Q.E.P. Co., Inc., Reports Quarterly Earnings of $0.35 Per Diluted Share for Its Fiscal 2009 First Quarter

Tuesday, July 15, 2008 11:59 AM


                   Quarterly Sales -- $52.9 Million
                  Million Net Income -- $1.2 Million

BOCA RATON, Fla., July 15, 2008 (PRIME NEWSWIRE) -- Q.E.P. Co., Inc. (Nasdaq:QEPC) (the "Company" or "Q.E.P."), today filed a Form 10-Q with the SEC to announce its financial results for the first quarter of its fiscal year ending on February 28, 2009.

The Company reported net sales of $52.9 million for the first quarter of fiscal 2009, a decrease of $4.1 million from the $57.0 million reported in the same quarter of fiscal 2008.

A better product mix at the Company's North American operations resulted in the gross margin increasing by 126 basis points from 29.1% in the first quarter of fiscal 2008 to 30.3% in the first quarter of fiscal 2009. Gross profit for the first quarter of fiscal 2009 was $16.0 million, a decrease of only $0.5 million from the first quarter of fiscal 2008 despite the $4.1 million decrease in net sales.

By controlling operating expenses, incurring less interest costs because of lower debt levels and a decreased average interest rate and returning to a more normalized effective income tax rate, the Company reported quarterly net income of $1.2 million, or $0.35 per diluted share, compared to net income of $0.9 million, or $0.23 per diluted share for the first quarter of fiscal 2008.

Certain statements in this press release are forward-looking statements, which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are made only as of the date of this report and are subject to risks and uncertainties which could cause actual results to differ materially from those discussed in the forward-looking statements and from historical results of operations. A more detailed discussion of risks attendant to the forward-looking statements included in this press release are set forth in the "Forward-Looking Statements" section of our Annual Report on Form 10-K for the year ended February 29, 2008, filed with the SEC, and in our quarterly reports filed with the SEC.


                  Q.E.P. CO., Inc.

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