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Q.E.P. Co., Inc. (QEPC)

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Market Cap65.919M
Beta (5Y Monthly)-0.16
PE Ratio (TTM)N/A
EPS (TTM)-0.89
Earnings DateJan 14, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateJan 16, 2018
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  • Q.E.P. Co., Inc. Reports Fiscal 2021 Nine Month and Third Quarter Financial Results and Announces a 5 Percent Special Stock Dividend
    GlobeNewswire

    Q.E.P. Co., Inc. Reports Fiscal 2021 Nine Month and Third Quarter Financial Results and Announces a 5 Percent Special Stock Dividend

    BOCA RATON, Fla., Jan. 14, 2021 (GLOBE NEWSWIRE) -- Q.E.P. CO., INC. (OTC: QEPC.PK) (the “Company” or “QEP”) today reported its consolidated results of operations for the first nine months and third quarter of its fiscal year ending February 28, 2021 and announces a five percent special stock dividend.QEP reported net sales of $288.0 million for the nine months ended November 30, 2020, a decrease of $11.1 million or 3.7% from the $299.1 million reported in the same period of fiscal 2020. The Company reported net sales of $98.9 million for the quarter ended November 30, 2020, an increase of $2.2 million or 2.3% from the $96.7 million reported in the same period of fiscal 2020. The fiscal 2021 nine month decline in sales compared to the prior year reflects the adverse impact of the worldwide economic downturn caused by the COVID-19 pandemic during the first quarter of the current year. All subsequent quarters reflect increased year-over-year net sales.Lewis Gould, Executive Chairman, commented on the Company’s results, “I am pleased that the Company was able to generate sales growth for the second consecutive quarter, which has further offset the sales decline in the first quarter that was the results of the COVID-19 related economic downturn. The sales increase during the previous two quarters was driven by retail channels in North America, despite COVID-19 related challenges in the dealer and distributor channels, and growth in the Company’s overseas operations. During the quarter, the Company continued to maintain aggressive cost control measures, which included lower personnel cost, along with reduced overhead and marketing expenses. Collectively, these actions resulted in the Company’s increased profitability during the quarter and for the first nine months of the year.”       Mr. Gould concluded, “The Company is diligently monitoring and adjusting its response not only to the COVID-19 pandemic, but also to the challenges presented by the weakening U.S. Dollar, shifts in global sourcing patterns and political uncertainty in the U.S. and U.K.   I believe that the Company under the current leadership team is emerging from the current crisis better positioned for long-term profitability and the creation of sustainable shareholder value.”The Company’s gross profit for the first nine months of fiscal 2021 was $81.8 million compared to $79.5 million in the corresponding fiscal 2020 period, an increase of $2.3 million or 2.8%. Gross profit for the third quarter of fiscal 2021 was $28.7 million, representing an increase of $2.2 million or 8.2%, from $26.5 million in the fiscal 2020 period. The Company’s gross margin as a percentage of net sales for the first nine months and third quarter of fiscal year 2021 was 28.4% and 29.0%, respectively, which increased from 26.6% and 27.4% in the prior fiscal year periods, respectively. The gross margin as a percentage of net sales improvement is due to favorable changes in product mix and timely actions taken by the Company to reduce manufacturing overhead during the first nine months and third quarter of fiscal 2021.Operating expenses, excluding restructuring loss, for the first nine months and third quarter of fiscal 2021 were $71.7 million and $25.1 million, respectively, or 24.9% and 25.3% of net sales in those periods, compared to $85.1 million and $26.5 million, respectively, or 28.4% and 27.4% of net sales in the comparable fiscal 2020 periods. The reduction in operating expenses is due to year-over-year synergies realized through the integration and rationalization of fiscal 2019 acquisitions, lower personnel costs through reduction-in-force and employee furlough activities during the COVID-19 economic downturn, lower marketing and travel expenses, along with government subsidies received for maintaining employment levels at the Company’s international operations.Restructuring charges for the first nine months and third quarter of fiscal 2021 represent the legal, administrative and asset impairment cost associated with the restructuring of the Company’s Canadian subsidiary, net of the benefit related to the Plan of Compromise agreed with the subsidiary’s unsecured creditors.The lower interest expense during the first nine months and third quarter of fiscal 2021 compared to the same periods in the prior fiscal year was principally due to a reduction in borrowings under the Company’s credit facilities during the current period.The provision for income taxes as a percentage of incomes before taxes was 28.0% for the first nine months and third quarter of fiscal 2021 compared to a benefit for income taxes as a percentage of the loss before taxes of 28.0% for the related fiscal 2020 periods.Net income for the first nine months and third quarter of fiscal 2021 was $5.5 million and $2.1 million, respectively, or $1.75 and $0.66, respectively, per diluted share. For the comparable periods of fiscal 2020, net loss was $3.7 million and $0.4 million, respectively, or $1.16 and $0.13, respectively, per diluted share.Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) as adjusted for non-operating income and restructuring charges for the first nine months and third quarter of fiscal 2021 was $13.4 million and $4.8 million, respectively as compared to a loss of $2.0 million and income of $1.2 million for the first nine months and third quarter of fiscal 2020, respectively.  For the Three Months Ended November 30,  For the Nine Months Ended November 30,    2020  2019   2020  2019            Net income (loss)$2,104 $(398) $5,535 $(3,664)           Add:Interest expense, net 383  583   1,229  1,885   Provision/(benefit) for income taxes 818  (155)  2,153  (1,426)  Depreciation and amortization 1,180  1,194   3,402  3,587   Non-operating income -  -   -  (2,370)  Restructuring charges 301  -   1,110  -  EBITDA as adjusted for non-operating income and restructuring charges$4,786 $1,224  $13,429 $(1,988) Cash provided by operations during the first nine months of fiscal 2021 was $30.6 million as compared to $1.8 million in the first nine months of fiscal 2020, reflecting an increase in operating income and a reduction in net investments in working capital. During the first nine months of fiscal 2020, the Company sold a certain non-core product line and recorded a gain on the sale of $2.4 million before income taxes, which was recorded in non-operating income.   In the first nine months of fiscal 2021, cash from operations was used primarily to pay down $17.8 million of debt and increase cash balances. In the prior fiscal year period, cash provided by operations and proceeds from the sale of a non-core product line was used to pay down debt.  Working capital at the end of the Company’s third of fiscal 2021 was $41.1 million compared to $29.1 million at the end of fiscal 2020.   Aggregate debt, net of available cash balances at the end of the third quarter of fiscal 2021 was $19.1 million or 27.6% of equity, a decrease of $27.3 million compared to $46.4 million or 73.9% of equity at the end of fiscal 2020.On June 29, 2020, the Company’s Canadian operating subsidiary, Roberts Company Canada Limited, was granted an Order by the Ontario Superior Court of Justice (Commercial List) to commence a restructuring proceeding under the Companies’ Creditor Arrangement Act (CCAA). This filing was initiated to allow the subsidiary to be able to continue operating while it efficiently restructures its business. The subsidiary has substantially completed its reorganization and is expected to fully emerge from the CCAA protection before the end of fiscal 2021. The Company is not a party to this proceeding.On January 13, 2021, the Company’s Board of Directors declared a one-time, special stock dividend of 5% per share on the common stock of the Company. The stock dividend is distributable on or about February 19, 2021, to shareholders of record at the close of business on January 18, 2021.Conference Call InformationThe Company will be hosting the following conference call to discuss its third quarter financial results and answer questions.Date:Thursday, January 21, 2021 Time: 10:00 a.m. Eastern Time Dial-in Numbers:800-367-2403 (US or Canada)  +1 334-777-6978 (International) Confirmation Code:6121544    Replay:719-457-0820; Passcode: 6121544    About QEP Founded in 1979, Q.E.P. Co., Inc. is a leading global provider of high quality, innovative and value-driven flooring and flooring installation solutions. QEP manufactures, markets and sells a comprehensive line of flooring installation tools, adhesives, and underlayment for both consumers as well as professional installers. Under the Harris Flooring Group ™, QEP manufactures and offers a complete line of hardwood, luxury vinyl, and modular carpet tile. QEP sells its products throughout the world to home improvement retail centers, professional specialty distribution outlets, and flooring dealers under brand names including QEP®, LASH®, Roberts®, Harris Flooring Group™, Capitol®, Harris®Wood, Kraus®, Naturally Aged Flooring™, Vitrex®, Homelux®, Brutus®, PRCI®, Plasplugs®, Tomecanic®, Premix-Marbletite® (PMM), Apple Creek® and Elastiment®.QEP is headquartered in Boca Raton, Florida with offices in Canada, Europe, Asia, Australia and New Zealand. Please visit our website at www.qepcorporate.com.Forward-Looking StatementsThis press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements of historical facts, may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Any forward-looking statements contained herein are based on current expectations and beliefs, and are subject to a number of risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding economic conditions, sales growth, price increases, profit improvements, product development and marketing, operating expenses, cost savings, acquisition integration, operational synergy realization, global sourcing, political uncertainty, cash flow, debt and currency exchange rates. Forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the Company does not undertake any obligation to update forward-looking statements, except as required by law.-Financial Information Follows-    Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except per share data) (Unaudited)           For the Three Months Ended For the Nine Months Ended  November 30, November 30, November 30, November 30,   2020   2019   2020   2019                   Net sales$98,941  $96,682  $288,008  $299,059  Cost of goods sold 70,277   70,202   206,257   219,565  Gross profit 28,664   26,480   81,751   79,494                   Operating expenses:                Shipping 11,544   11,152   32,516   33,060  General and administrative 6,897   7,101   20,858   25,849  Selling and marketing 6,687   8,646   18,780   27,012  Restructuring 301   -   1,110   -  Other income, net (70)  (449)  (430)  (852) Total operating expenses 25,359   26,450   72,834   85,069                   Operating income 3,305   30   8,917   (5,575)                  Non-operating income -   -   -   2,370  Interest expense, net (383)  (583)  (1,229)  (1,885)                  Income (loss) before provision for income taxes 2,922   (553)  7,688   (5,090)                  Provision (benefit) for income taxes 818   (155)  2,153   (1,426)                  Net income (loss)$ 2,104  $ (398) $ 5,535  $ (3,664)                  Earnings (loss) per share:                Basic$0.66  $(0.13) $1.75  $(1.16) Diluted$0.66  $(0.13) $1.75  $(1.16)                  Weighted average number of common                shares outstanding:                Basic 3,171   3,164   3,165   3,164  Diluted 3,171   3,164   3,165   3,164                   Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited)              For the Three Months Ended  For the Nine Months Ended   November 30, November 30,  November 30, November 30,   2020  2019    2020  2019             Net income (loss) $2,104 $(398)  $5,535 $(3,664)            Unrealized currency translation adjustments  160  349    835  (480)            Comprehensive income (loss) $ 2,264 $ (49)  $ 6,370 $ (4,144)            Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except per share values)       November 30, 2020 February 29, 2020  (Unaudited) (Audited)          ASSETS        Cash$17,284  $4,999  Accounts receivable, less allowance for doubtful accounts of $1,132        and $475 as of November 30, 2020 and February 29, 2020, respectively 48,986   49,264  Inventories 61,181   69,061  Prepaid expenses and other current assets 4,195   4,280  Prepaid income taxes -   740  Current assets 131,646   128,344           Property and equipment, net 13,748   15,168  Right of use operating lease assets 17,199   18,320  Deferred income taxes, net 4,132   4,135  Intangibles, net 12,653   13,871  Goodwill 2,384   2,288  Other assets 2,857   2,824           Total Assets$ 184,619  $ 184,950           LIABILITIES AND SHAREHOLDERS' EQUITY                 Trade accounts payable$37,320  $31,114  Accrued liabilities 21,935   19,366  Current operating lease liabilities 5,225   5,262  Income taxes payable 698   -  Lines of credit 22,068   40,107  Current maturities of notes payable 3,340   3,399  Current liabilities 90,586   99,248           Notes payable 10,928   7,854  Non-current operating lease liabilities 13,063   14,121  Deferred income taxes 114   114  Other long term liabilities 817   872  Total Liabilities 115,508   122,209           Preferred stock, 2,500 shares authorized, $1.00 par value; 0 shares        issued and outstanding at November 30, 2020 and February 29, 2020 -   -  Common stock, 20,000 shares authorized, $.001 par value;        3,827 shares issued, and 3,139 shares outstanding at        November 30, 2020 and February 29, 2020 4   4  Additional paid-in capital 11,087   11,087  Retained earnings 70,422   64,887  Treasury stock, 688 shares held at cost at November 30, 2020        and February 29, 2020 (8,869)  (8,869) Accumulated other comprehensive income (3,533)  (4,368) Shareholders' Equity 69,111   62,741           Total Liabilities and Shareholders' Equity$ 184,619  $ 184,950           Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)       For the Nine Months Ended  November 30,   2020   2019           Operating activities:        Net income (loss)$5,535  $(3,664) Adjustments to reconcile net income to net cash        provided by operating activities:        Gain on sale of business -   (2,370) Gain on sale of property -   6  Restructuring (260)  -  Depreciation and amortization 3,402   3,587  Other non-cash adjustments 132   211  Changes in assets and liabilities, net of acquisitions:        Accounts receivable 526   3,057  Inventories 6,999   12,287  Prepaid expenses and other assets 2,155   6,056  Trade accounts payable and accrued liabilities 12,090   (17,363) Net cash provided by operating activities 30,579   1,807           Investing activities:        Acquisitions (448)  (1,324) Capital expenditures (576)  (933) Proceeds from sale of business -   4,663  Proceeds from sale of property 252   287  Purchase of equity securities -   (1,900) Net cash provided by (used in) investing activities (772)  793           Financing activities:        Net borrowings (repayment) under lines of credit (18,634)  (5,714) Net borrowings (repayments) of notes payable 857   (216) Purchase of treasury stock (90)  (90) Principal payments on finance leases (68)  -  Net cash used in financing activities (17,935)  (6,020) Effect of exchange rate changes on cash 413   (218)          Net decrease in cash 12,285   (3,638) Cash at beginning of period 4,999   6,467  Cash at end of period$ 17,284  $ 2,829           Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands, except shares data) (Unaudited)                                    Accumulated               Other  Total  Preferred Stock Common Stock Paid-in Retained Treasury Comprehensive  Shareholders'  Shares Amount Shares Amount Capital Earnings Stock Income  Equity                     Balance at February 28, 2019 \-  $ \-   3,820,785  $ 4  $ 10,963  $ 77,029   $ (8,700) $ (3,774)  $ 75,522                       Net loss           (12,142)       (12,142) Other comprehensive income (loss)               (594)   (594) Issuance of common stock in connection with exercise of stock options    5,857  -  124         124  Purchase of treasury stock             (169)     (169) Balance at February 29, 2020 \-  $ \-   3,826,642  $ 4  $ 11,087  $ 64,887   $ (8,869) $ (4,368)  $ 62,741                       Net income           5,535        5,535  Other comprehensive income (loss)               835    835  Balance at November 30, 2020 \-  $ \-   3,826,642  $ 4  $ 11,087  $ 70,422   $ (8,869) $ (3,533)  $ 69,111     CONTACT: Q.E.P. Co., Inc. Enos Brown Executive Vice President and Chief Financial Officer 561-994-5550

  • GlobeNewswire

    Q.E.P. Co., Inc. Reports Fiscal 2021 Six Month and Second Quarter Financial Results

    BOCA RATON, Fla., Sept. 29, 2020 (GLOBE NEWSWIRE) -- Q.E.P. CO., INC. (OTC: QEPC.PK) (the “Company” or “QEP”) today reported its consolidated results of operations for the first six months and second quarter of its fiscal year ending February 28, 2021. QEP reported net sales of $189.1 million for the six months ended August 31, 2020, a decrease of $13.3 million or 6.6% from the $202.4 million reported in the same period of fiscal 2020. The Company reported net sales of $103.1 million for the quarter ended August 31, 2020, an increase of $3.3 million or 3.3% from the $99.8 million reported in the same period of fiscal 2020. The fiscal 2021 six month decline in sales compared to the prior year reflects the adverse impact of the worldwide economic downturn caused by the COVID-19 pandemic during the first quarter of the current year.Lewis Gould, Chairman & CEO, commented on the Company’s results, “I am pleased with the Company’s return to sales growth during the current quarter, which partially offset the sales decline in the previous quarter that was the results of Stay in Place Orders that were enacted in all of our sales territories. The sales increase during the quarter was driven by retail channels in North America, despite COVID-19 related challenges in the dealer and distributor channels, and growth in the Company’s overseas operations. During the quarter, the Company continued to implement and maintain aggressive cost reduction measures, which included reductions in personnel, overhead and general expenses. Additionally, the Company continued to access government subsidy and support programs that were available to our non-US based operations. Collectively, these actions resulted in the Company’s increased profitability during the quarter and for the first six months of the year.”       Mr. Gould concluded, “The Company is diligently monitoring and adjusting its response to the challenges presented during these unparalleled times. We are committed to the well-being and success of our associates, customers, suppliers, shareholders and the broader communities in which we operate. We believe the Company is emerging from the current crisis better positioned for sustainable long-term profitability and shareholder value.”The Company’s gross profit for the first six months of fiscal 2021 was $53.1 million compared to $53.0 million in the corresponding fiscal 2020 period. Gross profit for the second quarter of fiscal 2021 was $29.4 million, representing an increase of $3.2 million or 12.3%, from $26.2 million in the fiscal 2020 period. The Company’s gross margin as a percentage of net sales for the first six months and second quarter of fiscal year 2021 was 28.1% and 28.5%, respectively, which increased from 26.2% in each of the prior fiscal year periods, respectively. The gross margin as a percentage of net sales improvement is due to favorable changes in product mix and timely actions taken by the Company to reduce manufacturing overhead during the second quarter and first half of fiscal 2021.Operating expenses for the first six months and second quarter of fiscal 2021 were $47.5 million and $25.2 million, respectively, or 25.1% and 24.4% of net sales in those periods, compared to $58.6 million and $28.2 million, respectively, or 29.0% and 28.3% of net sales in the comparable fiscal 2020 periods. The reduction in operating expenses is due to year-over-year synergies realized through the integration and rationalization of fiscal 2019 acquisitions, lower personnel costs through reduction-in-force and employee furlough activities during the COVID-19 economic downturn, lower marketing and travel expenses, along with government subsidies received for maintaining employment levels at the Company’s international operations.The lower interest expense during the first six months and second quarter of fiscal 2021 compared to the same periods in the prior fiscal year was principally due to a reduction in borrowings under the Company’s credit facilities during the current period.The provision for income taxes as a percentage of incomes before taxes was 28.0% for the first six months and second quarter of fiscal 2021 compared to a benefit for income taxes as a percentage of the loss before taxes of 28.0% for the related fiscal 2020 periods.Net income for the first six months and second quarter of fiscal 2021 was $3.4 million and $2.7 million, respectively, or $1.08 and $0.87, respectively, per diluted share. For the comparable periods of fiscal 2020, net loss was $3.3 million and $1.9 million, respectively, or $1.03 and $0.62, respectively, per diluted share.Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) as adjusted for non-operating income for the first six months and second quarter of fiscal 2021 was $7.8 million and $5.3 million, respectively as compared to a loss of $3.2 million and $0.8 million for the first six months and second quarter of fiscal 2020, respectively.  For the Three Months Ended August 31, For the Six Months Ended August 31,    2020  2019  2020  2019           Net income (loss)$2,743  $(1,947) $3,431  $(3,267)           Add:Interest expense, net 442   623   845   1,302   Provision/(benefit) for income taxes 1,067   (757)  1,334   (1,271)  Depreciation and amortization 1,082   1,204   2,222   2,394   Non-operating income -   28   -   (2,370) EBITDA as adjusted for non-operating income$5,334  $(849) $7,832  $(3,212) Cash provided by operations during the first six months of fiscal 2021 was $20.8 million as compared to $4.7 million in the first six months of fiscal 2020, reflecting an increase in operating income and a reduction in net investments in working capital. During the first six months of fiscal 2020, the Company sold a certain non-core product line and recorded a gain on the sale of $2.4 million before income taxes, which was recorded in non-operating income.   In the first six months of fiscal 2021, cash from operations was used primarily to pay down $17.1 million of debt. In the prior fiscal year period, cash provided by operations and proceeds from the sale of a non-core product line was used to pay down debt.  Working capital at the end of the Company’s second quarter of fiscal 2021 was $35.5 million compared to $29.1 million at the end of fiscal 2020.   Aggregate debt, net of available cash balances at the end of the second quarter of fiscal 2021 was $26.6 million or 39.8% of equity, a decrease of $19.8 million compared to $46.4 million or 73.9% of equity at the end of fiscal 2020.On June 29, 2020, the Company’s Canadian operating subsidiary, Roberts Company Canada Limited, was granted an Order by the Ontario Superior Court of Justice (Commercial List) to commence a restructuring proceeding under the Companies’ Creditor Arrangement Act (CCAA). This filing was initiated to allow the subsidiary to be able to continue operating while it efficiently restructures its business. The subsidiary expects to complete its reorganization and emerge from the CCAA protection before the end of the calendar year. The Company is not a party to this proceeding.Conference Call InformationThe Company will be hosting the following conference call to discuss its second quarter financial results and answer questions.Date:Friday, October 2, 2020 Time:10:00 a.m. Eastern Time Dial-in Numbers:800-367-2403 (US or Canada)  +1 334-777-6978 (International) Confirmation Code:3866019    Replay:719-457-0820; Passcode: 3866019 About QEP Founded in 1979, Q.E.P. Co., Inc. is a leading global provider of high quality, innovative and value-driven flooring and flooring installation solutions. QEP manufactures, markets and sells a comprehensive line of flooring installation tools, adhesives, and underlayment for both consumers as well as professional installers. Under the Harris Flooring Group ™, QEP manufactures and offers a complete line of hardwood, luxury vinyl, and modular carpet tile. QEP sells its products throughout the world to home improvement retail centers, professional specialty distribution outlets, and flooring dealers under brand names including QEP®, LASH®, Roberts®, Harris Flooring Group™, Capitol®, Harris®Wood, Kraus®, Naturally Aged Flooring™, Vitrex®, Homelux®, Brutus®, PRCI®, Plasplugs®, Tomecanic®, Premix-Marbletite® (PMM), Apple Creek® and Elastiment®.QEP is headquartered in Boca Raton, Florida with offices in Canada, Europe, Asia, Australia and New Zealand. Please visit our website at www.qepcorporate.com.Forward-Looking StatementsThis press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release, other than statements of historical facts, may constitute forward-looking statements within the meaning of the federal securities laws. These statements can be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Any forward-looking statements contained herein are based on current expectations and beliefs, and are subject to a number of risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding economic conditions, sales growth, price increases, profit improvements, product development and marketing, operating expenses, cost savings, acquisition integration, operational synergy realization, cash flow, debt and currency exchange rates. Forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, CCAA proceedings, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and the Company does not undertake any obligation to update forward-looking statements, except as required by law.-Financial Information Follows-         Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (In thousands except per share data) (Unaudited)           For the Three Months Ended August 31, For the Six Months Ended August 31,  2020 2019 2020 2019          Net sales$103,051  $99,773  $189,067  $202,377  Cost of goods sold 73,632   73,586   135,980   149,364  Gross profit 29,419   26,187   53,087   53,013           Operating expenses:        Shipping 11,251   10,669   20,973   21,908  General and administrative 8,000   8,893   14,770   18,748  Selling and marketing 6,189   8,903   12,093   18,366  Other income, net (273)  (225)  (359)  (403) Total operating expenses 25,167   28,240   47,477   58,619           Operating income (loss) 4,252   (2,053)  5,610   (5,606)          Non-operating income -   (28)  -   2,370  Interest expense, net (442)  (623)  (845)  (1,302)          Income (loss) before provision for income taxes 3,810   (2,704)  4,765   (4,538)          Provision (benefit) for income taxes 1,067   (757)  1,334   (1,271)          Net income (loss)$ 2,743  $ (1,947) $ 3,431  $ (3,267)          Earnings (loss) per share:        Basic$0.87  $(0.62) $1.08  $(1.03) Diluted$0.87  $(0.62) $1.08  $(1.03)          Weighted average number of common shares outstanding:        Basic 3,171   3,160   3,163   3,160  Diluted 3,171   3,160   3,163   3,160           Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited)           For the Three Months Ended August 31, For the Six Months Ended August 31,  2020 2019 2020 2019          Net income (loss)$2,743  $(1,947) $3,431  $(3,267)          Unrealized currency translation adjustments 815   (281)  675   (829)          Comprehensive income (loss)$ 3,558  $ (2,228) $ 4,106  $ (4,096)          Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except per share values)       August 31, 2020 February 29, 2020  (Unaudited) (Audited)      ASSETS    Cash$8,226  $4,999  Accounts receivable, less allowance for doubtful accounts of $739 and $475 as of August 31, 2020 and February 29, 2020, respectively 52,984   49,264  Inventories 62,544   69,061  Prepaid expenses and other current assets 3,803   4,280  Prepaid income taxes -   740  Current assets 127,557   128,344       Property and equipment, net 14,388   15,168  Right of use operating lease assets 17,673   18,320  Deferred income taxes, net 4,153   4,135  Intangibles, net 13,167   13,871  Goodwill 2,390   2,288  Other assets 2,840   2,824       Total Assets$ 182,168  $ 184,950       LIABILITIES AND SHAREHOLDERS' EQUITY         Trade accounts payable$38,625  $31,114  Accrued liabilities 22,124   19,366  Current operating lease liabilities 5,542   5,262  Income taxes payable 107   -  Lines of credit 21,757   40,107  Current maturities of notes payable 3,909   3,399  Current liabilities 92,064   99,248       Notes payable 9,162   7,854  Non-current operating lease liabilities 13,201   14,121  Deferred income taxes 56   114  Other long term liabilities 838   872  Total Liabilities 115,321   122,209       Preferred stock, 2,500 shares authorized, $1.00 par value; 0 shares issued and outstanding at August 31, 2020 and February 29, 2020 -   -  Common stock, 20,000 shares authorized, $.001 par value; 3,827 shares issued, and 3,139 shares outstanding at August 31, 2020 and February 29, 2020 4   4  Additional paid-in capital 11,087   11,087  Retained earnings 68,318   64,887  Treasury stock, 688 shares held at cost at August 31, 2020 and February 29, 2020 (8,869)  (8,869) Accumulated other comprehensive income (3,693)  (4,368) Shareholders' Equity 66,847   62,741       Total Liabilities and Shareholders' Equity$ 182,168  $ 184,950       Q.E.P. CO., INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)       For the Six Months Ended  August 31,   2020  2019      Operating activities:    Net income (loss)$3,431  $(3,267) Adjustments to reconcile net income to net cash provided by operating activities:    Gain on sale of business -   (2,370) Gain on sale of property -   6  Depreciation and amortization 2,222   2,394  Other non-cash adjustments 63   183  Changes in assets and liabilities, net of acquisitions:    Accounts receivable (3,259)  4,190  Inventories 7,831   11,030  Prepaid expenses and other assets 3,419   4,361  Trade accounts payable and accrued liabilities 7,076   (11,787) Net cash provided by operating activities 20,783   4,740       Investing activities:    Acquisitions (436)  (875) Capital expenditures (364)  (472) Proceeds from sale of business -   4,663  Proceeds from sale of property 168   203  Purchase of equity securities -   (1,900) Net cash provided by (used in) investing activities (632)  1,619       Financing activities:    Net repayment under lines of credit (18,709)  (9,537) Net borrowings of notes payable 1,658   1,294  Purchase of treasury stock (60)  (60) Principal payments on finance leases (39)  -  Net cash used in financing activities (17,150)  (8,303) Effect of exchange rate changes on cash 226   (331)      Net decrease in cash 3,227   (2,275) Cash at beginning of period 4,999   6,467  Cash at end of period$ 8,226  $ 4,192                               Q.E.P. CO., INC. AND SUBSIDIARIES        CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY        (In thousands, except shares data)                                       Accumulated                 Other Total  Preferred Stock Common Stock Paid-in Retained Treasury Comprehensive Shareholders'  Shares Amount Shares Amount Capital Earnings Stock Income Equity                         Balance at February 28, 2019-  $ -  3,820,785  $ 4  $ 10,963  $ 77,029  $(8,700)  $(3,774)  $ 75,522                          Net loss                (12,142)      (12,142) Other comprehensive income (loss)                    (594)   (594) Issuance of common stock in connection with exercise of stock options      5,857   -   124         124  Purchase of treasury stock                  (169)     (169) Balance at February 29, 2020-  $ -  3,826,642  $ 4  $ 11,087  $ 64,887  $(8,869)  $(4,368)  $ 62,741                          Net income                3,431       3,431  Other comprehensive income (loss)                    675   675  Balance at August 31, 2020-  $ -  3,826,642  $ 4  $ 11,087  $ 68,318  $(8,869)  $(3,693)  $ 66,847                          CONTACT: Q.E.P. Co., Inc. Enos Brown Executive Vice President and Chief Financial Officer 561-994-5550

  • Thomson Reuters StreetEvents

    Edited Transcript of QEPC earnings conference call or presentation 16-Jul-20 2:00pm GMT

    Q4 2020 and Q1 2021 QEP Co Inc Earnings Call