Crown Crafts Reports Improved Results for Fiscal 2014 Fourth Quarter and Full Year - Net income increases 9.4% for the fourth quarter and 12.9% for the full year

- Full-year net income at highest level since fiscal 2002, excluding certain one-time effects in 2006 and 2007*

- Net sales up 1.7% for the quarter and 3.7% for the year

- Improved performance reflects strong product lines and business strategy

GONZALES, La., June 18, 2014 /PRNewswire/ -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) today reported results for the fourth quarter and full fiscal year ended March 30, 2014.

"On the heels of a strong prior year, we once again improved our performance as both net income and net sales increased in fiscal year 2014, even though we continue to operate in a challenging retail environment," said E. Randall Chestnut, Chairman, President and Chief Executive Officer.  "Our steadily improving performance reflects the continued strength of our business strategy and the hard work and talents of our entire team.  Operationally, we are committed to continuous improvement and controlling costs wherever we can.  Our financial position is strong, and we remain debt-free."

Financial Results

Net income for the fourth quarter of fiscal 2014 increased $174,000, or 9.4%, to $2.0 million, or $0.21 per diluted share, on net sales of $24.0 million, compared with net income of $1.9 million, or $0.19 per diluted share, on net sales of $23.6 million for the fourth quarter of fiscal 2013.  Gross margin improved to 26.5% of net sales for the quarter, compared with 26.0% for the prior-year period.

Net income for full-year fiscal 2014 increased 12.9% to $5.8 million, or $0.59 per diluted share, on net sales of $81.3 million, compared with net income of $5.1 million, or $0.52 per diluted share, on net sales of $78.4 million for fiscal 2013.  Gross margin for the full year improved to 27.7% of net sales, compared with 25.2% for the prior-year period.  The Company's net income, both in dollars and as a percentage of net sales, reached its highest level in more than a decade, excluding certain one-time effects in fiscal 2006 and 2007*.

(*) Adjusted net income for fiscal years 2007 and 2006 are non-GAAP financial measures.  Reported net income for fiscal years 2007 and 2006 was $7.6 million and $8.0 million, respectively.  Excluding an after-tax gain on debt restructuring of $3.7 million in fiscal 2007 and a $4.2 million income tax benefit in fiscal 2006, adjusted net income for fiscal years 2007 and 2006 was $3.9 million and $3.8 million, respectively.

Quarterly Cash Dividend

As announced on May 13, 2014, 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 3, 2014 to shareholders of record at the close of business on June 13, 2014.  "We are pleased that our strong financial position and business growth have allowed us to provide what we believe to be an attractive return to shareholders through a combination of dividends and share price appreciation," 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 (877) 317-6789 and refer to conference number 10045664. 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 Daylight Time on June 26, 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 10045664.

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.

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, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
SELECTED FINANCIAL DATA

In thousands, except percentages and per share data











Three-Month Period Ended


Fiscal Year Ended



March 30, 2014

March 31, 2013


March 30, 2014

March 31, 2013

Net sales


$                 24,011

$                 23,611


$                 81,294

$                 78,416

Gross profit


6,359

6,145


22,534

19,767

Gross profit percentage


26.5%

26.0%


27.7%

25.2%

Income from operations


3,350

3,010


9,378

8,093

Income before income tax expense


3,340

2,911


9,346

8,018

Income tax expense


1,312

1,057


3,575

2,907

Net income


2,028

1,854


5,771

5,111

Basic earnings per share


$                     0.21

$                     0.19


$                     0.59

$                     0.52

Diluted earnings per share


$                     0.21

$                     0.19


$                     0.59

$                     0.52








Weighted Average Shares Outstanding:







   Basic


9,859

9,828


9,848

9,786

   Diluted


9,872

9,828


9,858

9,786

 


CONSOLIDATED BALANCE SHEETS
SELECTED FINANCIAL DATA

In thousands




March 30, 2014

March 31, 2013

Cash and cash equivalents


$                      560

$                      340

Accounts receivable, net of allowances


21,712

21,724

Inventories


13,607

10,930

Total current assets


38,069

35,227

Finite-lived intangible assets - net


5,248

5,990

Goodwill


1,126

1,126

Total assets


$                 46,215

$                 44,163





Total current liabilities


10,298

11,351





Shareholders' equity


35,917

32,812

Total liabilities and shareholders' equity


$                 46,215

$                 44,163

 

SOURCE Crown Crafts, Inc.



RELATED LINKS
http://www.crowncrafts.com

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