Boca Raton, FL, July 15--Q.E.P. in its first quarter ended May 31, 2005 reported net income of $770,000, or $0.21 per diluted share, compared with $1.2 million, or $0.32 per diluted share for the same period last year.
Sales in the quarter increased 18.9 percent to a quarterly record $51.3 million compared with $43.1 million for the same period last fiscal year. The company said this reflects increased market penetration of the company's product offerings, especially adhesives. In addition, acquisitions accounted for approximately $2.0 million in net sales and changes in foreign currency accounted for approximately $905,000.
Operating income decreased from approximately $2.2 million for the first quarter of fiscal 2005 to $1.9 million for the first quarter of fiscal 2006. The $1.9 million included a $1.1 million pretax benefit from the sale of the company's carpet seaming tape distribution business as part of the company's recent acquisition of the Capitol brand adhesives manufacturing assets, but was offset by a $505,000 increase in the warrant put liability.
Lewis Gould, Q.E.P.'s chairman and chief executive officer, stated: "We are pleased with our continued top line growth, and are continually working to improve our margin through operational efficiencies and price increases."
