Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported
results for the fourth quarter and fiscal year 2022, which ended
April 3, 2022.
“Our performance in the fourth quarter and full
year of fiscal 2022 was a continuation of the growth we have
experienced over the past two years,” said Olivia Elliott,
President and Chief Executive Officer. “As we begin fiscal 2023,
our Company remains financially strong, and we are excited about
our opportunities for continued profitable growth in the
future.”
Financial Results
Net income for the fourth quarter of fiscal 2022
was $2,435,000, or $0.24 per diluted share, on net sales of $25.7
million, compared with net income of $238,000, or $0.02 per diluted
share, on net sales of $21.8 million for the fourth quarter of
fiscal 2021. Gross profit for the current-year quarter was 25.0% of
net sales, down from 26.7% in the prior-year quarter. The
prior-year quarter included net sales and a net loss of $1.2
million and $1.8 million, respectively, associated with the
Carousel Designs business, which ceased operations in May 2021.
For the fiscal year, net income was $9.9
million, or $0.98 per diluted share, on net sales of $87.4 million,
compared with net income of $6.1 million, or $0.60 per diluted
share, on net sales of $79.2 million for fiscal 2021. Gross profit
for the current year was 26.7% of net sales, down from 30.4% in the
prior year. Current-year net income was impacted favorably by a
pre- and post-tax $1,985,000 gain on extinguishment of debt related
to the forgiveness of the Company’s Paycheck Protection Program
Loan. The current year also included net sales and a net loss of
$644,000 and $1.3 million, respectively, associated with Carousel,
while the prior year included net sales and a net loss of $5.3
million and $2.3 million, respectively, associated with
Carousel.
The results for the fourth quarter and full year
of fiscal 2022 also include an additional week compared with the
fourth quarter and full year of fiscal 2021, as the Company
operated under a 53-week calendar for fiscal 2022.
Quarterly Cash Dividend
As announced on May 17, 2022, 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, 2022 to stockholders of record at the close of business on
June 17, 2022.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 September 8, 2022. To access the
replay, dial (877) 344-7529 in the United States or (412) 317-0088
from international locations and refer to conference number
1046158.
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 two wholly owned subsidiaries, NoJo
Baby & Kids, Inc. and Sassy Baby, Inc., 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. 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:
Craig J. DemarestVice President and
Chief Financial Officer (225) 647-9118cdemarest@crowncrafts.com
CROWN CRAFTS, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF INCOMESELECTED FINANCIAL DATAIn thousands, except
percentages and per share data
|
|
|
|
|
|
|
14-Week |
13-Week |
|
53-Week |
52-Week |
|
Period
Ended |
Period
Ended |
|
Period
Ended |
Period
Ended |
|
April 3,
2022 |
March 28,
2021 |
|
April 3,
2022 |
March 28,
2021 |
Net sales |
$ |
25,686 |
|
$ |
21,824 |
|
|
$ |
87,360 |
|
$ |
79,164 |
|
Gross
profit |
|
6,414 |
|
|
5,827 |
|
|
|
23,308 |
|
|
24,097 |
|
Gross profit
percentage |
|
25.0% |
|
|
26.7% |
|
|
|
26.7% |
|
|
30.4% |
|
Marketing
and administrative expenses |
|
3,378 |
|
|
3,616 |
|
|
|
13,002 |
|
|
14,218 |
|
Loss from
impairment of long-lived assets |
|
- |
|
|
2,234 |
|
|
|
- |
|
|
2,234 |
|
Income
(loss) from operations |
|
3,036 |
|
|
(23) |
|
|
|
10,306 |
|
|
7,645 |
|
Gain on
extinguishment of debt |
|
- |
|
|
- |
|
|
|
1,985 |
|
|
- |
|
Income
before income tax expense |
|
3,037 |
|
|
70 |
|
|
|
12,326 |
|
|
7,723 |
|
Income tax
expense (benefit) |
|
602 |
|
|
(168) |
|
|
|
2,408 |
|
|
1,642 |
|
Net
income |
|
2,435 |
|
|
238 |
|
|
|
9,918 |
|
|
6,081 |
|
Basic
earnings per share |
$ |
0.24 |
|
$ |
0.02 |
|
|
$ |
0.99 |
|
$ |
0.60 |
|
Diluted
earnings per share |
$ |
0.24 |
|
$ |
0.02 |
|
|
$ |
0.98 |
|
$ |
0.60 |
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding: |
|
|
|
|
|
Basic |
|
10,080 |
|
|
9,991 |
|
|
|
10,055 |
|
|
10,144 |
|
Diluted |
|
10,103 |
|
|
10,009 |
|
|
|
10,084 |
|
|
10,150 |
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETSSELECTED FINANCIAL
DATAIn thousands
|
|
|
|
|
April 3, 2022 |
|
|
March 28, 2021 |
|
Cash and cash equivalents |
$ |
1,598 |
|
$ |
613 |
|
Accounts
receivable, net of allowances |
|
23,226 |
|
|
19,338 |
|
Inventories |
|
20,653 |
|
|
20,335 |
|
Total
current assets |
|
46,508 |
|
|
41,470 |
|
Operating
lease right of use assets |
|
2,423 |
|
|
4,068 |
|
Finite-lived
intangible assets - net |
|
2,654 |
|
|
3,163 |
|
Goodwill |
|
7,125 |
|
|
7,125 |
|
Total
assets |
$ |
60,155 |
|
$ |
58,082 |
|
|
|
|
Total
current liabilities |
|
11,786 |
|
|
12,946 |
|
Operating
lease liabilities, noncurrent |
|
809 |
|
|
2,641 |
|
|
|
|
Shareholders' equity |
|
45,801 |
|
|
41,865 |
|
Total
liabilities and shareholders' equity |
$ |
60,155 |
|
$ |
58,082 |
|
|
|
|
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