Q.E.P. CO INC - QEPC STOCK NEWS

Q.E.P. Co., Inc. (OTCQX: QEPC) reported its fiscal 2025 first quarter results, ending May 31, 2024. Despite a 3.7% decrease in net sales to $63.5 million, the company's adjusted net income more than doubled to $3.9 million or $1.17 per diluted share. Gross profit increased by 12.2% to $22.5 million, with gross margin improving to 35.4%. EBITDA from continuing operations rose to $5.6 million or 8.8% of net sales.

The company's financial position strengthened, with cash provided by operating activities at $6.1 million and aggregate available cash, net of outstanding debt, increasing to $30.1 million. QEP continues to focus on its core North American market following strategic divestments in the prior fiscal year.

Q.E.P. Co. (OTCQX: QEPC) announced its fiscal 2024 results, highlighting significant financial shifts. Adjusted net income surged to $9.1 million, or $2.73 per share, from $4.5 million or $1.34 per share in fiscal 2023. Despite net sales falling 6.5% to $252.0 million due to reduced consumer demand, gross profit rose 12% to $82.0 million, driven by cost-cutting and a better product mix.

The company completed strategic divestments, including North American flooring brands and businesses in the UK, Australia, and New Zealand. These moves, along with debt reductions, resulted in lower interest expenses and a cash surplus, allowing for special dividends in 2024. Operating expenses increased due to higher personnel and divestiture-related costs. The net loss was $4.7 million, or $1.40 per share, compared to $0.1 million or $0.02 per share the previous year.

Cash from operations was $29.5 million, compared to a net use of $0.1 million in fiscal 2023, improving working capital to $60.0 million. The company’s EBITDA from continuing operations improved to $14.7 million from $10.6 million in fiscal 2023.

Q.E.P. Co. (OTCQX: QEPC) declared a special cash dividend of $1.00 per share, payable on June 26, 2024, to stockholders of record as of May 31, 2024. This move reflects the company's solid financial health, ensuring that it retains sufficient working capital for investments and operating needs.

Q.E.P. Co., Inc. (QEPC) completes the sale of its Australia and New Zealand business for AUD 14.05 million to QEP Australasia Pty. Ltd. This move aligns the company's global footprint to enhance shareholder value, eliminate debt, and boost cash reserves. The transaction involves key personnel transitions and financial adjustments.

Q.E.P. Co., Inc. (QEPC) has announced the sale of its ANZ Business assets to QEP Australasia Pty. Ltd. for approximately AUD 14.05 million. The deal, led by Bruce Maclaren and Tony Lei, is set to close by February 29, 2024, pending closing conditions.

Q.E.P. Co., Inc. reported a decrease in net sales for the first nine months of fiscal 2024, along with an increase in gross profit. The company divested its North American flooring businesses and UK operations, positioning itself to become debt-free by fiscal year-end. QEP also declared a special dividend of $1.00 per share, using the proceeds from recent divestitures to return capital to its stockholders.

Q.E.P. CO., INC. (QEPC) appoints Leonard Gould as President & CEO, effective December 8, 2023. Mr. Gould has a 30-year tenure with the Company, overseeing strategic initiatives, customer relationships, and transformational initiatives. He holds an MBA from the University of Miami Herbert Business School and a BSBA degree in Marketing from the University of Hartford.

Q.E.P. CO., INC. completes sale of UK Business for £12 million

Q.E.P. CO., INC. completes sale of manufacturing facility for $5.3 million, exiting wood flooring manufacturing. QEP to relocate grouting sponge production operations. Amendment No. 5 signed with Bank of America, N.A.