Q.E.P. CO., Inc. Reports Fiscal 2025 Six Month and Second Quarter Financial Results
Q.E.P. CO., INC. (OTCQX: QEPC) reported its fiscal 2025 six-month and second quarter financial results. For the six months ended August 31, 2024, net sales decreased by 3.0% to $126.1 million, while gross profit increased by 9.3% to $44.8 million. The company's gross margin improved to 35.5% from 31.5% in the same period last year. Net income from continuing operations for the six months was $7.7 million or $2.34 per diluted share, up from $4.8 million or $1.43 per diluted share in fiscal 2024. EBITDA from continuing operations increased to $11.0 million or 8.7% of net sales. The company reported cash provided by operations of $11.2 million and an aggregate available cash, net of outstanding debt, of $29.8 million as of August 31, 2024.
Q.E.P. CO., INC. (OTCQX: QEPC) ha riportato i risultati finanziari per il primo semestre e il secondo trimestre del fiscal year 2025. Per i sei mesi terminati il 31 agosto 2024, le vendite nette sono diminuite del 3,0% a $126,1 milioni, mentre il profitto lordo è aumentato del 9,3% a $44,8 milioni. Il margine lordo dell'azienda è migliorato al 35,5% rispetto al 31,5% dello stesso periodo dell'anno scorso. Il reddito netto dalle operazioni continuative per il semestre è stato di $7,7 milioni, pari a $2,34 per azione diluita, rispetto ai $4,8 milioni o $1,43 per azione diluita nel fiscal year 2024. EBITDA dalle operazioni continuative è aumentato a $11,0 milioni, corrispondenti all'8,7% delle vendite nette. L'azienda ha riportato liquidità fornita dalle operazioni di $11,2 milioni e un totale di liquidità disponibile, al netto dei debiti, di $29,8 milioni al 31 agosto 2024.
Q.E.P. CO., INC. (OTCQX: QEPC) informó sus resultados financieros del primer semestre y del segundo trimestre del año fiscal 2025. Para los seis meses que terminaron el 31 de agosto de 2024, las ventas netas disminuyeron un 3.0% a $126.1 millones, mientras que la utilidad bruta aumentó un 9.3% a $44.8 millones. El margen bruto de la compañía mejoró al 35.5% desde el 31.5% en el mismo período del año anterior. El ingreso neto de las operaciones continuas para los seis meses fue de $7.7 millones o $2.34 por acción diluida, un aumento respecto a los $4.8 millones o $1.43 por acción diluida en el año fiscal 2024. EBITDA de las operaciones continuas aumentó a $11.0 millones o el 8.7% de las ventas netas. La compañía reportó efectivo proporcionado por las operaciones de $11.2 millones y un total de efectivo disponible, neto de deudas pendientes, de $29.8 millones al 31 de agosto de 2024.
Q.E.P. CO., INC. (OTCQX: QEPC)는 2025 회계연도 6개월 및 2분기 재무 결과를 발표했습니다. 2024년 8월 31일에 종료된 6개월 동안 순매출은 3.0% 감소하여 1억 2,610만 달러에 이르렀고, 총이익은 9.3% 증가하여 4,480만 달러에 달했습니다. 회사의 총마진은 작년 같은 기간의 31.5%에서 35.5%로 개선되었습니다. 6개월 동안 계속 운영에 따른 순이익은 770만 달러, 즉 희석 기준 주당 2.34달러로, 2024 회계연도의 480만 달러 또는 주당 1.43달러에서 증가했습니다. EBITDA는 계속 운영에 따라 1,100만 달러, 즉 순매출의 8.7%로 증가했습니다. 회사는 2024년 8월 31일 기준으로 운영에서 발생한 현금이 1,120만 달러이고, 미지급 부채를 제외한 총 가용 현금이 2,980만 달러에 이른다고 보고했습니다.
Q.E.P. CO., INC. (OTCQX: QEPC) a annoncé ses résultats financiers pour la première moitié et le deuxième trimestre de l'exercice 2025. Pour les six mois se terminant le 31 août 2024, les ventes nettes ont diminué de 3,0 % pour atteindre 126,1 millions de dollars, tandis que le bénéfice brut a augmenté de 9,3 % pour atteindre 44,8 millions de dollars. La marge brute de l'entreprise s'est améliorée à 35,5 % contre 31,5 % au cours de la même période l'année précédente. Le résultat net des activités continues pour les six mois s'est établi à 7,7 millions de dollars ou 2,34 dollars par action diluée, contre 4,8 millions de dollars ou 1,43 dollars par action diluée au cours de l'exercice 2024. EBITDA des activités continues a augmenté à 11,0 millions de dollars, soit 8,7 % des ventes nettes. L'entreprise a déclaré un flux de trésorerie provenant des opérations de 11,2 millions de dollars et un total de liquidités disponibles, net de dettes en cours, de 29,8 millions de dollars au 31 août 2024.
Q.E.P. CO., INC. (OTCQX: QEPC) berichtete über die finanziellen Ergebnisse für das erste Halbjahr und das zweite Quartal des Geschäftsjahres 2025. Für die sechs Monate bis zum 31. August 2024 sanken diebNettoverkaufszahlen um 3,0 % auf 126,1 Millionen Dollar, während der Bruttogewinn um 9,3 % auf 44,8 Millionen Dollar stieg. Die Bruttomarge des Unternehmens verbesserte sich auf 35,5 % von 31,5 % im gleichen Zeitraum des Vorjahres. Der Nettogewinn aus fortgeführten Betrieben betrug in den sechs Monaten 7,7 Millionen Dollar oder 2,34 Dollar pro verwässerter Aktie, verglichen mit 4,8 Millionen Dollar oder 1,43 Dollar pro verwässerter Aktie im Geschäftsjahr 2024. EBITDA aus fortgeführten Betrieben stieg auf 11,0 Millionen Dollar, was 8,7 % des Nettoumsatzes entspricht. Das Unternehmen berichtete von Liquide Mittel aus Betrieben in Höhe von 11,2 Millionen Dollar und einem gesamtverfügbaren Bargeld, abzüglich ausstehender Schulden, von 29,8 Millionen Dollar zum 31. August 2024.
- Gross profit increased by 9.3% to $44.8 million for the first six months
- Gross margin improved to 35.5% from 31.5% year-over-year
- Net income from continuing operations grew to $7.7 million or $2.34 per diluted share
- EBITDA from continuing operations increased to $11.0 million or 8.7% of net sales
- Aggregate available cash, net of outstanding debt, improved to $29.8 million
- Net sales decreased by 3.0% to $126.1 million for the six months
- Operating expenses increased to 27.3% of net sales from 25.6% in the previous year
- Cash provided by operations decreased to $11.2 million from $23.5 million in the prior year
Six Month Adjusted Net Income Grows to
BOCA RATON, Fla., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Q.E.P. CO., INC. (OTCQX: QEPC) (the “Company” or “QEP”) today reported its consolidated results of operations for the first six months and second quarter of fiscal year 2025, which ended on August 31, 2024.
Results of Operations
During the prior fiscal year, QEP completed the sale of its Harris Flooring Group in North America and its businesses in the United Kingdom, Australia and New Zealand in order to streamline operations and concentrate resources on its core product lines in the North American market. These divested operations have been classified as discontinued operations in our financial statements for all periods presented.
QEP reported net sales of
The Company’s gross profit for the first six months of fiscal 2025 was
Leonard Gould, President & Chief Executive Officer, commented on the Company’s results, “QEP continues to lean into product innovation by investing in people, processes, and the latest technology to bring products to market that are meaningful to the Professional Installer. This is the lifeblood of remaining ‘The Product Authority’ within our categories. We have more work ahead of us, but the Pro has noticed.
Lastly, I’d like to acknowledge the tremendous efforts of our people to successfully ship our customers complete and on-time despite the challenging marketplace.”
Operating expenses for the first six months and second quarter of fiscal 2025 were
Interest income for the first six months and second quarter of fiscal 2025 was
The provision for income taxes as a percentage of income before taxes remained unchanged at
Net income from continuing operations for the first six months and second quarter of fiscal 2025 was
Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations for the first six months and second quarter of fiscal 2025 was
For the Three Months Ended | For the Six Months Ended | |||||||||||||
August 31, 2024 | August 31, 2023 | August 31, 2024 | August 31, 2023 | |||||||||||
Net income from continuing operations | $ | 3,832 | $ | 2,954 | $ | 7,735 | $ | 4,774 | ||||||
Add: | Interest (income) expense, net | (223 | ) | 496 | (406 | ) | 1,099 | |||||||
Provision for income taxes | 1,495 | 1,149 | 3,003 | 1,857 | ||||||||||
Depreciation and amortization | 348 | 348 | 686 | 704 | ||||||||||
EBITDA from continuing operations | $ | 5,452 | $ | 4,947 | $ | 11,018 | $ | 8,434 | ||||||
Cash provided by operations during the first six months of fiscal 2025 was
Working capital as of August 31, 2024 was
The Company welcomes investor inquiries via email at ir@qep.com.
About QEP
Founded in 1979, Q.E.P. Co., Inc. is a leading designer, manufacturer and distributor of a broad range of best-in-class flooring installation solutions for commercial and home improvement projects. QEP offers a comprehensive line of specialty installation tools, adhesives, and underlayment. QEP sells its products throughout the world to home improvement retail centers, and professional specialty distribution outlets, under brand names including QEP®, LASH®, ROBERTS®, Capitol®, Premix-Marbletite® (PMM), Brutus®, Homelux®, PRCI®, and Tomecanic®.
QEP is headquartered in Boca Raton, Florida with other facilities in the United States, Canada, Europe and Asia. Please visit our website at www.qepcorporate.com.
Forward-Looking Statements
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. These forward-looking statements include, but are not limited to, statements regarding implementation of the Company’s strategies and increasing profitability and stockholder value. Any forward-looking statements contained herein are based on current expectations and beliefs, and are subject to a number of risks and uncertainties, including those listed in the Company’s annual report, as such risk factors may be amended, supplemented or superseded from time to time by other reports and disclosures made by the Company. 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, scarcity and rising cost for raw materials, shifts in global sourcing patterns, and general inflationary pressures, economic conditions, sales growth, price increases, maintaining and improving profitability, product development and marketing, operating expenses, cost savings, the successful completion of acquisitions and dispositions, acquisition integration, operational synergy realization, global sourcing, political uncertainty, cash flow, debt and currency exchange rates, 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 Six Months Ended | |||||||||||||
August 31, | August 31, | August 31, | August 31, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Net sales | $ | 62,559 | $ | 63,988 | $ | 126,084 | $ | 129,966 | ||||||
Cost of goods sold | 40,271 | 43,050 | 81,292 | 88,978 | ||||||||||
Gross profit | 22,288 | 20,938 | 44,792 | 40,988 | ||||||||||
Operating expenses: | ||||||||||||||
Shipping | 6,909 | 7,168 | 13,989 | 14,178 | ||||||||||
General and administrative | 6,952 | 6,249 | 13,236 | 12,375 | ||||||||||
Selling and marketing | 3,278 | 3,110 | 7,184 | 6,981 | ||||||||||
Other income, net | 45 | (188 | ) | 51 | (276 | ) | ||||||||
Total operating expenses | 17,184 | 16,339 | 34,460 | 33,258 | ||||||||||
Operating income | 5,104 | 4,599 | 10,332 | 7,730 | ||||||||||
Interest income (expense), net | 223 | (496 | ) | 406 | (1,099 | ) | ||||||||
Income before provision for income taxes | 5,327 | 4,103 | 10,738 | 6,631 | ||||||||||
Provision for income taxes | 1,495 | 1,149 | 3,003 | 1,857 | ||||||||||
Net income from continuing operations operations | 3,832 | 2,954 | 7,735 | 4,774 | ||||||||||
Gain/(Loss) from discontinued operations, net of tax | (27 | ) | (1,272 | ) | 538 | (2,167 | ) | |||||||
Net income | $ | 3,805 | $ | 1,682 | $ | 8,273 | $ | 2,607 | ||||||
Basic earnings (loss) per share: | ||||||||||||||
From continuing operations | 1.17 | 0.88 | 2.34 | 1.43 | ||||||||||
From discontinued operations | (0.01 | ) | (0.38 | ) | 0.17 | (0.65 | ) | |||||||
Basic earnings per share | 1.16 | 0.50 | 2.51 | 0.78 | ||||||||||
Diluted earnings (loss) per share: | ||||||||||||||
From continuing operations | 1.17 | 0.88 | 2.34 | 1.43 | ||||||||||
From discontinued operations | (0.01 | ) | (0.38 | ) | 0.16 | (0.65 | ) | |||||||
Diluted earnings per share | 1.16 | 0.50 | 2.50 | 0.78 | ||||||||||
Weighted average number of common | ||||||||||||||
shares outstanding: | ||||||||||||||
Basic | 3,276 | 3,342 | 3,300 | 3,343 | ||||||||||
Diluted | 3,280 | 3,347 | 3,307 | 3,348 | ||||||||||
Q.E.P. CO., INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In thousands, except par values) | |||||||
August 31, 2024 | February 29, 2024 | ||||||
(Unaudited) | (Audited) | ||||||
ASSETS | |||||||
Cash | $ | 29,944 | $ | 22,369 | |||
Accounts receivable, less allowance for credit losses of | |||||||
30,283 | 30,338 | ||||||
Inventories, net | 32,196 | 29,913 | |||||
Prepaid expenses and other current assets | 2,810 | 7,491 | |||||
Prepaid income taxes | - | 1,375 | |||||
Discontinued operations | 721 | 693 | |||||
Current assets | 95,954 | 92,179 | |||||
Property and equipment, net | 11,352 | 9,894 | |||||
Right of use operating lease assets | 18,816 | 19,852 | |||||
Deferred income taxes, net | 2,548 | 2,548 | |||||
Intangibles, net | 4 | 99 | |||||
Other assets | 823 | 1,276 | |||||
Total assets | $ | 129,497 | $ | 125,848 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Trade accounts payable | $ | 14,821 | $ | 14,438 | |||
Accrued liabilities | 16,010 | 13,352 | |||||
Current operating lease liabilities | 3,289 | 3,210 | |||||
Income taxes payable | 373 | - | |||||
Lines of credit | 50 | 601 | |||||
Current maturities of debt | 32 | 74 | |||||
Discontinued operations | - | 479 | |||||
Current liabilities | 34,575 | 32,154 | |||||
Long term debt | 14 | - | |||||
Non-current operating lease liabilities | 18,463 | 19,855 | |||||
Other long term liabilities | 740 | 1,209 | |||||
Total liabilities | 53,792 | 53,218 | |||||
Preferred stock, 2,500 shares authorized, | |||||||
issued and outstanding at August 31, 2024 and February 29, 2024, | - | - | |||||
respectively | |||||||
Common stock, 20,000 shares authorized, $.001 par value; | |||||||
4,005 shares issued: 3,265 and 3,286 shares outstanding at | |||||||
August 31, 2024 and February 29, 2024, respectively | 4 | 4 | |||||
Additional paid-in capital | 10,361 | 11,901 | |||||
Retained earnings | 78,215 | 73,211 | |||||
Treasury stock, 740 and 719 shares held at cost at August 31, 2024 | |||||||
and February 29, 2024, respectively | (10,008 | ) | (9,517 | ) | |||
Accumulated other comprehensive income | (2,867 | ) | (2,969 | ) | |||
Shareholders' equity | 75,705 | 72,630 | |||||
Total liabilities and shareholders' equity | $ | 129,497 | $ | 125,848 | |||
Q.E.P. CO., INC. AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
For the Six Months Ended | |||||||
August 31, 2024 | August 31, 2023 | ||||||
Operating activities: | |||||||
Net income | $ | 8,273 | $ | 2,607 | |||
Adjustments to reconcile net income to net cash | |||||||
provided by (used in) operating activities: | |||||||
Depreciation and amortization | 686 | 1,708 | |||||
Gain on disposal of businesses | (512 | ) | - | ||||
Gain on sale of property | (1 | ) | (10 | ) | |||
Gain from insurance recoveries | - | (1,293 | ) | ||||
Proceeds from settlement of insurance claims | - | 537 | |||||
Impairment of long-lived asset | 85 | - | |||||
Other non-cash adjustments | 82 | 223 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 103 | (82 | ) | ||||
Inventories | (2,233 | ) | 22,101 | ||||
Prepaid expenses and other assets | 1,678 | 1,468 | |||||
Trade accounts payable and accrued liabilities | 3,019 | (3,788 | ) | ||||
Net cash provided by operating activities | 11,180 | 23,471 | |||||
Investing activities: | |||||||
Capital expenditures | (2,121 | ) | (1,603 | ) | |||
Proceeds from sale of businesses | 4,305 | - | |||||
Proceeds from sale of property | 1 | 36 | |||||
Proceeds from settlement of insurance claims | - | 1,456 | |||||
Net cash provided by (used in) investing activities | 2,185 | (111 | ) | ||||
Financing activities: | |||||||
Net repayments under lines of credit | (548 | ) | (8,104 | ) | |||
Net repayments of term loan facilities | - | (6,910 | ) | ||||
Repurchase of equity-based awards | (1,540 | ) | - | ||||
Purchase of treasury stock | (403 | ) | (87 | ) | |||
Principal payments on finance leases | (55 | ) | (58 | ) | |||
Dividends paid | (3,269 | ) | - | ||||
Net cash used in financing activities | (5,815 | ) | (15,159 | ) | |||
Effect of exchange rate changes on cash | 25 | 55 | |||||
Net increase in cash | 7,575 | 8,256 | |||||
Cash at beginning of period | 22,369 | 3,060 | |||||
Cash at beginning of the period from discontinued operations | - | 1,936 | |||||
Cash at end of period | $ | 29,944 | $ | 13,252 |
Q.E.P. CO., INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||
(In thousands, except shares data) | |||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||
The following table shows the changes in the shareholder's equity for the first six months ended August 31, 2024 and 2023. | |||||||||||||||||||||||||||||||
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, 2023 | - | $ | - | 4,005,370 | $ | 4 | $ | 11,449 | $ | 81,205 | $ | (9,410 | ) | $ | (5,408 | ) | $ | 77,840 | |||||||||||||
Net income | 2,607 | 2,607 | |||||||||||||||||||||||||||||
Unrealized currency translation adjustments | 306 | 306 | |||||||||||||||||||||||||||||
Purchase of treasury stock | (26 | ) | (26 | ) | |||||||||||||||||||||||||||
Stock-based compensation expense | 186 | 186 | |||||||||||||||||||||||||||||
Balance at August 31, 2023 | - | $ | - | 4,005,370 | $ | 4 | $ | 11,635 | $ | 83,812 | $ | (9,436 | ) | $ | (5,102 | ) | $ | 80,913 | |||||||||||||
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 29, 2024 | - | $ | - | 4,005,370 | $ | 4 | $ | 11,901 | $ | 73,211 | $ | (9,517 | ) | $ | (2,969 | ) | $ | 72,630 | |||||||||||||
Net income | 8,273 | 8,273 | |||||||||||||||||||||||||||||
Unrealized currency translation adjustments | 102 | 102 | |||||||||||||||||||||||||||||
Repurchase of equity-based awards | (1,540 | ) | (1,540 | ) | |||||||||||||||||||||||||||
Purchase of treasury stock | (491 | ) | (491 | ) | |||||||||||||||||||||||||||
Dividends paid | (3,269 | ) | (3,269 | ) | |||||||||||||||||||||||||||
Balance at August 31, 2024 | - | $ | - | 4,005,370 | $ | 4 | $ | 10,361 | $ | 78,215 | $ | (10,008 | ) | $ | (2,867 | ) | $ | 75,705 | |||||||||||||
CONTACT:
Q.E.P. Co., Inc.
Enos Brown
Executive Vice President and
Chief Financial Officer
561-994-5550
FAQ
What were QEPC's net sales for the six months ended August 31, 2024?
How did QEPC's gross margin change in fiscal 2025 compared to fiscal 2024?
What was QEPC's net income from continuing operations for the second quarter of fiscal 2025?