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8-K - FORM 8-K - CROWN CRAFTS INCcrws20140203_8k.htm

Exhibit 99.1

 

 

For immediate release 

 February 12, 2014

 

Crown Crafts Reports Results for Third Quarter of Fiscal 2014

 

 

Net income up 10.9% for the quarter and 15.0% for the nine-month period

 

Board declares quarterly cash dividend of $0.08 per share

 

Gonzales, Louisiana – Crown Crafts, Inc. (NASDAQ-CM: CRWS) today reported results for the third quarter of fiscal year 2014, which ended December 29, 2013.

 

“We continue to demonstrate steady year-over-year improvement in sales, gross profit and net income, despite the challenging retail environment,” said E. Randall Chestnut, Chairman, President and Chief Executive Officer. “This marks the 34th consecutive quarter that the Company has shown a profit, excluding goodwill write-offs. We are pleased with this performance, which has been driven by the strength of our products, the soundness of our strategy and our ability to endure the ups and downs of the marketplace for more than eight years. We remain debt-free, our balance sheet remains strong, and we will continue to maintain tight control over costs.”

 

 

Financial Results

 

Net income for the third quarter of fiscal 2014 increased to $1.8 million, or $0.18 per diluted share, on net sales of $20.6 million, compared with net income of $1.6 million, or $0.16 per diluted share, on net sales of $20.1 million for the third quarter of fiscal year 2013. Gross margin improved to 28.9% of net sales for the quarter, compared with 26.3% for the prior-year period.

 

For the nine-month period, net income increased to $3.7 million, or $0.38 per diluted share, on net sales of $57.3 million, compared with net income of $3.3 million, or $0.33 per diluted share, on net sales of $54.8 million for the first nine months of fiscal year 2013. Gross margin for the nine-month period improved to 28.2% of net sales, compared with 24.9% for the prior-year period.

 

 

916 S. Burnside Avenue * PO Box 1028 * Gonzales, LA 70707-1028 * (225) 647-9100 * Fax (225) 647-9104

 
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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 April 4, 2014 to shareholders of record at the close of business on March 14, 2014. “Our Board continues to demonstrate its commitment to returning value to shareholders, and we are pleased to declare our 17th consecutive quarterly dividend. This reflects the Board’s confidence in the financial strength of our business and our prospects for the future,” 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 (877) 317-6789 and refer to conference number 10039107. 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 20, 2014. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations and refer to conference number 10039107.

 

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.

 

 
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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

 

 
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CROWN CRAFTS, INC. AND SUBSIDIARIES

CONDENSED 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 29, 2013

   

December 30, 2012

   

December 29, 2013

   

December 30, 2012

 

Net sales

  $ 20,619     $ 20,070     $ 57,283     $ 54,805  

Gross profit

    5,954       5,282       16,175       13,621  

Gross profit percentage

    28.9 %     26.3 %     28.2 %     24.9 %

Income from operations

    2,859       2,503       6,028       5,083  

Income before income tax expense

    2,869       2,531       6,006       5,106  

Income tax expense

    1,090       927       2,263       1,850  

Net income

    1,779       1,604       3,743       3,256  

Basic earnings per share

  $ 0.18     $ 0.16     $ 0.38     $ 0.33  

Diluted earnings per share

  $ 0.18     $ 0.16     $ 0.38     $ 0.33  
                                 

Weighted Average Shares Outstanding:

                               

Basic

    9,859       9,816       9,845       9,772  

Diluted

    9,877       9,816       9,858       9,772  

  

 

CONDENSED CONSOLIDATED BALANCE SHEETS

SELECTED FINANCIAL DATA

In thousands

 

   

December 29, 2013

   

March 31, 2013

 

Cash and cash equivalents

  $ 3,771     $ 340  

Accounts receivable, net of allowances

    17,274       21,724  

Inventories

    17,240       10,930  

Total current assets

    41,152       35,227  

Finite-lived intangible assets - net

    5,443       5,990  

Goodwill

    1,126       1,126  

Total assets

  $ 49,400     $ 44,163  
                 

Total current liabilities

    14,815       11,351  
                 

Shareholders’ equity

    34,585       32,812  

Total liabilities and shareholders’ equity

  $ 49,400     $ 44,163  
 

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