WEB NEWS Comments & Business Outlook
Second Quarter 2012 Results
Net sales for the second quarter of fiscal 2012 also reached a record $67.9 million and reflected a gross profit margin of 30.1% compared to net sales of $60.6 million and a gross profit margin of 29.5% for the second quarter of fiscal 2011.
Earning per share for the second quarter 2012 was $0.80 vs $0.58 in second quarter 2011
Lewis Gould, Chairman of the Company's Board of Directors, commented: "This year's record results reflect positively on the Company's continued progress in successfully expanding its business while maintaining a diligent focus on cost control and operating efficiencies. This quarter's restructuring of our Argentine operations completes a transition of all of our Latin American operations from direct distribution to strategic alliances with distribution partners in those markets." Mr. Gould added, "We are continuing our focus on opportunities to expand our market share and non-core product lines and on responding to continuing changes in economic circumstances. We believe both objectives are well served by our continuing interest in synergistic acquisitions that are complementary to our existing businesses."
The increase in net sales continues to reflect the growth of the Company's hardwood flooring and international operations driven both by an expansion of sales to existing customers and by an expansion of the Company's product lines and customer base. Additionally, the Company's international operations benefited from the effects of the strengthening of local currencies against the U.S. dollar during both the first and second quarters of fiscal 2012 as compared to the prior fiscal year.
Comments & Business Outlook
BOCA RATON, Fla., June 21, 2011 (GLOBE NEWSWIRE ) --
Q.E.P. CO., INC. (Pink Sheets:QEPC) (the "Company") today announced its financial results for the first quarter of its fiscal year ending on February 29, 2012.
The Company reported net sales of $67.8 million for the three months ended May 31, 2011, an increase of $7.2 million from the $60.6 million reported in the comparable period of the prior fiscal year. As a percentage of net sales, gross profit increased to 32.7% for the first quarter of fiscal 2012 as compared to 30.3% for the first quarter of fiscal 2011.
Mr. Lewis Gould, Chairman of the Company's Board of Directors, commented: "We are exceptionally pleased with the Company's continued growth, especially the growth in our domestic Harris Wood manufacturing operations and in our overseas operations. The company is seeking to expand its presence in flooring-related markets while continuing to improve on the performance of our other businesses. Our President, Leonard Gould, is overseeing several new initiatives, including the implementation of an advanced distribution system and a cost control strategy to continue our progress." Mr. Gould added, "Our recent acquisition of Porta-Nails in combination with these operating initiatives reflects our strategy in the current stressful economic environment that includes the constant pressure of commodity cost increases."
The increase in net sales principally reflects the growth of the Company's Harris Wood and international operations driven by both an expansion of sales to existing customers and an expansion of the Company's customer base and product lines. Additionally, the Company's international operations benefited from the effects of the strengthening of local currencies against the U.S. dollar during the first quarter of fiscal 2012 as compared to the first quarter of fiscal 2011. Net sales for the first quarter of fiscal 2012 also include the benefit of a $0.6 million decrease in certain accumulated sales allowances.
The Company's gross margin was 32.7% for the first quarter of fiscal 2012 as compared to 30.3% for the first quarter of the prior fiscal year and 30.9% for the Company's 2011 fiscal year. The improvement in margin reflects an improved product mix, increased production volumes in the Company's manufacturing operations and the improved purchasing power of our international operations associated with the strengthening of local currencies against the US dollar. These margin improvements were partially offset by cost increases during the first quarter of fiscal 2012 principally associated with changes in commodity prices. As a result of both the increase in net sales and the improvement in gross margins, gross profit for the first quarter of fiscal 2012 was $22.2 million, up $3.9 million or 20.9% from $18.3 million in the first quarter of fiscal 2011.
Operating expenses for first quarter of fiscal 2012 were $15.5 million, slightly higher than the prior year first quarter of $15.0 million. Operating expenses as a percentage of net sales decreased to 22.9% for the first quarter of fiscal 2012 as compared to 24.8% for the same quarter of fiscal 2011. By comparison, operating expenses for the Company's 2011 fiscal year were 24.5% of net sales.
Net income for the first quarter of fiscal 2012 was $4.1 million ($1.22 per diluted share) as compared to $1.9 million ($0.56 per diluted share) for the first quarter of fiscal 2011.
