Q.E.P. Reports Fiscal 2001 Fourth-Quarter and Full-Year Financial Results
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 $0.13 per diluted share, compared with last year's net income for the same period of $772,000, or $0.23 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 $0.42 versus the prior year's $0.95. After adjustment for the revenue decline attributable to the effects of the company'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, revenue actually increased for the quarter by 5% and for the full year by 10%.
Primarily as a result of the company's licensing of the tackless carpet strip business, gross margins continued to improve, to 34.14 percent in the quarter and to 31.84 percent for the year. Results for the twelve months ended February 28, 2001 were impacted by the previously announced charges taken in the third quarter of approximately $2 million associated with certain sales incentives provided to a major customer, restructuring charges and moving costs to the company's new facility in Henderson, Nev. Additional costs of approximately $200,000 were incurred in the fourth quarter associated with the completion of the move.