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Crown Crafts Reports Fiscal 2020 First Quarter Results

By GlobeNewswire,  August 14, 2019, 06:45:00 AM EDT


  • Sales up 3.1% for the quarter

  • Gross margin and net income increased for the quarter
  • Cash balance of $3.5 million at the end of the quarter
  • Board declares quarterly dividend

GONZALES, La., Aug. 14, 2019 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM:CRWS) (the "Company") today reported results for the first quarter of fiscal year 2020, which ended June 30, 2019.

"We are very encouraged by our strong start to the new fiscal year, and proud of the results we achieved in what historically has been our weakest quarter of the year. We are very pleased to report increases in sales, gross margin, earnings per share and cash on the balance sheet," said E. Randall Chestnut, Chairman, President and Chief Executive Officer. "In light of the previous years' challenges, this quarter's results indicate continued progress on our growth initiatives as well as our enduring operational strength and discipline," Chestnut continued.

Financial Results

Net income for the first quarter of fiscal 2020 was $1.1 million, or $0.11 per diluted share, on net sales of $15.9 million, compared with net income of $264,000, or $0.03 per diluted share, on net sales of $15.5 million for the first quarter of fiscal 2019.  Current 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 28.5% of net sales from 26.7% 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 4, 2019 to stockholders of record at the close of business on September 13, 2019.  "We are very pleased to once again reward our stockholders with a quarterly dividend payment. This payment reflects the Company's financial health and our positive outlook for the future," 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 August 21, 2019.  To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations and refer to conference number 10133064.

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, 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. Elliott    
Vice President and Chief Financial Officer or Halliburton Investor Relations
(225) 647-9124    (972) 458-8000
oelliott@crowncrafts.com         
     



CROWN CRAFTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
SELECTED FINANCIAL DATA
In thousands, except percentages and per share data
     
  Three-Month Periods Ended
  June 30, 2019 July 1, 2018
  (Unaudited)
Net sales $   15,942   $   15,460  
Gross profit     4,551       4,128  
Gross profit percentage   28.5%     26.7%  
Income from operations     1,099       443  
Income before income tax expense     1,136       344  
Income tax expense     57       80  
Net income     1,079       264  
Basic earnings per share $   0.11   $   0.03  
Diluted earnings per share $   0.11   $   0.03  
     
Weighted Average Shares Outstanding:    
  Basic   10,119     10,070  
  Diluted   10,119     10,072  
     
 
CONSOLIDATED BALANCE SHEETS
SELECTED FINANCIAL DATA
In thousands
     
  June 30, 2019  
  (Unaudited) March 31, 2019
Cash and cash equivalents $   3,467   $   143  
Accounts receivable, net of allowances     12,471       17,772  
Inventories     20,449       19,534  
Total current assets     37,523       38,679  
Operating lease right of use assets     1,600       -   
Finite-lived intangible assets - net     6,218       6,432  
Goodwill     7,125       7,125  
Total assets $   54,995   $   54,779  
     
Operating lease liabilities, current     933       -   
Total current liabilities     11,622       7,711  
Long-term debt     -        4,486  
Operating lease liabilities, noncurrent     747       -   
     
Shareholders' equity     41,705       41,388  
Total liabilities and shareholders' equity $   54,995   $   54,779  

Source: Crown Crafts, Inc.

This article appears in: News Headlines

Referenced Stocks: CRWS










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