Crown Crafts Reports Results for Fiscal 2016 Fourth Quarter and Full Year
June 09 2016 - 6:45AM
Crown Crafts, Inc. (NASDAQ:CRWS) (the “Company”) today reported
results for the fiscal 2016 fourth quarter and full year ended
April 3, 2016.
“We are very proud of our strong and consistent
performance, as net income and gross profit increased in fiscal
2016. While we continue to manage our business in a
conservative and responsible manner, we also work aggressively to
maintain our strong market position by understanding our customers’
needs and offering a broad range of highly popular products.
Thanks to the hard work of our loyal employees and their
dedication to our successful business strategy, we continue to
generate long-term value for our stockholders,” said E. Randall
Chestnut, Chairman, President and Chief Executive Officer.
Financial Results
Net income for the fourth quarter of fiscal 2016
was $2.2 million, or $0.22 per diluted share, on net sales of $25.1
million, compared with net income of $2.1 million, or $0.21 per
diluted share, on net sales of $26.1 million for the fourth quarter
of fiscal 2015. Gross profit for the quarter was 28.2% of net
sales, compared with 26.0% for the prior-year period.
Net income for the full year of fiscal 2016 was
$6.8 million, or $0.68 per diluted share, on net sales of $84.3
million, compared with net income of $5.7 million, or $0.57 per
diluted share, on net sales of $86.0 million for fiscal 2015.
Gross profit for fiscal 2016 was 28.2% of net sales, compared with
27.4% for the prior-year period.
Net income for fiscal 2016 was favorably
affected by $260,000, or $0.03 per diluted share, due to a change
in the Company’s calculation of the state portion of its income tax
provision. Net income for fiscal 2015 was adversely impacted
by $380,000 in legal fees ($237,000 net of income taxes) and an
after-tax charge of $530,000 associated with a lawsuit that was
settled in fiscal 2015.
Quarterly Cash Dividend
As announced on May 17, 2016, the 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
July 8, 2016 to stockholders of record at the close of business on
June 17, 2016. “Our business continues to generate strong
cash flow, and we are pleased to be able to reward our stockholders
for their ongoing support of Crown Crafts,” Chestnut said.
Conference Call
The Company will host a teleconference today at
1:00 p.m. Central Daylight 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 (844) 861-5504 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 Daylight Time on June 16, 2016. To access the replay,
dial (877) 344-7529 in the United States or (412) 317-0088 from
international locations and refer to conference number
10085539.
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.
|
CROWN CRAFTS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOMESELECTED FINANCIAL DATAIn thousands, except percentages and
per share data |
|
|
|
Quarter Ended |
|
Fiscal Year Ended |
|
|
April 3, 2016 |
March 29, 2015 |
|
April 3, 2016 |
March 29, 2015 |
Net sales |
|
$ |
25,077 |
|
$ |
26,090 |
|
|
$ |
84,342 |
|
$ |
85,978 |
|
Gross profit |
|
|
7,074 |
|
|
6,794 |
|
|
|
23,813 |
|
|
23,550 |
|
Gross profit
percentage |
|
|
28.2 |
% |
|
26.0 |
% |
|
|
28.2 |
% |
|
27.4 |
% |
Income from
operations |
|
|
3,585 |
|
|
3,489 |
|
|
|
10,788 |
|
|
9,220 |
|
Income before income tax
expense |
|
|
3,604 |
|
|
3,470 |
|
|
|
10,744 |
|
|
9,160 |
|
Income tax expense |
|
|
1,410 |
|
|
1,331 |
|
|
|
3,915 |
|
|
3,442 |
|
Net income |
|
|
2,194 |
|
|
2,139 |
|
|
|
6,829 |
|
|
5,718 |
|
Basic earnings per
share |
|
$ |
0.22 |
|
$ |
0.21 |
|
|
$ |
0.68 |
|
$ |
0.57 |
|
Diluted earnings per
share |
|
$ |
0.22 |
|
$ |
0.21 |
|
|
$ |
0.68 |
|
$ |
0.57 |
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
Basic |
|
|
9,998 |
|
|
10,065 |
|
|
|
10,017 |
|
|
10,047 |
|
Diluted |
|
|
10,022 |
|
|
10,100 |
|
|
|
10,038 |
|
|
10,080 |
|
CONSOLIDATED BALANCE SHEETSSELECTED FINANCIAL DATAIn
thousands |
|
|
|
|
April 3, 2016 |
|
|
March 29, 2015 |
|
Cash and cash
equivalents |
|
$ |
7,574 |
|
$ |
1,807 |
|
Accounts receivable, net
of allowances |
|
|
20,796 |
|
|
22,370 |
|
Inventories |
|
|
14,785 |
|
|
15,468 |
|
Total current assets |
|
|
45,732 |
|
|
42,519 |
|
Finite-lived intangible
assets - net |
|
|
3,882 |
|
|
4,507 |
|
Goodwill |
|
|
1,126 |
|
|
1,126 |
|
Total assets |
|
$ |
52,415 |
|
$ |
49,946 |
|
|
|
|
|
Total current
liabilities |
|
|
12,185 |
|
|
10,374 |
|
|
|
|
|
Shareholders’ equity |
|
|
40,019 |
|
|
39,572 |
|
Total liabilities and
shareholders’ equity |
|
$ |
52,415 |
|
$ |
49,946 |
|
Contact:
Olivia W. Elliott
Vice President and Chief Financial Officer
(225) 647-9124
oelliott@crowncrafts.com
or
Halliburton Investor Relations
(972) 458-8000
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