GONZALES, La., Nov. 12, 2014 /PRNewswire/ -- Crown Crafts,
Inc. (NASDAQ-CM: CRWS) today reported results for the fiscal 2015
second quarter, which ended September 28,
2014.
"We continue to maintain our long track record of
profitability. Our second quarter net income was impacted by
an after-tax $530,000 charge related
to the settlement of a lawsuit. Excluding that charge, net income
would have been $1.4 million, an
increase of 19.1% over last year's quarter," said E. Randall Chestnut, Chairman, President and
Chief Executive Officer. "Management is very excited about
our position in the market and our prospects for the future."
Financial Results
Net income for the second quarter of fiscal 2015 was
$830,000, or $0.08 per diluted share, on net sales of
$20.4 million, compared with net
income of $1.1 million, or
$0.12 per diluted share, on net sales
of $20.1 million for the second
quarter of fiscal 2014. Gross margin was stable at 28.6% of
net sales for both the current and prior-year quarter.
For the six-month period, net income was $1.5 million, or $0.15 per diluted share, on net sales of
$36.1 million, compared with net
income of $2.0 million, or
$0.20 per diluted share, on net sales
of $36.7 million for the first six
months of fiscal 2014. Gross margin for the six-month period
was stable at 28.0% of net sales, compared with 27.9% for the
prior-year period.
During the second quarter of fiscal 2015, the Company reached a
settlement with BreathableBaby, LLC to resolve a
previously-disclosed lawsuit in which BreathableBaby alleged that
the Company infringed BreathableBaby's patent rights relating to
its air permeable infant bedding technology. Under the terms
of the settlement, the Company will manufacture and sell a
redesigned mesh crib liner product and will make a one-time payment
of $850,000 to BreathableBaby, which
settlement was recorded in the second quarter. Net income for
both the three and six-month periods ended September 28, 2014 was impacted on an after-tax
basis by approximately $530,000, or
$0.05 per diluted share. The
parties are in process of finalizing a settlement agreement with
respect to the foregoing, which the Company will file with the
Securities and Exchange Commission and to which reference is made
for a complete description of the terms of the settlement.
Quarterly Cash Dividend
The Company also announced that its Board of Directors declared
a quarterly cash dividend on the Company's Series A common stock of
$0.08 per share, which will be paid
on January 2, 2015 to shareholders of
record at the close of business on December
12, 2014. "We continue to build on our strong track
record of delivering value to shareholders, as this marks the
20th consecutive quarter in which we have paid a
dividend," Chestnut said.
Conference Call
The Company will host a teleconference today at 1:00 p.m. Central Standard Time to discuss the
Company's results, during which interested individuals will be
given the opportunity to ask appropriate questions. To join
the teleconference, dial (877) 317-6789 and ask to be joined into
the Crown Crafts, Inc. call. The teleconference can also be
accessed in listen-only mode by visiting the Company's website at
www.crowncrafts.com. The financial information to be
discussed during the teleconference may be accessed prior to the
call on the investor relations portion of the Company's
website.
A telephone replay of the teleconference will be available one
hour after the end of the call through 8:00
a.m. Central Standard Time on November 21, 2014. To access the replay,
dial (877) 344-7529 in the United
States or (412) 317-0088 from international locations and
refer to conference number 10053626.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant,
toddler and juvenile consumer products, including crib and toddler
bedding; blankets; nursery accessories; room decor; burp cloths;
bathing accessories; reusable and disposable bibs; and disposable
placemats, floor mats, toilet seat covers and changing mats.
The Company's operating subsidiaries consist of Crown Crafts
Infant Products, Inc. in California and Hamco, Inc. in Louisiana.
Crown Crafts is among America's largest producers of infant
bedding, bibs and bath items. The Company's products include
licensed and branded collections as well as exclusive private label
programs for certain of its customers. The Company's website
is www.crowncrafts.com.
Forward-Looking Statements
The foregoing contains forward-looking statements within the
meaning of the Securities Act of 1933, the Securities Exchange Act
of 1934 and the Private Securities Litigation Reform Act of 1995.
Such statements are based upon management's current expectations,
projections, estimates and assumptions. Words such as "expects,"
"believes," "anticipates" and variations of such words and similar
expressions identify such forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties that may cause future results to differ materially
from those suggested by the forward-looking statements. These risks
include, among others, general economic conditions, including
changes in interest rates, in the overall level of consumer
spending and in the price of oil, cotton and other raw materials
used in the Company's products, changing competition, changes in
the retail environment, the level and pricing of future orders from
the Company's customers, the extent to which the Company's business
is concentrated in a small number of customers, the Company's
dependence upon third-party suppliers, including some located in
foreign countries, customer acceptance of both new designs and
newly-introduced product lines, actions of competitors that may
impact the Company's business, disruptions to transportation
systems or shipping lanes used by the Company or its suppliers, and
the Company's dependence upon licenses from third parties.
Reference is also made to the Company's periodic filings with the
Securities and Exchange Commission for additional factors that may
impact the Company's results of operations and financial condition.
The Company does not undertake to update the forward-looking
statements contained herein to conform to actual results or changes
in our expectations, whether as a result of new information, future
events or otherwise.
Contact:
Olivia W. Elliott
Vice President and Chief Financial Officer
(225) 647-9124
mailto:oelliott@crowncrafts.com
or
Halliburton Investor Relations
(972) 458-8000
CROWN CRAFTS, INC.
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
SELECTED FINANCIAL
DATA
In thousands, except
percentages and per share data
(Unaudited)
|
|
|
|
|
|
|
|
Three-Month
Periods Ended
|
|
Six-Month Periods
Ended
|
|
September 28,
2014
|
September 29,
2013
|
|
September 28,
2014
|
September 29,
2013
|
Net sales
|
$
20,441
|
$
20,051
|
|
$
36,145
|
$
36,664
|
Gross
profit
|
5,846
|
5,727
|
|
10,128
|
10,221
|
Gross profit
percentage
|
28.6%
|
28.6%
|
|
28.0%
|
27.9%
|
Income from
operations
|
1,339
|
1,845
|
|
2,459
|
3,169
|
Income before income
tax expense
|
1,321
|
1,828
|
|
2,448
|
3,137
|
Income tax
expense
|
491
|
686
|
|
915
|
1,173
|
Net income
|
830
|
1,142
|
|
1,533
|
1,964
|
Basic earnings per
share
|
$
0.08
|
$
0.12
|
|
$
0.15
|
$
0.20
|
Diluted earnings per
share
|
$
0.08
|
$
0.12
|
|
$
0.15
|
$
0.20
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
Basic
|
10,064
|
9,848
|
|
10,025
|
9,838
|
Diluted
|
10,101
|
9,864
|
|
10,066
|
9,851
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
SELECTED FINANCIAL
DATA
In
thousands
|
|
|
September 28,
2014
|
|
|
(Unaudited)
|
March 30,
2014
|
Cash and cash
equivalents
|
$
2,203
|
$
560
|
Accounts receivable,
net of allowances
|
18,944
|
21,712
|
Inventories
|
19,055
|
13,607
|
Total current
assets
|
42,324
|
38,069
|
Finite-lived
intangible assets - net
|
4,871
|
5,248
|
Goodwill
|
1,126
|
1,126
|
Total
assets
|
$
50,196
|
$
46,215
|
|
|
|
Total current
liabilities
|
13,546
|
10,298
|
|
|
|
Shareholders'
equity
|
36,650
|
35,917
|
Total liabilities and
shareholders' equity
|
$
50,196
|
$
46,215
|
SOURCE Crown Crafts, Inc.