Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported
results for the fourth quarter and fiscal year 2020, which ended
March 29, 2020.
“We are very proud of our strong financial
results in fiscal year 2020, which included increased gross margin
and net income,” said E. Randall Chestnut, Chairman, President and
Chief Executive Officer. “Because of the conservative way in which
we operate and the hard work and dedication of our employees, we
were able to continue to return long-term value to our
stockholders.”
Financial Results
Net income for the fourth quarter of fiscal 2020
was $1.6 million, or $0.16 per diluted share, on net sales of $20.3
million, compared with net income of $1.4 million, or $0.14 per
diluted share, on net sales of $21.7 million for the fourth quarter
of fiscal 2019. Gross profit for the current-year quarter was
26.3% of net sales, down from 28.6% in the prior-year
quarter.
For the fiscal year, net income was $6.6
million, or $0.65 per diluted share, on net sales of $73.4 million,
compared with net income of $5.0 million, or $0.50 per diluted
share, on net sales of $76.4 million for fiscal 2019. Gross
profit for the current year was 29.4% of net sales, up from 29.2%
in the prior year.
The current year quarter and year-to-date
periods were impacted favorably by $276,000, or $0.03 per diluted
share, and $568,000, or $0.06 per diluted share, respectively, due
to the reversal of a portion of reserves for unrecognized tax
benefits and the related interest and penalties that had been
previously accrued. Current year net income for the
year-to-date period was also impacted favorably by $273,000, or
$0.03 per share, due to the effect of certain tax credits.
Net income for the year-to-date period of the prior year was
unfavorably impacted when the Company incurred $210,000 in pre-tax
expenses to transfer its Sassy-branded inventory from Grand Rapids,
Michigan to the Company’s facility in Compton, California. On an
after-tax basis, these costs negatively affected the year-to-date
period in the prior year by $156,000.
Quarterly Cash Dividend
In light of the uncertainty of the global
effects of COVID-19, the Company’s Board of Directors is not
declaring a dividend with respect to the first quarter (which, if
declared, would have been paid in July 2020). “We are
confident that our stockholders will agree that a temporary
suspension of dividends in order to conserve cash during these
turbulent economic times is in the best interests of the Company
and our stockholders,” 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 June 17, 2020. To
access the replay, dial (877) 344-7529 in the United States or
(412) 317-0088 from international locations and refer to conference
number 10143940.
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.
Contact: |
|
|
|
|
|
Olivia W. Elliott |
|
|
Vice President and Chief Financial Officer |
or |
Halliburton Investor Relations |
(225) 647-9124 |
|
(972) 458-8000 |
oelliott@crowncrafts.com |
|
|
CROWN CRAFTS, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF INCOMESELECTED FINANCIAL DATAIn thousands, except
percentages and per share data
|
|
|
|
|
|
|
Three-Month
Periods Ended |
|
Fiscal Years
Ended |
|
March 29,
2020 |
March 31,
2019 |
|
March 29,
2020 |
March 31,
2019 |
|
(Unaudited) |
|
|
|
Net sales |
$ |
20,307 |
|
$ |
21,717 |
|
|
$ |
73,396 |
|
$ |
76,381 |
|
Gross
profit |
|
5,350 |
|
|
6,212 |
|
|
|
21,590 |
|
|
22,307 |
|
Gross profit
percentage |
|
26.3 |
% |
|
28.6 |
% |
|
|
29.4 |
% |
|
29.2 |
% |
Income from
operations |
|
1,840 |
|
|
1,976 |
|
|
|
7,737 |
|
|
7,113 |
|
Income
before income tax expense |
|
1,873 |
|
|
1,900 |
|
|
|
7,768 |
|
|
6,791 |
|
Income tax
expense |
|
265 |
|
|
508 |
|
|
|
1,207 |
|
|
1,772 |
|
Net
income |
|
1,608 |
|
|
1,392 |
|
|
|
6,561 |
|
|
5,019 |
|
Basic
earnings per share |
$ |
0.16 |
|
$ |
0.14 |
|
|
$ |
0.65 |
|
$ |
0.50 |
|
Diluted
earnings per share |
$ |
0.16 |
|
$ |
0.14 |
|
|
$ |
0.65 |
|
$ |
0.50 |
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding: |
|
|
|
|
|
Basic |
|
10,167 |
|
|
10,117 |
|
|
|
10,149 |
|
|
10,092 |
|
Diluted |
|
10,170 |
|
|
10,119 |
|
|
|
10,150 |
|
|
10,094 |
|
CONSOLIDATED BALANCE SHEETSSELECTED FINANCIAL
DATAIn thousands
|
March 29,
2020 |
March 31,
2019 |
Cash and cash equivalents |
$ |
282 |
$ |
143 |
Accounts
receivable, net of allowances |
|
17,803 |
|
17,772 |
Inventories |
|
17,732 |
|
19,534 |
Total
current assets |
|
37,041 |
|
38,679 |
Operating
lease right of use assets |
|
4,896 |
|
- |
Finite-lived
intangible assets - net |
|
5,577 |
|
6,432 |
Goodwill |
|
7,125 |
|
7,125 |
Total
assets |
$ |
57,173 |
$ |
54,779 |
|
|
|
Total
current liabilities |
|
6,479 |
|
7,711 |
Long-term
debt |
|
2,578 |
|
4,486 |
Operating
lease liabilities, noncurrent |
|
4,959 |
|
- |
|
|
|
Shareholders’ equity |
|
42,436 |
|
41,388 |
Total
liabilities and shareholders’ equity |
$ |
57,173 |
$ |
54,779 |
|
|
|
Crown Crafts (NASDAQ:CRWS)
Historical Stock Chart
From May 2024 to Jun 2024
Crown Crafts (NASDAQ:CRWS)
Historical Stock Chart
From Jun 2023 to Jun 2024