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Quarterly Net Income – $5.1 Million
BOCA RATON, Fla., June 27, 2013 (GLOBE NEWSWIRE) --
Q.E.P. CO., INC. (OTC:QEPC.PK) (the "Company") today reported its consolidated results of operations for the first quarter of its fiscal year ending February 28, 2014.
The Company reported record net sales of $83.4 million for the three months ended May 31, 2013, an increase of $13.6 million or 19.4% from the $69.8 million reported in the same period of fiscal 2013. As a percentage of net sales, gross profit was 28.4% in the first three months of fiscal 2014 compared to 28.9% in the first three months of fiscal 2013.
Lewis Gould, Chairman of the Company's Board of Directors, commented: "Sales continue to grow quarter over quarter reflecting the positive contribution of our recent acquisitions as well as modest growth in our core operations in spite of challenging market conditions. With an eye on building net asset value for the long-term, we are continuing to target strategic acquisitions that expand our sales and earnings base. The acquisition of Homelux at the beginning of this fiscal quarter certainly contributed to that objective." Mr. Gould concluded that: "With a focus on further optimizing cash flow, working capital and shareholder value, during the first quarter of the current fiscal year we also completed a sale and leaseback of a facility in Canada and used the cash proceeds to pay down debt."
The growth in net sales for the quarter as compared to the fiscal year 2013 first quarter principally reflects the contribution of both North American and European acquisitions completed during the past twelve months. Excluding acquisitions, net sales increased 3.3% quarter over quarter due to modest sales growth in both North America and certain international operations partially offset by the effects of competitive pricing pressures in North America and, to a lesser degree, international markets.