Crown Crafts Reports Fiscal 2016 Third Quarter Results
February 09 2016 - 5:45AM
Crown Crafts, Inc. (NASDAQ:CRWS) (the “Company”) today reported
results for the fiscal 2016 third quarter, which ended December 27,
2015.
“While our business remains strong, this year’s
third quarter presented several challenges. Retail sales are
typically slower for our product categories during the holidays
when retailers shift their focus more toward seasonal goods.
This year, we experienced lower than typical replenishment orders
due to softer retail sales, as some retailers adjusted their weekly
supply of on-hand inventory downward. Additionally, during
last year’s third quarter, we had initial shipments of products
gained when a competitor exited the business. As expected, we were
not able to anniversary these initial shipments in the current
year,” said E. Randall Chestnut, Chairman, President and Chief
Executive Officer.
Financial Results
Net income for the third quarter of fiscal 2016
was $2.1 million, or $0.21 per diluted share, on net sales of $20.7
million, compared with net income of $2.0 million, or $0.20 per
diluted share, on net sales of $23.7 million for the third quarter
of fiscal 2015. Gross margin for the quarter was 30.2% of net
sales, compared with 27.9% for the prior-year period.
For the nine-month period, net income was $4.6
million, or $0.46 per diluted share, on net sales of $59.3 million,
compared with net income of $3.6 million, or $0.36 per diluted
share, on net sales of $59.9 million for the first nine months of
fiscal 2015. Gross margin for the nine-month period was 28.2%
of net sales, compared with 28.0% for the prior-year period.
Net income for both the quarter and year-to-date
periods in the current year was favorably affected by $315,000, or
$0.03 per diluted share, due to a change in the Company’s
calculation of the state portion of its income tax provision.
Last year’s year-to-date net income was adversely impacted by
$369,000 in legal fees ($230,000 net of income taxes) and an
after-tax payment of $530,000 associated with a lawsuit that was
settled in fiscal 2015.
Board Declares Special and Quarterly
Dividends
The Company also announced that its Board of
Directors declared a special cash dividend on the Company’s Series
A common stock of $0.25 per share, along with a quarterly cash
dividend of $0.08 per share. Both dividends will be paid on April
8, 2016 to shareholders of record at the close of business on March
18, 2016. “Our consistently strong cash flow and cash
balances have enabled us to further reward our shareholders with
this special dividend, in addition to a quarterly dividend.
We remain committed to managing our business to maximize our
returns to shareholders for the long term,” Chestnut said.
Conference Call
The Company will host a teleconference today at
1:00 p.m. Central Standard 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 8:00 a.m.
Central Standard Time on February 16, 2016. To access the
replay, dial (877) 344-7529 in the United States or (412) 317-0088
from international locations and refer to conference number
10078612.
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 décor; burp cloths; bathing accessories; reusable and
disposable bibs; and disposable placemats, floor mats, toilet seat
covers and changing mats. The Company’s operating
subsidiaries consist of 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.
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 |
|
Nine-Month Periods Ended |
|
|
|
December 27, 2015 |
December 28, 2014 |
|
December 27, 2015 |
December 28, 2014 |
|
Net sales |
|
$ |
20,691 |
|
$ |
23,743 |
|
|
$ |
59,265 |
|
$ |
59,888 |
|
|
Gross profit |
|
|
6,252 |
|
|
6,628 |
|
|
|
16,739 |
|
|
16,756 |
|
|
Gross profit
percentage |
|
|
30.2 |
% |
|
27.9 |
% |
|
|
28.2 |
% |
|
28.0 |
% |
|
Income from
operations |
|
|
3,070 |
|
|
3,272 |
|
|
|
7,188 |
|
|
5,731 |
|
|
Income before income tax
expense |
|
|
3,022 |
|
|
3,242 |
|
|
|
7,140 |
|
|
5,690 |
|
|
Income tax expense |
|
|
879 |
|
|
1,196 |
|
|
|
2,505 |
|
|
2,111 |
|
|
Net income |
|
|
2,143 |
|
|
2,046 |
|
|
|
4,635 |
|
|
3,579 |
|
|
Basic earnings per
share |
|
$ |
0.21 |
|
$ |
0.20 |
|
|
$ |
0.46 |
|
$ |
0.36 |
|
|
Diluted earnings per
share |
|
$ |
0.21 |
|
$ |
0.20 |
|
|
$ |
0.46 |
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
9,996 |
|
|
10,072 |
|
|
|
10,024 |
|
|
10,041 |
|
|
Diluted |
|
|
10,038 |
|
|
10,102 |
|
|
|
10,063 |
|
|
10,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
SELECTED FINANCIAL DATA |
In thousands |
|
|
|
|
|
|
|
|
|
|
December 27, 2015 |
|
|
|
|
|
|
|
(Unaudited) |
March 29, 2015 |
|
|
|
|
Cash and cash
equivalents |
|
$ |
7,549 |
|
$ |
1,807 |
|
|
|
|
|
Accounts receivable, net
of allowances |
|
|
18,186 |
|
|
22,370 |
|
|
|
|
|
Inventories |
|
|
17,513 |
|
|
15,468 |
|
|
|
|
|
Total current assets |
|
|
46,963 |
|
|
42,519 |
|
|
|
|
|
Finite-lived intangible
assets - net |
|
|
4,071 |
|
|
4,507 |
|
|
|
|
|
Goodwill |
|
|
1,126 |
|
|
1,126 |
|
|
|
|
|
Total assets |
|
$ |
53,800 |
|
$ |
49,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities |
|
|
12,099 |
|
|
10,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
41,561 |
|
|
39,572 |
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
53,800 |
|
$ |
49,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (NASDAQ:CRWS)
Historical Stock Chart
From Apr 2024 to May 2024
Crown Crafts (NASDAQ:CRWS)
Historical Stock Chart
From May 2023 to May 2024