Crown Crafts Reports Fiscal 2021 First Quarter Results
August 12 2020 - 6:45AM
Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported
results for the first quarter of fiscal year 2021, which ended June
28, 2020.
“We are very pleased to begin our 2021 fiscal
year with a strong performance in all metrics,” said E. Randall
Chestnut, Chairman, President and Chief Executive Officer. “In
spite of the ongoing pandemic impacting the economy, consumer
demand for the Company’s products remained strong, and we continue
to control our costs,” Chestnut continued.
Financial Results
Net income for the first quarter of fiscal 2021
was $1.2 million, or $0.12 per diluted share, on net sales of $16.2
million, compared with net income of $1.1 million, or $0.11 per
diluted share, on net sales of $15.9 million for the first quarter
of fiscal 2020. Prior year net income was impacted favorably
by $292,000, or $0.03 per diluted share, due to a reversal of a
portion of reserves for unrecognized tax benefits and the related
interest and penalties that had been previously accrued.
Gross profit for the current year quarter increased to 31.0% of net
sales from 28.5% of net sales in the prior year quarter.
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 2, 2020 to stockholders of record at the close of business
on September 11, 2020. “Due to our strong performance and
financial position, the Board has decided to resume the payment of
dividends as an appropriate return of value to our stockholders,”
Chestnut said.
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 Standard Time on November 13, 2020. To access the
replay, dial (877) 344-7529 in the United States or (412) 317-0088
from international locations and refer to conference number
10146364.
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 three wholly owned subsidiaries,
NoJo Baby & Kids, Inc., Sassy Baby, Inc. and Carousel Designs,
LLC, 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, as well as directly to consumers
through www.babybedding.com. 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, the
impact of the COVID-19 pandemic on the Company’s business
operations, 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: |
|
Olivia W. ElliottVice President and Chief Financial Officer(225)
647-9124oelliott@crowncrafts.com |
|
|
|
CROWN CRAFTS, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF INCOMESELECTED FINANCIAL DATAIn thousands, except
percentages and per share data
|
|
|
|
Three-Month
Periods Ended |
|
June 28,
2020 |
June 30,
2019 |
Net sales |
$ |
16,205 |
|
$ |
15,942 |
|
Gross
profit |
|
5,023 |
|
|
4,551 |
|
Gross profit
percentage |
|
31.0 |
% |
|
28.5 |
% |
Income from
operations |
|
1,643 |
|
|
1,099 |
|
Income
before income tax expense |
|
1,640 |
|
|
1,136 |
|
Income tax
expense |
|
425 |
|
|
57 |
|
Net
income |
|
1,215 |
|
|
1,079 |
|
Basic
earnings per share |
$ |
0.12 |
|
$ |
0.11 |
|
Diluted
earnings per share |
$ |
0.12 |
|
$ |
0.11 |
|
|
|
|
Weighted
Average Shares Outstanding: |
|
|
Basic |
|
10,171 |
|
|
10,119 |
|
Diluted |
|
10,171 |
|
|
10,119 |
|
|
|
|
CONSOLIDATED BALANCE SHEETSSELECTED FINANCIAL
DATAIn thousands
|
June 28,
2020 |
|
|
|
|
|
(Unaudited) |
|
March 29,
2020 |
|
Cash and cash equivalents |
$ |
6,710 |
|
$ |
282 |
|
Accounts
receivable, net of allowances |
|
15,072 |
|
|
17,803 |
|
Inventories |
|
17,330 |
|
|
17,732 |
|
Total
current assets |
|
40,153 |
|
|
37,041 |
|
Operating
lease right of use assets |
|
4,465 |
|
|
4,896 |
|
Finite-lived
intangible assets - net |
|
5,368 |
|
|
5,577 |
|
Goodwill |
|
7,125 |
|
|
7,125 |
|
Total
assets |
$ |
59,700 |
|
$ |
57,173 |
|
|
|
|
Total
current liabilities |
|
9,335 |
|
|
6,479 |
|
Long-term
debt |
|
1,227 |
|
|
2,578 |
|
Operating
lease liabilities, noncurrent |
|
4,650 |
|
|
4,959 |
|
|
|
|
Shareholders’ equity |
|
43,737 |
|
|
42,436 |
|
Total
liabilities and shareholders’ equity |
$ |
59,700 |
|
$ |
57,173 |
|
|
|
|
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