Q.E.P. Reports 4Q Financials
Lewis Gould, Q.E.P.'s Chairman and Chief Executive Officer, stated: "Business conditions continued to be challenging. However, sales stayed firm with the prior quarter and increased 4.8 percent to $53.3 million, compared to $50.8 million in the same period last year. In addition, I am pleased that our sales for the year increased 4.7 percent to an all-time record $216.0 million from $206.3 million for fiscal 2006.
"For the fiscal 2007 fourth quarter, the Company reported net income of $458,000, or $0.13 per diluted share, compared to a net loss of $1.6 million, or a loss of $0.47 per share for the fourth quarter last fiscal year. After excluding the change in the put warrant liability and other non-recurring items, the Company reported net income of $83,000, or $0.02 per diluted share for fiscal 2007 as compared to a loss of $948,000, or a loss of $0.28 per share for fiscal 2007.
"I am especially pleased to report that for the fourth quarter of fiscal 2007, the Company generated $2.4 million of cash from operations, compared to $0.1 million in the fourth quarter of fiscal 2006. For fiscal 2007, the Company generated $4.9 million of cash from operations, compared to $1.8 million for the same period last year.
"Although, the current first quarter of fiscal 2008 has not been completed, initial indications are for positive results."
On April 26, 2007, the Company and its lenders executed a Ninth Amendment to the Loan Agreement. Certain financial covenants were made less restrictive and the Company's ability to borrow against eligible inventory was increased. At the Company's current inventory and receivable levels, this advance rate change served to increase available borrowings by approximately $2 million.