Q.E.P. CO., INC. reported its consolidated results of operations for the 1Q of its fiscal year ending February 28, 2017. The Company reported net sales of $80.2 million for the quarter ended May 31, 2016, an increase of $1.9 million or 2.4% from the $78.3 million reported in the same period of fiscal 2016. As a percentage of net sales, gross margin was 28.2% in the 1Q of fiscal 2017 compared to 27.1% in the 1Q of fiscal 2016, as the company said in the press release received by Lesprom Network.
Lewis Gould, Chairman, commented: "I am encouraged by the progress we have made this quarter despite continuing headwinds with the strong US dollar, increases in health care costs and other items. Despite this the Company has worked towards positive results this quarter, developing new and innovative products and sales growth in North America. We are working very hard to continue to flatten our supply chain and lower our costs, while continuing to strengthen our balance sheet with improved working capital and lower debt.”
Net sales for the three month period ended May 31, 2016 as compared to the comparable period in the prior fiscal year reflect growth across multiple product lines in the US and Australia, partially offset by reduced sales in Europe. Foreign exchange rates weakened against the US dollar year over year and continue to affect the translation of the Company’s international operations.
The Company’s gross profit increased $1.4 million, or 6.4% to $22.6 million and gross margin improved by 1.1%. Gross margin benefitted from cost reductions on certain products as well as favorable product mix.
Net income for the 1Q of fiscal 2017 and 2016 was $2.2 million and $1.3 million, respectively, or $0.68 and $0.39, respectively, per diluted share. For the 1Q of fiscal 2017, earnings before interest, taxes, depreciation and amortization (EBITDA) was $4.8 million, compared to $3.3 million for the 1Q of fiscal 2016.
Q.E.P. Co., Inc., founded in 1979, is a world class, worldwide provider of innovative, quality and value-driven flooring and industrial solutions. QEP delivers a comprehensive line of hardwood and laminate flooring, flooring installation tools, adhesives and flooring related products targeted for the professional installer as well as the do-it-yourselfer
