A.T. Cross Company Reports Fourth Quarter and Fiscal 2012 Results

Wed Feb 20, 2013 4:00pm EST

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* 2012 net sales increased 3% to $181 million
* 2012 EPS increased 9% to $0.70 vs. $0.64 in 2011
* 4Q2012 net sales and operating income increased 7% and 28%, respectively
* 4Q2012 Cross Optical Group sales and operating income grew 27% and 126%, respectively
* 2013 EPS guidance $0.78 to $0.82

LINCOLN, R.I., Feb. 20, 2013 (GLOBE NEWSWIRE) -- A.T. Cross Company (Nasdaq:ATX) today announced
financial results for the fourth quarter and full year ended December 29, 2012.

David G. Whalen, President and Chief Executive Officer of A.T. Cross said, "In 2012, we grew
revenue and leveraged it to even greater profit growth. Driving performance in 2012 continued to
be the Cross Optical Group (COG). In 2012 COG grew revenue by 14.9% to $83.3 million and grew its
operating income by 24% to $13.4 million. Importantly, in what is often an uneventful quarter, COG
had its strongest fourth quarter to date, growing revenue by 27% and operating income by 126%. The
COG business entered 2013 with significant momentum."

Mr. Whalen continued, "The Cross Accessory Division's (CAD) revenue declined by 4.8% in 2012. As
discussed last year, we had originally expected flat year-over-year performance based upon stable
economic conditions in Europe. As European economic conditions worsened, sales in that region
declined 17% and were only partially offset by 3% increases in both the Americas and Asia regions.
For 2013 we expect increasingly positive revenue performance in all three regions and success in
extending the Cross brand into adjacent categories."

Fourth Quarter 2012 Results

Net sales for the fourth quarter of 2012 increased by 7.1% to $46.4 million compared to $43.3
million in the fourth quarter of 2011. The Cross Optical Group (COG) reported fourth quarter sales
of $16.3 million, a 27.3% increase compared to last year. COG's operating income grew 126% from
$0.8 million to $1.9 million. The Cross Accessory Division (CAD) recorded sales of $30.0 million,
a 1% decline from 2011.

Gross margin in the quarter was 53.4%, 40 basis points higher than last year's fourth quarter.

Consolidated operating income of $2.7 million was 27.7% higher than 2011.

Net income for the fourth quarter was $1.9 million, or $0.14 per share, compared to $1.9 million,
or $0.15 per share, last year. The effective tax rate in the fourth quarter of 2012 was 29.4% vs.
11.8% for the same period last year.

2012 Results

Consolidated sales for the full year 2012 increased by 3.4% to $180.5 million compared to $174.6
million in 2011. CAD recorded sales of $97.2 million, a 4.8% decline versus 2011. COG sales grew
14.9% to $83.3 million from $72.5 million in 2011.

Gross margin for the year was 55.0%, down 60 basis points in comparison with last year's gross
margin of 55.6%.

Operating expenses increased by $1.0 million, or 1.2%, to $86.0 million as compared to $85.0
million last year. As a percentage of sales, operating expenses improved by 100 basis points to
47.7% of sales.

Net income for 2012 increased 10.1% to $9.1 million, or $0.70 per share, compared to $8.3 million,
or $0.64 per share, last year. The effective tax rate for 2012 was 28.3% versus 25.5% in 2011.

Strategic Alternatives

On February 4, 2013, the Company announced that it is exploring strategic alternatives for its
Cross Accessory Division.

Guidance

The Company reiterated its previously announced 2013 earnings guidance of between $0.78 to $0.82
per share.

Conference Call

The Company's management will host a conference call today, February 20, 2013 at 4:30 PM Eastern
Time. Parties interested in participating in the conference call may dial-in at (877) 303-2912,
while international callers may dial-in at (408) 427-3877. The conference call will be webcast and
can be accessed at www.cross.com
http://www.globenewswire.com/newsroom/ctr?d=10022474&l=19&a=www.cross.com&u=http%3A%2F%2Fwww.cross.com%2F
. A replay of the webcast will be archived on the Company's website for 60 days.

About A.T. Cross Company

Building on the rich tradition of its award-winning writing instruments and reputation for
innovation and craftsmanship, A.T. Cross Company is a designer and marketer of branded personal
and business accessories. A.T. Cross provides a range of distinctive products that appeal to a
growing market of consumers seeking to enhance their image and facilitate their lifestyle. A.T.
Cross products, including award-winning quality writing instruments, timepieces, non prescription
reading glasses, business accessories and Costa and Native Eyewear sunglasses, are distributed in
retail and corporate gift channels worldwide. For more information, visit the A.T. Cross website
at www.cross.com
http://www.globenewswire.com/newsroom/ctr?d=10022474&l=21&a=www.cross.com&u=http%3A%2F%2Fwww.cross.com%2F
, the Costa website at www.costadelmar.com
http://www.globenewswire.com/newsroom/ctr?d=10022474&l=21&a=www.costadelmar.com&u=http%3A%2F%2Fwww.costadelmar.com%2F
 and the Native website at www.nativeyewear.com
http://www.globenewswire.com/newsroom/ctr?d=10022474&l=21&a=www.nativeyewear.com&u=http%3A%2F%2Fwww.nativeyewear.com%2F
.

The A.T. Cross Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5932
http://www.globenewswire.com/newsroom/ctr?d=10022474&l=22&u=http%3A%2F%2Fwww.globenewswire.com%2Fnewsroom%2Fprs%2F%3Fpkgid%3D5932


Statements contained in this release that are not historical facts are forward-looking statements
made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995 (including but not limited to statements relating to the exploration of strategic
alternatives for the Cross Accessory Division and the overall continued results for A.T. Cross).
In addition, words such as "believes," "anticipates," "expects," and similar expressions are
intended to identify forward-looking statements. These forward-looking statements are subject to
risks and uncertainties, including but not limited to the potential effect of, in particular,
international economic issues on consumer confidence, as well as consumers' willingness to
purchase discretionary items, and are not guarantees since there are inherent difficulties in
predicting future results. Actual results could differ materially from those expressed or implied
in the forward-looking statements. The information contained in this document is as of February
20, 2013. The Company assumes no obligation to update any forward-looking statements contained in
this document as a result of new information or future events or developments. Additional
discussion of factors that could cause actual results to differ materially from management's
expectations is contained in the Company's filings under the Securities Exchange Act of 1934.

(Tables to follow)

                                                                                                       
 A. T. CROSS COMPANY                                                                                       
 CONSOLIDATED STATEMENTS OF INCOME                                                                         
 (in thousands, except per share amounts)                                                                  
 (unaudited)                                                                                               
                                                                                                       
                                                                                                           
                                               Three Months Ended           Twelve Months Ended          
                                               December 29,  December 31,  December 29,  December 31,  
                                               2012          2011          2012          2011          
                                                                                                       
 Net sales                                     $ 46,359      $ 43,278      $ 180,508     $ 174,637     
 Cost of goods sold                            21,580        20,325        81,198        77,613        
 Gross Profit                                  24,779        22,953        99,310        97,024        
                                                                                                       
 Selling, general and administrative expenses  19,626        18,382        75,154        74,451        
 Service and distribution costs                1,836         1,810         8,174         7,830         
 Research and development expenses             653           673           2,708         2,697         
 Operating Income                              2,664         2,088         13,274        12,046        
 Interest and other income (expense)           43            113           (515)         (897)         
 Income Before Income Taxes                    2,707         2,201         12,759        11,149        
 Income tax provision                          797           260           3,611         2,839         
 Net Income                                    $ 1,910       $ 1,941       $ 9,148       $ 8,310       
                                                                                                       
 Net Income per Share:                                                                                 
 Basic                                         $ 0.15        $ 0.16        $ 0.74        $ 0.68        
 Diluted                                       $ 0.14        $ 0.15        $ 0.70        $ 0.64        
                                                                                                       
 Weighted Average Shares Outstanding:                                                                  
 Basic                                         12,612        12,229        12,335        12,195        
 Diluted                                       13,323        13,026        13,049        13,005        
                                                                                                           
                                                                                                       
                                                                                                           
                                               Three Months Ended           Twelve Months Ended          
                                               December 29,  December 31,  December 29,  December 31,  
                                               2012          2011          2012          2011          
 Segment Data: Cross Accessory Division                                                                
 Net Sales                                     $ 30,025      $ 30,450      $ 97,222      $ 102,131     
 Operating Income (Loss)                       809           1,268         (171)         1,205         
                                                                                                       
 Segment Data: Cross Optical Group                                                                     
 Net Sales                                     $ 16,334      $ 12,828      $ 83,286      $ 72,506      
 Operating Income                              1,855         820           13,445        10,841        
                                                                                                           


                                                                                       
 A. T. CROSS COMPANY                                                                     
 CONDENSED CONSOLIDATED BALANCE SHEETS                                                   
 (in thousands, unaudited)                                                               
                                                                                       
                                                 December 29, 2012  December 31, 2011  
 Assets                                                                                
 Cash and cash equivalents                       $ 27,120           $ 25,991           
 Short-term investments                          227                0                  
 Accounts receivable                             32,877             29,110             
 Inventories                                     38,020             36,482             
 Deferred income taxes                           3,417              4,206              
 Other current assets                            8,072              7,954              
 Total Current Assets                            109,733            103,743            
                                                                                       
 Property, plant and equipment, net              14,376             13,706             
 Goodwill                                        15,279             15,279             
 Intangibles and other assets                    10,381             11,572             
 Deferred income taxes                           11,570             11,115             
                                                                                       
 Total Assets                                    $ 161,339          $ 155,415          
                                                                                       
 Liabilities and Shareholders' Equity                                                  
 Accounts payable and other current liabilities  $ 34,531           $ 26,614           
 Line of credit                                  15,000             0                  
 Retirement plan obligations                     2,731              2,508              
 Income taxes payable                            567                712                
 Total Current Liabilities                       52,829             29,834             
                                                                                       
 Long-term debt                                  0                  21,221             
 Retirement plan obligations                     19,808             22,636             
 Deferred gain on sale of real estate            1,695              2,216              
 Other long-term liabilities                     662                464                
 Accrued warranty costs                          1,267              1,391              
 Shareholders' equity                            85,078             77,653             
                                                                                       
 Total Liabilities and Shareholders' Equity      $ 161,339          $ 155,415          
                                                                                       


CONTACT: Company Contact:
         Kevin F. Mahoney
         Senior Vice President, Finance and
         Chief Financial Officer
         401-335-8470
         
         Investor Relations:
         Dave Mossberg
         Three Part Advisors, LLC
         817-310-0051