GONZALES, La., Aug. 14, 2013 /PRNewswire/ -- Crown Crafts,
Inc. (the "Company") (NASDAQ-CM: CRWS) today reported results for
the fiscal 2014 first quarter, which ended June 30, 2013.
Net income for the first quarter of fiscal 2014 was $822,000, or $0.08
per diluted share, on net sales of $16.6
million, compared with net income for the first quarter of
fiscal 2013 of $897,000, or
$0.09 per diluted share, on net sales
of $17.5 million. Gross margin
improved to 27.1% of sales for the quarter, compared with 25.4% for
the prior-year period. Net income was negatively impacted by
a pre-tax increase of $172,000
($108,000 after-tax) in legal fees
related to the Company's defense of a patent infringement lawsuit
filed in Minnesota and a class
action complaint filed in California, both of which the Company believes
to be without merit and is defending vigorously.
"Net sales continued to be impacted by the challenging retail
environment and a lower birth rate," said E. Randall Chestnut, Chairman, President and
Chief Executive Officer of the Company. "The first quarter is
traditionally our weakest; however, we are seeing positive momentum
as we begin the second quarter, largely driven by three new
programs that are set to roll out. This reflects the success
of our efforts to continually strengthen our offerings with
innovative and popular new product lines."
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 October 4, 2013, to shareholders
of record at the close of business on September 13, 2013. "The Board is pleased
that our continued strong cash flow and financial strength have
allowed us to reward our shareholders with significant returns on a
consistent basis, as this is our 15th consecutive
quarterly dividend," said Chestnut. "Our financial position remains
strong, and we ended the quarter debt-free with $2.9 million in cash on hand."
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 (877) 317-6789 and refer to conference
number 10032330. 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 from
one hour after the end of the call through 8:00 a.m. Central Daylight Time on August 22, 2013. To access the replay, dial
(877) 344-7529 in the United
States or (412) 317-0088 from international locations and
refer to conference number 10032330.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant,
toddler and juvenile consumer products, including crib and toddler
bedding; blankets; nursery accessories; room decor; burp cloths;
bathing accessories; reusable and disposable bibs; and disposable
placemats, floor mats, toilet seat covers and changing mats.
The Company's operating subsidiaries include Crown Crafts
Infant Products, Inc. in California and Hamco, Inc. in Louisiana.
Crown Crafts is among America's largest producers 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. The Company's website
is 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 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
(225) 647-9124
oelliott@crowncrafts.com
or
Halliburton Investor Relations
(972) 458-8000
CROWN CRAFTS, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME
|
SELECTED FINANCIAL
DATA
|
In thousands, except
percentages and per share data
|
(Unaudited)
|
|
|
|
Three-Month
Periods Ended
|
|
|
June 30,
2013
|
July 1,
2012
|
Net sales
|
|
$
16,613
|
$
17,453
|
Gross
profit
|
|
4,494
|
4,425
|
Gross profit
percentage
|
|
27.1%
|
25.4%
|
Income from
operations
|
|
1,324
|
1,440
|
Income before income
tax expense
|
|
1,309
|
1,428
|
Income tax
expense
|
|
487
|
531
|
Net income
|
|
822
|
897
|
Basic earnings per
share
|
|
$
0.08
|
$
0.09
|
Diluted earnings per
share
|
|
$
0.08
|
$
0.09
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
Basic
|
|
9,828
|
9,725
|
Diluted
|
|
9,840
|
9,802
|
CONSOLIDATED BALANCE
SHEETS
|
SELECTED FINANCIAL
DATA
|
In
thousands
|
|
|
|
June 30,
2013
|
March 31,
2013
|
Cash and cash
equivalents
|
|
$
2,890
|
$
340
|
Accounts receivable,
net of allowances
|
|
14,896
|
21,724
|
Inventories
|
|
15,117
|
10,930
|
Total current
assets
|
|
35,071
|
35,227
|
Finite-lived
intangible assets - net
|
|
5,823
|
5,990
|
Goodwill
|
|
1,126
|
1,126
|
Total
assets
|
|
$
43,773
|
$
44,163
|
|
|
|
|
Total current
liabilities
|
|
10,789
|
11,351
|
|
|
|
|
Shareholders'
equity
|
|
32,984
|
32,812
|
Total liabilities and
shareholders' equity
|
|
$
43,773
|
$
44,163
|
SOURCE Crown Crafts, Inc.