Crown Crafts Announces Financial Results for First Quarter Fiscal 2025
14 Agosto 2024 - 3:39PM
Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported
results for the first quarter of fiscal year 2025, which ended June
30, 2024.
First Quarter Summary
- Net sales of $16.2 million,
compared with $17.1 million in the prior-year quarter
- Gross profit was 24.5% of net sales
in the current quarter, 27.7% in the prior-year quarter
- Net loss of $322,000, or $0.03 per
share
- Net loss includes expenses of
approximately $244,000 ($193,000 after tax, or $0.02 per share)
associated with the closure of the Company’s subsidiary in the
United Kingdom, and approximately $116,000 ($90,000 after tax, or
$0.01 per share) of costs associated with the acquisition of Baby
Boom Consumer Products (“Baby Boom”)
Subsequent to the End of First
Quarter
- Declared quarterly dividend of $0.08 per share of Series A
common stock
“Our first quarter fiscal 2025 results were
impacted by the prolonged inflationary pressures facing consumers
limiting their discretionary income and certain nonroutine costs
that resulted in a small loss for the quarter. We are encouraged by
the performance of our bedding segment and we believe that our
future holds many exciting opportunities,” said Olivia Elliott,
President and Chief Executive Officer. “Our acquisition of
Manhattan Toy expanded our distribution channels, and we continue
to receive positive feedback on the new product development by
Manhattan Toy. We also are very excited about our recent
acquisition of Baby Boom, which enhances our presence in the
toddler bedding segment and expands our product lineup with the
addition of diaper bags. Baby Boom currently licenses some of the
most popular brands and we expect the Baby Boom acquisition to be
immediately accretive to earnings. Overall, we will continue our
efforts to manage our cost structure in the near-term and to
position our brands to capitalize when macroeconomic conditions
improve.”
First Quarter Fiscal 2025
Results
Net sales for the first quarter of fiscal 2025
were $16.2 million, compared with $17.1 million in the prior-year
quarter. The decline in sales is primarily due to a major retailer
reducing inventory levels and the loss of a program at another
major retailer.
Gross profit was 24.5% of net sales, compared
with 27.7% in the first quarter of 2024. The reduction in gross
profit relates to the timing of purchases, causing an unfavorable
change in the absorption of costs into inventory. Marketing and
administrative expenses were $4.3 million, compared with $4.0
million in the first quarter of the prior year. Fiscal 2025
includes $244,000 associated with the closure of the Company’s
subsidiary in the United Kingdom and $116,000 in costs associated
with the Baby Boom acquisition. Net loss for the quarter was
$322,000, or $0.03 per share, compared with net income of $366,000,
or $0.04 per diluted share 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, 2024 to stockholders of record at the close of business
on September 13, 2024.
Conference Call
The Company will host a teleconference at 8:00
a.m. Central Daylight Time on Thursday, August 15, 2024,
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 join the Crown Crafts 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 November
15, 2024. To access the replay, dial (877) 344-7529 in the United
States or (412) 317-0088 from international locations and enter
replay access code 1632569.
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, toys and disposable
products. The Company operates through its three-wholly owned
subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc. and
Manhattan Toy Europe Limited, 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. For more information,
visit the Company’s website at 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
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:
Craig J. DemarestVice President and Chief Financial Officer
(225) 647-9118cdemarest@crowncrafts.com
Investor Relations:
Three Part AdvisorsSteven Hooser, Partner, or John Beisler,
Managing Director(817) 310-8776
CROWN CRAFTS, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOMESELECTED FINANCIAL DATAIn thousands, except percentages and
per share amounts(Unaudited) |
|
|
|
|
|
|
Three-Month Periods Ended |
|
|
|
June 30, 2024 |
|
July 2, 2023 |
|
|
Net sales |
|
$ |
16,212 |
|
$ |
17,123 |
|
|
Gross profit |
|
|
3,966 |
|
|
4,742 |
|
|
Gross profit percentage |
|
|
24.5 |
% |
|
27.7 |
% |
|
Marketing and administrative expenses |
|
|
4,263 |
|
|
4,046 |
|
|
Income (loss) from operations |
|
|
(297 |
) |
|
696 |
|
|
Income (loss) before income tax expense |
|
|
(386 |
) |
|
506 |
|
|
Income tax (benefit) expense |
|
|
(64 |
) |
|
140 |
|
|
Net income (loss) |
|
|
(322 |
) |
|
366 |
|
|
Basic earnings (loss) per share |
|
$ |
(0.03 |
) |
$ |
0.04 |
|
|
Diluted earnings (loss) per share |
|
$ |
(0.03 |
) |
$ |
0.04 |
|
|
|
|
|
|
|
Weighted Average Shares Outstanding: |
|
|
|
|
Basic |
|
|
10,311 |
|
|
10,154 |
|
|
Diluted |
|
|
10,311 |
|
|
10,163 |
|
|
CONSOLIDATED BALANCE SHEETSSELECTED FINANCIAL DATAIn thousands |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
June 30, 2024 |
|
March 31, 2024 |
|
Cash and cash equivalents |
|
$ |
1,103 |
|
$ |
829 |
|
|
Accounts receivable, net of allowances |
|
|
15,822 |
|
|
22,403 |
|
|
Inventories |
|
|
30,610 |
|
|
29,709 |
|
|
Total current assets |
|
|
49,037 |
|
|
54,824 |
|
|
Operating lease right of use assets |
|
|
14,071 |
|
|
14,949 |
|
|
Finite-lived intangible assets - net |
|
|
2,724 |
|
|
2,872 |
|
|
Goodwill |
|
|
7,926 |
|
|
7,926 |
|
|
Total assets |
|
$ |
76,359 |
|
$ |
82,706 |
|
|
|
|
|
|
|
Operating lease liabilities, current |
|
|
3,663 |
|
|
3,587 |
|
|
Total current liabilities |
|
|
12,618 |
|
|
10,461 |
|
|
Long-term debt |
|
|
1,466 |
|
|
8,112 |
|
|
Operating lease liabilities, noncurrent |
|
|
11,217 |
|
|
12,138 |
|
|
|
|
|
|
|
Shareholders' equity |
|
|
50,656 |
|
|
51,601 |
|
|
Total liabilities and shareholders' equity |
|
$ |
76,359 |
|
$ |
82,706 |
|
|
|
|
|
|
|
Crown Crafts (NASDAQ:CRWS)
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Crown Crafts (NASDAQ:CRWS)
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