Q.E.P. reports Q4 decline, flat full-year performance
For the fourth quarter, net sales decreased to $26.8 million from the $29.1 million reported for the same period last year. Net income for the period was $432,000, or 13 cents per diluted share, compared with last year's net income for the same period of $772,000, or 23 cents per diluted share.
For the full fiscal year, net sales of $112.9 million were approximately equal to the prior year’s net sales of $113.6 million. Net income was $1.4 million compared with the $3.2 million earned last year. Earnings per diluted share were 42 cents vs. the prior year’s 95 cents. Without taking into account the effects of Q.E.P.’s decision to sell and license back its domestic tackless carpet strip business -- which contributed revenues of $3.6 million and $14.1 million, respectively -- for the quarter and full year, the company said revenue actually increased for the quarter by 5% and for the full year by 10%.
Primarily as a result of the licensing of the tackless carpet strip business, the company said gross margins rose to 34.1% in the quarter and to 31.8% for the year. Results for the 12 months ended Feb. 28 were impacted by approximately $2 million in charges taken in the third quarter as a result of certain sales incentives provided to a major customer, restructuring charges and moving costs to the company’s new facility in Henderson, Nev. Approximately $200,000 in additional costs associated with the completion of the move were incurred in the fourth quarter.