LINCOLN – In an after-market announcement, A.T. Cross Co. (AMEX: ATX) yesterday posted a profit of $3.3 million or 22 cents per share for the year ended Dec. 30, more than seven times its 2005 net income of $400,000 or 3 cents per share.
Sales last year grew 7.9 percent to $139.3 million, compared with $129.1 million in 2005. The Costa Del Mar optical segment’s sales surged 40 percent to $27.4 million, while sales of writing instruments and accessories gained 2.2 percent to $111.9 million.
The gross margin improved by 400 basis points to 52.7 percent from the previous year’s 48.7 percent. Among other factors, the company cited lower manufacturing costs, as a result of its move to China, and lower inventory-reserve costs.
Operating expenses including restructuring costs were $68.7 million or 49.3 percent of sales, compared with 2005’s $62.0 million or 48 percent of sales. Cash flow from operating activities was about $9.4 million, up from 400,000 in 2005, and 2006 EBITDA totaled $11.1 million.
“We continue to reinvent our business … crating a more efficient, more effective operating platform,” said President and CEO David G. Whalen, adding: “we now now have the combination of a stronger Cross-branded business … and a fast-growing, potentially national optical business, with the Costa Del Mar brand.”
For the quarter ended Dec. 30, the company posted net income of $2.7 million or 18 cents per share, a 12.5-percent increase over the year-ago period’s $2.4 million or 16 cents per share.
Sales grew 9.4 percent to $45.3 million, compared with $41.4 million in the fourth quarter of 2005. Revenue from writing instruments and accessories rose 6.5 percent, to $39.4 million, while optical sales rose 33.1 percent to $5.9 million.
Operating expenses including restructuring charges rose 18.9 percent to $18.9 million or 41.7 percent of sales, from the year-ago period’s $15.9 million or 38.5 percent of sales.
A.T. Cross Co. is a designer and maker of branded personal and business accessories including writing instruments, leather goods, time pieces and Costa Del Mar sunglasses. Additional information is available at www.cross.com.
