Sales at the Cross Optical Group, which owns the Native and Costa eyewear brands, reached $20.0 million in the first quarter, up 18.2 percent compared to last year, according to its parent company A.T. Cross Company. Operating income at the group increased 19.9 percent to $2.85 million.
A.T. Cross reported consolidated sales for increased by 5.4 percent to $41.9 million during the quarter compared to $39.8 million in the first quarter of 2011. That included sales at its Cross Accessory Division, which declined 4 percent amid continued economic pressure in European markets.
On a consolidated basis, A.T. Cross reported gross margin slipped 200 basis points to 56.2 percent due largely to inflation factors affecting the Cross Accessory Division, which makes Cross pens and other personal and work related accessories.
Operating expenses were $21.2 million, or 50.5% of sales in the 2012 first quarter, versus $21.1 million, or 53.0% of sales for the same period a year ago. Operating income in the first quarter of 2012 was $2.4 million, as compared to $2.1 million in the first quarter of last year.
Net income for the first quarter was $1.5 million, or $0.12 per diluted share, compared to net income of $1.3 million, or $0.10 per diluted share, last year.
“2012 is off to a good start,” President and CEO David G. Whalen said. “The Cross Optical Group is entering its largest quarter with products and programs in place that will drive share gains. Our Cross Accessory Division business is using its off peak period to prepare for improvement during its seasonally stronger second half. Overall we are looking at another year of growth for the company.”
A. T. CROSS COMPANY | ||
CONSOLIDATED STATEMENTS OF INCOME | ||
(in thousands, except per share amounts) | ||
(unaudited) | ||
| Three Months Ended | ||
| March 31, 2012 | April 2, 2011 | |
| Net sales | $ 41,946 | $ 39,782 |
| Cost of goods sold | 18,376 | 16,617 |
| Gross Profit | 23,570 | 23,165 |
| Selling, general and administrative expenses | 18,475 | 18,952 |
| Service and distribution costs | 2,048 | 1,579 |
| Research and development expenses | 660 | 571 |
| Operating Income | 2,387 | 2,063 |
| Interest and other expense | (132) | (190) |
| Income Before Income Taxes | 2,255 | 1,873 |
| Income tax provision | 717 | 608 |
| Net Income | $ 1,538 | $ 1,265 |
| Net Income per Share: | ||
| Basic | $ 0.13 | $ 0.10 |
| Diluted | $ 0.12 | $ 0.10 |
| Weighted Average Shares Outstanding: | ||
| Basic | 12,288 | 12,113 |
| Diluted | 12,893 | 12,891 |
| Three Months Ended | ||
| March 31, 2012 | April 2, 2011 | |
| Segment Data: | ||
| Cross Accessory Division | ||
| Net Sales | $ 21,929 | $ 22,840 |
| Operating Loss | (462) | (313) |
| Cross Optical Group | ||
| Net Sales | $ 20,017 | $ 16,942 |
| Operating Income | 2,849 | 2,376 |
