Crown Crafts Reports Fiscal 2020 First Quarter Results
August 14 2019 - 6:45AM
Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported
results for the first quarter of fiscal year 2020, which ended June
30, 2019.
“We are very encouraged by our strong start to
the new fiscal year, and proud of the results we achieved in what
historically has been our weakest quarter of the year. We are very
pleased to report increases in sales, gross margin, earnings per
share and cash on the balance sheet,” said E. Randall Chestnut,
Chairman, President and Chief Executive Officer. “In light of the
previous years’ challenges, this quarter’s results indicate
continued progress on our growth initiatives as well as our
enduring operational strength and discipline,” Chestnut
continued.
Financial Results
Net income for the first quarter of fiscal 2020
was $1.1 million, or $0.11 per diluted share, on net sales of $15.9
million, compared with net income of $264,000, or $0.03 per diluted
share, on net sales of $15.5 million for the first quarter of
fiscal 2019. Current year net income was impacted favorably
by $292,000, or $0.03 per diluted share, due to a reversal of a
portion of reserves for unrecognized tax benefits and the related
interest and penalties that had been previously accrued.
Gross profit for the current year quarter increased to 28.5% of net
sales from 26.7% of net sales in the prior year quarter.
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
October 4, 2019 to stockholders of record at the close of business
on September 13, 2019. “We are very pleased to once again
reward our stockholders with a quarterly dividend payment. This
payment reflects the Company’s financial health and our positive
outlook for the future,” 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 4:00 p.m.
Central Daylight Time on August 21, 2019. To access the
replay, dial (877) 344-7529 in the United States or (412) 317-0088
from international locations and refer to conference number
10133064.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and
distributes infant, toddler and juvenile consumer products.
Founded in 1957, Crown Crafts is one of America’s largest producers
of infant bedding, toddler bedding, bibs and developmental toys.
The Company operates through its three wholly owned subsidiaries,
NoJo Baby & Kids, Inc., Sassy Baby, Inc. and Carousel Designs,
LLC, which market a variety of infant, toddler and juvenile
products under Company-owned trademarks, as well as licensed
collections and exclusive private label programs. Sales are made
directly to retailers such as mass merchants, large chain stores
and juvenile specialty stores, as well as directly to consumers
through www.babybedding.com. For more information, visit the
Company’s website at www.crowncrafts.com.
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
Company’s ability to successfully integrate newly acquired
businesses, 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.
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Contact: |
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Olivia W. Elliott |
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Vice President and Chief Financial Officer |
or |
Halliburton Investor Relations |
(225) 647-9124 |
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(972) 458-8000 |
oelliott@crowncrafts.com |
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CROWN CRAFTS, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
SELECTED FINANCIAL DATA |
In thousands, except percentages and per share data |
|
|
|
|
Three-Month Periods Ended |
|
June 30, 2019 |
July 1, 2018 |
|
(Unaudited) |
Net sales |
$ |
15,942 |
|
$ |
15,460 |
|
Gross profit |
|
4,551 |
|
|
4,128 |
|
Gross profit percentage |
|
28.5% |
|
|
26.7% |
|
Income from operations |
|
1,099 |
|
|
443 |
|
Income before income tax
expense |
|
1,136 |
|
|
344 |
|
Income tax expense |
|
57 |
|
|
80 |
|
Net income |
|
1,079 |
|
|
264 |
|
Basic earnings per share |
$ |
0.11 |
|
$ |
0.03 |
|
Diluted earnings per share |
$ |
0.11 |
|
$ |
0.03 |
|
|
|
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Weighted Average Shares
Outstanding: |
|
|
Basic |
|
10,119 |
|
|
10,070 |
|
Diluted |
|
10,119 |
|
|
10,072 |
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CONSOLIDATED BALANCE SHEETS |
SELECTED FINANCIAL DATA |
In thousands |
|
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|
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June 30, 2019 |
|
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(Unaudited) |
March 31, 2019 |
Cash and cash equivalents |
$ |
3,467 |
|
$ |
143 |
|
Accounts receivable, net of
allowances |
|
12,471 |
|
|
17,772 |
|
Inventories |
|
20,449 |
|
|
19,534 |
|
Total current assets |
|
37,523 |
|
|
38,679 |
|
Operating lease right of use
assets |
|
1,600 |
|
|
- |
|
Finite-lived intangible assets -
net |
|
6,218 |
|
|
6,432 |
|
Goodwill |
|
7,125 |
|
|
7,125 |
|
Total assets |
$ |
54,995 |
|
$ |
54,779 |
|
|
|
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Operating lease liabilities,
current |
|
933 |
|
|
- |
|
Total current liabilities |
|
11,622 |
|
|
7,711 |
|
Long-term debt |
|
- |
|
|
4,486 |
|
Operating lease liabilities,
noncurrent |
|
747 |
|
|
- |
|
|
|
|
Shareholders’ equity |
|
41,705 |
|
|
41,388 |
|
Total liabilities and
shareholders’ equity |
$ |
54,995 |
|
$ |
54,779 |
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