Boca Raton, FL, Jan. 9--Q.E.P. Co., a manufacturer, marketer and distributor of a broad line of specialty tools and flooring related products, had net sales its fiscal 2003 third quarter ended November 30 grew 21% versus the comparable prior year period, reaching $32.4 million from $26.6 million. Gross profit margin continued to improve during the quarter, increasing to 34.49% from 33.39% in the same period a year ago. Net earnings rose 96% to $664,000, nearly doubling last year's $339,000. Corresponding earnings per basic and diluted share were $0.20 versus $0.10 one year ago.
Net sales for the first nine months of fiscal 2003 were up 17% to $97.0 million from $82.8 million for the comparable period a year ago. Current year sales include approximately $2.6 million attributable to a foreign acquisition made during the second quarter. Gross margins increased 74 basis points reaching 34.32% versus 33.58% in last year's first nine months. Net income for the nine months, before the cumulative effect of a change in accounting principle, increased to $2.2 million, or $0.64 per basic and diluted share, compared with $1.6 million, or $0.46 per basic and diluted share, last year, representing increases of 40% and 39%, respectively. In accordance with FASB 142, Goodwill and Intangible Assets, the company took a charge in the first half of fiscal 2003 to write off goodwill associated with certain of its subsidiaries in Europe and South America totaling $3.0 million, or $0.89 per share. As a result, the net loss after the cumulative effect of the change in accounting principle was $0.9 million, or $0.25 per share.
