Boca Raton, FL, October 7---Q.E.P. Company announced financial results for the fiscal 2005 second quarter and six months ended August 31, 2004. In 24 of the past 26 quarters, the company has recorded higher year-over-year sales improvements.
Net sales for the three months ended August 31, 2004, increased 23.5 percent to $42.6 million from last year's $34.5 million. Net sales for the first half of fiscal 2005 increased 23.8 percent to $85.7
million from $69.2 million for the comparable period last year.
Acquisitions accounted for approximately $3.8 million in sales in the fiscal 2005 second quarter and $7.2 million in sales in the first half of fiscal 2005. Changes in foreign currency accounted for approximately $529 thousand of the increase in the fiscal 2005 second quarter and approximately $1.5 million of the increase in the first half of fiscal year 2005. The effect of foreign currency on net income for the second quarter and first half of fiscal 2005 was not material.
Net income in the 2005 second quarter increased 24.2 percent to $1.2 million, or $0.33 per diluted share compared with last year's $979 thousand, or $0.28 per diluted share. Net income in the first half of fiscal 2005 increased 71.0 percent to approximately $2.4 million, or $0.65 per diluted share from $1.4 million, or $0.40 per diluted share in the first half of fiscal 2004.
Net income in the first half of fiscal 2004 was affected by an after-tax charge of $566 thousand, or $0.16 per share for the repayment of the subordinated debt. Diluted net income per share, excluding charges associated with the repayment of the subordinated debt, improved 16.1 percent to $0.65 versus $0.56 in the comparable period.
Lewis Gould, Q.E.P.'s chairman and chief executive officer, said "We are extremely pleased with our top-line growth. Barring any unforeseen events, earnings for fiscal 2005 will approximate the higher end of Q.E.P's previously announced range of $1.27 to $1.30 per share."
