Crown Crafts, Inc. Reports Results for First Quarter of Fiscal Year 2010
August 12 2009 - 7:00AM
PR Newswire (US)
GONZALES, La., Aug. 12 /PRNewswire-FirstCall/ -- Crown Crafts, Inc.
(the "Company") (NASDAQ:CRWS) today reported net income for the
first quarter of fiscal year 2010, which ended June 28, 2009. Net
income for the quarter was $538,000, or $0.06 per diluted share, on
net sales of $17.7 million, compared to net income for the first
quarter of fiscal year 2009 of $619,000, or $0.06 per diluted
share, on net sales of $19.8 million. "We are very pleased to
report positive results for the first quarter, which has
traditionally been one of the weakest quarters of each fiscal
year," commented E. Randall Chestnut, Chairman, President and Chief
Executive Officer of the Company. "However, we are disappointed
with the decreased sales volume in the current year as compared to
the prior year. We have experienced a reduced order flow and a
shift in sales as retailers have addressed the effect of the
economic downturn by reducing their inventory levels and altering
their buying patterns. We expect that our strong operating cash
flow will keep us in an excellent competitive position to manage
through this difficult economic situation and subsequently benefit
during the recovery period. The Company's EBITDA (earnings before
interest, taxes, depreciation and amortization) for the first
quarter of fiscal year 2010 was $1.6 million, as compared to $1.8
million for the first quarter of the prior year," Mr. Chestnut
continued. Conference Call The Company will host a teleconference
today at 1:00 p.m. Central Daylight Time to discuss the Company's
results and answer appropriate questions. Interested individuals
may join the teleconference by dialing (800) 230-1074. Please refer
to confirmation number 108976. 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 Daylight Time on August 12, 2009 through 11:59 p.m.
Central Daylight Time on August 19, 2009. 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 108976.
About Crown Crafts, Inc. Crown Crafts, Inc. designs, markets and
distributes infant and toddler consumer products, including
bedding, blankets, bibs, bath items and the recently-acquired
portfolio of the mess protection products of Neat Solutions. 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. Forward-Looking Statements 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
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.
CROWN CRAFTS, INC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
INCOME SELECTED FINANCIAL DATA In thousands, except percentages and
per share data (Unaudited) Three Months Ended
---------------------------- June 28, 2009 June 29, 2008
------------- ------------- Net sales $17,735 $19,755 Gross profit
3,975 4,238 Gross profit percentage 22.4% 21.5% Income from
operations 1,089 1,332 Income from continuing operations before
income taxes 899 1,017 Income tax expense 340 392 Income from
continuing operations after income taxes 559 625 Loss from
discontinued operations - net of income taxes (21) (6) Net income
538 619 Basic earnings per share $0.06 $0.07 Diluted earnings per
share $0.06 $0.06 Weighted Average Shares Outstanding: Basic 9,209
9,415 Diluted 9,379 9,677 CONSOLIDATED BALANCE SHEETS SELECTED
FINANCIAL DATA In thousands June 28, 2009 (Unaudited) March 29,
2009 ----------- -------------- Cash and cash equivalents $14,883
$15,249 Accounts receivable, net of allowances 13,539 18,954
Inventories 16,289 11,751 Total current assets 47,594 48,495
Intangible assets, net 5,081 5,515 Total assets $55,339 $56,527
Current maturities of long-term debt $1,042 $1,667 Total current
liabilities 12,494 10,548 Long-term debt 19,718 23,568
Shareholders' equity 23,127 22,411 Total liabilities and
shareholders' equity $55,339 $56,527 CROWN CRAFTS, INC AND
SUBSIDIARIES NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA In
thousands, except percentages (Unaudited) Three Months Ended
---------------------------- June 28, 2009 June 29, 2008
------------- ------------- Net income $538 $619 Interest expense
196 327 Interest income (7) (54) Income tax expense on continuing
operations 340 392 Income tax benefit on discontinued operations
(11) (3) Depreciation 73 88 Amortization 434 434
---------------------------- EBITDA 1,563 1,803
---------------------------- Net Sales 17,735 19,755
---------------------------- EBITDA as a percentage of net sales
8.8% 9.1% ============================ In addition to the Company's
presentation of its results of operations in conformity with
accounting principles generally accepted in the United States of
America ("GAAP"), the Company is also presenting EBITDA, which is a
measure of the Company's performance that is not determined in
accordance with GAAP. The Company uses EBITDA as an internal
measure to monitor the Company's operating results and cash flow
and to evaluate the performance of its businesses. The Company
believes that the presentation of EBITDA provides useful
information to readers and is an important indicator of the
Company's ability to generate cash sufficient to reduce debt, make
strategic investments, meet capital expenditures and working
capital requirements and otherwise meet its obligations as they
become due. The items excluded from EBITDA are significant
components in understanding and assessing the Company's financial
performance. EBITDA is provided as supplemental information and
should be considered in addition to, and not as a substitute for,
such GAAP measures as net income, cash flow provided by or used in
operating, investing or financing activities, and other measures of
financial performance and liquidity reported in accordance with
GAAP. Because EBITDA is not a measure determined in accordance with
GAAP, companies are free to calculate it in varying ways.
Therefore, EBITDA, as presented by the Company, may not be
comparable to similarly titled measures of other companies.
DATASOURCE: Crown Crafts CONTACT: Investor Relations Department of
Crown Crafts, +1-225-647-9146; or Halliburton Investor Relations,
+1-972-458-8000, for Crown Crafts Web Site:
http://www.crowncrafts.com/
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