Q.E.P Reports Higher Profits, Sales

Boca Raton, FL, Dec. 20, 2011 -- Q.E.P. Co. reported net income for the first nine months and third quarter of fiscal 2012 was $9.0 million and $2.2 million, respectively, or $2.66 and $0.64, respectively, per share.

Last year in the same periods, net income was $6.9 million and $3.0 million, respectively, or $2.02 and $0.87 per share.

The company, which makes hardwood flooring, flooring installation tools, and adhesives, reported record net sales of $200.6 million for the nine months ended Nov. 30, an increase of $18.4 million or 10.1% from the $182.2 million reported in the same period a year ago.

"We are very pleased with our nine month results, both in net sales and earnings, which reached record levels," said chairman Lewis Gould

"This quarter, however, was disappointing to our company as the headwinds of cost increases reduced our margins and we saw substantially increased pricing pressure within our major distribution channels.

"While we expect continued pricing pressure from customers, we have taken very positive steps to confront these issues by aggressively looking to moderate the impact of cost increases throughout our worldwide supply chain, expand our distribution channels and look carefully for synergistic acquisitions that are complementary to our existing business."

The company said the increase in net sales reflects the growth of the company's U.S.-based flooring products, as well as its European and Australian operations, principally from the continued expansion of product lines.