounts) | ||||
(unaudited) | ||||
| Three Months Ended | Twelve Months Ended | |||
| December 31, | January 1, | December 31, | January 1, | |
| 2011 | 2011 | 2011 | 2011 | |
| Net sales | $ 43,278 | $ 44,035 | $ 174,637 | $ 158,312 |
| Cost of goods sold | 20,326 | 19,866 | 77,613 | 70,090 |
| Gross Profit | 22,952 | 24,169 | 97,024 | 88,222 |
| Selling, general and administrative expenses | 18,382 | 18,764 | 74,451 | 68,817 |
| Service and distribution costs | 1,810 | 2,158 | 7,830 | 7,524 |
| Research and development expenses | 673 | 744 | 2,697 | 2,811 |
| Operating Income | 2,087 | 2,503 | 12,046 | 9,070 |
| Interest and other income (expense) | 113 | (367) | (897) | (1,220) |
| Income Before Income Taxes | 2,200 | 2,136 | 11,149 | 7,850 |
| Income tax provision | 259 | 369 | 2,839 | 1,642 |
| Net Income | $ 1,941 | $ 1,767 | $ 8,310 | $ 6,208 |
| Net Income per Share: | ||||
| Basic | $ 0.16 | $ 0.15 | $ 0.68 | $ 0.49 |
| Diluted | $ 0.15 | $ 0.14 | $ 0.64 | $ 0.48 |
| Weighted Average Shares Outstanding: | ||||
| Basic | 12,229 | 11,957 | 12,195 | 12,686 |
| Diluted | 13,026 | 12,602 | 13,005 | 13,065 |
| Three Months Ended | Twelve Months Ended | |||
| December 31, | January 1, | December 31, | January 1, | |
| 2011 | 2011 | 2011 | 2011 | |
| Segment Data: Cross Accessory Division | ||||
| Net Sales | $ 30,450 | $ 32,585 | $ 102,131 | $ 97,776 |
| Operating Income | 1,267 | 1,886 | 1,205 | 817 |
| Segment Data: Cross Optical Group | ||||
| Net Sales | $ 12,828 | $ 11,450 | $ 72,506 | $ 60,536 |
| Operating Income | 820 | 617 | 10,841 | 8,253 |
