Crown Crafts Announces Financial Results for Second Quarter Fiscal 2024 and Declares Quarterly Dividend
November 15 2023 - 6:34AM
Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported
financial results for the second quarter of fiscal year 2024, which
ended October 1, 2023.
Second Quarter Summary
- Net sales of $24.1 million in the
current quarter, an increase of 28.9% over the prior year
- Gross profit was 27.3% of net sales
in the current quarter, 29.1% in the prior-year quarter
- Net income in the current-year
quarter of $1.8 million, or $0.18 per diluted share, compared with
$2.0 million, or $0.20 per diluted share, in the prior-year
quarter
- Declared quarterly dividend of $0.08 per share of Series A
common stock
“Our increase in net sales for the second
quarter of fiscal 2024 primarily reflects the acquisition of
Manhattan Toy earlier in the year, and organic sales growth across
our categories despite ongoing inflationary pressures limiting
consumer spending options,” said Olivia W. Elliott, President and
Chief Executive Officer of the Company. “We are encouraged by the
reception from buyers for our new toy designs and we believe that
Manhattan Toy is well-positioned for a successful seasonal sales
quarter. Overall, we will continue to focus on delivering
profitable results in a challenging environment and believe we are
positioned to generate greater top and bottom-line growth when
macroeconomic conditions become more favorable.”
Financial Results
Net sales for the second quarter of fiscal 2024
were $24.1 million, compared to $18.7 million in the prior-year
quarter. Gross profit was 27.3% of net sales for the second quarter
of fiscal 2024 versus 29.1% in the second quarter of 2023.
Increased operating lease costs contributed to the decline in the
gross profit percentage. Marketing and administrative expenses for
the second quarter of fiscal 2024 were $4.0 million, compared with
$2.7 million in the prior-year quarter. Second quarter fiscal 2024
net income was $1.8 million, or $0.18 per diluted share, compared
with $2.0 million, or $0.20 per diluted share in the prior-year
quarter.
Net sales for the first six months of fiscal
2024 were $41.3 million, compared with $34.4 million in the
prior-year period. Gross profit was 27.5% of net sales for the
first six months of fiscal 2024, as compared with 30.8% in the
prior-year period. Marketing and administrative expenses for the
first six months of fiscal 2024 were $8.1 million, compared with
$6.1 million in the prior year. Net income for the first six months
of fiscal 2024 was $2.2 million, or $0.21 per diluted share,
compared with $3.5 million, or $0.34 per diluted share, in the
prior-year period.
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
January 5, 2024 to stockholders of record at the close of business
on December 15, 2023.
Conference Call
The Company will host a teleconference today at
8:00 a.m. CST 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 join the Crown Crafts 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. CST on February 15,
2024. To access the replay, dial (877) 344-7529 in the United
States or (412) 317-0088 from international locations and enter
replay access code 3435481.
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, toys and disposable
products. The Company operates through its four wholly owned
subsidiaries, NoJo Baby & Kids, Inc., Sassy Baby, Inc.,
Manhattan Group LLC and Manhattan Toy Europe Limited, 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.
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
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
Investor Relations:
Three Part AdvisorsSteven Hooser, Partner, or John Beisler,
Managing Director(817) 310-8776
CROWN CRAFTS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOMESELECTED FINANCIAL DATAIn thousands, except percentages and
per share amounts(Unaudited) |
|
|
|
|
|
|
|
Three-Month Periods Ended |
|
Six-Month Periods Ended |
|
|
|
October 1, 2023 |
|
|
October 2, 2022 |
|
|
|
October 1, 2023 |
|
|
October 2, 2022 |
|
Net sales |
|
$ |
24,129 |
|
$ |
18,726 |
|
|
$ |
41,252 |
|
$ |
34,436 |
|
Gross profit |
|
|
6,596 |
|
|
5,446 |
|
|
|
11,338 |
|
|
10,599 |
|
Gross profit percentage |
|
|
27.3% |
|
|
29.1% |
|
|
|
27.5% |
|
|
30.8% |
|
Marketing and administrative expenses |
|
|
4,036 |
|
|
2,736 |
|
|
|
8,082 |
|
|
6,149 |
|
Income from operations |
|
|
2,560 |
|
|
2,710 |
|
|
|
3,256 |
|
|
4,450 |
|
Income before income tax expense |
|
|
2,372 |
|
|
2,711 |
|
|
|
2,878 |
|
|
4,611 |
|
Income tax expense |
|
|
550 |
|
|
671 |
|
|
|
690 |
|
|
1,137 |
|
Net income |
|
|
1,822 |
|
|
2,040 |
|
|
|
2,188 |
|
|
3,474 |
|
Basic and diluted earnings per share |
|
$ |
0.18 |
|
$ |
0.20 |
|
|
$ |
0.21 |
|
$ |
0.34 |
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding: |
|
|
|
|
|
|
Basic |
|
|
10,199 |
|
|
10,094 |
|
|
|
10,177 |
|
|
10,085 |
|
Diluted |
|
|
10,201 |
|
|
10,116 |
|
|
|
10,182 |
|
|
10,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETSSELECTED FINANCIAL DATAIn thousands |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
October 1, 2023 |
|
|
April 2, 2023 |
|
Cash and cash equivalents |
|
|
|
|
$ |
1,851 |
|
$ |
1,742 |
|
Accounts receivable, net of allowances |
|
|
|
|
|
20,306 |
|
|
22,808 |
|
Inventories |
|
|
|
|
|
35,257 |
|
|
34,211 |
|
Total current assets |
|
|
|
|
|
58,872 |
|
|
60,375 |
|
Operating lease right of use assets |
|
|
|
|
|
15,733 |
|
|
17,305 |
|
Finite-lived intangible assets - net |
|
|
|
|
|
3,174 |
|
|
3,473 |
|
Goodwill |
|
|
|
|
|
7,875 |
|
|
7,912 |
|
Total assets |
|
|
|
|
$ |
87,682 |
|
$ |
90,972 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
|
|
|
13,755 |
|
|
13,057 |
|
Long-term debt |
|
|
|
|
|
9,808 |
|
|
12,674 |
|
Operating lease liabilities, noncurrent |
|
|
|
|
|
13,306 |
|
|
14,889 |
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
|
|
50,153 |
|
|
49,214 |
|
Total liabilities and shareholders’ equity |
|
|
|
|
$ |
87,682 |
|
$ |
90,972 |
|
|
|
|
|
|
|
|
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