updated 2/23/2011 4:16:43 PM ET 2011-02-23T21:16:43

  • 2010 EPS $0.50 versus 2009 EPS $0.13
  • 2010 Operating Cash Flow of $12.7 Million
  • Optical segment sales increase 19% for the year
  • 2011 EPS Guidance of Between $0.56 and $0.60 per share

LINCOLN, R.I., Feb. 23, 2011 (GLOBE NEWSWIRE) -- A.T. Cross Company (Nasdaq:ATX) today announced financial results for the fourth quarter and full year ended January 1, 2011.

David G. Whalen, President and Chief Executive Officer of A.T. Cross, said, "2010 was an outstanding year for A.T. Cross. Throughout the economic downturn, in anticipation of an economic recovery, we continued to invest in our business and put in place aggressive plans to grow revenue and profit. In 2010, as the economy improved, our plans came to fruition and our shareholders were rewarded. The Cross Optical Group delivered a powerful all around performance and the Cross Accessory Division increased operating profit by $5.8 million. From this position and with our strong balance sheet, we expect to continue to generate profitable growth during 2011."

Fourth Quarter 2010 Results

Consolidated sales for the fourth quarter of 2010 increased by 11.5% to $44.0 million compared to $39.5 million in the fourth quarter of 2009.  The Cross Accessory Division (CAD) recorded revenue of $32.6 million, an increase of 8.2% compared to last year.  The Cross Optical segment reported fourth quarter sales of $11.4 million, a 22.2% increase compared to last year.  

Gross margin in the fourth quarter was 55.2% compared to 54.7% in last year's fourth quarter.

Operating expenses, excluding restructuring charges, were $21.7 million, or 49.2% of sales, in the fourth quarter of 2010 compared to $19.1 million, or 48.3% of sales, in the fourth quarter of 2009.

Net income in the fourth quarter was $1.9 million, $0.16 per basic and $0.15 per diluted share, compared to net income of $1.2 million, $0.09 per basic and diluted share, last year. Included in the fourth quarter of 2009 are pretax restructuring charges of $0.8 million.

Full Year 2010 Results

Consolidated sales in 2010 increased 11.7% to $158.3 million compared to $141.8 million in 2009. Cross Accessory Division revenue was $97.8 million, up 7.6% from prior year. The Cross Optical segment reported a sales increase of 19.0% to $60.5 million. 

Gross margin in 2010 was 55.9% compared to 54.1% in 2009.

Operating expenses, excluding restructuring charges, were $79.2 million, or 50.0% of sales, in 2010 compared to $73.6 million or 51.9% of sales in 2009.

For 2010, net income was $6.4 million, $0.50 per basic and $0.49 per diluted share, compared to $1.9 million, $0.13 per basic and diluted share, in 2009. Included in 2009 results are pretax restructuring charges of $1.9 million.

Guidance

The Company expects 2011 earnings per share to be between $0.56 and $0.60.

Conference Call

The Company's management will host a conference call today, February 23, 2011 at 4:30 PM Eastern Time. Parties interested in participating in the conference call may dial-in at (877) 303-2912, while international callers may dial-in at (408) 427-3877. The conference call will be webcast and can be accessed at www.cross.com . A replay of the webcast will be archived on the Company's website for 60 days.

About A.T. Cross Company

Building on the rich tradition of its award-winning writing instruments and reputation for innovation and craftsmanship, A.T. Cross Company is a designer and marketer of branded personal and business accessories. A.T. Cross provides a range of distinctive products that appeal to a growing market of consumers seeking to enhance their image and facilitate their lifestyle. A.T. Cross products, including award-winning quality writing instruments, timepieces, business accessories and Costa and Native Eyewear premium sports sunglasses, are distributed in retail and corporate gift channels worldwide. For more information, visit the A.T. Cross website at www.cross.com, the Costa website at www.costadelmar.com and the Native website at www.nativeyewear.com.

The A.T. Cross Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5932

Statements contained in this release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (including but not limited to statements relating to the expectation of profitable growth in 2011). In addition, words such as "believes," "anticipates," "expects," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to whether the previous investments in the business will result in the expected growth in sales and whether expenses can be maintained as forecast, and are not guarantees since there are inherent difficulties in predicting future results. Actual results could differ materially from those expressed or implied in the forward-looking statements. The information contained in this document is as of February 23, 2011. The Company assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments. Additional discussion of factors that could cause actual results to differ materially from management's expectations is contained in the Company's filings under the Securities Exchange Act of 1934.

 A.T. CROSS COMPANY 
 CONSOLIDATED SUMMARY OF INCOME 
 (in thousands, except per share amounts) 
 (unaudited) 
         
   Three Months Ended   Twelve Months Ended 
   January 1,

2011 
 January 2,

2010 
 January 1,

2011 
 January 2,

2010 
         
 Net sales   $ 44,035  $ 39,489  $ 158,312  $ 141,764
 Cost of goods sold   19,729  17,874  69,836  65,046
 Gross Profit   24,306  21,615  88,476  76,718
         
 Selling, general and administrative expenses   18,783  16,425  68,836  63,978
 Service and distribution costs   2,158  1,760  7,524  6,763
 Research and development expenses   744  877  2,811  2,817
 Restructuring charges   (19)  811  (19)  1,860
 Operating Income   2,640  1,742  9,324  1,300
 Interest and other expense   (367)  (564)  (1,220)  (930)
 Income Before Income Taxes   2,273  1,178  8,104  370
 Income tax provision (benefit)   418  (65)  1,731  (1,485)
 Net Income   $ 1,855  $ 1,243  $ 6,373  $ 1,855
         
 Net Income per Share:         
 Basic   $ 0.16  $ 0.09  $ 0.50  $ 0.13
 Diluted   $ 0.15  $ 0.09  $ 0.49  $ 0.13
         
 Weighted Average Shares Outstanding:         
 Basic   11,957  14,400  12,686  14,772
 Diluted   12,602  14,455  13,065  14,782
         
         
   Three Months Ended   Twelve Months Ended 
   January 1,

2011 
 January 2,

2010 
 January 1,

2011 
 January 2,

2010 
 Segment Data: Cross Accessory Division         
 Net Sales   $ 32,585  $ 30,119  $ 97,776  $ 90,892
 Operating Income (Loss)   2,023  1,594  1,071  (4,756)
         
 Segment Data: Cross Optical Group         
 Net Sales   $ 11,450  $ 9,370  $ 60,536  $ 50,872
 Operating Income   617  148  8,253  6,056
 
A.T. CROSS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
     
     
  January 1, 2011 January 2, 2010
Assets    
Cash and cash equivalents  $ 16,650  $ 10,443
Short-term investments 2,514 7,217
Accounts receivable 29,562 29,546
Inventories 31,320 25,329
Deferred income taxes 5,590 5,092
Other current assets 5,469 5,895
Total Current Assets 91,105 83,522
     
Property, plant and equipment, net 15,082 15,953
Goodwill 15,279 15,279
Intangibles and other assets 11,842 11,887
Deferred income taxes 11,318 11,778
     
 Total Assets  $ 144,626  $ 138,419
     
Liabilities and Shareholders' Equity    
Accounts payable and other current liabilities  $ 27,375  $ 23,636
Retirement plan obligations 2,437 2,378
Income taxes payable 2,006 577
Total Current Liabilities 31,818 26,591
     
Long-term debt 19,221 19,721
Retirement plan obligations 16,274 14,726
Deferred gain on sale of real estate 2,737 3,259
Other long-term liabilities 687 1,231
Accrued warranty costs 1,424 1,441
Shareholders' equity 72,465 71,450
     
 Total Liabilities and Shareholders' Equity  $ 144,626  $ 138,419
CONTACT: Company Contact:
         Kevin F. Mahoney
         Senior Vice President, Finance and
         Chief Financial Officer
         401-335-8470
         
         Investor Relations:
         Dave Mossberg
         Three Part Advisors, LLC
         817-310-0051

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