GONZALES, La., Feb. 11, 2015 /PRNewswire/ -- Crown Crafts,
Inc. (NASDAQ-CM: CRWS) today reported results for the fiscal 2015
third quarter, which ended December 28,
2014.
"We are pleased with our performance for the third quarter. Net
sales and net income improved significantly over the prior year,
and net income as a percentage of net sales was very strong at 8.6%
for the quarter. Our improved performance was a result of our
successful strategy focused on strengthening our product offerings
while maintaining tight control over costs. Our position in the
market is very good," said E. Randall
Chestnut, Chairman, President and Chief Executive
Officer.
Financial Results
Net income for the third quarter of fiscal 2015 was $2.0 million, or $0.20 per diluted share, on net sales of
$23.7 million, compared with net
income of $1.8 million, or
$0.18 per diluted share, on net sales
of $20.6 million for the third
quarter of fiscal 2014. Gross margin was 27.9% of net sales,
compared with 28.9% for the prior-year quarter.
For the nine-month period, net income in the current year was
$3.6 million, or $0.36 per diluted share, on net sales of
$59.9 million, compared with net
income of $3.7 million, or
$0.38 per diluted share, on net sales
of $57.3 million for the first nine
months of fiscal 2014. The gross margin percentage for the
nine-month period of the current year was stable at 28.0% of net
sales, compared with 28.2% for the prior-year period. The
current year nine-month period was impacted by an after-tax
$530,000 charge in the second quarter
related to the settlement of a lawsuit. Excluding that
charge, net income would have been $4.1
million, or $0.41 per diluted
share, for the first nine months of fiscal 2015.
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 April 3, 2015 to stockholders of
record at the close of business on March 13,
2015. "We remain financially strong and continue our
commitment to delivering long-term value to shareholders," 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 February 19, 2015. To access the replay,
dial (877) 344-7529 in the United
States or (412) 317-0088 from international locations and
refer to conference number 10059504.
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 décor; 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.
Use of Non-GAAP Financial Information
In addition to the Company's presentation of its financial
position and results of operations in conformity with accounting
principles generally accepted in the
United States ("GAAP"), the Company has also presented a
measure which is not determined in accordance with GAAP.
Specifically, the Company has disclosed the after-tax impact of a
charge associated with the settlement of a lawsuit (the "Settlement
Charge"), as well as a presentation of what net income and net
income per diluted share would have been if the Settlement Charge
had not been recognized. The Company believes that the
presentation of this information is useful as an important
indicator of the Company's ability to generate cash sufficient to
service its debt, declare and pay dividends, make strategic
investments, meet capital expenditures and working capital
requirements and otherwise meet its obligations as they become due
in future reporting periods. The Settlement Charge is a
significant component in an understanding and assessment of the
Company's results of operations for the nine-month period ended
December 28, 2014. The Company
uses this non-GAAP financial measure internally to monitor the
Company's operating results and to evaluate the performance of its
businesses. This non-GAAP financial measure is provided as
supplemental information and should be considered in addition to,
and not as a substitute for, the Company's GAAP measures, including
its net income and cash flow provided by or used in operating,
investing or financing activities, and other measures of financial
position or results of operations reported in accordance with GAAP.
Because this non-GAAP financial measure is not calculated in
accordance with GAAP, another company could possibly arrive at a
different calculation. Therefore, the non-GAAP financial measure as
presented by the Company may not be comparable to a similar measure
that may be presented by another company.
Contact:
Olivia W. Elliott
Vice President and Chief Financial Officer
(225) 647-9124
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 Period
Ended
|
|
Nine-Month Period
Ended
|
|
|
December 28,
2014
|
December 29,
2013
|
|
December 28,
2014
|
December 29,
2013
|
Net sales
|
|
$
23,743
|
$
20,619
|
|
$
59,888
|
$
57,283
|
Gross
profit
|
|
6,628
|
5,954
|
|
16,756
|
16,175
|
Gross profit
percentage
|
|
27.9%
|
28.9%
|
|
28.0%
|
28.2%
|
Income from
operations
|
|
3,272
|
2,859
|
|
5,731
|
6,028
|
Income before income
tax expense
|
|
3,242
|
2,869
|
|
5,690
|
6,006
|
Income tax
expense
|
|
1,196
|
1,090
|
|
2,111
|
2,263
|
Net income
|
|
2,046
|
1,779
|
|
3,579
|
3,743
|
Basic earnings per
share
|
|
$
0.20
|
$
0.18
|
|
$
0.36
|
$
0.38
|
Diluted earnings per
share
|
|
$
0.20
|
$
0.18
|
|
$
0.36
|
$
0.38
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
|
Basic
|
|
10,072
|
9,859
|
|
10,041
|
9,845
|
Diluted
|
|
10,102
|
9,877
|
|
10,076
|
9,858
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
SELECTED FINANCIAL
DATA
In
thousands
|
|
|
|
|
|
|
December 28,
2014
|
|
|
|
(Unaudited)
|
March 30,
2014
|
Cash and cash
equivalents
|
|
$
485
|
$
560
|
Accounts receivable,
net of allowances
|
|
21,831
|
21,712
|
Inventories
|
|
19,301
|
13,607
|
Total current
assets
|
|
45,501
|
38,069
|
Finite-lived
intangible assets - net
|
|
4,689
|
5,248
|
Goodwill
|
|
1,126
|
1,126
|
Total
assets
|
|
$
53,099
|
$
46,215
|
|
|
|
|
Total current
liabilities
|
|
15,059
|
10,298
|
|
|
|
|
Shareholders'
equity
|
|
38,040
|
35,917
|
Total liabilities and
shareholders' equity
|
|
$
53,099
|
$
46,215
|
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visit:http://www.prnewswire.com/news-releases/crown-crafts-reports-results-for-third-quarter-of-fiscal-2015-300034163.html
SOURCE Crown Crafts, Inc.