A.T. Cross Company Reports Fourth Quarter and Full Year 2008 Results

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Symbol	Price	Change
ATX	5.44	+0.94

{"s" : "atx","k" : "c10,l10,p20,t10","o" : "","j" : ""}

     * 2008 Revenue grew 5%
     * Exclusive of restructuring and impairment charges, EPS for
       2008 equal to $0.40, which is within previous guidance
     * 2008 Operating Cash Flow of $14.3 million, up $16.6 million
       from 2007
     * Full Year 2008 EPS of $0.03
     * Non-cash goodwill impairment charge in fourth quarter of $3.9
       million

LINCOLN, R.I., Feb. 25, 2009 (GLOBE NEWSWIRE) -- A.T. Cross Company (NasdaqGM:ATX - News) today announced financial results for the fourth quarter and full year ended January 03, 2009.

Fourth Quarter Results

Consolidated sales for the fourth quarter of 2008 declined by 12.6% to $41.7 million compared to $47.7 million in the fourth quarter of 2007. The Cross Accessory Division (CAD) recorded revenue of $32.4 million, a decline of 19.9% compared to the same period last year. The Cross Optical segment reported a fourth quarter sales increase of 27.6% to $9.3 million, compared to the same period last year. The Optical Group's revenue growth was driven by continued growth of the Costa Del Mar brand as well as the contribution from Native Eyewear, which we acquired in the first quarter of 2008.

Gross margin in the quarter was 54.5% compared to 55.6% in last year's fourth quarter due primarily to promotional activities related to the CAD segment.

Operating expenses, excluding $6.3 million of restructuring and impairment charges, were $19.6 million, or 47.0% of sales, in the quarter versus $21.4 million, or 44.8% of sales, for the same period a year ago.

In the fourth quarter, the Company recorded a non-cash goodwill impairment charge of $3.9 million, representing all of the CAD segment's goodwill. The CAD segment's goodwill was the result of the acquisition of assets in 1999 associated with the Company's OEM effort.

Operating loss in the fourth quarter was $3.1 million, including $6.3 of restructuring and impairment charges, compared to operating income of $5.1 million in the fourth quarter of last year.

Net loss for the quarter, after restructuring and impairment charges, was $3.7 million, or a loss of $0.25 per basic share, compared to $3.3 million, or $0.22 per basic share and $0.21 per diluted share, last year.

Full Year Results

Consolidated sales in 2008 increased 5.4% to $160.1 million compared to $151.9 million in 2007. The Cross Accessory Division revenue was $111.4 million, down 3.3% from $115.3 million in the prior year. The Cross Optical segment reported a full year sales increase of 33.1% to $48.7 million, compared to the full year 2007. The Optical Group's revenue increase was driven by double digit growth of the Costa Del Mar brand as well as the contribution from Native Eyewear.

Gross margin for 2008 was 55.8% as compared to 56.1% in 2007.

Operating expenses, excluding restructuring and impairment charges, were $79.3 million, or 49.5% of sales, in 2008 as compared to $75.5 million, or 49.7% of sales, in 2007.

For 2008, net income was $0.5 million or $0.03 per basic and diluted share, compared to $6.7 million or $0.45 per basic share and $0.43 per diluted share in 2007. Included in 2008 and 2007 results are restructuring and impairment charges of $6.5 million and $0.3 million, respectively. Excluding these restructuring and impairment charges, basic earnings would have been $0.40 per share for 2008 compared to $0.46 per share in 2007.

For 2008, the Company generated operating cash flow of $14.3 million, up $16.6 million from 2007.

Comment

David G. Whalen, President and Chief Executive Officer of A.T. Cross said, ``A. T. Cross made progress in 2008. While the global economic events of the year had a negative impact on our results, particularly our CAD segment, we left the year a stronger company than when we entered. Our sales grew 5%, operating income before restructuring and impairment charges grew 2% and our operating cash flow grew to over $14 million. Also, we made a major strategic acquisition with Native Eyewear. While our pre-restructuring and impairment EPS declined from $0.46/share in 2007 to $0.40/share in 2008, that performance outstripped many companies that rely on discretionary items and fourth quarter revenue to drive their business. Today, the Company has a good strategy, an experienced management team and a strong balance sheet to endure the challenging period ahead and prosper once the global economy recovers.''

Conference Call

The Company's management will host a conference call today, February 25, 2009 at 4:30 PM Eastern Time. Parties interested in participating in the conference call may dial-in at (888) 656-7435, while international callers may dial-in at (913) 312-1377. A live webcast of the call will be accessible on the Company's website at http://www.cross.com. The webcast will be archived for 30 days on this site, while a telephone replay of the call will be available beginning at 7:30 PM Eastern Time on February 25, 2009 through March 4, 2009 at (888) 203-1112 or (719) 457-0820 for international callers, and entering the pass code of 4834681.

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. 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, business accessories and Costa Del Mar and Native Eyewear sunglasses, are distributed in retail and corporate gift channels worldwide. For more information, visit the A.T. Cross website at http://www.cross.com, the Costa Del Mar website at http://www.costadelmar.com and the Native Eyewear website at http://www.nativeyewear.com.

The A.T. Cross Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5932

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 effect of the Company's strong balance sheet, management team and strategy and the Company's expected performance once the economy recovers). 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 depth and severity of the economic crisis and 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 25, 2009. 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.

                          A. T. CROSS COMPANY
                  CONSOLIDATED SUMMARY OF OPERATIONS
               (in thousands, except per share amounts)
                              (unaudited)
 --------------------------------------------------------------------
                                     Three Months      Twelve Months
                                        Ended             Ended
                                  ----------------- -----------------
                                   Jan. 3, Dec. 29,  Jan. 3, Dec. 29,
                                    2009     2007     2009    2007

 Net sales                        $ 41,707 $ 47,723 $160,146 $151,885
 Cost of goods sold                 18,972   21,189   70,834   66,610
                                  -------- -------- -------- --------
   Gross Profit                     22,735   26,534   89,312   85,275
 Selling, general and
  administrative expenses           17,234   19,091   69,793   66,933
 Service and distribution costs      1,753    1,678    7,054    5,993
 Research and development
  expenses                             627      634    2,444    2,529
 Restructuring and impairment
  charges                            6,251       --    6,470      285
                                  -------- -------- -------- --------
   Operating (Loss) Income          (3,130)   5,131    3,551    9,535
 Interest and other (expense)
  income                              (169)      63     (781)    (170)
                                  -------- -------- -------- --------
   (Loss) Income Before Income
     Taxes                          (3,299)   5,194    2,770    9,365
 Income tax provision                  441    1,944    2,275    2,638
                                  -------- -------- -------- --------
   Net (Loss) Income              $ (3,740)$  3,250 $    495 $  6,727
                                  ======== ======== ======== ========

 Net (Loss) Income per Share:
   Basic                          $  (0.25)$   0.22 $   0.03 $   0.45
                                  ======== ======== ======== ========
   Diluted                        $  (0.25)$   0.21 $   0.03 $   0.43
                                  ======== ======== ======== ========

 Weighted Average Shares
  Outstanding:
    Basic                           14,887   15,090   14,987   14,946
                                  ======== ======== ======== ========
    Diluted                         14,887   15,676   15,333   15,551
                                  ======== ======== ======== ========
 --------------------------------------------------------------------

                                  -----------------------------------
                                     Three Months      Twelve Months
                                        Ended             Ended
                                  ----------------- -----------------
                                   Jan. 3, Dec. 29,  Jan. 3, Dec. 29,
                                    2009     2007     2009     2007
 Segment Data:  Cross Accessory
  Division
    Net Sales                     $ 32,398 $ 40,425 $111,455 $115,313
    Operating (Loss) Income         (3,643)   4,395   (4,328)   3,656

 Segment Data:  Cross Optical
  Group
    Net Sales                     $  9,309 $  7,298 $ 48,691 $ 36,572
    Operating Income                   513      736    7,879    5,879

 --------------------------------------------------------------------

                          A. T. CROSS COMPANY
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                       (in thousands, unaudited)


                                                     Jan. 3, Dec. 29,
                                                      2009     2007
                                                    -------- --------
 Assets
   Cash and cash equivalents                        $ 18,629  $13,572
   Short-term investments                              1,193        0
   Accounts receivable                                29,102   31,382
   Inventories                                        26,425   31,804
   Deferred income taxes                               4,779    5,237
   Other current assets                                8,844    8,330
                                                    -------- --------
     Total Current Assets                             88,972   90,325

   Property, plant and equipment, net                 15,609   17,248
   Goodwill                                           14,526    7,288
   Intangibles and other assets                       13,810    5,959
   Deferred income taxes                              11,042    8,217

                                                    -------- --------
     Total Assets                                   $143,959 $129,037
                                                    ======== ========

 Liabilities and Shareholders' Equity
   Accounts payable and other current liabilities   $ 23,050 $ 27,069
   Line of credit                                          0    2,925
   Retirement plan obligations                         2,594    2,353
                                                    -------- --------
     Total Current Liabilities                        25,644   32,347

   Long-term debt                                     21,721        0
   Retirement plan obligations                        14,706    5,067
   Deferred gain on sale of real estate                3,780    4,302
   Other long term liabilities                         3,085    2,791
   Accrued warranty costs                              1,362    1,315
   Shareholders' equity                               73,661   83,215

                                                    -------- --------
 Total Liabilities and Shareholders' Equity         $143,959 $129,037
                                                    ======== ========

          A.T. Cross Company
          Kevin F. Mahoney, Vice President, Finance and
           Chief Financial Officer
          401-335-8470