GONZALES, La., Feb. 13 /PRNewswire-FirstCall/ -- Crown Crafts, Inc.
(the "Company") (NASDAQ:CRWS) today reported net income for the
third quarter of fiscal year 2008 of $1.2 million, or $0.12 per
diluted share, on net sales of $18.4 million compared to net income
for the third quarter of fiscal year 2007 of $0.6 million, or $0.06
per diluted share, on net sales of $15.4 million. Net income for
the third quarter of fiscal year 2007 included a $0.4 million
charge related to the closure of Churchill Weavers, a wholly-owned
subsidiary of the Company. "We are very pleased with our net sales
increase of 19.9% quarter over quarter. We are also very pleased
that our pre-tax net income from continuing operations increased
34.4% from $1.4 million in the third quarter of the prior year to
$1.9 million in the same period of the current year. Our gross
profit increased $0.7 million quarter over quarter, but gross
profit would have increased by an additional $0.2 million or 1.2%
as a percentage of net sales without the effect of the deferred
overhead burden. Our earnings before interest, taxes, depreciation
and amortization (EBITDA) was $2.5 million as compared to $1.1
million in the same quarter last year," commented E. Randall
Chestnut, Chairman, President and Chief Executive Officer of the
Company. "We completed the acquisition of the Springs Baby products
line on November 5, 2007 and shipped Springs products for only half
of November and the month of December. The Company is off to a very
strong start with the integration of Springs Baby and anticipates
being out of the warehouse facility leased by Springs by the end of
March, which will further reduce our operating costs. We are happy
to have purchased Springs Baby for 2.5 times the anticipated
incremental EBITDA contribution. The Company paid $11 million for
the baby products line and anticipates $4.4 million of annual
EBITDA to be generated after the six-month shared services
arrangement with Springs is over. We hired none of the employees
from Springs, and to date we have added seven people to our staff
to service the new business. After the consolidation of the
warehouse, we anticipate that the number of new personnel hired
will increase to eighteen," Mr. Chestnut concluded. During the
third quarter of fiscal year 2008, the Company repurchased 140,353
shares of common stock for approximately $519,000 including broker
fees at an average price per share, excluding fees, of $3.67.
Year-to-date the Company has repurchased 225,208 shares, or 2.2% of
its outstanding common stock, for approximately $854,000 including
broker fees at an average price per share, excluding fees, of
$3.76. The Company will host a teleconference today at 1:00 p.m.
Central Standard Time to discuss the Company's results and answer
appropriate questions. Interested individuals may join the
teleconference by dialing (888) 400-7916. Please refer to
confirmation number 909011. The teleconference can also be accessed
in listen-only mode by visiting the Company's website at
http://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 from 2:30
p.m. Central Standard Time on February 13, 2008 through 11:59 p.m.
Central Standard Time on February 20, 2008. To access the replay,
dial (800) 475-6701 in the United States or (320) 365-3844 from
international locations. The access code for the replay is 909011.
Crown Crafts, Inc. designs, markets and distributes infant, toddler
and juvenile consumer products, including bedding, blankets, bibs,
bath items and accessories. Its operating subsidiaries include
Hamco, Inc. in Louisiana and Crown Crafts Infant Products, Inc. in
California. Crown Crafts is America's largest distributor 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. This release 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
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
SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME SELECTED FINANCIAL
DATA In thousands, except per share data Three Months Ended Nine
Months Ended December 30, December 31, December 30, December 31,
2007 2006 2007 2006 Net sales $18,431 $15,368 $50,902 $52,041 Gross
profit 4,578 3,864 12,847 14,010 Gross margin 24.8% 25.1% 25.2%
26.9% Income from operations 1,994 1,628 4,887 7,123 Gain on debt
refinancing - - - 4,069 Income before income taxes 1,928 1,435
4,566 10,150 Income tax expense 692 451 1,705 2,758 Income from
continuing operations after income taxes 1,236 984 2,861 7,392 Loss
from discontinued operations - net of income taxes (12) (370) (110)
(513) Net income 1,224 614 2,751 6,879 Basic income per share .12
.06 .28 .71 Diluted income per share .12 .06 .27 .69 Weighted
Average Shares Outstanding: Basic 9,903 9,953 9,966 9,716 Diluted
10,176 10,269 10,248 9,973 CONSOLIDATED BALANCE SHEETS SELECTED
FINANCIAL DATA In thousands December 30, April 1, 2007 2007 Cash
and cash equivalents $1 $33 Accounts receivable, net of allowances
14,838 12,885 Inventories 16,473 7,145 Total current assets 35,028
23,784 Goodwill 22,884 22,884 Intangible assets, net 7,712 617
Total assets 66,456 48,916 Current maturities of long-term debt
2,508 19 Total current liabilities 13,753 5,615 Long-term debt
12,813 5,780 Total non-current liabilities 13,511 6,478
Shareholders' equity 39,192 36,823 Total liabilities and
shareholders' equity 66,456 48,916 Crown Crafts, Inc. and
Subsidiaries Non-GAAP Reconciliation - EBITDA (In thousands)
Unaudited Three Months Ended December 30, December 31, 2007 2006
Net Income $1,224 $614 Interest expense 244 195 Interest income (9)
0 Taxes 687 194 Depreciation 88 111 Amortization 303 6 EBITDA
$2,537 $1,120 Earnings before interest, income taxes, depreciation
and amortization (EBITDA) is a measure that management uses to
monitor the Company's operating and cash flow performance. In
calculating EBITDA, the Company excludes interest, taxes,
depreciation and amortization. This non-GAAP financial measure is
provided as supplemental information and should not be considered
as a substitute for net income, as an indicator of the Company's
operating performance, or for cash flow, as a measure of the
Company's liquidity. Springs Baby Products Line Non-GAAP
Reconciliation - EBITDA (In thousands) Unaudited Annual Incremental
Pre-tax net income $3,500 Interest expense 900 Depreciation 0
Amortization 0 EBITDA $4,400 The above reconciliation reflects the
annual incremental EBITDA anticipated to be contributed by the
Springs Baby products line after the six-month shared services
arrangement between the Company and Springs has terminated.
DATASOURCE: Crown Crafts, Inc. CONTACT: Crown Crafts, Inc. Investor
Relations Department, +1-225-647-9146; or Halliburton Investor
Relations, +1-972-458-8000, for Crown Crafts, Inc. Web site:
http://www.crowncrafts.com/
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