Crown Crafts Reports Results for Fiscal 2017 Fourth Quarter and Full Year
June 14 2017 - 5:45AM
Crown Crafts, Inc. (NASDAQ:CRWS) (the “Company”) today reported
results for the fiscal 2017 fourth quarter and full year ended
April 2, 2017.
“In fiscal 2017, our net income and gross profit
remained solid, net income increased to 8.4% of net sales compared
with 8.1% for the prior year, and our cash balance increased from a
year ago, as we continued to manage our business through a period
of difficult market conditions and a soft retail environment,” said
E. Randall Chestnut, Chairman, President and Chief Executive
Officer. “While we are not satisfied with the declines in
sales and net income, which were affected by previously reported
factors, including the credit difficulties of a major customer and
a fiscal 2016 Black Friday event that was not repeated in fiscal
2017, we remain very positive about the Company’s long-term
prospects, due to our consistent market leadership and strong
financial position.”
Financial Results
Net income for the fourth quarter of fiscal 2017
was $1.6 million, or $0.16 per diluted share, on net sales of $17.3
million, compared with net income of $2.2 million, or $0.22 per
diluted share, on net sales of $25.1 million for the fourth quarter
of fiscal 2016. Gross profit for the quarter was 29.9% of net
sales, compared with 28.2% for the prior-year period.
Net income for the full year of fiscal 2017 was
$5.6 million, or $0.55 per diluted share, on net sales of $66.0
million, compared with net income of $6.8 million, or $0.68 per
diluted share, on net sales of $84.3 million for fiscal 2016.
Gross profit for fiscal 2017 was 29.4% of net sales, compared with
28.2% for the prior-year period.
Quarterly Cash Dividend
As announced on May 11, 2017, the 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
July 7, 2017 to stockholders of record at the close of business on
June 16, 2017. “This dividend payment reflects our unwavering
commitment to return consistent value to our stockholders, based on
our continued financial strength and ongoing confidence in our
business. Once this dividend is paid, we will have returned
more than $30.5 million to stockholders since 2010, including $9.7
million in quarterly and special dividends during fiscal 2017
alone,” 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 Daylight Time on June 21, 2017. To access the replay,
dial (877) 344-7529 in the United States or (412) 317-0088 from
international locations and refer to conference number
10106955.
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, toddler bedding and bibs. 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 |
|
|
|
Fiscal Quarter Ended |
|
Fiscal Year Ended |
|
|
|
April 2, 2017 |
April 3, 2016 |
|
April 2, 2017 |
April 3, 2016 |
|
Net sales |
|
$ |
17,308 |
|
$ |
25,077 |
|
|
$ |
65,978 |
|
$ |
84,342 |
|
|
Gross profit |
|
|
5,176 |
|
|
7,074 |
|
|
|
19,411 |
|
|
23,813 |
|
|
Gross profit
percentage |
|
|
29.9 |
% |
|
28.2 |
% |
|
|
29.4 |
% |
|
28.2 |
% |
|
Income from
operations |
|
|
2,641 |
|
|
3,585 |
|
|
|
8,700 |
|
|
10,788 |
|
|
Income before income
tax expense |
|
|
2,660 |
|
|
3,604 |
|
|
|
8,796 |
|
|
10,744 |
|
|
Income tax expense |
|
|
1,051 |
|
|
1,410 |
|
|
|
3,224 |
|
|
3,915 |
|
|
Net income |
|
|
1,609 |
|
|
2,194 |
|
|
|
5,572 |
|
|
6,829 |
|
|
Basic earnings per
share |
|
$ |
0.16 |
|
$ |
0.22 |
|
|
$ |
0.56 |
|
$ |
0.68 |
|
|
Diluted earnings per
share |
|
$ |
0.16 |
|
$ |
0.22 |
|
|
$ |
0.55 |
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
10,033 |
|
|
9,998 |
|
|
|
10,013 |
|
|
10,017 |
|
|
Diluted |
|
|
10,045 |
|
|
10,022 |
|
|
|
10,041 |
|
|
10,038 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS |
SELECTED FINANCIAL DATA |
In thousands |
|
|
|
|
|
|
|
|
|
|
April 2, 2017 |
April 3, 2016 |
|
|
|
|
Cash and cash
equivalents |
|
$ |
7,892 |
|
$ |
7,574 |
|
|
|
|
|
Accounts receivable,
net of allowances |
|
|
15,614 |
|
|
20,796 |
|
|
|
|
|
Inventories |
|
|
15,821 |
|
|
14,785 |
|
|
|
|
|
Total current
assets |
|
|
41,110 |
|
|
45,732 |
|
|
|
|
|
Finite-lived intangible
assets - net |
|
|
3,128 |
|
|
3,882 |
|
|
|
|
|
Goodwill |
|
|
1,126 |
|
|
1,126 |
|
|
|
|
|
Total assets |
|
$ |
47,184 |
|
$ |
52,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities |
|
|
7,573 |
|
|
12,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
38,923 |
|
|
40,019 |
|
|
|
|
|
Total liabilities and
shareholders’ equity |
|
$ |
47,184 |
|
$ |
52,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Olivia W. Elliott
Vice President and Chief Financial Officer
(225) 647-9124
oelliott@crowncrafts.com
or
Halliburton Investor Relations
(972) 458-8000
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